ERP Integration With EPM

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Integrating Oracle ERP with Oracle Hyperion EPM - overview and update

Michael van der Merwe

Oracle EPM and Hyperion sessions at SAOUG • Monday 14:30-15:15 Track 7

• Oracle Financial Close Management Overview

• Tuesday 13:35-14:20 Track 7

• Integrating Oracle ERP with Oracle Hyperion EPM

• Tuesday 14:30-15:15 Track 7

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Agenda

• Financial Data Quality Management (FDM) Overview

• Feature Review

• FDM Roadmap

• Customer Case Study

– The Macerich Company

EPM Data Quality Customer Challenges - Data • Errors in financial data and meta

data collection

• Inconsistent account structures

• Heterogeneous sources

• Increasing data volumes OLTP & ODS

Systems Data WarehouseData Mart ApplicationsPackaged (Oracle, SAP, Others)

Excel XML/Office OLAP Sources Exadata Unstructured & Semi-Structured Strategy Management Financial Close and Reporting Planning & Forecasting Profitability Management

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EPM Data Quality Customer Challenges - Process • Lack of automated support for

financial restatements

• Limited or non-existent audit trails

• Weak controls around data & meta data collection

• Business function owned by IT

What is Financial Data Quality Management (FDM)

?

– Collection and transformation of financial data

– Management of periodic process to collect and transform data

– Documentation of internal controls to support compliance

– Investigation of audit trails, drill through and write back to source

• Data Quality is no longer an optional feature, but a requirement

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Oracle EPM System Delivers Confidence with FDM

Audit Trails

• Integrated Control questions • Store current and historical

mapping definitions, docs • Allow dynamic drill through

to source ERP and files • “Defendable” Data

Data Collection

and Transformation

• Read and interpret G/L trial balance files and ERP sources • Mapping validation against

target system dimensions • Data & meta data integrity

checking against data validation rules

Internal Controls

• Source financial document archival

• Prepackaged audit and internal control reports • Comprehensive role based

security

Repeatable Processes

• Single standard and defined solution for any target application

• Standardized database schema

• Standard upward data certification process • Fast turn around times

FDM offers unique ERP Integration for EPM File Excel XML Other Systems Oracle EBS, PeopleSoft, SAP R/3 Data Warehouse Data Mart FDM Strategic Planning Financial Close

Planning & Forecasting

Profitability Management

EPM WorkSpace Financial Reports

SmartView

Data & Meta data Data

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FDM Supported Sources and Application Types • Sources

– Any flat file, xls, database source

– E-business Suite 11i, 12.0.6, 12.1.x General Ledger

– Peoplesoft 9.0 GL and Human Capital Management

– SAP R/3 4.6c, ECC 6.0. 4.7 for version 11.1.1.3

• Target Applications

– Financial Management

– Planning

– Essbase

– Strategic Finance

– HPCM via Essbase cube

– Enterprise

– Generic tax applications. (Tax Stream)

Strategy Management Financial Close and Reporting Planning and Forecasting Profitability Management

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End users “Import” their source financial data (from files, DB’s or ERP)

into FDM eliminating all manual changes ensuring complete accuracy.

Invalid dimension mapping problems are identified for easy correction. FDM allows for

simple or complex cross-dimensional and conditional mapping of data.

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End users are given feedback on the quality, accuracy, and completeness of the data that they loaded to their

application, so they are

accountable, and can participate in the data integrity management process. Additional adjustment data may be loaded via flat or Excel files.

FDM Reports

The Intersection drill-down report allows for a view of all current source to target maps for all dimensions in one view, with

values. The report is available in PDF, Word, Excel, HTML and RTF formats

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Visibility Through Dashboards

The Close and Controls

documentation status report provides further visibility into the process. See quickly who has loaded data into the application and full status of the data

Sarbanes Oxley control questionnaires allow end users to attest to the validity of

financial data.

Business process areas are grouped into sections and questions can be tied to activities for monitoring and testing. Built

in workflow allows for promotion of responses to the next review level. These questions apply to Section 302 Review Certification, as well as monitoring

the 404 control framework.

