Transform Data to Insight

Transforming Data into Financial Insight
with Workday and KPMG

Transforming Data into Financial Insight with
Workday and KPMG
Looking Forward with Workday is a webinar series designed to give you insight
into how your organization can do more with Workday. This series will share how we
support how you manage your people and your business. Topics will include solution
strategies and roadmaps, specific use cases, live demos, and customer stories.

This presentation may contain forward-looking statements for which there are risks, uncertainties, and
assumptions. If the risks materialize or assumptions prove incorrect, Workday’s business results and directions
could differ materially from results implied by the forward-looking statements. Forward-looking statements include
any statements regarding strategies or plans for future operations; any statements concerning new features,
enhancements or upgrades to our existing applications or plans for future applications; and any statements of
belief. Further information on risks that could affect Workday’s results is included in our filings with the Securities
and Exchange Commission which are available on the Workday investor relations
webpage: www.workday.com/company/investor_relations.php
Workday assumes no obligation for and does not intend to update any forward-looking statements. Any
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Workday’s discretion and may not be delivered as planned or at all.
Customers who purchase Workday, Inc. services should make their purchase decisions upon services, features,
and functions that are currently available.
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Help Slides Media
Player
Resource
List
Q&A
Housekeeping Items
Speakers Survey
Housekeeping Items

Workday Confidential
Brian Anderson
Principal
KPMG US
Samantha Buchner
Solution Marketing Director
Workday
Michael Bambo
Director
KPMG US
Thomas Kelley
Principal Financial Solution
Consultant
Workday

Agenda
01 The Finance Hub
02 Workday Intelligent Data Foundation
03 Demo
04 Q&A

8
© 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by
guarantee. All rights reserved.
What is a Finance Hub?
GeneralLedger & ERP
Financial Reports
Management Reports
Custom Apps
Spreadsheets
Transaction Systems
Functional
Applications
Finance Hub
Data
Validations
Mapping
Rules
Calculations
Accounting
Rules
Audit &
Reconciliation
Source System
integration
Transactional,
business event, &
balance data from
disparate source
systems
Standardization
& Validation
Source system
records standardized
& undergo rules-
driven validations
Accounting Rules
Engine
Transactions
generate accounting
entries based on
preconfigured rules
GL & ERP
Integration
Applying applicable
reference data and
dynamically close
the books on a
demand basis
Analysis &
Reporting
Develop data-driven
analytical insights,
based on business
dimensions &
transaction attributes
A Finance hub solution provides a robust accounting engine that centralizes the organization's accounting rules, integrates and aligns data from
disparate source systems, and automates the generation of accurate, detailed, and auditable accounting journal entries
Regulatory Reports

9
Where does Finance Hub fit within the architecture?
The following outlines where the Finance Hub fits within the high-level Finance architecture and which upstream/downstream systems interact
throughout:

10
What is driving interest in a Finance Hub?
Trends driving adoption in a Finance hub include:
• Rapid acceleration of leap frogging from legacy systems to maturing cloud-based ERP platforms
• Opportunity for finance organizations to drive transformational initiatives and manage cost pressure created
by efforts to modernize platforms
• Shift to more frequent reporting and analytic cycles (i.e, monthly/quarterly to daily) driven by regulatory and
management reporting
• Desire to have more integrated financial, regulatory and management reporting (e.g., customer and product
profitability)
• Move to centralized business event-based accounting in order to improve ability to respond to regulatory
demands and business driven initiatives
• Increased complexity of tracing data lineage from final reports back to source environments

11
Why use a Finance Hub?
Automate critical finance
processes from source systems
through to the core GL,
eliminating error prone, time-
consuming, and manual tasks
Unlock new capabilities and
drive standardization
Integrate, validate, enrich, and standardize transaction-level data from disparate source systems
while providing clear data lineage
Automate reconciliations between GL and business transactions across multibasis accounting
Drill through from GL journal entries to underlying business transactions and source systems
Generate multi-basis accounting (i.e., US GAAP, IFRS) from a single transaction event
Extend your chart of accounts and business dimensions by using configurable data elements (e.g.,
Loan ID, Customer, etc.)
Quickly react to changing regulatory requirements
Consistent accounting treatment across disparate sources

12
What is the most appropriate methodology to
utilize?The Finance Hub implementation can follow either an Agile approach or a traditional Waterfall approach. Typically, our
teams have deployed a “hybrid agile” approach to successfully implement an integrated Finance Hub for our clients.
What is a Hybrid Agile Delivery approach?
̶ Follows structured delivery stages that fit together with the
agile approach:
̶ Upfront scoping and final testing stages such as System
Integration Test (SIT) and User Acceptance Test (UAT)
̶ Agile sprint-based activities for parallel and iterative
stages of Design, Build & Configuration, Unit Testing, and
System Testing
Why follow the Hybrid Agile Delivery approach?
̶ Rapidly ramps up to deliver a working prototype, followed by
iterative sprints to continuously refine the design and
configuration
̶ Minimizes possible implementation risks
̶ Creates tangible outcomes throughout the implementation
̶ Involves users in key decision making along the Finance
modernization journey

