1. Hyperion EPM 101:
Fast Track Your
Financial Close
Presented by: Timothy J. Simkiss, CPA
October 18, 2013

2. Agenda
BIZTECH SUMMARY
?
THE TYPICAL FINANCIAL CLOSE CYCLE
BEST PRACTICES OF WORLD CLASS FINANCE
DEPARTMENTS
ORACLE HYPERION EPM TOOLS
1
2
3
4
Q & A SESSION5

3. BIZTECH
SUMMARY

4. PROFESSIONAL SERVICES FIRM
– Professional Services firm focused on Oracle applications and technology
– Oracle Platinum Partner – Highest Level of Certification
– Over 400 successful Oracle implementations over the past 15 years
ORACLE SOLUTIONS
• Oracle Applications
• Oracle Technology
• Business Intelligence
• Hyperion EPM
• Managed Services
INDUSTRIES
• Financial
• Professional
• Business Services
• Communications
• Manufacturing
• Distribution
• Public Sector
• Government
• Healthcare
• Life Sciences
About BizTech
www.biztech.com

5. SIMKISS
– Former Corporate Controller of a
Multi-million Dollar Organization
– Director of Accounting/FP&A at Several
Companies
– 15 years of Financial & Operational
Accounting Experience
timsimkiss@biztech.com
267-454-3784
TIMOTHY
Hyperion Practice Lead,
CPA

6. THE TYPICAL
FINANCIAL CLOSE
CYCLE

7. Financial Close Process
Corporate
Financial
Statements
Corporate
Consolidation
General Ledger System
(Division / Affiliate)
Manual
Entries
Personal
Computing
Software
Enterprise
or Local
Transactional
Systems
Source Data
Reports
Reports
Reports

8. Typical Budgeting Model
Excel Templates
Are Prepped
Templates
Instructions Are
Mailed
Templates
Submitted to
FPA
Data is
Consolidated,
Reviewed &
Audited
FPA team Department
Heads
Department
Heads
FPA team
Budget is submitted, reviewed
& process begins again.

9. 9
1. Complicated Consolidations
• Reviewing, matching, reconciling and accounting for multi-entity, multi-
currency intercompany transactions
2. Stringent Regulations
• GAAP (Generally Accepted Accounting Standards)
• IFRS (International Financial Accounting Standards)
3. Heightened Reporting Crunch
• Shrinking Deadlines
• XBRL Requirements
4. Unreliable Spreadsheets
• Error Prone
• Labor Intensive
5. Disconnected Departments
TOP FINANCIAL CLOSE ISSUES

10. Consolidation At-a-Glance
Collect Data Calculate & Adjust Report
• Gather from multiple &
disparate applications
• Store data in a centralized
repository
• Generate financial
statements, managerial
reports, and perform ad
hoc analysis
• Apply FASB and IFRS
consolidation rules
• Perform currency
translation & aggregation

11. Different Accounting Standards
• Most US companies with international subsidiaries are required to account for this
activity per the standards of GAAP (Generally Accepted Accounting Standards).
• However, International Financial Accounting Standards (IFRS) will be required
adoption by US Companies by 2014 unless the SEC decides to delay implementation
again (they just might!)
Similarities
Approach
(Some
Examples)
IFRS US
GAAP
Revenue
Recognition  
Fair Market
(e.g. AR or
Inventory
Valuation)
 
Detailed
Disclosure  
Segment
Reporting  
Chart of
Accounts Not
Mandated
 
Distinction
Between Tax
and External
Reporting
 
Differences
Approach
(Some Examples)
IFRS US
GAAP
Fair Market
Revaluation
Fixed Assets
& Investments
Only
Certain
Fixed
Assets
Extraordinary
Items
None Rare
Consolidation Control 2 Models
Joint Ventures Proportional
OK
Only
Equity
“Development” Capitalized Expensed
Fixed Assets Components Unitary
Leasing Financing Cap vs.
Op
Inventory No LIFO LIFO OK
Impairment 1 Step,
Reversible
2 Step,
No
Reversal

