This document discusses best practices for configuring and implementing a cash flow statement framework in Oracle Hyperion Financial Management (HFM). It provides an overview of key concepts like dimension configuration, data loading and mapping, calculations, and reporting. The presentation covers the indirect cash flow method and how the framework facilitates translation and eliminations at low levels.

2. How do I love Cash
Flow? Let me count the
ways…
Geordan Drummond

3. Agenda
• Introductions
• Framework Recap
• Dimension configuration
• Data loading and mapping
• Data input
• Calculations
• Reporting
• Q&A

4. Introductions
• Customer – Lincoln Financial Group
• Enterprise Administrator
• HFM Administrator
• Vendor – Hyperion / Oracle
• HFM Consultant
• Partner – Alithya
• Consultant (Consolidation, Account Recs, Tax, Reporting)
• Close and Consolidation Product Manager
• Financial Close and Consolidation certified
• Narrative Reporting certified
• Oracle ACE

5. Recap of the Cash Flow Framework

6. Recap of the FCC Cash Flow framework
• This presentation covers the Indirect Method, although
Direct Method is also possible
• Main concepts:
• Instead of picking and choosing selected items, the entire Balance
Sheet is considered for the statement
• The classification of activity in the Balance Sheet is intrinsic to the
generation of the statement
• Adjustments can be made for additional detail
• The change in Cash for the period is the inverse of the net Balance
Sheet activity excluding Cash
• All activity is recorded at the lowest level of the organizational
structure, which facilitates other impacts like translation and
eliminations

7. Recap of the FCC Cash Flow framework
• Movement dimension
• Two main hierarchies are mirror images of each other
• Level 0 members are shared
• Movements hierarchy
• Rollforward structure
• Activity
• Cash Flow hierarchy
• Follows the statement presentation and groupings
• Takes signage into account (Add/Sub on members)
• Cash Change
• FX
• Cash Open/Close
• Closing Balance Variance (not for C/F but used for validation)

8. Recap of the FCC Cash Flow framework
• Account dimension – Balance
Sheet
• Primary hierarchy – Reporting
• Secondary hierarchy – Cash and
Non-Cash
• Supplemental members outside of
these hierarchies may be useful for
disclosure based rollforwards
• Custom dimensions (optional)
• Not required but sometimes helpful
• Can facilitate tracking and reporting

9. Recap of the FCC Cash Flow framework
• Translation
• No specific configuration required
• Since the activity is being input,
Movements and Cash Flow line
items are at the Average Rate
• Eliminations
• No specific configuration required
• Since the data is loaded to a
combination of the Account and
Movement, the eliminations for
the Cash Flow organically follow
from the Balance Sheet

10. Recap of the FCC Cash Flow framework
• Out of the box calculations
• Opening balance
• Closing balance (aggregation)
• FX impact
• Open balance impact
• Activity impact
• This is netted across Accounts for FX
impact on Cash line
• Opening Cash
• Closing Cash

11. Dimension Configuration

12. Dimension Configuration
• Several alternatives for creating activity
portion of Movement hierarchy
• Level of detail options:
• Use more common members
• Minimizes # of members
• Can get tedious when trying to determine if a
C/F line needs additional member or not
• Use more distinct members
• More flexible in arrangement
• Adds bulk to dimension
• At a minimum need to match C/F
statement line detail, sometimes more for
audit trail purposes

13. Dimension Configuration
• Movements grouping options:
• By Functional type/Account
• This helps organize rollforwards better
together
• Can help dynamically generate report and
form line items
• By Cash Flow section
• These are the out of the box parent
members
• Not quite as useful as the groupings already
exist in the Cash Flow hierarchy

14. Dimension Configuration
• Custom dimension
• To track adjustments across members
• Should net to zero
• For multi-dimensional items
• For example, transfers in/out
• Can simplify Movement detail
• Need to balance functionality with user
experience
• Account dimension
• Alternate groupings possible but not ideal

