Oracle Hyperion

Financial
Management
 Agenda
• Introduction – The BizTech Team
• The Consolidation Process
• What is Hyperion Financial Management?
• Hyperion Financial Management Solutions
• Summary
Introduction
Quality | Results
From Many Completed Implementations
 About BizTech
• Professional Services Firm
– Professional Services firm focused on Oracle applications and
technology
– Oracle Platinum Partner – Highest Level of certification
– Specialized Pillar Partner in BI/EPM, EBS, CRM, and Core Technology
– Over 400 successful Oracle implementations over the past 15 years
– NY, PA, NJ, VA offices with Regional, Global, and International clients
– 100+ Consulting Resources
• Centers of Excellence across key solutions and industries
– Solutions: Oracle Applications, Technology, BI/EPM, and Managed
Services
– Industries: Financial, Professional, Business Services; Communications
and Media; Manufacturing; Distribution; Public Sector, Government;
Healthcare and Life Sciences
• BizTech Software Solutions : BizTech Data Integrators, BizTech Insight
Accelerators, BizTech Reporting Foundation
• Oracle License Reseller
 Award Winning Partner
 IDC and Oracle expert panel selected BizTech over Thousands of Oracle
partners, based on service delivery excellence to our clients
 Proven Oracle Experience with the full portfolio of Oracle Solutions

Oracle Titan Award

Global Implementation Partner

 Client-Centric Practice Areas
Oracle Applications Oracle Technology and Business Intelligence
- Full Portfolio of Oracle Applications Solutions - End to end service offering in BI and EPM
- Implementation, Upgrade, Migration - Fully staffed team of Data Architects/DBAs
- Since 1990 MPL6 to R12 Experience - Solid experience in RAC, HA, and HS designs
- Over 400 successful implementations - Understand full Oracle technology stack

Oracle Oracle
Applications Technology
BI/EPM

Clients

Managed Oracle
Services Software
ITO Provider
Managed Services and IT Outsourcing Oracle Software Provider
- Remote or Onsite services - Full Portfolio of Oracle License Resell
- Full portfolio of Oracle Applications and - Helps Clients Optimize License models
Technologies - BI Software for the agile enterprise
- World-Class Data Center with 24x7 Support - BizTech Data Integrators
- Instant capacity, operational focused model - BizTech Insight Accelerators
- BizTech Reporting Foundation
The Consolidation Process
 Pressure on Finance Departments
More Stringent Regulations Mergers & Acquisitions
• What can I do to accelerate • How can I ensure new acquisitions
reporting as required by statutory are quickly
regulations? integrated into my company?
• How do I improve transparency, • How can I simplify keeping my
accuracy, and auditability? books in synch with re-orgs?

Collect Data Calculate & Adjust Report

Demand for Growth

• How can I improve visibility into overall enterprise performance?
• How can I help my managers identify opportunities to improve profitability?
 Consolidation At-a-Glance
Collect Data Calculate & Adjust Report

• Gather from multiple & • Apply FASB and IFRS • Generate financial
disparate applications consolidation rules statements, managerial
• Store data in a centralized • Perform currency translation & reports, and perform ad
repository aggregation hoc analysis
 The Consolidation Process
• What is Financial Consolidation?
– Consolidation in financial accounting is a technique that summarizes a group of
companies' financial statements into one. This offers the benefit of viewing the whole
group's financial information together to see how all companies are doing combined.
– Increasingly, global organizations need to integrate data from multiple transactional
systems, transition to new international financial reporting standards, and improve their
transparency and regulatory compliance procedures.
– Companies use a variety of tools (spreadsheets, emails, pivots and queries) to identify
and summarize all business unit activity that interacting with other business units.
• This can often mean thousands of transactions, all of which must be identified, reconciled and eliminated!

