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
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
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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
About BizTech
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
Global Implementation Partner
Oracle Titan Award
Award Winning Partner
Oracle
Software
Provider
Oracle Technology and Business Intelligence
- End to end service offering in BI and EPM
- Fully staffed team of Data Architects/DBAs
- Solid experience in RAC, HA, and HS designs
- Understand full Oracle technology stack
Clients
Oracle Applications
- Full Portfolio of Oracle Applications Solutions
- Implementation, Upgrade, Migration
- Since 1990 MPL6 to R12 Experience
- Over 400 successful implementations
Managed Services and IT Outsourcing
- Remote or Onsite services
- Full portfolio of Oracle Applications and
Technologies
- World-Class Data Center with 24x7 Support
- Instant capacity, operational focused model
Oracle Software Provider
- Full Portfolio of Oracle License Resell
- Helps Clients Optimize License models
- BI Software for the agile enterprise
- BizTech Data Integrators
- BizTech Insight Accelerators
- BizTech Reporting Foundation
Oracle
Applications
Managed
Services
ITO
Oracle
Technology
BI/EPM
Client-Centric Practice Areas








The Consolidation Process
Pressure on Finance Departments
More Stringent Regulations
What can I do to accelerate
reporting as required by statutory
regulations?
How do I improve transparency,
accuracy, and auditability?
Mergers & Acquisitions
How can I ensure new acquisitions
are quickly
integrated into my company?
How can I simplify keeping my
books in synch with re-orgs?
Demand for Growth
How can I improve visibility into overall enterprise performance?
How can I help my managers identify opportunities to improve profitability?
Collect Data Calculate & Adjust Report



Consolidation At-a-Glance

Collect Data Calculate & Adjust Report
Gather from multiple &
disparate applications
Store data in a centralized
repository
Generate financial
statements, managerial
reports, and perform ad
hoc analysis
Apply FASB and IFRS
consolidation rules
Perform currency translation &
aggregation

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.
Percentage of Internal Control
Issues* by Major Category
3%
2%
7%
9%
11%
27%
1% 6%
34%
Internal Control Issues
by Major Category
By Sub Type #
Documentation Policies/documentation Issues 141
Entity-Level & Anti-Fraud
Controls
Anti-Fraud Controls 15
Compliance Monitoring 20
Control Environment 151
Financial Statement Close
Process & Disclosure
Application of GAAP/accounting policies 256
Financial statement close process & consolidation 120
Intercompany accounts/reconciliation 93
Review of significant or unusual transactions 212
IT Controls
Change controls 25
Date protection 23
Infrastructure 27
Security/user access 52
Merger Issues Merger/predecessor issues 27
Multilocation Considerations International operations & subsidiaries 59
Other Other 32
Personnel Issues
Segregation of duties 76
Staffing issues (levels, expertise, training) 157
Significant Account Level
Accounts payable 26
Accounts receivable 30
Accruals/restructuring costs 50
Contracts/loans/third-party transactions 75
Employees benefits/pensions 38
Inventory management 55
Property, equipment, leases 83
Revenue & billing 79
Tax issues 112
Total # Internal Control
Issues
2,034
* Source: The Ames Research Group (June 30, 2005);
analysis by Ernst & Young Center for Business Knowledge
Documentation
Entity-level & Anti-Fraud Controls
Financial Statement Close Process & Disclosure
IT Controls
Merger Issues
Multilocation Considerations
Other
Personnel Issues
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
Approach
(Some
Examples)
IFRS US
GAAP
Revenue
Recognition

Fair Market
(e.g. AR or
Inventory
Valuation)