15. Data Loading and Mapping

16. Data Load and Mapping – G/L
• Several options for loading activity data as
part of TB dataset
• Derive mapping from Accounts
• Most common approach
• Works if there is no supporting detail available
• Map change in balance for period to a
Movement member
• Typically many-to-one mapping (e.g. multiple
A/R Accounts to one single change in A/R
Movement member)

17. Data Load and Mapping – G/L
• Map using other G/L chart field
• Typically limited to specific regions of the Balance Sheet
(e.g. Taxes)
• If not already in use, may take some time to build up a full
fiscal year’s worth of accurate data
• Data needs to be consistently populated via subsystem or
JEs in order to source it
• Will ultimately be a multidimensional map as some lines are
only based on Account

18. Data Load and Mapping – Calculate Movements
• Similar to loading from G/L
• Load life to date balances instead
of period activity to
FCCS_ClosingBalance_Input
• Configuration:
• Flag Movement members as
mappable
• Configure Movement mapping in
Account dimension instead of Data
Integration
• Enable business rule
• Be aware of potential performance
implications

19. Data Load and Mapping – Other Sources
• Leverage Subledger data
• Load secondary dataset to layer in addition to original load
• Example:
• Fixed Assets – acquisitions, disposals, depreciation, writedowns
• Will likely need additional mapping
• Best practice is to use another unique Data Source member
to keep values clean and from being overwritten
• Offset values need to be created in order to not double count
• Use additional sources
• Use 3rd party data
• Examples:
• Investments – purchases, sales, gains/losses
• Other industry-specific sources

20. Data Input

21. Data Input Approaches
• For manual adjustments not in G/L detail
there are several options
• Data Forms
• Allows for POV to be much more specific and
layout more structured
• Best practice is to limit just to input intersections
and use a report to render the full rollforward
• Smart View
• Flexible, but may end up giving users the ability
to input into intersections that are not valid
Kscope Kode Challenge Code: CASHFLOWALITHYA21

22. Data Input Approaches
• Journal Entries
• Provides audit trail, but more
cumbersome to work with
• Can use a template for standard POV
• Supplemental Data
• Allows for much more detail
• Subtotals can be automatically pushed
into the correct intersections
• Requires more overhead and
processing steps
• Balancing needs to be considered as
adjustments need to net out
ultimately

23. Configurable Calculations

24. Configurable Calculations
• Income Statement calcs
• Pull values directly from P&L to
populate rollforward items, e.g.
Amortization
• This is frequently more accurate than
the change in balance from the
Balance Sheet Account
• Insertion Point Rules
• Will run all the time, even if there is no
change to the item
• On Demand Rules
• Will only run when triggered (e.g. as part
of a form)

25. Configurable Calculations
• Balancing calculation
• Offset entered values against net change
values loaded
• This way the net Balance Sheet impact is zero
• This can be a general rule if you have one
Movement member populated per Account
• If there are multiple Movement members per
Account you will likely need to hard code the
intersections
• Better as On Demand Rule
• Additional calculations
• M&A related reclass adjustments are also
possible, depending on complexity

26. Reporting

27. Reporting – Financial Statement
• Consolidated,
comparative report
• This is the standard
presentation used for
internal and external
reporting
• Zoom option can be
added to allow for
additional detail

28. Reporting – Matrix presentation
• Put Account dimension on one
Axis, Movement on the other
• This will give you a rollforward for
the full Balance Sheet and
indicate where on the Cash Flow
the amounts are mapped to
• Captures the sum total of all
inputs (loaded, calculated, or
adjusted)
• Can be done as either structured
or ad-hoc type report

29. Reporting – Adjustments view
• Adjustments can be
tracked across multiple
Cash Flow lines
• Net adjustment is zero in
total
• This uses a Custom
dimension for the
column classifications

30. Takeaways

31. Takeaways
• Ideal approach on level of detail on Movements is to look at C/F
lines and rollforwards in tandem – more detail is always easier to
work with
• Consider a Custom dimension for adjustments if necessary, for a
clean audit trail
• Simplify your input forms and use reports to display the full R/F
• Make sure all manual inputs or adjustments net to zero, whether
by Data Source or Custom
• Leverage cross-dimensional aspect when creating reports

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