HFM AND RULES DOCCUMENTATION

Problems and Challenges

Many finance executives face the daunting task of consolidating their Companies
financial and operating results using spreadsheets that are difficult to maintain and
audit.

While some are dependent on general ledger-based approaches that can’t pull data
from numerous transactional systems without significant IT support.

What is needed is a single version of the truth-one view of financial and operational
results integrated from multiple systems - without delays.

What is HFM?

Oracle Hyperion Financial Management is a comprehensive, Web-based application

that delivers global financial consolidation, reporting and analysis in a single, highly
scalable software solution. Oracle Hyperion Financial Management utilizes today's
most advanced technology, yet is built to be owned and maintained by the
enterprise's finance team.

Why HFM?

PLAN + Powerful FEATURES + Design Considerations + Reporting Tools =

 Less confusion less time

 Shorter closes and Transforms data into usable information

 Viable WEB delivery mechanisms

 Process management for tight control of the review and approval process

 Data Validation

 Currency translation to support multiple local currencies.

 Automatic elimination for intercompany data and transactions.

Features of HFM:-

 Accelerate reporting cycles—Reduce closing cycles by days, deliver more timely

results to internal and external stakeholders.
  Improve transparency and compliance—Helps reduce the cost of compliance (as
stipulated by the Sarbanes-Oxley Act, electronic filing, and other regulatory
requirements) and support disclosure requirements, such as sustainability
reporting.

 Perform strategic analysis—spend less time on processing and more time on

value-added analysis.

 Deliver a single truth—provide a single version of the truth to support financial

management and statutory reporting.

 Easily integrate—integrate not only with Hyperion products but also with your
existing infrastructure.

What is consolidation?

Aggregating the data from child account in an entity to parent account.

Consolidation is the period–end process of combining the financial results of

separate subsidiaries with the parent company to form a single, combined statement
of financial results.

Consolidation is the process of gathering data from descendants and aggregating the
data to parent entities. Consolidation applying only to Entity dimension.

After loading or entering data into base level entities we run a consolidation for a
selected scenario or period to aggregate data throughout the organization.

Financial Management enables highly efficient collection and consolidation of data

from diverse sources. It includes these features:

• Process management for tight control of the review and approval process.
• Data validation.

• Currency translation to support multiple local currencies.

• Automatic eliminations for intercompany transactions.

Consolidation Types and Methods:-

Types:

1. Legal Consolidation
2. Geographical Consolidation
 3. Consolidation by entity

Methods:

1. Consolidate

2. Consolidate all

3. Consolidate all with data

Consolidate:-

Only entities that require logic or consolidation are updated by the system.

Consolidate All:-

Any Parent entity regardless of its status. NODATA are also consolidated.

Consolidate All with Data:-

It is available for any parent entity regardless of its status. NODATA are skipped.

Dimensions:-

Data in HFM stored across these dimensions. Dimensions are parameters or

pointers to an amount. There are 12 dimensions.

1)Scenario 2)Entity 3)Account 4)Period 5)Year 6)Value 7)View 8)Intercompany

9)Custom1 10)Custom2 11)Custom3 12)Custom4.

Scenario:-

It represents set of data such as Budget, actual or forecast.

Budget: A Budget defines future income and expenses.

Actual: It defines present expenses.

Forecast: Estimate future trends by examining and analyzing available information.

Entity:-

It represents the Organizational structure of a company.

Account:-

It represents hierarchy of natural accounts.

Period:-

It represents time periods such as quarters and months.

Year:-

It represents calender year for data.

Value:-

It represents different types of values stored in application.

View:-

It represents various modes of calender intelligence.

Intercompany:-

It represents all intercompany balances that exits for account b/w two
organizations.

Custom Dimensions:-

Four custom dimensions are available for analysis of detailed data. (Ex-custom1,
custom2...)

HFM Architecture:-

Financial Management uses a multitier architecture that includes a client tier, an

application tier, and a database tier.

The client tier contains the user interface. It communicates with the application tier.
The primary function of the client tier is to display, enter, and maintain data and to
maintain metadata.

The application tier contains the application, the report, and Web servers. The Web
server enables you to access the Web-based portions of Financial Management. The
application server contains the financial intelligence and connections to the
relational database and OLAP engine. It also contains Architect for managing
metadata.
The data tier contains the relational databases for Financial Management metadata
and source data.

Note: By using URL we connect the client layer to application layer.

By using IIS we connect Browser client to application layer.

-->How to access Windows client?

Select start > programs > Oracle EPM system > Financial management > Financial
management.

-->How to access workspace client?

Select start > programs > Oracle EPM systems > Workspace > Workspace URL

-->How to access shared services?

Select start > programs > Oracle EPM system > Foundation services > Shared
services consol.

HFM Overview

Load and add data: To add data to your application by loading it from a file and by
using data forms.