12. The Reporting Crunch

13. UNRELIABLE
SPREADSHEETS
z
80%
STILL USE
SPREADSHEETS
• Error Prone
• Non-Collaborative
• Maintenance Intensive
• Fragile, Easy to Break
• Little Centralized Control
• Poor Data Integrity
(Audit trails)
• Unmanageable
consolidation
• Lack of Security
Issues that Arise:

14. DISCONNECTED
PROCESSES
Time – cycles take too long,
missed opportunities and
obsolete plans
Quality – data integrity,
lack of standardization and
communication
Flexibility – lack of
responsiveness to changes
Cost – many wasted
resources, questionable
benefits
FP&A
Senior
Management
Annual Plan
& Forecast
Revenue &
Cost Models
M&A
Departmental
Plans
Headcount
Plans
Treasury
Plans
Long-Term
Planning
Issues that Arise:

15. Common Financial Dept vs.
World Class Depts.
 Processes focused on
analysis & value addition
 Planning is a communication
 Company plan is owned
used by all operating mgmt
 Continuous planning is
responsive to market
 Mgmt is empowered &
performs optimally
 Strategic initiatives funded
separately for day-to-day
business expenses
World Class Depts.Common Depts.
 Time consumed by planning
 Future plans, unclear goals
and mission are not aligned
 “Finance” owns the plan
 Process and cycle not linked
to the business
 Spreadsheets and data
stores are fragmented
 Metrics are not reflective of
strategies
 Managers mange around
plans
 No funding in resource plan for
strategic initiatives

16. BEST PRACTICES
OF WORLD CLASS
FINANCE DEPARTMENTS

17. • World-class finance organizations operate at nearly half the annual cost of typical
companies and have less than half the staff.
• At the same time, these finance organizations are dramatically more effective than
their peers, are better at strategic business support, and drive improved bottom line
results for their companies while reducing close time by 50 percent!
• World-class finance organizations have reduced costs markedly (40%), while the
average finance organization has achieved only a cost19% reduction over the past 8
years. The efficiency gap translates into an annual cost savings of nearly $140
million for a typical Global 1000 company (with $26.38 billion in revenue).
Source: The Hackett Group, 2010 survey

18. Run models based
on key strategies
Set targets
Seed targets to
annual
operating plan
Start annual
process
Update strategic
plan with latest
forecast
Evaluate resource
and capital
requirements
Long-term strategic
plan
Annual
budget / plan
Validate
operational
feasibility
Evaluate
workforce
and capital
Monthly /
rolling
forecast
Update long-
term
strategic
plan
World Class Enterprise Planning
Assess and Manage
Risk
Validate operational
feasibility to
financial plan
Update forecast
with latest budget
and actuals
A world class budget process utilizing the right tools can take a few weeks.
However, at many companies, the budget process can take months.

19. 1. Make full use of automation and utilize key metrics to gauge
performance
2. Establish deadlines and use on-line checklists
3. Delegate responsibilities where possible
4. Prepare results and ensure visibility management
5. Eliminate redundancies and paper chasing (outsourcing, shared
services, third party providers)
6. Close sub-ledgers on day one (i.e. a soft close on payables,
receivables and fixed assets)
7. Post recurring journal entries prior to month end (day -1)
8. Reforecast monthly and provide realistic updates
9. Encourage suggestions and improvements to existing processes
10.Document policies and procedures
TOP 10 BEST PRACTICES OF WORLD
CLASS FINANCE DEPARTMENTS

20. Sample KPI’s

21. Sample Checklist
Client name Summary MonthEndClose Schedule-
Close Activity/Tasks # March-13 Day1 Day2 Day3 Day4 Day5 Day6 Day7 Day8 Day9 Day10
Process/Module Weekly Activities
1 EnterAP Invoices daily
2 Create Accountingdaily/weekly
3 Validate AP Data
4 Initiate and complete cash transactions
5 Conductweekly conf call with Controllers
6 Weekly results due by 9amMonday morning
Process/Module Close AP
1 Complete All Transactions forthe Period BeingClosed 4/1/13
2 Run the Payables AutoApproval Process forAll Invoices /
Invoice Batches 4/2/13
3 Run Payables AccountingProcess and transfertransactions to
GL 4/2/13
4 Prepare Accruals 4/3/13
5 Reconcile AP with GL 4/4/13
6 Close the module (softand hard close) 4/1/13 4/5/13
Process/Module AR Module
1 Reconcile Receipts to Bank StatementActivity forthe Period 4/5/13
2 Reconcile the General LedgerTransferProcess 4/6/13
3 Reconcile ARAgingwith GL 4/7/13
4 Close the module (softand hard close) 4/1/2013 4/7/13
Process/Module FixedAssets
1 Run Mass additions program 4/3/13
2 Validate the Gross fixed assetvalue 4/4/13
3 Run depreciation 4/4/13
4 Validate depreciation 4/4/13
5 Close the module (softand hard close) 4/1/2013 4/5/13
Subsidiary Name
Daily
CalendarDay

