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Oracle hfm beginner's guide part i

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  • 1. http://learnhyperion.wordpress.com Oracle Hyperion Financial Management 11.1.1.3 Beginner’s Guide Part IProvided By: BISP Created By: Rupam Majumdarhttp://bispsolutions.wordpress.com Amit Sharmabisp.consulting@gmail.com BISP Teamhttp://learnhyperion.wordpress.com©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 1
  • 2. http://learnhyperion.wordpress.com Problem and Challenges Many finance executives face the daunting task of consolidating theircompany’s financial and operating results using spreadsheets that are difficult tomaintain and audit. Some are encumbered with custom reporting solutions thatdon’t scale or address global requirements, while others are dependent on generalledger-based approaches that can’t pull data from numerous transactional systemswithout significant IT support. What is needed is a single version of the truth-oneview of financial and operational results integrated from multiple systems -without delays. Why HFMPLAN + Powerful FEATURES + Design Considerations + Reporting Tools =Ø Less confusion Less timeØ Shorter closes and Transforms data into usable informationØ Viable WEB delivery mechanismsØ Process management for tight control of the review and approval processØ Data ValidationØ Currency translation to support multiple local currencies.Ø Automatic elimination for intercompany data and transactions.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 2
  • 3. http://learnhyperion.wordpress.com Hyperion Financial Management “Financial Management is a comprehensive, Web-Based application that enablesyou to manage enterprise financial information quickly and cost effectively.Financial Management delivers global data collection, financial consolidation,reporting and analysis in single highly scalable solutions.” HFM excels at:©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 3
  • 4. http://learnhyperion.wordpress.com Complex Organizational Consolidation • Multiple Transactional Currencies • Intercompany Transactions • Minority Interest • Maintaining Historical Representation of Data • Ability to handle Journals • Full Audit Trails – – Data & End User Actions • External Reporting to Stakeholders©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 4
  • 5. http://learnhyperion.wordpress.com Product ArchitectureFinancial Management uses a multitier architecture that includes a client tier, anapplication tier, and a database tier. The client tier contains the user interface. It communicates with the applicationtier. The primary function of the client tier is to display, enter, and maintain dataand to maintain metadata. The application tier contains the application, the report, and Web servers. TheWeb server enables you to access the Web-based portions of FinancialManagement. The application server contains the financial intelligence andconnections to the relational database and OLAP engine. It also contains Architectfor managing metadata. The data tier contains the relational databases for Financial Managementmetadata and source data.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 5
  • 6. http://learnhyperion.wordpress.com Financial Management OverviewFinancial Management is a powerful application that enables you to manageenterprise financial information quickly and cost effectively. You follow a typicaltask flow for a monthly financial cycle.TASK DESCRIPTIONLoad and add data To add data to your application by loading it from a file and by using data forms.Calculate After enter data, you can run calculation rules to populate calculated accounts.Adjust data After you calculate data, you can adjust the data by using journals that provide an audit trail of your adjustments.Translate and After data for individual business units is entered andconsolidate data adjusted, you can translate and consolidate the data.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 6
  • 7. http://learnhyperion.wordpress.comApprove data After data is consolidated, you can submit the data for review and approval.Lock data After you receive the approval for the submitted data, you can lock the data to prevent further modifications.Run and publish You can run reports against the approved data.financial reports With Financial Management we can able toØ Conduct in-depth analysis of key performance and operational metrics.Ø Reduce consolidation and reporting cycle by days or weeks.Ø Deliver accurate and timely reports to both internal management and external regulatory bodies.Ø Discover sources of profitability and cash flow at the company, product, brand, and customer levels.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 7
  • 8. http://learnhyperion.wordpress.com Financial Management ComponentsFinancial Management integrates application creation and management in acentralized administration environment.Ø Single sign-on—Users log on once to Workspace to access Architect, Financial Management, and the reporting tools.Ø Single console for application management and creation—Users create, manage, and deploy applications from Architect. These applications are opened in Financial Management for data retrieval and data output.Ø Centralized repository of key dimensional elements for different products.Ø Centralized console for controlling data flow between applications.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 8
  • 9. http://learnhyperion.wordpress.com Financial Consolidation, Reporting & AnalysisFinancial Management enables highly efficient collection and consolidation of datafrom diverse sources. It includes these features:• Process management for tight control of the review and approval process.• Data validation.• Currency translation to support multiple local currencies.• Automatic eliminations for intercompany transactions. Financial Management is designed for large-scale, centralized Web deployment.You can use Financial Management to consolidate data from diverse generalledger systems and locations around the globe.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 9
