HFM Traning HITATHI

| HFM
Hitachi Consulting |
[HFM TRAINING]
Pressure on Finance Departments
| HFM
| HFM
Consolidation At-a-Glance
| HFM
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.
| HFM
What is 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:
1.
2.
3.
4.
5.
6.
US GAAP and IFRS Reporting

Sarbanes Oxley (SOX) Compliance
Audit Trails and Activity Logs
XBRL Capabilities
Intercompany Eliminations
Foreign Exchange Translations
| HFM
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.
Cant we do the same in excel ?

Of course ..
We can do same in excel but maintaining huge data is difficult.

Why do we use HFM for consolidation when there are other tools ?
User friendly
Web based application
for each task there is separate module.
Example :Journals
Elimination (intercompany)
Work flow Management
Ownership Management
| HFM
| HFM
What HFM will do ?

It will consolidate the set of data whether actual, budget,
forecast
It supports the multi GAAP reporting
Line item details.
Quick month end close.
Easy consolidation process.
Journal adjustments
Intercompany eliminations.
Process management.
Currency translation.
After the consolidation reports can be generated at
business level
HFM Architecture
| HFM
| HFM
Hyperion Financial Management Overview

Journals
Calculate
Feature
Data Entry Forms /
Grids
Hyperion Reports /
Smart View
Consolidation
Process Management
Hyperion Financial Management Dimensions
| HFM
Expanded Dimensionality
| HFM
HFM Login
HFM Client Login :
Start Programs Oracle EPM System Financial
Management
HFM Web Login :
Http://ServerName:PortNumber/Workspace/Index.jsp
HFM Shared Services :
Http://ServerName:PortNumber/interop/Index.jsp
| HFM
| HFM
Application Profile
We have to create application profile before creating an application in HFM .
In Application profile three dimensions are covered .
1. Year
2. Period
3. View
These are the predefined dimensions we have application profile concept in classic
method and once in a life time of the project crate application profile .
In case if you want to modify we have to delete the existing application and
create a new application profile .

The extension of application profile is .per(profile) .
Application : We have to create an application either from client or from
workspace .
Dimensions
In HFM , There are 12 dimensions as follows
1 . Scenario
2. Year
3. Period
4. View
5. Entity
6. Account
7. ICP(Inter company partner)
8. Value
9. Custom1
10. Custom2
11. Custom3
12. Custom4
| HFM
| HFM
Except custom dimensions rest are the standard dimensions.

Custom Dimensions : The Dimensions which are always
associated with account dimensions for additional information.

Ex: A/c Sales
C1
Teams
C2
Departments
Account-Sales
C3
None
C4
None
| HFM
Note: Always Account dimension is associated with custom
dimension which is a valid combination . In case if we wont

associate custom dimensions we will get invalid
combination/Intersection.
POV: Point of view, It is the combination for all dimensions in
application with a valid intersection to view the data.

We have to select each member from each dimension as a
POV. If we want to use a member from any if the dimension

(custom) we have to select as NONE
| HFM
1.Scenario : Set of data where it can be actual or budget or