• Elimination
– Intercompany elimination refers to the process for removal of transactions between
companies included in a group in the preparation of consolidated accounts.
– Intercompany transactions (sales, services, transfers) must be eliminated in the parent
financial statements otherwise a company could be “double-counting” activity.
– However, the process involves a lot of reporting and paperwork for intercompany
relationships can be quite complicated.
• Data must be reviewed, reconciled and approved before process is complete.
 Internal Control Issues
By Sub Type #
by Major Category
Documentation Policies/documentation Issues 141
Anti-Fraud Controls 15
Entity-Level & Anti-Fraud
Percentage of Internal Control Controls
Compliance Monitoring 20

Issues* by Major Category Control Environment 151

7% Application of GAAP/accounting policies 256

Financial Statement Close Financial statement close process & consolidation 120
9%
27% Process & Disclosure Intercompany accounts/reconciliation 93
Review of significant or unusual transactions 212
Change controls 25
Date protection 23
IT Controls
Infrastructure 27
Security/user access 52
Merger Issues Merger/predecessor issues 27

34% Multilocation Considerations International operations & subsidiaries 59

11%
Other Other 32
2%
Segregation of duties 76
3% Personnel Issues
1% 6% Staffing issues (levels, expertise, training) 157
Accounts payable 26
Documentation
Accounts receivable 30
Entity-level & Anti-Fraud Controls Accruals/restructuring costs 50

Financial Statement Close Process & Disclosure Contracts/loans/third-party transactions 75

Significant Account Level Employees’ benefits/pensions 38
IT Controls Inventory management 55
Merger Issues Property, equipment, leases 83
Revenue & billing 79
Multilocation Considerations
Tax issues 112
Other
* Source: The Ames Research Group (June 30, 2005); Total # Internal Control 2,034
Issues
Personnel
analysis byIssues
Ernst & Young Center for Business Knowledge
Significant Account Level
 Foreign Currency Translation
• How is Consolidation impacted by various currencies?
– Businesses may enter into transactions (sales, payments, etc.)
in multiple currencies. Each business unit translates these items
to its functional currency at an appropriate exchange rate.
– The QBU then prepares periodic reports of its position (balance
sheet) and activity (income and cash flow statements) in that
functional currency.
– Per accounting standards, before results are consolidated into
the parents GL, foreign currency amounts must be translated
(“converted”) from the subsidiary currency into the parent
currency.
– Different types of transactions must be translated at different
rates.
• P&L activity (sales, COGs, expenses) must be converted at the
AVERAGE monthly rate.
• Balance sheet activity (Cash, AR, AP) must be converted at the
ENDING monthly rate.
– When an item is settled, the difference due to exchange rate
movement in the amount accrued and the amount settled is
treated as foreign exchange gain or loss in the financials.
 Different Accounting Standards
• How can different accounting standards worldwide impact foreign currency
transactions?
• Currently, 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.
Similarities Differences
Approach IFRS US
(Some Examples)
Approach IFRS US
GAAP
(Some Fair Market Fixed Assets Only
Examples) GAAP
Revaluation & Investments Certain
Fixed
 
Revenue
Recognition Assets
Extraordinary None Rare
 
Fair Market
(e.g. AR or Items
Inventory Consolidation Control 2 Models
Valuation)
Joint Ventures Proportional Only
 
Detailed
Disclosure
OK Equity
“Development” Capitalized Expensed

 
Segment
Reporting Fixed Assets Components Unitary

Leasing Financing Cap vs.

 
Chart of
Accounts Not Op
Mandated
Inventory No LIFO LIFO OK

 
Distinction
Between Tax Impairment 1 Step, 2 Step,
and External Reversible No
Reporting Reversal
 Adopting IFRS, leaving GAAP
A function of your Dual Reporting Choices

1. Many subsidiaries will retain a GL and subsystems in compliance

with either
Hyperion
• Statutory requirements (foreign subsidiaries)
• Regulatory legislation (utilities, financial services, etc.)

2. Hyperion HFM will be the main go-between from legacy GL to

financial reporting systems.
ERP GL Multi-
GAAP Features 1. This is the most likely scenario for US companies.