  • 10. http://learnhyperion.wordpress.com SEC – The U.S. Reporting StandardPrinciples-basedØ Does not replace framework requirementsØ Focus on areas of highest risk of material misstatement to financialstatementsØ Management flexibility to tailor evaluation process to specific facts andcircumstancesØ Provides guidance on supporting the assessmentØ Provides framework for evaluating deficiencies©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 10
  • 11. http://learnhyperion.wordpress.comTHE SEC WORKFLOW©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 11
  • 12. http://learnhyperion.wordpress.com 10K- 10QThe 10-K explains the companys business activities for the most recent twelve-month operating period. The 10-K, which is required to be filed with the Securitiesand Exchange Commission (SEC) within 90 days of the companys fiscal year end,typically contains more detail than an annual report, such as more thoroughoperating and financial statistics, information on legal proceedings, andmanagement compensation.Form 100Qs a quarterly version of the 10-K; however, it is less detailed andgenerally unaudited. The SEC requires publicly traded companies to file form 10-Q within 45 days of the end of each quarter, except the final quarter, in which the10-K is filed.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 12
  • 13. http://learnhyperion.wordpress.comTHE REPORT GENERATED Financial Management DimensionsDimensions describe an organization’s data and usually contain groups of relatedmembers.Examples of dimensions are Account, Entity, and Period. Financial Managementsupplies eight system-defined dimensions and enables you to populate up to fourcustom dimensions that you can apply to accounts. Dimension members arearranged in hierarchies. Upper-level members are called parent members, and amember immediately below a parent member is referred to as the child of a parentmember. All members below a parent are referred to as descendants. The bottom-level hierarchy members are called base-level-members.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 13
  • 14. http://learnhyperion.wordpress.com THE POWER OF GOOD DIMENSIONALITY©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 14
  • 15. http://learnhyperion.wordpress.com©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 15
  • 16. http://learnhyperion.wordpress.com Scenario Dimension The Scenario dimension represents a set of data, such as Budget, Actual, orForecast. For example, the Actual scenario can contain data from a general ledger,reflecting past and current business operations. The Budget scenario can containdata that reflects the targeted business operations. The Forecast scenario typicallycontains data that corresponds to predictions for upcoming periods. A Legalscenario can contain data calculated according to legal GAAP format and rules. Youcan define any number of scenarios for an application and define attributes forScenario dimension members, such as the default frequency, the default view, andzero data settings. Year Dimension The Year dimension represents the fiscal or calendar year for data. An application can contain data for more than one year. You specify a year range when you create the application and select a year from the Year dimension to process data.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 16
  • 17. http://learnhyperion.wordpress.comPeriod DimensionThe Period dimension represents time periods, such as quarters and months. Itcontains time periods and frequencies by displaying the time periods in ahierarchy. For example, if the Actual scenario maintains data on a monthly basis,generally 12 periods of data are available for this scenario in a year. FinancialManagement supports years, months, and weeks for the period dimension. It doesnot support days for the dimension.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 17
  • 18. http://learnhyperion.wordpress.comEntity DimensionThe Entity dimension represents the organizational structure of the company, suchas the management and legal reporting structures. Entities can represent divisions,subsidiaries, plants, regions, countries, legal entities, business units, departments,or any organizational unit. You can define any number of entities. The Entitydimension is the consolidation dimension of the system. Hierarchies in the Entitydimension reflect various consolidated views of the data. Various hierarchies cancorrespond to geographic consolidation, legal consolidation, or consolidation byactivity. All relationships among individual member components that exist in anorganization are stored and maintained in this dimension. Entities in anorganization are dependent, base, or parent entities. Dependent entities are ownedby other entities in the organization. Base entities are at the bottom of theorganization structure and do not own other entities. Parent entities contain one ormore dependents that report directly to them. You define attributes for Entitydimension members, such as the default currency and security class, and tospecify whether the entity allows adjustments and stores intercompany detail.Financial Management Dimensions.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 18
  • 19. http://learnhyperion.wordpress.comValue DimensionThe Value dimension represents the different types of values stored in yourapplication, and can include the input currency, parent currency, adjustments, andconsolidation detail such as proportion, elimination, and contribution detail. Forexample, the Entity Currency member stores the value for an entity in its localcurrency. The Parent Currency member stores the value for an entity translatedthe currency of its parent entity.Account DimensionThe Account dimension represents a hierarchy of natural accounts. Accounts storefinancial data for entities and scenarios in an application. Each account has a type,such as Revenue or Expense that defines its accounting behavior.You define attributes for Account dimension members, such as the account type,the number of decimal places to display, and whether the account is a calculated,consolidated, or intercompany partner account.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 19
