Hyperion FInancial Management

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troduction to Hyperion Financial Managemen

Created By : Rupam Majumdar

Reviewed By: Amit Sharma

Contact Point :

Contact Point : i!p"con!ulting#gmail"comi!p"con!ulting#gmail"com

learnhyperion"wordpre!!"com

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Objective

1 1.. PPrroobblleem m aannd d CChhaalllleennggeess 2. 2. WhWhy y HyHypeperirion on FFininanancicial al MaMananagegemementnt 3. 3. WWhahat t is is FFininanancciaial l MaMananaggeemementnt  .. !!tteepps s "o"or r mmoonntthhlly y ClCloossiinngg # #.. FFiinnaanncciaial Cl Coonnssoollididaattiioonn $ $.. %%ddvvaannttaagge e oo" " HHFFMM

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Objective

1 1.. PPrroobblleem m aannd d CChhaalllleennggeess 2. 2. WhWhy y HyHypeperirion on FFininanancicial al MaMananagegemementnt 3. 3. WWhahat t is is FFininanancciaial l MaMananaggeemementnt  .. !!tteepps s "o"or r mmoonntthhlly y ClCloossiinngg # #.. FFiinnaanncciaial Cl Coonnssoollididaattiioonn $ $.. %%ddvvaannttaagge e oo" " HHFFMM

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Problem and Challenges

Many

Many &nance &nance e'e'ec(tives ec(tives "ace "ace the the da(nting da(nting tas) tas) o" o" consolidatingconsolidating

their company*s &nancial and operating res(lts (sing spreadsheets

that are di+c(lt to maintain and a(dit. !ome are enc(mbered ,ith

c(stom reporting sol(tions that don*t scale or address global

re-(irements ,hile others are dependent on general ledger/based

approaches that can*t p(ll data "rom n(mero(s transactional systems

,itho(t signi&cant 0 s(pport. What is needed is a single version o"

the tr(th/one vie, o" &nancial and operational res(lts integrated "rom

m(ltiple systems / ,itho(t delays.

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Why HFM

With Hyperion Financial Management one o" Oracle*s per"ormance management applications one can improve the closing and reporting process and red(ce internal control ris)s. Financial managers move "rom the role o" score)eeper to one o" b(siness partner delivering &nancial analysis that s(pports strategic and operational management decisions. With p(rpose/ b(ilt "eat(res Hyperion Financial Management is the cornerstone o" s(stainable compliance "rame,or)s and helps b(sinesses comply ,ith stringent reporting reg(lations.

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Hyperion Financial Management

P% 4 Po,er"(l F5%675! 4 8esign Considerations 4 7eporting ools 9 1. ess con"(sion

2. ess time

3. !horter closes

. rans"orms data into (sable in"ormation #. :iable W5; delivery mechanisms

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Hyperion Financial Management

0t helps &nancial managers the ability to rapidly close and report &nancial res(lts meet global reg(latory re-(irements cost red(ction and deliver con&dence in n(mber

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Financial Management Feat(res

• Process management "or tight control o" the

revie, and approval process

• 8ata :alidation

• C(rrency translation to s(pport m(ltiple local

c(rrencies.

• %(tomatic elimination "or intercompany data and

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Hyperion Financial Management

With Financial Management ,e can able to

– Cond(ct in/depth analysis o" )ey per"ormance

and operational metrics

– 7ed(ce consolidation and reporting cycle by

days or ,ee)s

– 8eliver acc(rate and timely reports to both

internal management and e'ternal reg(latory bodies

– 8iscover so(rces o" pro&tability and cash ?o,

at the company prod(ct brand and c(stomer levels

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Financial Consolidation 7eporting @

%nalysis

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!5C A he 6.!. 7eporting !td.

Principles/based

– 8oes not replace "rame,or) re-(irements

– Foc(s on areas o" highest ris) o" material

misstatement to &nancial statements

– Management ?e'ibility to tailor eval(ation

process to speci&c "acts and circ(mstances

– Provides g(idance on s(pporting the

assessment

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10K- 10Q

he 10-K _{e'plains the companyBs b(siness activities}

"or the most recent t,elve/month operating period. he 10-K, _{,hich is re-(ired to be &led ,ith the}

!ec(rities and 5'change Commission !5CD ,ithin 90

days o" the companyBs &scal year end typically contains more detail than an ann(al report s(ch as more thoro(gh operating and &nancial statistics in"ormation on legal proceedings and management compensation.

Form 100Qs a -(arterly version o" the 10-K; ho,ever it is less detailed and generally (na(dited. he !5C re-(ires p(blicly traded companies to &le "orm 10-Q

,ithin 45 days o" the end o" each -(arter e'cept the &nal -(arter in ,hich the 10-K _{is &led.}

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Financial Management as)

Financial Management tas)s "ollo, a typical tas) ?o, "or a monthly cycle

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Financial Consolidation

Consolidation is the periodAend process o" combining the &nancial res(lts o" separate s(bsidiaries ,ith the parent company to "orm a single combined statement o" &nancial res(lts.