Calculate: After enter data, you can run calculation rules to populate calculated
accounts.

Adjust data: After you calculate data, you can adjust the data by using journals that
provide an audit trail of your adjustments.

Translate and consolidate data: After data for individual business units is entered and
adjusted, you can translate and consolidate the data.

Approve data: After data is consolidated, you can submit the data for review and
approval.

Lock data: After you receive the approval for the submitted data, you can lock the
data to prevent further modifications.
Run and publish financial reports: You can run reports against the approved data.
Application Administration:-

* Define Application Profile

* Creating Application

* Managing Application Security

* Managing Metadata

* Load data, data forms, member lists, rules, and journals to the application.

Define Application Profile:

It defines the Years, periods and views available in the application.

In Windows client select define application profile.

Process: Select profile > Enter languages > define calendar > Edit frequencies > Edit
periods > Save profile

Create Application:-

Through web enter into workspace.

Process:

Navigate > tasks > consolidation administration > create application

Through windows client select create application.

Assign Security:-

Before assigning security we register the application.

Register:

In workspace we register the existed application.

Process: Navigate > administrator > classic application administrator >

consolidation administration > register application

After the registration of application we assign users, roles and security in shared
services.

Users

Process: user directories > Navigate directory > user

Assigning Role:

Process: Application group > default application group > assign acess control

5 types of assign access controls is there.They are:

1) None: No access - User does not see that item exists.

2) Metadata: Sees that the dimension member exists but cannot view/edit data.

3) Promote: View data for dimension member and promote/reject in process control.

4) Read: View data for the dimension member but not promote/reject in process
control.

5) All: Modify the item and promote/reject in process control.

Security:-

Process: select users and groups > select classes > assign access > security report.

Creating Metadata:-

In windows client select manage metadata.

This section focuses on building the entities, accounts, custom dimensions,

scenarios, currencies and application settings.
Accounts:

It defines account type.

Mandatory Attributes: account type, security class, default parent.

Types of Accounts:

1)Asset 2)Liability 3)Revenue 4)Expense 5)Flow 6)Balance 7)Current Rate

8)Group Label 9)Balance Recurring 10)Dynamic.

Asset: An Asset is an item of property owned by a person or company.

Liability: A company's legal debts or obligations that arise during the course of
business operations such as bank loans or account payable.

Revenue: For a company, this is the amount of money received by the company for
goods sold or services provided i.e., total profit and loss during a certain time period.

Expense: Amount of money that you spend in order to buy or do something.

Flow: Behaves like an Expense or Revenue account, but will not translate.

Balance: Behaves like an Asset or Liability account, but will not translate.

Current Rate: It is the ratio of one currency valued against another value of a currency
of one country. It whether depends on the demand and supply on free market or
restricted by a government or by central bank.

Group Label: A field in a contact group used to identify the group to users, e.g.
"family", or "colleagues".

Balance Recurring: Allows you to enter data in one period and have it carry forward
until the end of the year.
Dynamic: Indicates that the account is calculated dynamically, “on the fly.” The
accounts are typically simple ratios and require a special rule.

Currencies:

It defines currency type.

Mandatory Attributes: currency, scale, translation operation.

Entity:

It defines the location of transaction.

Mandatory Attributes: define currency, default parent.
Scenario:

It defines data type.

Mandatory Attributes: default frequency, default view, security class, support

process management, default frequency for IC transaction, default parent, zero view
for non adjustment, zero view for adjustment.

Custom-1:

It defines the customers.

Mandatory Attributes: security class, default parent.

Custom-2:

It defines products.

Mandatory Attributes: security class, default parent.

Custom-3 and Custom-4:

If we have any other data we use these two customs.

Application Settings:

Application settings are not a hierarchy – not even presented as such – but rather
they control. How the application works and enables some of the functionality.

Mandatory Attributes: default currency, default rate for balance accounts, default
rate for flow accounts, ICP Entities agg weight, default value for active, validation
account, consolidation rules, noad security, max cell text size, max doc attachments,
max number doc attachments.

Consolidation Method:

Consolidation methods are used to provide settings for various types of

consolidation that Address various ownership requirements.

Mandatory Attributes:

Consol method, to percent control comp, to percent control, percent consol.

Load Metadata:-

Load the data. If any errors are there those errors are shown in log file. Then we
modify the errors and reload that data.

In windows client select load metadata.

In workspace first open the application for load metadata, extract metadata, data
forms, data grids etc.

Application opening process:

Select Navigate > Application > consolidation > select application

Load metadata process:

Select tasks > load tasks > load metadata

Extract Metadata:-

It typically extracts all metadata options into a single file, make the changes and
then do replace loads.

Extract metadata will done both in work space or windows client.

In workspace select tasks > extract tasks > extract metadata

In windows client we select extract metadata.