  • 20. http://learnhyperion.wordpress.comIntercompany DimensionThe Intercompany dimension represents all intercompany balances that exist foran account. This is a reserved dimension that is used in combination with theAccount dimension and any custom dimension. Financial Management can trackand eliminate intercompany transaction details across accounts and entities. Youcan also run intercompany matching reports to view intercompany transactions.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 20
  • 21. http://learnhyperion.wordpress.comView DimensionThe View dimension represents various modes of calendar intelligence; forexample, Periodic, Year-to-Date, and Quarter-to-Date frequencies. If you set theview to Periodic, the values for each month are displayed. If you set the view toYear-to-Date or Quarter-to-Date, the cumulative values for the year or quarter aredisplayed.Custom DimensionsFour custom dimensions are available for analysis of detailed data. You can usecustom dimensions to store additional details associated with accounts, such asproducts, markets, channels, balance sheet movement, or types of elimination. Forexample, custom dimensions could include Product Line, Region, Channel, orCustomers.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 21
  • 22. http://learnhyperion.wordpress.com Dimensions You create metadata for applications by defining dimensions. Dimensionsdescribe your organization’s data. Examples of dimensions are Account, Entity,and Period. The elements that comprise a dimension are called members. Forexample, GrossMargin and TotalRevenues are members of the Accountdimension.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 22
  • 23. http://learnhyperion.wordpress.com Dimension HierarchiesMembers of a dimension are arranged in hierarchies. Upper-level members arecalled parent members, and a member immediately below a parent member isreferred to as its child. All members below a parent are referred to as descendants.The bottom-level members of the hierarchy are called base-level members. Theillustration in the slide shows a part of the dimension hierarchy of the Accountdimension. In this hierarchy, the Total Revenues member is a child of GrossMargin. Sales, Other Revenues, Salaries, Total Revenues, and Total Costs aredescendants of Gross Margin. Sales, Other Revenues, and Salaries are base-levelmembers.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 23
  • 24. http://learnhyperion.wordpress.com Dimensions and DataData is typically entered into base-level members of dimensions and not intoparent members. Values for parent-level members are aggregated from thechildren of the parent-level members. In some cases, data for base-level membersis calculated. For example, the Salaries account member might be a base-levelmember whose value is calculated based on head count and salary rate. In theillustration in the slide, the data values from the base-level members are rolled upto the parent-level members—Total Revenues and Total Costs. Data values fromTotal Revenues and Total Costs are then rolled up to their parent, Gross Margin.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 24
  • 25. http://learnhyperion.wordpress.com Financial ConsolidationConsolidation is the period–end process of combining the financial results ofseparate subsidiaries with the parent company to form a single, combinedstatement of financial results.Consolidation is the process of gathering data from descendants and aggregatingthe data to parent entities. Consolidation applying only to Entity dimension.After loading or entering data into base level entities we run a consolidation for aselected scenario or period to aggregate data throughout the organization.Steps to perform consolidation©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 25
  • 26. http://learnhyperion.wordpress.comBefore ConsolidateAfter ConsolidateWhen you consolidate an entity, the processes are required for the descendants ofthe entity run automatically. • Calculation rules are run for all descendants of the entity for the period being consolidate and for all prior periods • If the data for the children & parent entities are in different currencies the data is translated based on the exchange rate. • Intercompany transactions between entities are eliminated at their first common parent. • Data is consolidated from base level entities to parent entities.©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 26
  • 27. http://learnhyperion.wordpress.com FINANCIAL CLOSINGThe financial close process is important to a company as it is the function directlyrelated to producing company financial results for each period end. Restrictingaccess to accounting and reporting applications and establishing clear write-off andreserve policies are examples of financial close process controls. These controls canbe preventive or detective in nature.Financial Close ManagementStreamline the process of Fast Closing• Analysis of process closing (Closing Fast)• Monitoring Process• Calendar of activities• Single Task List• Automatic Workflow• Ensuring Compliance• Email and calendaring©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 27
  • 28. http://learnhyperion.wordpress.com(E.g. Outlook) FCM: different visions of the processProcess Monitoring•Illustrate the current status of all process in a simple and intuitive Dashboardsand reporting the ad-hoc offer a complete and immediate understanding in realtime closing process• Automatically update the states tasks assigned to the process• Highlights that the tasks are risk or delay• Encourage users to improve closing processActive Financial Close Calendar• Detail all the tasks necessary the closure process accountant• Provides multiple views of workflow process Calendar Task list Gantt• Customizable for each userTask Management• Assignment of tasks in most types of function of different processes Milestonetasks• Access and use for each user• Integrates with tasklist systems EPM and EBS (eg AR sub ledger close to GL)• Enables automation of processes complex• Supports management hierarchies processes, dependencies and associations• Activities can be incorporated Systems email / calendar (MS Outlook, others)©Business Intelligence Solution Providers learnhyperion.wordpress.com aloo_a2@yahoo.com 28