Consolidation is the process o" gathering data "rom descendants and aggregating the data to parent entities. Consolidation applying only to 5ntity dimension.

%"ter loading or entering data into base level entities ,e r(n a consolidation "or a selected scenario or period to aggregate data thro(gho(t the organiEation

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What ,e can Consolidate

Chart o" %cco(nts Map any s(bsidiary chart o" acco(nts str(ct(re into yo(r consolidated parent regardless o" di=erences in the

acco(nt str(ct(re.

evel o" 8etail Consolidate detail transactions detail balances or s(mmary balances.

;alance ype Consolidate act(al average translated b(dget and statistical balances.

Calendar 6se any acco(nting calendar "or the parent set o" boo)s into ,hich yo( consolidate yo(r s(bsidiaries.

C(rrency Maintain s(bsidiary sets o" boo)s in a di=erent c(rrency than yo(r parent. !imply reval(e and translate balances as needed be"ore trans"erring consolidation data to yo(r parent.

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!teps to per"orm consolidation

 Map Consolidation 8ata.

 Prepare Consolidation 8ata.

 _{rans"er Consolidation 8ata.}

 _{7evie, and Post consolidation G5.}

 _{enerate and revie, eliminating 5ntries.}  7eport on Consolidated balances.

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Financial Consolidation A !ample

7eport

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Financial Consolidation

When yo( consolidate an entity the process are re-(ired "or the descendants o" the entity r(n a(tomatically.

• Calc(lation r(les are r(n "or all descendants o" the entity "or

the period being consolidate and "or all prior periods

• 0" the data "or the children @ parent entities are in di=erent

c(rrencies the data is translated based on the e'change rate.

• 0ntercompany transaction bet,een entities are eliminated at

their &rst common parent.

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HFM  %dvantages

0mprove Close Cycle imes

Hyperion Financial Management can red(ce consolidation and reporting cycles by days or ,ee)s. ;y minimiEing yo(r &nance team*s need to enter chec) and do(ble/chec) act(al res(lts yo( increase the time spent on "or,ard/loo)ing activities.

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HFM  %dvantages

7ed(ce the Cost o" Compliance

Hyperion Financial Management delivers one version o" the tr(th thro(gh the Web thereby

improving yo(r internal and e'ternal

transparency. o, yo( can red(ce and replace man(al control proced(res ,ith a(tomated and preventative controls that (ltimately red(ce yo(r processing and a(diting costs.

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HFM  %dvantages

ain 0n/8epth Operational 0nsights 5asily

With Hyperion Financial Management yo( can combine &nancial and non&nancial res(lts to gain insights into per"ormance metrics. Io( can determine ne, so(rces o" pro&tability at company prod(ct brand and c(stomer levels.

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HFM  %dvantages

7ed(ce Control 7is) ,ith Complete %(dit rails and Other Controls

Hyperion Financial Management red(ces <control ris)> ,ith complete a(dit trails ,or)?o,s internal revie, and certi&cations controls and validations so yo( can be con&dent in yo(r n(mbers. Feat(res incl(de an 0ntercompany ransaction Matching mod(le and e'panded te't/handling and doc(ment attachment capabilities.

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HFM  %dvantages

0denti"y and 7eport on e, !o(rces o" Pro&tability and Cash Flo,

he !mart 8imensions "eat(re lets yo( identi"y and report on ne, so(rces o" pro&tability and cash ?o, at all levels / corporate cost center prod(ct brand c(stomer and channel.

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HFM  %dvantages

Per"orm :ersatile !cenario Management

Hyperion Financial Management o=ers yo( ?e'ible ,hat/i" scenario management so yo( can dynamically consolidate and report on all &nancial b(dgets "orecasts and plans. hen as ass(mptions and "acts change yo( can easily and -(ic)ly prod(ce ne, statements and vie,s o" res(lts.

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HFM  %dvantages

Po,er"(l 5asy/to/6se 7eporting and %nalysis ools

everaging Oracle*s b(siness intelligence reporting and analysis tools Hyperion Financial Management is complemented by a prod(ction report ,riter graphical online -(ery tools and a Microso"t 5'cel inter"aceJall designed "or (se by the &nance team as ,ell as sel"/service access by line management.

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HFM  %dvantages

Financial Consolidation and 7eporting Feat(res

Hyperion Financial Management provides intercompany eliminations m(ltic(rrency translations and minority interest calc(lations delivering them -(ic)ly and cost/e=ectively o(t o" the bo'. 0t also incorporates 6.!./%%P generally accepted acco(nting principlesD 0F7! 0nternational Financial 7eporting !tandardsD and local stat(tory re-(irements

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HFM  %dvantages

Web/;ased %rchitect(re ives %ny,here %nytime %ccess

Hyperion Financial Management so"t,are*s Web/ based architect(re lets (sers inp(t consolidate and access global &nancial in"ormation -(ic)ly easily and sec(rely "rom any location (sing a standard bro,ser. 7elational data storage ens(res that yo(r mission/critical data is available to (sers any,here at any time.