3. Others will find that their existing GL is quite appropriate, but that
they have a few subsystem areas that will require adjustment.
4. Others will require that they need to do something more
ERP substantial, for example restructuring their business, up to the
Subledgers
point of reimplementing
 Complicated Consolidations
• As you can see, intercompany accounting can be a VERY complicated process!
– Due to acquisitions, intercompany activity and foreign currency accounting, getting a real
picture of the state of the total business (consolidation) can be challenging.
– Compliance with different accounting standards, various reporting and filing methods,
disparate general ledgers and multiple currencies can be an accounting and reporting
nightmare.
– Reviewing, matching, reconciling and accounting for multi-entity, multi-currency
intercompany transactions can often slow the monthly close process down by days or even
weeks.
• In fact, mid-size to larger companies often retain an entire team in the accounting department just
to do consolidations!
• Using Excel for Intercompany accounting, consolidation and translation is not the
answer.
– Excel is a great personal productivity tool but is not designed for complex calculations,
accounting for multiple lines of business and/or entities or complicated consolidations.
– Additionally, Excel spreadsheets do not lend themselves to auditing, process management,
version control and approvals.
– Companies with millions of dollars in revenue using Excel as their consolidation tool are
exposing themselves for errors, deficiencies, or material weakness in internal control.
What is Hyperion Financial Management?
 HFM - Simply the Best
FEATURES

• Multi-Currency Capability
• Multi- Dimensionality Features
• Automates Intercompany
Accounting
• Integrates Data from Most GL
Systems.
• Excel Integration
• Enterprise Collaboration
BENEFITS
 Web interface
 Speed & accuracy
Financial Reporting
 Finance owned
Consolidation and  Align entities and divisions
Analysis Tool in the  Increased Visibility and Accountability
World  Out of the box features improved ROI
 Hyperion Financial Management
• Oracle Hyperion Financial Management (HFM) is a comprehensive, Web-based
application that delivers global financial consolidation, reporting and analysis in a
single, highly scalable software solution.
• HFM utilizes today's most advanced technology, yet is built to be owned and
maintained by the enterprise's finance team.
• HFM has financial controls, workflow and best-practices built into the platform to
support:
– US GAAP and IFRS Reporting ― Sarbanes Oxley (SOX) Compliance
– Audit Trails and Activity Logs ― Intercompany Eliminations
– Foreign Exchange Translations ― XBRL Capabilities
• In addition to the powerful features provided "out of the box", HFM is also highly
configurable to support the complex elimination and allocation requirements
specific to your organization.
• HFM is a finance-owned, IT-supported system that allows your organization to
quickly make changes as conditions warrant but tracks those changes to provide
transparency and visibility for auditability.
• While HFM is a web software application, it also has an add-in with Microsoft
Office (called Smartview) which allows users to forecast or budget in Microsoft
Excel, an environment comfortable to most finance users.
 Expanded Dimensionality
Period Period

