Sep 21, 2014
Design Considerations of Operating Unit Structure
Enable XXXs existing Shared Services Financial Model Access Control
Logical Partitioning of Data/ Transactional segregation
Design Consideration Scenario
Petaluma, GR & Canada facilities are to be considered for transitional processing, Taiwan entity will be considered for consolidation at a GL level
Acquisitions-Scalable Model Ability to Scale up operations in future via Mergers & Acquisitions.
Reporting Requirements
Multi Currency & Consolidation
Ability to generate- Statutory & Transactional Reporting from GL & Sub ledgers GR, Petaluma, Canada & Taiwan Entity.
Ability to perform multi currency transactions-USD, CAD, Taiwan DollarConsolidation- Consolidate US Set of Books- Petaluma, GR, Canada Set of BooksCAD & Taiwan Set of Books
Existing Legal Entity StructureXXX has 4 different legal entities -Petaluma, GR, Canada, Taiwan
Chart of Accounts – Accounting Flexfield Qualifiers
Optional- Used to track Management Reporting & AccessWill be determined during the course of gathering requirements around data security & access control
Management Segment
Functional Areas of Organization such as Accounting, ShippingKV may consider the following divisions
Incurring the cost Generating Revenue Holding inventory
Cost Center
Balance Journal entries for each value – Run Trial Balance
KV may consider different values for GR, Petaluma, Canada
Balancing Segment
Accounting Flexfield Qualifier Application/ Significance for XX
Represent Account types: Asset, Liability, Owners Equity, Revenue, Expense
Natural Account
This segment will be paired with the balancing segment when generating
account balances for the Retained Earnings account, Unrealized Gains or
Losses accounts, and the Cumulative Translation Adjustment account.In KV the Cost center can we paired with the balancing segment for
greater foreign currency transaction & retained earning analysis.
Secondary Tracking
Balance & Track Intercompany transactions across US entities & CanadaThis segment will have the same values as the values in the Balancing segments
Inter Company
Scalable consolidation
software
COA Maintenance
Financial Adjustments Mechanism
Multiple Systems for capturing financial data Manual process of consolidating legal entities Longer cycle time for closing & consolidation Limited Visibility & Control on overseas company
Manual process – inter company elimination, opening adjustments, foreign currency adjustments, audit adjustments, consolidation adjustments
Limited control mechanism as it is excel-based Difficult to maintain history
Accounts are mapped to Uniform COA manually
Higher Business and IT support
Typical Challenges- Taken care in HFM
Improved Reporting
Functionality
Excel and Power Point based reports
Longer cycle time to develop reporting package , ad-hoc reports
4
Hyperion Financial Management – Comprehensive Consolidation & Reporting Platform
Parameter As Is (Excel) To Be (HFM)Reporting in Dashboards
Manual Automated
Consolidation Manual Process AutomatedInter-company Eliminations
Manual Process Automated
Multi Dimensional No YesScalability Cumbersome
Error prone Process
Smooth, standardized processes
Allocations logics Manual Process AutomatedBackup facility Restricted Not restrictedMaintenance Manual Process AutomatedDrill back to transactional systems
(Oracle/SAP/PeopleSoft, Flat files)
Not Possible Possible
Flexibility to Changes
Difficult Easier adaptation
Key Drivers 5
Comparison between HFM & Oracle EBS
Consolidation Process & User’s convenience
Hyperion Oracle GL
Consolidation of multiple COA based GL
SupplementalData Collection/
Adjustments
Reporting
Currency Translation
Variance Analysis
Linking of data and reports to
MS Office products
HFM can source multiple COA based GL data, which will be mapped in FDQM/FDM to reporting COA of HFM
HFM allows to create supplemental accounts and templates to fulfill this requirement. HFM allows adjustment by using JEs.
Hyperion systems are implemented to have Actuals and plan data in most scenarios hence provide capabilities to do variance analysis of Financial statements between estimate vs. actual
Hyperion is a mainly consolidation and reporting tool and has lots of flexibility to report financial statements like by org, by business unit, by region without intervention of IT expert.
Currency conversion of trial balance is easy and in built feature in the HFM.
Hyperion products allow better presentation and reporting interfaces with MS Office like Excel, Power point and word doc
It will be cumbersome to map multiple COA based GL to any consolidation GL instance.
GL is highly referential integrated system with less option for custom processes.
Oracle EBS are mostly design to capture transactions which are Actuals by nature. Plan data does not go into GL systems so no variance analysis.