Detailed
Disclosure

Segment
Reporting

Chart of
Accounts Not
Mandated

Distinction
Between Tax
and External
Reporting

Differences
Approach
(Some Examples)
IFRS US
GAAP
Fair Market
Revaluation
Fixed Assets
& Investments
Only
Certain
Fixed
Assets
Extraordinary
Items
None Rare
Consolidation Control 2 Models
Joint Ventures Proportional
OK
Only
Equity
Development Capitalized Expensed
Fixed Assets Components Unitary
Leasing Financing Cap vs.
Op
Inventory No LIFO LIFO OK
Impairment 1 Step,
Reversible
2 Step,
No
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
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.
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
substantial, for example restructuring their business, up to the
point of reimplementing
Hyperion
ERP GL Multi-
GAAP Features
ERP
Subledgers
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
Multi-Currency Capability
Multi- Dimensionality Features
Automates Intercompany
Accounting
Integrates Data from Most GL
Systems.
Excel Integration
Enterprise Collaboration
Financial Reporting
Consolidation and
Analysis Tool in the
World
Web interface
Speed & accuracy
Finance owned
Align entities and divisions
Increased Visibility and Accountability
Out of the box features improved ROI
BENEFITS
FEATURES
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
20
Category
Scenario
Year
View
Entity
Account
View
Period Period
Entity
Value
Custom 2
Account
Custom 3
ICP
Custom 1
Custom 4
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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 daysor even weekssimply 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 dont.
Constantly modifying a collection of spreadsheets is a particularly complicated, time-consuming
process full of workarounds and compromisesthe opposite of whats 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 GLs.
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 KPIs.
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 Companys 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
Data cleansing
and
transformation
Task scheduling
Text and
document
archive
Audit review
Data staging
Prepackaged integration
Data loading including
supplemental data, line
item detail
Dimensional mapping
verification
Process management
Excel
ERP
G/L
Flat files
ETL
Oracle eBus
Hyperion Financial
Management
Hyperion Planning
Hyperion Essbase
Hyperion Enterprise
Data Marts
DATA
PREPARATION
SERVER
EPM
SYSTEMS
GUIDED WORKFLOW USER INTERFACE
EPM Adapters
Source
Systems
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








Hyperion Financial Management Solutions
Hyperion Financial Management

Oracle Account Analysis
and Drill-Down for both
Actual and Budget
Hyperion FDM
Oracle EBS

Drill-through/Drill back to GL

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
Financial Reports
Web-based production report writer for producing highly formatted
reports such as Financial Statements.
Reports are easily developed and maintained by business
Reports can combine data, graphs, text, and images .
Flexible output options: HTML, PDF, and hardcopy.
Reports can be batched into books and automated to meet monthly,
quarterly, and yearly reporting requirements.
Dashboards
Web-based, interactive reporting and analysis tool.
Easy to create via drag and drop no help needed from IT.
Useful for Execs and Analysts alike
Flexible slice & dice, Traffic lighting, Ranking/Sorting capabilities.
Can display non-financial metrics with financial data.
Smart View
Enables business users to quickly and easily connect to Hyperion
Planning using Microsoft Office tools (Excel, Power Point, Word,
Outlook) for analysis and reporting.
Allows users to view, import, manipulate, distribute and share data in
Microsoft Excel, Word, and PowerPoint interfaces
Reports and Dashboards can be easily incorporated into PowerPoint
presentations and Word documents. Create once and quickly refresh to
review the latest information.

Smart Space
The first gadget-based user interface designed specifically for Enterprise
Performance Management
Consists of a set of configurable gadgets that run on the desktop
providing continuous access to financial, operational and performance
related information.
Includes a secure instant messaging system for shared decision making.
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
of non-GAAP financial measures
Multiple organization hierarchies and
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

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



Why Choose BizTech



Choose | The Right Approach
BizTech 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
APPROACH
EXPERIENCED
PRACTITIONERS
Prepare Test Deploy

Configure
Initial Planning
Prepare
Environment
Define Project
Launch Project
Accelerator Prep
Accelerator Magic
Conference Room
Pilots
Superuser
Training
Go/No Go
Decision
Setup Test/
System Testing
End User
Training
Setup Production
Go Live!
User Acceptance
Testing
Project Mgmt, Quality Assurance, Knowledge Transfer
Prepare
Test Scripts
Prepare
CRP Scripts
Post-Go Live
Support
D
D
D
RapidApp Methodology
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, youll 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
Youre going live soon, and were helping you prepare. Were with you to update
and configure the final system configuration.
Well help you conduct system testing to ensure a smooth transition into
production.
Well 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.

Architect
Lead
Associate
The Architect designs the solution, and is
interacting with the work stream leads to
ensure implementation approach is optimal.
The Leads are Subject Matter Experts, responsible for
client interactions, requirements, ensuring Associates
execute the work plan tasks and validates solution.
The Associate may be on-site or remote,
executes the work plan tasks, unit test, and
provides completed work to Lead for testing.
Adds 3
rd
shift productivity to team.
Maximizes value over traditional team approach
Minimizes risk of single threaded SME approach
Leveraging the Architect Lead Associate model yields
higher productivity at lower cost, which:
ALA Delivery Resource Model
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