Hyperion Financial Management

Hyperion Enterprise

View View

Scenario
Category
Year

Entity
Entity
Value
Account
Account
ICP

Custom 1
Custom 2

Custom 3

Custom 4 20
 HFM Benefits
• Enable a More Efficient Process, controlled by Finance
– IT not needed for most, if any, aspects of HFM. A tool used for Finance and owned by
Finance.
– Ensures that all data is integrated and validated prior to review by management.
• Automate and improve the timing and efficiency of the month end close.
– Increased Dimensionality and Intercompany Process eliminates much of the manual matching and
reconciliation process.
– Reduce consolidation and reporting cycles by days—or even weeks—simply by eliminating
redundant data entry and the need to check and double-check actual results.
• Reduced data entry, risk of error and risk of key files located in hard drives or
spreadsheets.
– Modeling or tracking such a business via linked spreadsheets might work if conditions remained
stable, but they don’t.
– Constantly modifying a collection of spreadsheets is a particularly complicated, time-consuming
process full of workarounds and compromises—the opposite of what’s needed.
• Easier financial consolidation – no need for manual uploads, email of files or
transferring of files.
• Fast calculation performance – most calculations performed in 4 seconds or less
• Workflow feature ensures timeliness or user preparation and management review
– Email alerts to remind user of deadlines.
 Key Capabilities
Integrate, Validate, Translate, Consolidate
• Use the Financial Data Quality
Management (FDM) tool to map
and integrate from various GL’s.
• Using FDM (formerly known as
Upstream), follow the Fish
upstream to consolidate and
validate data
• Manage the workflow and
approval of the consolidation
process.
• Import Foreign Currency rates
from established sites to save
time and improve accuracy.
• Drill through and Drill back into
your source data and create
journal entries into HFM.
• Create control questions manage
sections 302 and 404 of SOX
 HFM Benefits (Cont.)
• Improve transparency and compliance while reducing costs.
– Helps reduce the cost of compliance (as stipulated by the Sarbanes-Oxley Act, electronic filing, and
other regulatory requirements) and support disclosure requirements.
– Enables companies to automatically generate SEC, XBRL friendly documents.
• Perform strategic analysis
– Spend less time on processing and more time on value-added analysis of the business including
review of performance metrics and other KPI’s.
• Deliver a single version of the truth.
– Provide a single version of the truth to support financial management and statutory reporting.
– No separate versions on different folders, networks or computers.
– Topside or adjusting entries are made in HFM.
• Easily integrates.
– HFM integrates not only with Hyperion products but also with your existing infrastructure.
• Quick implementation time maximizes a Company’s Return On Investment
– With numerous out of the box features, HFM can often be implemented and utilized in a matter of in
weeks
• Reduced Administration and stricter security.
– Owned by Finance, the Administrator is usually responsible for granting or restricting access.
HFM Platform
 Financial Data Quality Management

SOURCE
SYSTEMS GUIDED WORKFLOW USER INTERFACE

DATA
EPM
PREPARATION EPM Adapters
SYSTEMS
SERVER

• Excel • Prepackaged integration • Hyperion Financial

• Data cleansing Management
• ERP • Data loading including
and
transformation supplemental data, line • Hyperion Planning
• G/L
• Task scheduling item detail • Hyperion Essbase
• Flat files
• Text and • Dimensional mapping • Hyperion Enterprise
• ETL document verification • Data Marts
• Oracle eBus archive • Process management
• Audit review
• Data staging
 HFM Architecture
The basic FDM process includes six steps:
1. Import source data
2. Validate source data against mapping tables
3. Export source data to a target system
4. Consolidate target system data
5. Validate target system data
6. Review and validate internal financial control

Source
Systems
Hyperion Financial Management Solutions
 Drill-through/Drill back to GL

Hyperion Financial Management

Oracle EBS
Hyperion FDM

Oracle Account Analysis

and Drill-Down for both
Actual and Budget
 Hyperion Smart View

• Accounts love their Excel and

Oracle Understands this!
• HFM features Ad-Hoc Analytics
via Excel via reports or Drill
through/back
• Use MS Office to enter,
analyze and report on
subsidiary data
• MS Excel add-in allowing
access on or off-line
• Users download forms to Excel
• Manipulate data just like
the full web client
• Synchronizes to server
when ready to be updated.
 Flexible Reporting Options
Dashboards
Financial Reports •Web-based, interactive reporting and analysis tool.
• Web-based production report writer for producing highly formatted •Easy to create via drag and drop – no help needed from IT.
reports such as Financial Statements.
•Useful for Execs and Analysts alike
• Reports are easily developed and maintained by business
•Flexible “slice & dice”, Traffic lighting, Ranking/Sorting capabilities.
• Reports can combine data, graphs, text, and images .
•Can display non-financial metrics with financial data.
• Flexible output options: HTML, PDF, and hardcopy.
• Reports can be batched into books and automated to meet monthly,
quarterly, and yearly reporting requirements.