Consolidation module in Oracle EBS has limited ability to report at different levels of Organization hierarchy with entities in different currencies
Standard Functionality
GL has limited functionality for interfaces with MS office products for reporting purposes like ADI.
6
Comparison between HFM & Hyperion Essbase/Planning
Consolidation Process & User’s convenience
HFM Hyperion Essbase
Consolidation of multiple COA based GL
Intercompany Eliminations/Adjustments
Planning
Currency Translation
Variance Analysis
Linking of data and reports to
MS Office products
Multiple COA based GL data can be mapped in FDQM/FDM to reporting COA of HFM
HFM has in-built intercompany eliminations feature.
Variance analysis need to be customized in HFM or Users have to do manually in Excel
HFM supports limited feature for planning processes.
Currency conversion of trial balance is easy and in built feature in the HFM.
Hyperion products allow better presentation and reporting interfaces with MS Office like Excel, Power point and word doc
Essbase does not support Intercompany Eliminations.
Variance analysis can be done by defining formula scenarios in Essbase and no manual calculation in excel.
Currency translations need to be customized in Essbase
7
Hyperion products allow better presentation and reporting interfaces with MS Office like Excel, Power point and word doc
Essbase supports features of planning processes.
Multiple COA based GL data can be mapped in FDQM/FDM or preferably in Oracle staging area to reporting COA of HFM
Reporting All reporting can be done by refreshing data
directly in excel and MS products. All reporting can be done by refreshing data
directly in excel and MS products.
Recommended future state of reporting architecture
© 2009 Copyright Genpact. All Rights Reserved.
Oracle EBS
GL Consolidation Functional Data marts
Third party Systems
Excel & Other MS Products OBIEE & Other Reporting tools
Transaction Layer
Data Warehouse Layer
Reporting Layer
Requirements of KV for consolidation process HFM EssbaseConsolidation of 3 Main GL feeds (Great Plains, Syteline,G-Slide) Yes YesIntercompany Eliminations Yes NoCurrency Translation Yes YesCost center level planning for SG&A, expense and other P&L items Yes YesVariance reporting between Actuals,Forecast,Budget and prior year Acutals respectively. Yes YesVariance reporting between Actuals,Budget and prior year Acutals respectively. Yes YesMonthly Bank reporting with and without G slide in MTD and YTD. Yes YesMonthly BS report with variance analysis among Actuals, budget of CY and Actuals of PY. Yes YesLinking to MS Products like excel, power point for reporting Yes YesCash Flow Reprting Yes YesSales by Channel reports Yes YesConsolidated Income statements Yes YesHeadcount model and reporting No YesLinking to MS Products like excel, power point for reporting Yes Yes
Requirements of KV in consolidation and planning processes
Pros and Cons if KV goes with only HFM or Essbase
HFM EssbasePros:1. Intercompany elimination is in-built feature
in HFM2. Currency conversion is in built feature in
HFM and easy to go process.3. Reports in MS office products can be
refreshed via HFM at click.4. In-built SOX compliance process due to
workflow.
Pros:1. Planning processes are excellently handled in the
Essbase environment.2. Hyperion Planning cube has in-built Business rules
which can be kicked by users from planning web forms to calculate planning variables without waiting for IT support
3. Calculations and aggregations are heart of Essbase engine.
4. Headcount model can be easily implemented along with Work force planning module to implement Compensation and Benefits model.
5. Reports in MS office products can be refreshed via Essbase at click.
Cons:1. Planning business rules are not supported
in the HFM2. Calculations and aggregation of plan data
will be customized in HFM.3. HFM supports limited planning processes.4. Cash flow report will be a custom solution
in HFM
Cons:1. Intercompany elimination is not supported in
Essbase2. Currency conversion is a customized solution
Essbase.3. SOX compliance are handled with shared folders
or support centrals which can be accessed by auditors.
Multi Phase HFM Implementation
Phase 2 (Post-EBS Go-Live)Phase 0 (Pre-Requisite)
Chart of Accounts Standardization
Phase 1 (Pre-EBS Go-Live)
Implement Hyperion without EBS GL Go Live
EBS GL Goes live
Study legacy systems and their with segments values.
Design and confirm COA for EBS and HFM with Hierarchies
Sign off from KV on COA
Design hierarchies of mapped segments in HFM
Mapping of Source system’s COA to COA of HFM
Build Hierarchies of mapped segments in the HFM
Design and build GL feeds for Great Plains, Syteline and Taiwan feeds.