13
Where can large programs go wrong?
Key risks and mitigation strategies are listed below.
31
2 4
Chart of Accounts (CoA)
Adoption
Shift to new CoA does not
provide the right foundation to
drive business transformation
and as a result, Finance user
revert back to current usage of
the chart
— Design core CoA to support the primary
financial statements for financial (SEC),
regulatory (FRB, FDIC, etc.) reporting
and the starting point for management
reporting calculations
— Approach source systems with “holistic”
strategy to capture all attribution needed
for various types of calculations, even if
they don’t end up in the GL
— Start data sourcing activities early
and use production quality data to
make sure all “edge” cases are
captured
— Allow enough time to perform
extensive functional unit testing
during the configuration of the
accounting rules – KPMG’s
approach is to have functional
consultants thoroughly testing rules,
as they are configured, to minimize
defects identified during Integration
testing and UAT
— Perform quick “validation” that planned
level of granularity in each element will
meet the intended reporting needs from
the GL
— Document clear definition of usage for
each element with examples (e.g., when
to use cost center versus project
segment)
— Establish cross functional data
governance council to manage CoA
changes, to drive consistency, and to
enforce adherence to usage
— Document change impacts early in the
project and empower change champions
throughout each business unit to assist
with transition from old to new CoA
— Create a decision criteria framework to
facilitate Finance Hub design patterns
and associated business benefits
— Ensure the right technical accounting
expertise to support automation of multi
GAAP posting
— Leverage KPMG banking event model to
providing starting point for common
asset classes (loans, mortgage,
deposits, etc.)
— Ensure availability of bank specific
source system experts to assist with
data source attribute identification and
mapping
Accounting Rule Complexity
Effort and complexity to extract
accounting rules from source
systems offsets the business value
and leads to sub-optimal design or
partial deployment of Finance Hub
Alignment of Financial,
Regulatory, and Management
Reporting
If the underlying sourcing strategy
and data architecture is only
designed to support financial
reporting, separate solutions might
be required for regulatory and
management reporting
Rework of accounting rules
Lack of accurate and complete
data from source systems during
the accounting rule configuration
phase could lead to high levels of
defects identified late in the project
schedule (requiring rework of rule
configuration)
KPMGApproach/MitigationStrategyKeyrisks

14
Is there a process taxonomy available?
The following highlights a sample of KPMG’s level three process taxonomy for the Transact to Record Process,
which complements the historical Record to Report process taxonomy.

Workday Intelligent Data Foundation

What if you could turn
business events into
accounting and insight
faster…

What are the sources of my claim,
and their associated accounting?
What are my policies by
product or sales channel?
Which policies are driving our
profits and losses?

Policy
Debit
Customer retention
Policy satisfaction
score
Policy Sales
Channel
Policy Sales Region
Policy settlement
cycle time
Car make Car model
Credit
Policy agent
Policy type
Policy management
Net promoter score
Car mileage

Deeper Insight
What are the sources of my claim,
and their associated accounting?
What are my claims by sales
category or sales channel?
What policies and claims
are driving our losses?
Claim System
(AC)
Ryan Taylor AS: AC ICS Claims
System; ED;
01/01/2019; LU:
05/24/2020,
9:35:18.199 PM
AC ICS Claims
System -
05/24/2020 20:54
(Completed)
AC ICS Product
And Channel
Mapping > > >
Revenue
Category: Auto
Products

Go beyond the limits
of traditional ERP

Accounting Rules
Engine
Business Process
Orchestration
Always on Audit
Data Transformation and Enrichment
Data Lineage and Error Handling with Drill Back
Claims
Commissions
Policies
DEBITS CREDITS
Ingest
Operational Data
Enrich
Data
Create
Accounting
Surface
Reportable Insights
Policy
Region
Customer
Retention
Policy
Type
Car
Make

Accounting Rules
Engine
Business Process
Orchestration
Always on Audit
In the Hands of Accounting and Finance

Intelligent Data Foundation
Policies
(40 systems)
Claims
(15 systems)
Treasury
(10 systems)
Commissions
(10 systems)
Workday Data Foundationzz
Workday Data Foundation
Workday Accounting Center
General
Ledger (GL)
Summarized
Journals
Detailed
Accounting
Journals
Accounting
Rules EngineIngest
and
Enrich
Reporting &
Analytics
Benchmarking
Financial Reportingand Analysis
Operational Analysis
Variance Reporting
Management Reporting
Data Lineage and Error Handling / Reporting Drill Back / Always on Audit and Controls
FinanceFront Office
IT

Why the Intelligent Data Foundation is Unique
Designed for and managed
by accounting and finance
Data enriched and
transformed into accounting
Insights powered by
one analytic engine