22. Sample Workflow and Status
Workflow approval process
Key Metrics and Dashboards

23. Sample Policy

24. HYPERION EPM
TOOLS
WORLD CLASS FINANCE
DEPARTMENTS & THEIR
TOOLS

25. ORACLE HYPERION EPM
OVERVIEW

26. FDM/ODI Integration tools
SOURCE
SYSTEMS
DATA
PREPARATION
SERVER
ORACLE EPM
SYSTEMS
 Excel
 Other ERP
Systems
 EBS G/L
 Flat files
 ETL
 Other
 Data cleansing &
transformation
 Task scheduling
 Text & document
archive
 Audit review
 Data staging
 Prepackaged
integration
 Data loading
including
supplemental
data and line
item detail
 Dimensional
mapping
verification to
corporate COA
 Process
management
 Hyperion Financial
Management
 Hyperion Planning
 Hyperion Essbase
 Hyperion
Enterprise
 Data Marts
GUIDED WORKFLOW USER INTERFACE
EPM Adapters

27. Hyperion Planning
FEATURES
• Strategic Planning
• Forecasting and Modeling &
Simulation
• What-if Analysis
• Excel Integration and full Enterprise
Collaboration
• Currency conversion feature for
multi-currency applications
• Streamlines and improves the Budget
process
• Ensures Speed & accuracy
• Finance owned tool
• Align finance and operations
• Accountability
• Visibility to past, current and future
business performance
BENEFITS
WORLD CLASS
Planning & Budgeting
Applications in the World
#1

28. Hyperion Essbase
FEATURES
• Essbase or "Extended Spread Sheet
dataBASE“, is a 3-D Spreadsheet
• Addresses scalability issues and
allows deep dives into data in real
time.
• Defines the “by’s” and “where’s” of
the company
• Powers the Planning Application as
well as its standing alone capabilities
• One Version of the Truth
• Speed-of-thought analysis for
thousands of concurrent users
• Scalable to enterprise-level user base
• Premium Performance & Optimized
Storage
BENEFITS

29. Hyperion Financial
ManagementFEATURES
• Multi-Currency Capability
• Multi-Dimensionality Features
• Automates Intercompany Accounting
• Integrates Data from most GL
Systems.
• Excel Integration adapts for user
comfort with spreadsheets
• Web interface, allowing for real time
consolidation
• Speed & accuracy
• Finance owned tool
• Align entities and divisions
• Increased Visibility and Accountability
• Out of the box features improve
implementation time and ROI
BENEFITS
WORLD CLASS
Financial Reporting
Consolidation & Analysis Tool
#1

30. Financial Close
ManagementFEATURES
• Workflow solution manage the entire
close process
• Easily illustrates the current status of
the close
• Automates checklists and Account
Reconciliation process
• Highlights which tasks are at risk or
behind schedule
 Finance owned
 Central dashboard enables:
 Process monitoring
 Immediate action on errors
 Encourages continuous improvement
to the close process
BENEFITS

31. Financial Disclosure
ManagementFEATURES
• Automates and manages the SEC and
other regulatory reporting process
• Ensures data accuracy via embedded
regulatory validation rules
• Offers a variety of publishing formats
including XBRL, iXBRL, EDGAR HTML
and PDF
• Allows multiple users to work together
on different report sections
 Easy regulatory reporting with data
quality assurance
 Deep integration with Oracle Hyperion
Financial Management, Oracle
Hyperion Planning, and Oracle
Essbase
 Best in class document management
BENEFITS

32. SUMMARY
AUDIENCE Q&A