Load GL feeds in HFM and Hyperion Planning
Design, Build and Test
Go-live (HFM on Legacy systems)
Switch source COA from Legacy systems to Oracle EBS
Build current month feed from Oracle EBS
Load GL feed into HFM and Hyperion Planning
Test
Go-live (HFM on Oracle EBS)
**COA: Chart of Accounts**COA: Chart of Accounts
L1 -Financial Consolidation and Planning processes (Pre-EBS Go-live)- -Phase 1
Hyperion
Consolidationapplication
(in HFM)
Great Plains GL Feed
(KV,KV Canada,Holding, Elim, Asia)
Plan data collections via Planning forms in
Hyperion
HyperionPlanning(Cube)
Plan Feed
Smart view / Financial Reporting
Smart view / Financial Reporting
User interface
Reports
Smart view / Financial Reporting
Syteline GL Feed
FF
G slide GL Feed
Mappingof
SourceCOA to
ReportingCOA of
HFM
Dimensionality – To-BE HFM ConsolidationDimension Description
AccountsAssets, Liabilities,Equity,Revenue and
Expense accounts
Years FY07-FY16
Period
Months, Quarters, YearTotal, BegBalance,
Dynamic time Series (M-T-D, Q-T-D, Y-T-D)
Scenarios Actual, Budget, Forecast Scenarios
Legal Entity KV,KV-Canada,PET,Taiwan
ICP Intercompany partners
Cost Center IT, Sales, HR
Channel All Sales channels
ProductUSD, Local currencies like CAD,Asian
currencies
Dimensionality – To-BE Hyperion Planning applicationDimension Description
AccountsAssets, Liabilities,Equity,Revenue and
Expense accounts
Years FY07-FY16
Period
Months, Quarters, YearTotal, BegBalance,
Dynamic time Series (M-T-D, Q-T-D, Y-T-D)
Scenarios Actual, Budget, Forecast Scenarios
Legal Entity KV,KV-Canada,PET,Taiwan
Cost Center IT, Sales, HR
Channel All Sales channels
Product All Products
CurrencyUSD, Local currencies like CAD,Asian
currencies
L1 -Financial Consolidation and Planning processes (Post-EBS Go-live)-Phase 2
Hyperion
Consolidation
application
(in HFM)Oracle EBS- GL Feed
Plan data collections via Planning forms in
Hyperion
HyperionPlanning(Cube)
Plan Feed
Smart view / Financial Reporting
Smart view / Financial Reporting
User interface
Reports
Smart view / Financial Reporting
Mappingof
SourceCOA to
ReportingCOA of
HFM
Implementation Approach of HFMStudy of existing legacy systems during pre-design phase. It will broadly cover analysis of: Business Requirements
Analyze Chart of Accounts of Accounts for -Great Plains, Skyline and Taiwan feed.
Analyze proposed( TO BE) COA of the proposed Oracle EBS and HFM
User/User Groups, profiles and mapping
Any custom features
Consolidation modeling processes
Study of existing legacy systems during pre-design phase. It will broadly cover analysis of: Business Requirements
Analyze Chart of Accounts of Accounts for -Great Plains, Skyline and Taiwan feed.
Analyze proposed( TO BE) COA of the proposed Oracle EBS and HFM
User/User Groups, profiles and mapping
Any custom features
Consolidation modeling processes
© 2009 Copyright Genpact. All trademarks appearing herein belong to their respective owners.
Analyze
Design,Build,Test & Pre-EBS Go-Live Design and build Hierarchies of mapped segments in the HFM
Mapping of Source system’s COA to COA of HFM
Design and build GL feed considering accounting code and data scalability requirements Define allocations and adjustments logics.
Design and build rule file ( Business Rules)
Load historical data and current period feed in HFM
Design and build security for different type user profiles and groups
SIT and UAT
Automation of HFM processes & Production Deployment
Design and build Hierarchies of mapped segments in the HFM
Mapping of Source system’s COA to COA of HFM
Design and build GL feed considering accounting code and data scalability requirements Define allocations and adjustments logics.
Design and build rule file ( Business Rules)
Load historical data and current period feed in HFM
Design and build security for different type user profiles and groups
SIT and UAT
Automation of HFM processes & Production Deployment
Post EBS Go-Live Switch source COA from Legacy systems to Oracle EBS
Build current month feed from Oracle EBS
Load GL feed into HFM and Hyperion Planning
Conduct UAT,Re point Automated processes to Oracle EBS and Production deployment with Oracle EBS rollout.
Switch source COA from Legacy systems to Oracle EBS
Build current month feed from Oracle EBS
Load GL feed into HFM and Hyperion Planning
Conduct UAT,Re point Automated processes to Oracle EBS and Production deployment with Oracle EBS rollout.