Smart View Smart Space

 Enables business users to quickly and easily connect to Hyperion •The first gadget-based user interface designed specifically for Enterprise
Planning using Microsoft Office® tools (Excel, Power Point, Word, Performance Management
Outlook) for analysis and reporting. •Consists of a set of configurable gadgets that run on the desktop
 Allows users to view, import, manipulate, distribute and share data in providing continuous access to financial, operational and performance
Microsoft Excel, Word, and PowerPoint interfaces related information.
 Reports and Dashboards can be easily incorporated into PowerPoint •Includes a secure instant messaging system for shared decision making.
presentations and Word documents. Create once and quickly refresh to
review the latest information.
 HFM, Fusion Edition
New Features

• New Equity Pick-up Module

• Phased Submissions
Enhancements
• Intercompany Transaction
Enhancements
• Oracle BI Publisher Templates for
System Reports
• Extended Analytics Creation of
Flat Files
• Extended 64 Bit Platform Support
• Drill-through to Oracle EBS
Financials via FDM
• Oracle Data Integrator Support
 Addressing Compliance Needs
SARBANES-OXLEY REQUIREMENT FINANCIAL MANAGEMENT
Section 302 – CEO/CFO must certify Submissions contain audit trail
Section 404 – Internal control report Mandatory review/approval procedures
Section 401 – Conditions for use Multiple organization hierarchies and
of non-GAAP financial measures chart of accounts
U.S. auditing standards Autonomy from transaction systems
Accelerated reporting Web solution, I/C reconciliation, journals

IAS/IFRS REQUIREMENT FINANCIAL MANAGEMENT

Global Standard, Convergence IFRS, Multi-GAAP, and local statutory
Recognition and measurement Custom dimensions; financial
intelligence, journals with audit trail
Consolidation and reporting Segment reporting, specialized currency,
inter-company, disclosures
Summary
 Summary
Why Choose Oracle Hyperion Financial Management?
• Improve
– The Financial Close Process by days or even weeks
– Consolidation and Acquisition Accounting best practices
– Turnaround time for providing Financial Results to Chief Decision Makers
• Enhance
– ROI with quick implementation time and numerous out of the box features.
– Visibility into subsidiary operating results
– Ability to analyze and gauge results through improved performance metrics
• Reduce
– Audit and compliance costs through improved transparency
– Manual Controls, processing times and data reconciliation
– Errors, data entry, control risk, reporting times, departmental overload
• Refine
– Intercompany accounting and reconciliation process
– Foreign currency transactions and translation process
– Financial Consolidation and reporting features
 Why Choose BizTech

“Every company claims they deliver quality at a good price,

why is BizTech the superior choice…”

• Oracle Platinum Partner

• Client First Philosophy
• Focused Mission
• Proven Methodology and Process Orientation
• Simple to engage and do business together
• Encompassing Ethics and Integrity
• Balanced Leadership Team
• Focused on YOUR industry area for over a decade
Choose | The Right Approach
BizTech RapidApp Methodology
 RapidApp Methodology
 BizTech leverages our proven methodology, RapidApp, on every
engagement
– Phases
 Break the project into smaller, more manageable, sections of work
 Allow for “planned pauses” & overlap
– Tasks & Actions
 Areas of concentration within a phase
 Not all will be performed on every project
– Deliverables
 Formal work products requiring review and acceptance
 “Controlling” documents
– Policies & Procedures
 Project planning, progress tracking
 Status reporting
 Project scope definition and management
 Formal acceptance of deliverables
 RapidApp Methodology
The two most critical concerns for a
successful implementation:

PROVEN EXPERIENCED
APPROACH PRACTITIONERS
Prepare Configure Test Deploy

Prepare D End User

Initial Planning Accelerator Magic
Test Scripts Training

Prepare Prepare D Setup Test/

Setup Production
Environment CRP Scripts System Testing

Define Project D Conference Room User Acceptance

Launch Project Pilots Testing Go Live!