forecast.
The Scenario dimension represents a set of data, such as Budget,
Actual, or Forecast. For example, the Actual scenario can contain
data from a general ledger, reflecting past and current business
operations. The Budget scenario can contain data that reflects the
targeted business operations. The Forecast scenario typically
contains data that corresponds to predictions for upcoming periods.
A Legal scenario can contain data calculated according to legal
GAAP format and rules. You can define multiple scenarios for an
application. You use the Manage Metadata module on the Desktop
to define attributes for members of the Scenario dimension, such as
the default frequency, the default view, and zero data settings. You
create the calendar that defines how weeks build into months,
months into quarters, and so on, independently from the Scenario
dimension when you define an application profile.
| HFM
2. Year:
The Year dimension represents the fiscal or calendar year for data.
An application can contain data for more than one year. You specify a
year range when you create the application and then select a year
from the Year dimension to process data.
3. Period:
The Period dimension represents time periods, such as quarters and
months. It contains time periods and frequencies by displaying the
time periods in a hierarchy. For example, if the Actual scenario
maintains data on a monthly basis, generally 12 periods of data are
available for this scenario in a year. Hyperion Financial Management
supports years, months, and weeks for the period dimension. It does
not support days for the dimension. You edit periods and frequencies
in the application profile
| HFM
4.Entity
The Entity dimension represents the organizational structure of the company,
such as the management and legal reporting structures. Entities can represent
divisions, subsidiaries, plants, regions, countries, legal entities, business units,
departments, or organizational unit. You can define unlimited entities.
The Entity dimension is the consolidation dimension of the system. Hierarchies
in the Entity dimension reflect various consolidated views of the data. Various
hierarchies can correspond to geographic consolidation, legal consolidation, or
consolidation by activity. All relationships among individual components of the
members that exist in an organization are stored and maintained in this
dimension. Entities in an organization are dependent, base, or parent entities.
Dependent entities are owned by other entities in the organization. Base entities
are at the bottom of the organization structure and do not own other entities.
Parent entities contain one or more dependents that report directly to them.
You use the Manage Metadata module on the Desktop to define attributes for
members of the Entity dimension, such as the default currency and security
class, and to specify whether the entity allows adjustments and stores
intercompany detail.
| HFM
5. Value:
The Value dimension represents the different types of
values stored in your application, and can include the input
currency, parent currency, adjustments, and consolidation
detail such as proportion, elimination, and contribution
detail. For example, the Entity Currency member stores the
value for an entity in its local currency. The Parent
Currency member stores the value for an entity translated
the to currency of its parent entity.
| HFM
6. Account:
The Account dimension represents a hierarchy of natural
accounts. Accounts store financial data for entities and
scenarios in an application. Each account has a type, such
as Revenue or Expense that defines it accounting behavior.
You use the Manage Metadata module to define attributes
for members of the Account dimension, such as the
account type, the number of decimal places to display, and
whether the account is a calculated, consolidated, or
intercompany partner account.
| HFM
7. Intercompany:
The Intercompany dimension represents all intercompany
balances that exist for an account. This is a reserved
dimension that is used in combination with the Account
dimension and a custom dimension. Hyperion Financial
Management can track and eliminate intercompany
transaction details across accounts and entities. You can
also run intercompany matching reports to view
intercompany transactions.
| HFM
8. View:
The View dimension represents various modes of calendar
intelligence, for example, Periodic, Year-to-Date, and Quarterto-Date frequencies. If you set the view to Periodic, the
values for each month are displayed. If you set the view to
Year-to-Date or Quarter-to-Date, the cumulative values for the
year or quarter are displayed.
9..12 . Custom Dimensions
Four custom dimensions are available for analysis of detailed
data. You can use custom dimensions to store additional
details associated with accounts, such as products, markets,
channels, balance sheet movement, or types of elimination.
For example, custom dimensions could include Product Line,
Region, Channel, or Customers.
Creating Application Profiles

You use application profiles for the following purposes:
To define the languages available for entering descriptions
To define the application calendar
To define the application frequencies
| HFM
Accessing the Process Pad

You can access the process pad from the Hyperion Financial Management Windows desktop client.
You can enter up to 10 languages.
| HFM
Defining the Calendar