Implementation Approach of Hyperion Planning Understand Planning requirements and number of planning cycles in fiscal year with key
financial planning process owners of KV. Understand Planning requirements and number of planning cycles in fiscal year with key
financial planning process owners of KV.
© 2009 Copyright Genpact. All trademarks appearing herein belong to their respective owners.
Analyze
Design,Build,Test & Pre-EBS Go-Live
Design and build Hierarchies of mapped segments in the Hyperion Planning Design and build actual feed to planning cube. Load actual data feed in Hyperion Planning Design and build Hyperion web forms for plan data collection by platforms. Design and build security for different type user profiles and groups Automation of Hyperion admin processes Design and Build Plan feed to load plan data from Hyperion planning to HFM. SIT and UAT Production deployments
Design and build Hierarchies of mapped segments in the Hyperion Planning Design and build actual feed to planning cube. Load actual data feed in Hyperion Planning Design and build Hyperion web forms for plan data collection by platforms. Design and build security for different type user profiles and groups Automation of Hyperion admin processes Design and Build Plan feed to load plan data from Hyperion planning to HFM. SIT and UAT Production deployments
Post EBS Go-Live Switch source COA from Legacy systems to Oracle EBS
Build current month feed from Oracle EBS
Load GL feed into HFM and Hyperion Planning
Conduct UAT,Re point Automated processes to Oracle EBS, Production deployment with Oracle EBS rollout.
Switch source COA from Legacy systems to Oracle EBS
Build current month feed from Oracle EBS
Load GL feed into HFM and Hyperion Planning
Conduct UAT,Re point Automated processes to Oracle EBS, Production deployment with Oracle EBS rollout.
Lock Box Functionality-Solution Approach
Approach involves following
BEMO & Harris Bank transmit Lox box receipt file to K&V Oracle EBS System
The file is then interfaced using Oracle AR Auto Lockbox Functionality
Lockbox is configured to accept the interface file format from the Bank
Receipts are created automatically in the Oracle AR system
The matching rules ensure the automatic application of receipts to open AR Transactions.
Lock Box File
AR_PAYMENTS_INTERFACE TABLE
AR_INTERIMCASH RECEIPTS
AR_INTERIM_LINES
Receivables Tables
Import Program
AutoLockbox Validation
Post QuickCash
Lockbox Execution Report
LockboxExecution Report
Post QuickCashExecution Report
Intercompany TransactionsEnter / Update
TransactionSend
Transaction
UpdateTransaction
Approve Transaction
InvoiceRequired
Invoice NotRequired
Create AR
Invoice
Create AP
Invoice
Update GLOpen Interface
Update GLOpen Interface
RejectTransaction
Initiator
Recipient
Enter / UpdateTransaction
SendTransaction
UpdateTransaction
Approve Transaction
InvoiceRequired
Invoice NotRequired
Create AR
Invoice
Create AP
Invoice
Update GLOpen Interface
Update GLOpen Interface
RejectTransaction
Initiator
Recipient
Initiator creates an Inter company transaction with one or more recipient lines, enters initiator accounting and submits the batch.
Recipient receives the Inbound Transaction, enters recipient accounting and approves transaction.
The recipient may approve or reject the transaction either in Oracle Advanced Global Inter company System UI or from the Workflow Notification online or in email format..
The transaction status is updated for the initiator and recipient when the transaction is approved or rejected.
When the transaction is approved, Oracle Advanced Global Inter company System determines whether an invoice is required for the transaction or not.
If the Legal Rules and Transaction type options determine an invoice is required, Receivables and Payables Invoices are created. If an invoice is not required, the transaction is transferred to General Ledger of the initiator and the recipient.
HFM Implementation …Why?
Parameter As Is (Excel)
To Be (HFM)
Reporting in Dashboards Not Possible PossibleConsolidation Single user Multiple usersInter-company Eliminations
Manual Process Automated
Multi Dimensional No YesScalability Cumbersome Error
prone ProcessSmooth, standardized processes
Allocations logics Manual Process AutomatedBackup facility Restricted Not restrictedMaintenance Manual Process AutomatedDrill back to transactional systems (Oracle/SAP/PeopleSoft, Flat files)
Not Possible Possible
Flexibility to Changes Difficult Easier adaptation
Key Drivers
HFM benefits
AreaAreaTechnical/Business Technical/Business
BenefitsBenefitsWeb based interface Access from any where
Additional dimensionality Enhanced analytical capabilities
Cell Text for additional explanation on each cell Better explanation about the numbers
Line Item detail for additional break up of the figures
More detailed level data as and when require, with out adding members in the dimension
Cell level Document attachment
Users can attach supporting document for detailed information
Process management
Better process flow management in the Financial consolidation reporting process (review mechanism)
Better Audit trails Better Transparency of data and SOX compliance
Better Data mapping capabilities Better transparency of data loads
Better Data validations during data loads
Better control on data loads, reduce repetition of load process
Drill back capabilities to the source files/systems
More granular data tracking with source systems and source files
Drill down capabilities in reports
Single report can provide multiple level of information. Number of reports would reduce.
