Implementing Financial Consolidation and Close Cloud Service To
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Implementing Financial Session ID: Consolidation and Close Cloud 10159 Service to Manage Continued Growth Prepared by: Deanna Sunde Consulting Delivery Director Key Performance Ideas April 25, 2018 Remember to complete your evaluation for this session within the app! Deanna Sunde • Oracle ACE • Vice President, Consulting Delivery at Key Performance Ideas • 17 years with Hyperion and five years with Oracle Financials • Industry focus in Oil and Gas, Energy, Insurance and Financial Services, Health Services and Entertainment • MBA in Finance, a BS in Economics, Former CPA • Certified implementation specialist for Hyperion Planning and Essbase • Leader in the Hyperion community – Frequent speaker at user group conferences and webcasts Including: Oracle OpenWorld, Kscope, Collaborate, OAUG Connection Point, and regional users groups throughout the US – Hosted the Oracle Open World 2013 EPM Symposium – Secretary and Member of Board of Directors, SROAUG (Southwest Regional OAUG) (1998-2003) – Former President, ODTUG Hyperion SIG (BOD 2012-14) – Kscope14 Planning Track lead (member Kscope13-15) About Key Performance Ideas Our dedication to specializing in and recognized as experts in EPM & BI, and our proven customer success is why Oracle named us the nation’s leading Oracle EPM Cloud implementer. Specialists Experts Satisfied Customers • Full-service consulting firm • 100% Oracle Hyperion & BI • Growth from referrals of satisfied specializing in Oracle Hyperion Certified clients & BI • Passion for Technology, trained in • Industry Expertise: • Oracle EPM Certified Partner Finance • Distribution & Transportation • Oracle Consulting Certified • 8+ average years expertise in • Financial Services Services Provider (CSP) Hyperion and BI • Healthcare • Oracle Gold Partner • Skilled in process design through • High Tech, Internet & Software technology implementation and • Specialized PBCS Certified • Manufacturing managed services • Retail • Oracle ACE Associate on staff • Utilities Agenda • Pain Points • Introduction to Consolidation • Introduction to FCCS – History of Oracle Hyperion Consolidations – Oracle Cloud Benefits • FCCS Functionality • Compliance Framework of FCCS • Client Case Study • Q & A Introduction to Consolidation Pain Points • Spreadsheets and Data Versioning • Multiple Versions of Reports / Data • Length of Close Process • Non-Consistent Close Process or Steps • Intercompany Eliminations • IT Centric Software / Restrictions • No New Hardware or Software required • Reduce Need of IT Support • Lack of Collaboration What is Financial Consolidation • Combining assets, liabilities, and other financial items of two or more entities into one. • Refers to the consolidation of financial statements, where all subsidiaries report under the umbrella of a parent company. • Process includes importing data, mapping general ledgers to a single chart of accounts, normalizing the consolidated data and producing reports called consolidated financial statements. • The frequency of departments performing financial consolidation varies from company to company, often hinging on regulatory requirements. Also, reporting requirements are different based on the month, quarter and year end. What is Financial Consolidation (cont.) • Depending on the complexity of the process and the company's preference, finance managers can use Microsoft Excel spreadsheets, modules in corporate performance management or enterprise resource planning software suites, or specialty software for financial consolidation. • Many experts advise against using Excel for the consolidation because spreadsheets don't facilitate collaboration, which in turn, can lead to a high probability of errors. Introduction to FCCS History of Oracle Hyperion Consol Hyperion Financial Financial Close Management Management Hyperion Enterprise Financial Micro Consolidation and Control Close Cloud Financial Data Supplemental Management Data Management Why Oracle? • 30 + Years of development for Consolidation Software • Oracle Strategic Direction for World Class Financial Close • Multi-Language Support • Flexible Dimension Hierarchies (SEC/GAAP, Statutory, Mgmt, Tax, Segment) • Supports USGAAP, IFRS and convergence issues • Reporting for Constant Currency and Automated Cash Flow • Facilitates Growth by Acquisition Strategy • SOX Compliant HFM to FCCS Migrations (As Stated by Oracle) Cloud Benefits • Built on Essbase Database • Application Integration Connectivity and Systems • Multiple Web Browsers • Identical TEST and PROD Environments • Affordable • Easy to Maintain Affordable and Easy to Maintain • No Hardware Required • Licensing – Per User Per Month • No Cost for Upgrades/Updates are Automatic • No Other Maintenance