Superuser Go/No Go Post-Go Live

Accelerator Prep
Training Decision Support

Project Mgmt, Quality Assurance, Knowledge Transfer

 RapidApp (cont.)
Phase 1: Prepare
• In the Prepare phase, our objective is to build your project mission and definition.
We will build a roadmap and framework for the entire project.
• We define the scope and terms; identify people and resources, milestones and
targets.
• We work with your project team to establish and communicate expectations for
the project and perform baseline Oracle training.
– All implementation strategies are explored and decided upon during this phase.
• We will establish the base line technical infrastructure that will be necessary to
complete the project.
– All of these elements are the basis for developing your project plan.
At the end of the prepare phase, the deliverables include:
• A definition of Scope, Objectives & Approach that will guide the project.
• A RapidApp WBS that outlines all tasks as well as a resource plan.
• A Quality Plan for all phases and deliverables.
 RapidApp (cont.)
Phase 2: Configure
• In the Configure phase, you’ll establish the boundaries of your project.
• We will work with your team to capture your functional requirements and
translate those requirements into a technical design. The technical design
becomes the foundation against which we develop the data warehouse, ETL and
dashboards.
• The conference room pilot at the end of the Configure phase will be the point at
which we validate that the develop solution matches the defined requirements.
At the conclusion of the configure phase, you will have:
A definition of Scope, Objectives & Approach that will guide the project.
• Application Functional Design specification document(s)
• Application Technical Design specification document(s)
• Conference Room Pilot Scripts that were used to validate the system
• A working non-production environment (data warehouse, ETL, dashboards
and reports)
 RapidApp (cont.)
Phase 3: Test
• You’re going live soon, and we’re helping you prepare. We’re with you to update
and configure the final system configuration.
• We’ll help you conduct system testing to ensure a smooth transition into
production.
• We’ll also help you determine a training approach for your end users, design
training material and a training environment, and conduct the training, if
requested.
At the end of the test phase, the deliverables include:
• Documented Test Scripts that you used to test the system
• A complete end user training approach ready for rollout including Training
Guides
• A fully tested, production-ready system.
.
 RapidApp (cont.)
Phase 4: Deploy
• Your Oracle solution is live. As you make the transition, we can remain with you in
a support role, helping to troubleshoot, teaching you how to maximize the value of
your new system, and identifying any new opportunities to continue with the
transformation to an e-business company.
At the end of this phase, you will have:
• A System Configuration Document
• A Production Software Infrastructure Summary
• A Deployment Plan
• Stopped doing your business processes in your legacy system.
• Moved all project support activities to your production support team.
• Trained your end users.
 RapidApp: The Value Proposition
• Allows organizations to realize immediate cost savings through an
accelerated implementation.
• Establishes a budget conscious methodology that deploys functionality to
satisfy core functional requirements.
• Promotes the selection, inclusion, and customization of additional
functionality through additional discovery after your product is
implemented.
• Facilitates a phased approach in which knowledge transfer is conducted
whereby clients assume ownership of future project phases; reducing
dependency on external services and associated costs.
• Utilizes pre-built, customizable templates (models, forms, reports and
business logic) reducing development cycles and project cost.
 ALA Delivery Resource Model
Leveraging the Architect – Lead – Associate model yields
higher productivity at lower cost, which:
• Maximizes value over traditional team approach
• Minimizes risk of single threaded SME approach

Architect The Architect designs the solution, and is

interacting with the work stream leads to
ensure implementation approach is optimal.
Lead The Leads are Subject Matter Experts, responsible for
client interactions, requirements, ensuring Associates
execute the work plan tasks and validates solution.
Associate The Associate may be on-site or remote,
executes the work plan tasks, unit test, and
provides completed work to Lead for testing.
Adds 3rd shift productivity to team.
Contact Information
Stephen Goldsmith
BI Practice Director
(610)592-0600
SGoldsmith@Biztech.com

Timothy Simkiss, CPA, MBA

Hyperion Project Manager Practice
Director
(610)592-0600
TimSimkiss@Biztech.com