Accounting Center and Prism Analytics
Customers

Customer Use Cases
Insurance Lending Other
• Process Premium and Claim transactions
and automate premium (UPR) and
commission (DAC) spreads
• Create a cash subledger to bring in cash
transactions, reconcile to bank statements
and create accounting
• Generate accounting from brokerage and
gain global view of brokerage revenue,
client revenue, and support acquisitive
growth
• Process commercial lending
• Track and record loan events
throughout the lifecycle
• Capitalize operational costs into
business assets
• Payroll and production accounting
• Transform historical data and
PeopleSoft journals and vouchers
(supplier invoices)
• Ingest and create accounting from
Employee Stock Program data

Early Value
• Reduced complexity
• Automated accounting creation, and plan to
automate 70+ additional manual use cases
• Improved flexibility and scalability
• Simplified reconciliation, reduced data
volume sent to reconciliation system
• Gained greater business ownership and
control, and lowered cost of ownership
• Improved financial analysis, data lineage, &
error correction
Customer Journey
Use Case
• Process Premiums and Claims and generate financial transactions
• Includes complex mapping rules, pass through and event-based
accounting
• Needed to calculate Unearned Premium and Deferred Acquisition cost
• Needed error handling and transparent orchestration capabilities
Scope
• Unearned Premium: 30 million rows per month
• Deferred Acquisition Costs: 14 million new rows per month, 300M rows of
historical amortized data spread over the life of the policy, summarized into
40,000 rows for ease of processing
• Written Premium: 4 million rows per month
• Loss Reserve: 3 million rows per month
• Paid Loss, Recoveries: 2 million rows per month

With Workday Accounting Center, we’ve been able to retire our custom legacy accounting
hub solution and have simplified our technology environment, improved flexibility and
scalability, and provided greater business ownership and control of software to our
accounting and finance team. Now, financial data is provided to accountants using
business language, without the need for technical interpretation. Financial reporting is
done in Workday, and we’ve been able to improve the systems used for financial analysis,
data lineage, and error correction. And, we’re pleased that we’ve already reduced our cost
of ownership while also being able to introduce new capabilities faster.
Bharat Shahdadpuri, AVP, Workday Finance & Data Management

Accounting
Center
Demonstration

• Finance maintained user
interface to configure accounting
and monitor data transformation
• Validates against core FINS
worktag and reference data
• Supports complex mappings,
logic & enrichments
What is an Intelligent Data Foundation?
Workday Accounting Center and Workday Prism Analytics
• Creates & stores detailed
accounting at instrument level
(claim / policy / loan)
• Automatically reconciled and
drillable from the GL back to the
source transaction
• Stores fully balanced accounting
• Industry leading self-service
analytics & visualization tools
• Supports granular slicing and
dicing of balance sheet and P&L
• Supports product level
operational and trending reports
• Supports broker-level
productivity and performance
analytics
Central Configurable
Accounting Rules
Creates Journals from
Raw Events
Detailed Accounting and
Advanced Analytics

Turning Business Events into Insight
Ingest
Raw Business Event
Transaction Type
Txn
Type
Company Product Code Currency
Product
Family
Type Date Amount Dept Relationship Product Type Customer FICO LTV
Billing
Amount
Claim Expense 311 Acme 100005030 USD Auto New 04/04/20 15000 456 NA GAP Smith, Joe 750 92 $35000

Enrich
Generate
Accounting
Ingest
Report
Turning Business Events into Insight
Accounting Center Detailed Journal
Journal & GL Worktags Additional Attributes
Company Currency Entity Center Account GL Date
Account
Desc.
Affiliate
Class of
Business
UW Year DR CR
Txn Type
Code
Product
Type
Product
Number
Txn Date Product Channel Store Region Time Customer
Customer
State
Store
State
GMS USD 100 5001 20101 1-Feb-18
Accounts
Receivable
000 300 2010 5000 311 WIC 100005030 1-Feb-18 Marine Direct LIAB NE AM Smith, Joe NY NJ
GMS USD 100 5001 50101 1-Feb-18 Claim Exp 000 300 2010 5000 311 WIC 100005031 1-Feb-18 Marine Direct LIAB NE PM Smith, Joe NY NJ

Teresa Serrano
Global Controller
DEMO
Drillable reporting
Transparent drill to detail data
Designed for accounting
Rules maintenance by business users
Process orchestration and audit
Supporting process configuration and record audit
Insights from one source of truth
Deliver insights to varied data constituencies
Process Flow What we will see

Thank you for joining us!
Join us in these upcoming sessions:
Workday Confidential
December 1, 2020
Tuesday 10 AM PT
Workday on Workday: Best
Practices for Building a Financial
Data Hub with Workday
Financial Management and
Prism Analytics
December 8, 2020
Tuesday 10 AM PT
Belonging & Diversity: Learn
how Netflix is using Workday’s
Solutions to VIBE in their
Workplace
December 15, 2020
Tuesday 10 AM PT
Why Investing in Digital
Technologies Now Can Radically
Change Your Business
December 16, 2020
Wednesday 10 AM PT
Using Prism to Manage Your
Data Through an M&A: Learn
How Warner Bros is Using
Workday’s Prism Analytics to
Establish One Source of Truth
December 17, 2020
Thursday 9 AM PT
Unlock New Value from your
Workday Investment: Discover
the Power of Workday Extend
Apps

Transform Data to Insight

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