Supports Sarbanes Oxley Certifications and Assessment Requirements

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Drill-Through to Source System to Audit Data

• From HFM, Planning, Financial Reports and Smartview

Planning to GL Write-back

Going beyond just drill-back…

• Write data from Planning, back into the General Ledger – Data used to generate plan vs. actual reporting details

– GL interface tables populated as result of process

– Standard journal import process used to load into ERP

• Budget Source

– EPM version 11.1.2 – Planning, ASO and/or BSO

• Write-back GL Targets – PeopleSoft 9.0 – EBS 11.5.10 cu2 – EBS 12.0.6 – EBS 12.1.x – Budgets, or Journals

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Public Sector Planning Support

• Data, metadata, GL drill-through and write-back supported

• Integration of Peoplesoft HR data

– Employee / Position Member Properties

– Position / Employee Assignments

– Position / Employee Earning Distributions

– Job Codes / Salary Grades / Salary Steps

Seamless Integration to the Financial Close Process • Run by hand, or schedule as a monthly batch

• Integrated directly with the Financial Close Management Application

From notification to task

From task to FDM

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Enhanced Essbase Support

• Load metadata and data for ASO/BSO cubes

• Drill through to ERP source system from Smartview or Financial Reporting File Excel XML Other Systems Oracle EBS, PeopleSoft, SAP R/3 Data Warehouse Data Mart FDM Essbase ASO/BSO Financial Reports SmartView Data & Meta data Data

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The following is intended to outline our general product direction. It is intended for information

purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any

material, code, or functionality, and should not be relied upon in making purchasing decisions.

The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Financial Data Quality Roadmap • Application Integration

– Expand source system integration breadth and depth

• Fusion, JD Edwards, Enhanced SAP support

– Integration with Data Relationship Management (DRM)

• FDM becomes a metadata source adapter for DRM

• Allows easy implementation of DRM with many ERP’s

• Enhanced Functionality

– HR write-back from Public Sector Planning

– Commitment control integration

– Journal write-back from Financial Management

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Who Is Macerich?

ƒ NYSE: MAC

ƒ Headquarters in Santa Monica, Ca.

ƒ Public Real Estate Investment Trust (REIT)

ƒ 3rd _{largest retail landlord in U.S.}

ƒ Own and operate about 80 regional shopping malls

ƒ $1.7 billion in managed revenue

ƒ 2,600 employees

ƒ 400 legal entities - 150 actively managed in Hyperion Planning

The Solution

ƒ Hyperion Planning v.11.1.1.3

ƒ ERPi v.11.1.1.3

ƒ Oracle eBusiness Suite v.11.5.10.2

ƒ 3 plan types (P&L, Wrkforce, CapEx) ƒ P&L – Revenue and SG&A planning

ƒ Actuals in the Projections scenario are “drillable” to sub-ledger detail

ƒ Wrkforce – Headcount, salary, benefits, taxes, etc

ƒ Oracle HR is not yet compatible with ERPi – used ODI and SQL load rules

ƒ CapEx – Capital asset, depreciation, and amortization planning

ƒ Oracle Fixed Assets is not yet compatible with ERPi – used ODI and SQL load rules

ƒ How ERPi was used in the solution

ƒ Build Account, Department, LocationCC, and Property (Entity) dimensions ƒ Load last year and current year-to-date actual data

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The Software

The Benefits

1. Operational Accountability and Accurate Measurements

2. Simplified Tool and Solutions

ƒ Reduced account combination footprint for budgets from 2,000 to 150. ƒ Integration of key data points for billing/CRM leasing pipeline, human

resources, capital expenditures, and general ledger. ƒ Automatic calculations and seeding of budget data. ƒ Simple UI’s

ƒ Actual to Budget Variance Explanation Functionality

The Architecture

ERPi Drill Through from Data Input Forms

Two options for accessing Drill Through

ƒ Edit->Drill Through->Drill Through to ERPi (above)

ƒ Select the cell (red oval), click the drill through icon (red circle)

ERPi Drill Through

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ERPi launch page

Drill through to eBS

1. Clicking on the cell value connects to eBS to show the eBS ledger

2. Clicking the PTD value shows the ledger detail

3. Journal entry detail

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ERPi Drill Through from Reports

Drill through to eBS

ƒ Each drillable cell value is hyper-linked ƒ Clicking on the cell value launches a

ledger detail screen to show the ledger detail

ƒ From the ledger detail, it follows the same functionality as from a data form

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For More Information go to:

www.Oracle.com/epm www.Oracle.com/demos