Fees FCCS Functionality Benefits / Features / Functionality • Cost Centric • Shorter/Quicker Deployment • Multi-Dimensional Essbase Backend • One Version of Truth • Pre-built Dimensions, Members, Rules/Logic and Structures • Automated Intercompany Eliminations • Access Data in MS Office via Smart View or via Tablets • Data Loading From Multiple ERP Sources • Dynamic Consolidations • Secure and Auditable Environment Benefits / Features / Functionality • Not Just Consolidations – Close Manager – totally integrated process orchestration (includes automation, task management, sign offs, etc) across ERP and EPM – Supplemental Data – robust ad hoc data collection process useful for footnotes, disclosures, roll-forwards, and supporting details – Data Management – Integrate data from any source (w/ drill-back) – Consolidations – Multi-GAAP, Statutory and Management, Complex Consolidations, Ownership management – Reporting – Financial Reports, Smart View, Dashboards – EPM Cloud platform – automatic updates & backups, integrated business process etc. Out of the Box • Calculations • Hierarchies • Security • Reports • Auditing Best of Both Worlds • Essbase Platform – Performance – Calculations – Application Consistency • HFM Heritage and Dimensionality – Intercompany (Eliminations) – Movements (FX/CTA, Cash flow) – Source Dimension – Journal Support • Smart View Connectivity Quick Deployments • Wizard UI for Application Creation • Pre-Defined Dimensions and Members – Account – Consolidation – Currency – Data Source – Movement – View Quick Deployments (cont.) • Built In Logic – IC Eliminations – Translations – FX Impact – Roll Forwards – Overrides • Data Management Features / Functionalities Why Move to FCCS? • Proven Technology – Essbase – HFM • Security • Cost • Reduced Deployment Time Dimensions Dimension Description Account Contains a hierarchy of natural accounts. Accounts store financial data for entities and scenarios in an application. Each account has a type, such as Revenue or Expense, that defines its accounting behavior. Every application must include an Account dimension. Period Represents the time periods, such as quarters and months. It contains time periods and frequencies by displaying the time periods in a hierarchy. For example, if the Actual scenario maintains data on a monthly basis, 12 periods of data are available for the year. Depending on the fiscal year information, the system builds the Period hierarchy for the application. Year The Year dimension represents the fiscal or calendar year for data. When the application is created, the range of years for the application must be specified. Scenario The Scenario dimension represents a set of data such as Actual, Budget, or Forecast. By default, the system creates the Actual system Scenario member. Additional Scenario members can be created in the dimension. Entity The Entity dimension is the consolidation dimension of the system. It stores the entity hierarchy and represents the organizational structure of the company, such as the management and legal reporting structures. Entities can represent divisions, subsidiaries, plants, regions, countries, legal entities, business units, departments, or any organizational unit. Any number of entities can be added to the dimension. Data Source The Data Source dimension is used to track the source of data, to determine whether data is manually entered or loaded from a General Ledger, journal posting, or from supplemental detail. Consolidation The Consolidation dimension enables to report on the details used to perform the different stages of the consolidation process. It provides an audit trail of the transactions applied to data during the consolidation process. It shows the consolidation path for an entity reporting to its parent, from Entity Input to Contribution. Movement The Movement dimension captures the movement details of an account. By default, the system provides members in the Movement dimension to capture the Opening Balance, Closing Balance, changes, and FX calculations. It is also used for Cash Flow Reporting. View The View dimension represents various modes of calendar intelligence such as Periodic, Year-to-Date, and Quarter-to-Date frequencies. Dimensions (cont.) Dimension Description Currency Only if Multi-currency is selected. Currencies store translated values for entities. Every application must include a Currency. The Currency dimension must include a currency for each default currency assigned to an entity in the Entity dimension. Inter-Company Only if Inter-Company is selected. The Intercompany dimension represents all intercompany balances that exist for an account. It is used to store the Entity members for Intercompany transactions. If you enable this option when you create an application, the system creates an Intercompany dimension containing