Better security management - up to cell level Robust User and data management
HFM benefits continued
AreaAreaTechnical/Business Technical/Business
BenefitsBenefitsCalculation scripts (Business rules )
Allocation, Consolidation, Translation logics built in the application. Less manual process.
Monthly review process
Manual process involved in Monthly review process can be automated (eg: Roll over)
Dash board reporting
Less manual effort in generating better graphical presentations.
Automated data loads
Less manual intervention in data loads, more data accuracy
Intercompany elimination
Automated intercompany elimination, increased productivity
Intercompany Reports
System generated intercompany reports at various levels (posted, un posted, un matched, matched) Less manual intervention
Currency adjustments
Enhanced currency adjustments, system built members for currency adjustments. Better tractability..
Multiple currency reporting
On the fly currency translation for any selected currency
Microsoft Office products integration (Excel, Word, PPT) Better presentation and reporting interfaces
Better backup facility
Backup can run simultaneous with other users accessing the system. Less chances of data corruption,
Closing cycle time
With better allocation logics and interfaces with other HFM applications and data files, closing cycle time would be reduced considerably.
Genpact Solution - Real Time
consolidation
Problem Statement – Manual ,People Dependent process, Excel based consolidation process
Legal Entity rollup
Trial balance load using FDQM
Our Understanding of the Pain – Solution Recommendation 1 of 5
Genpact Solution – Improved data integrity . Workflow ,audit trail and multiple security layers will ensure
the integrity of data
Problem Statement – Data Integrity
Better Audit trail Transparency of data load Better Data management Accruals Better process flow
management Data Accuracy
Our Understanding of the Pain – Solution Recommendation 2 of 5
Genpact Solution – Greatest possible
flexibility with respect to mapping
Problem Statement – Manual process of COA codification
Source account
Target Account
Our Understanding of the Pain – Solution Recommendation
Genpact Solution – Adjusting
data with journals
Problem Statement – Manual process of booking and maintaining adjustment entries
AccountBalance
JournalAdjustments
AdjustedAccountBalance
Reclasses Entry Corrections Reversals Accruals Minority interest accounting entries Elimination adjusting entries True Ups Allocations
Journal
Our Understanding of the Pain – Solution Recommendation 4 of 5
Problem Statement – Manual ,excel & power point based reporting
Genpact Solution – Easy adhoc reporting , better presentable reports can be
prepared Excel Based Reports using smart view
Dashboard reporting using Web analysis Profitability
Analysis
Our Understanding of the Pain – Solution Recommendation 5 of 5
Problem Statement – Data validations at entity level to ensure accountability
Genpact Solution – Automatic validations can be built into the data load process to provide easy check points to ensure accurate and high quality entity data.
Our Understanding of the Pain – Solution Recommendation
Problem Statement – Subsidiaries should own accountability for their own financials
Genpact Solution – Users can answer key questions about their financials and sign off that the data sets are complete..
Our Understanding of the Pain – Solution Recommendation
Problem Statement – How can corporate have visibility into the consolidation process
Genpact Solution – Automatically created “Process Monitor” reports can tell where are the bottlenecks in the close process.
Our Understanding of the Pain – Solution Recommendation
Solution Benefits
FINANCIAL MANAGEMENT BENEFITS•Improves financial close and reporting process and reduces internal control risk
•Helps reduce the cost of compliance and build a sustainable compliance framework
•Spend less time on processing, more time on value-added analysis
•Helps deliver a single version of the truth to support financial management and statutory reporting
•Integrates not only with Hyperion products but also with your existing infrastructure
FINANCIAL MANAGEMENT FEATURES•Complete audit trails and other controls
•Smart Dimensionality
•Versatile scenario management
•Powerful, easy to use reporting and analysis tools
•Patented financial consolidation software and financial statement software features
•Web-based architecture
•Data integration tools and adapters
•Industry-standard tools and API's for extensibility