Extract Data:-

Which data we want to see, select that data by using POV selection, that selected
data will converts into single file.

Extract data will done both in work space or windows client.

In workspace select tasks > extract tasks > extract data

In windows client we select extract data.

Explore Metadata:-

After loading metadata we can see all the data in explore data and also enter the
values regarding point of view selection.

In windows client select Explore data.

Database Management:-

Any modification is required for data we have to modify in this. If you want copy
the data from one scenario to other scenario and clear data also done in this
database management.
Member list:-

It is used to adding the member and deleting the member. It is done in explore
data. Member list is available for all dimensions.

There are 2 types of member lists.

1) System define member list

2) User define member list

User define member list

-------------------------

| |

Static member Dynamic member

List list

System define member list is a default option.

Member list is created by administrator. It has two subroutines.

1) Enum member list.

2) Enum member in list.

Enum member list: It is used to create the member list.

Enum member inlist: It is used to add (or) delete a member in existed list.

Journals:-

If any modification required in accounts, that modification was done with posting
journals.

In workspace we do journals.

Process:

Select tasks > Journal tasks > process journals

Recurring Journal:-

Some Journals we use repeatedly. So, for that purpose, we will create recurring
templates. By using the recurring templates, we will create recurring Journals.
Auto Reversing Journal:-

If we create a journal as Auto Reversing Journal, the journal will post in the next
period by reversing the Debit and Credit.

Data forms and Data grids:-

It is used to review and analyze data, change data, consolidate and other tasks.

Data forms have so many advantages than data grids.

In workspace select tasks > data tasks > data forms (or) data grids

(OR)

Administrator > manage documents > data forms (or) data grids

Data Forms Data Grids

1) Point view is available. 1) Point view is available.

2) Import & Export to ex format 2) Import & Export to ex format

is possible. is not possible.

3) Print format is possible. 3) Print format is not possible.

4) Add (or) delete changes is possible. 4) Add (or) delete changes is Not Possible.
Process Control:-

Once a user loads data (or its loaded for them) and intercompany balances have
been reconciled and adjustments have been made, the data is ready for
consolidation into the company’s numbers.

Process:

Tasks > consolidation administration > data tasks > process control.

In process control we can follow these steps.

With the status now all good, we can promote. Below uses the toolbar to find
Promote.

Start >promote > submit > approve > publish.

 Rules

About Rules

Hyperion Financial Management rules provide powerful, customized calculations

that you can use to perform the following tasks:

 Calculate data that cannot be calculated through a hierarchical.

 Aggregation, such as ratios or variance analyses.

 Perform complex currency conversions and calculate exchange rate.

 Differences or other calculations necessary for consolidation.

 Prevent data entry for a specific cell.

 Perform allocations from a parent entity to a list of base entities.

 Enable data entry to a parent entity.

 Perform custom consolidations for statutory reporting requirements.

Types of Rules:

There are eight types of rules in Financial Management:

— Calculate

— Dynamic

— Translate

— Allocation

— Input

— No Input

— Consolidate

— Transactions
Example#1: Prepare Test Sheet for Accounts Payable Turnover Ratio

Calculation:

Accounts Payable Turnover Ratio Definition-

The Accounts Payable Turnover Ratio shows the number of times that accounts
payable is paid throughout the year.

Formula to Calculate Accounts Payable Turnover Ratio-

Accounts Payable Turnover Ratio = Purchases / Accounts Payable

HFM Rule script-

Sub Calculate( )

Dim vIsICP

vIsICP=HS.Entity.IsICP("California")

If vIsICP = True Then

HS.Exp "A#Accounts Payable Turnover Ratio = (A#Purchases /

A#Accounts Payable)"

End If

End Sub

Function-

Here we are using IsICP Function, which determine if the current Account or Entity
Dimension member or a specified account or entity member is an Intercompany
partner (ICP).

Syntax of IsICP Function-

Hs.Entity.IsICP(entity)

We need to open MS-Excel to prepare test sheet for calculation- The below screen
shows the requirement which you want to perform (Calculate Accounts Payable
Turnover Ratio) in Hyperion Financial Management through HFM Rule Script.
Purpose of creating HFM Rule Script–

Hyperion Financial Management Rule provides powerful, customized calculations.

We use rules to perform calculations that we cannot define through parent-child
relationships in the dimension hierarchy.

Steps to create HFM Rule Script-

Go to Start -> All Programs -> Oracle EPM System -> Financial Management -> Rule
Editor then Rule Editor Window will appear.

For Example

We want to create a rule script to calculate the value of Accounts Payable Turnover
Ratio, just write Rule Script in Rule Editor Window, as shown in below screen then go
to File-> Save it.

Steps to Validate, Load Rule Script and Check Output is correct –

These are steps to execute calculation which comprise validating and checking of
Rule Script.

Validate Rule Script-

1. Tool bar is provided in Rule Editor Window. Click on HFM-> Logon button as
mentioned in red box.

2. Specify user name and password and click on Logon.

3. Click on HFM  Open application button as mentioned in red box.

4. Specify cluster name (which is your server name or Full computer name) from
drop down list or you can specify it by browse button and click on connect.
5. After click on connect list of HFM applications will be appear, which you have
created previously, select one application and press Open Application.

Load Rule Script

1. After validating it next step is to Load Rule Script to Hyperion Financial

Management. There is Load Rule script button in tool bar where we can load our rule
script.
2. After click on Load Rule script button ‘Hyperion Financial Management Rules
Editor’ window will appear and click on Ok.

3. If current rule will successfully load to Hyperion Financial Management then

message will be generate ‘Load of current document was successful!’ and click on
‘Ok’ otherwise it will generate an error.

Check Output –

1. Go to Start -> All Programs-> Oracle EPM System->Financial Management ->Financial

Management.

2. Specify user name and password and click on Logon.

3. Click on Open Application and Specify cluster name (which is your server name or
Full computer name) from drop down list or you can specify it by browse button and
click on connect.
4.After click on connect list of HFM applications will be appear, which you have
created previously, select application where you loaded your rules and press Open
Application.

5. Click on Explore Data and click on Data Explorer Setting button as shown in menu
bar in red marked rectangular box and drag Account from Page Dimensions and
drop it in Row Dimension and drag Period from Page Dimensions and drop it in
Column Dimension then click on ok.
6. Set HFM point of view and set ICP as California then right click on Accounts
Payable Turnover Ratio and click on calculate then result will be display, check it
first it is correct or not.
2. Prepare Test Sheet for Current Ratio Calculation –

Current Ratio Definition-

The Current Ratio is used to evaluate the liquidity, or ability to meet short term
debts.

Formula to Calculate Accounts Payable Turnover Ratio-

Current Ratio = Current Assets /Current Liabilities

HFM Rule script-

Sub Calculate()

Dim vIsBase

vIsBase=HS.Entity.IsBase("Connecticut","Stamford")

If vIsBase Then

HS.Exp "A#Current Ratio = A#Current Assets /A#Current Liabilities"

End If

End Sub

Function-
Here we are using IsBase Function, which determine if the current member or a
specified member is the abase member of the application or of the specified parent.

Syntax of IsBase Function-

Hs.Entity.IsBase(parent, element)

We need to open MS-Excel to prepare test sheet for calculation-

The below screen shows the requirement which you want to perform (Calculate
Current Ratio) in Hyperion Financial Management through HFM Rule Script.
Purpose of creating HFM Rule Script–

Hyperion Financial Management Rule provides powerful, customized calculations.

We use rules to perform calculations that we cannot define through parent-child
relationships in the dimension hierarchy.

Steps to create HFM Rule Script-

Go to Start -> All Programs->Oracle EPM System->Financial Management ->Rule Editor

then Rule Editor Window will appear.

For Example

We want to create a rule script to calculate the value of Current Ratio, just write Rule
Script.

In Rule Editor Window, as shown in below screen then go to File->save it.

Steps to Validate, Load Rule Script and Check Output is correct –

These are steps to execute calculation which comprise validating and checking of
Rule Script.

Validate Rule Script –

1. Tool bar is provided in Rule Editor Window. Click on HFM->Logon button as

mentioned in red box.

2. Specify user name and password and click on Logon.

3. Click on HFM-> Open Application button as mentioned in red box.

4. Specify cluster name (which is your server name or Full computer name) from
drop down list or you can specify it by browse button and click on connect.

5. After click on connect list of HFM applications will be appear, which you have
created previously, select one application and press Open Application.
Load Rule Script –

1. After validating it next step is to Load Rule Script to Hyperion Financial

Management. There is Load Rule script button in tool bar where we can load our rule
script.

2. After click on Load Rule script button ‘Hyperion Financial Management Rules
Editor’ window will appear and click on Ok.

3. If current rule will successfully load to Hyperion Financial Management then

message will be generate ‘Load of current document was successful!’ and click on
‘Ok’ otherwise it will generate an error.

Check Output –
1. Go to Start ->All Programs->Oracle EPM System->Financial Management ->Financial
Management.

2. Specify user name and password and click on Logon.

3. Click on Open Application and Specify cluster name (which is your server name or
Full computer name) from drop down list or you can specify it by browse button and
click on connect.

4.After click on connect list of HFM applications will be appear, which you have
created previously, select application where you loaded your rules and press Open
Application
5.Click on Explore Data, and set HFM point of view and Entity as Stamford whose parent
is Connecticut then right click on Current Ratio and click on calculate then result will
be display, check it first it is correct or not.