Hyperion Financial Management provides a flexible calendar:
You can completely customize the base periods, summary
periods, start year, and number of years.
You can use the standard, custom, or manual method to define
the calendar.
You can edit the frequency labels

and descriptions, which are displayed in the View
dimension.
You can add frequencies which you set up later in the
period editor.
| HFM
| HFM
Editing Periods
You can edit period labels and add descriptions.
Each hierarchy level corresponds to a frequency.
Add multiple
periods.
Add
child.
Add
sibling.
Save application profiles either locally or on the application sever with the extension .per.
Application Requirements
You should have this information on hand before you create an
application:
The name of the application server cluster
The label and description of the application
The file name and path of the application profile (.per file)
| HFM
Setting Up Applications
You can access the Create Application task from the File menu.
| HFM
| HFM
Access and Edit Metadata Files
Create and edit

metadata files.
Load metadata
file into the
application.
Select the
metadata type.
Search for a
member
Select a
member to edit
from the list
Create a new
file
Open a
file
Save changes
| HFM
Building Member Hierarchies

Create the member hierarchy.
You can add a member to more than one parent.
Edit member hierarchies.
| HFM
Editing Groups of Members

Delete member
Validate members
Add member
Cut, copy or paste
| HFM
Setting Up Entities
Entities define the consolidation path for your data.
Entity
Entity
[None]
[None]
Geographical
Geographical
UnitedStates
Activity
California
SalesServices
WestSales
Plant1
WestSales
Connecticut
EastSales
EastSales
EastSales and
WestSales occur
in alternate rollups.
EmeaSales
EmeaServices
Manufacturing
Activity
Development
Before adding an entity, you should have this information:
The parent to which the entitys data rolls up

The currency in which data is input for the entity
Whether adjustments through journal should be allowed for
the entity
The security class for the entity
Whether the entity can be a partner in intercompany
transactions
For statutory applications, the holding company for the entity
If the entity has than one parent, the default parent
| HFM
Entities and Intercompany Partners

Members of the Entity
dimension
California
Specifies whether
the entity displays
as a member in the
ICP dimension
Specifies a
security
class for the
entity for
intercompany
transactions
The ICP dimension includes all

members of the Entity dimension
for which the IsICP property is
selected.
Members of the ICP

dimension
Plant1
IsICP member attribute

Plant1 selected
West Sales
West Sales
1000
| HFM
Adding Currencies
You must add a currency to the application for each default currency assigned to
an entity in the Entity dimension.
Add or edit
currencies.
| HFM
Setting Up Accounts
and Custom Dimensions
The Account dimension defines the chart of accounts for an application.
Custom dimensions provide additional detail for accounts.
Ten predefined account types provide built-in financial intelligence.
Account Types
Asset
Balance
Liabilities
Balance Recurring
Income
Currency
Expense
Dynamic
Flow
Group Label
| HFM
| HFM
Assigning Custom Members to Accounts
Custom1 members are

not valid for Cash.
ClosingBalance and its

descendants in Custom4
are valid for Cash.
Account Properties for Intercompany

These are the properties for intercompany accounts:
IsICP
PlugAcct
ICPTopMember
| HFM
| HFM
Setting Up Scenarios
The Scenario dimension represents a set of related data, such as budget, actual,
or forecast
Before you add a Scenario dimension member, you should have this information
ready:
The frequency for the scenario data
The frequency for intercompany transaction data
The default data view, periodic or year-to-date
The default data view for periods with missing data
Whether consolidation should be based on periodic or year-to-date values
Whether the scenario will support process management and, if so, the number
of review levels
Whether accounts can use line-item detail in this scenario
Whether changes to data for the scenario should be tracked in the data audit
log
| HFM
Configuring Exchange Rate and Translation Settings

Use the DefaultCurrency property to specify the default currency for the application.
Use the DefaultRateForFlowAccounts and DefaultRateForBalanceAccounts to
specify the accounts used to store exchange rates for flow accounts and balance
accounts.
Specify whether to use the PVA translation method.
| HFM
Default / PVA Method

The Periodic Value Add (PVA) method:
1. Translates just the YTD change from the previous period at the current
periods exchange rate
2. Adds this to the previous month translated balance
Default Method
PVA Method
Jan
Feb
Jan
Feb
Exchange Rate
1:3
1:2
1:3
1:2
Local Currency YTD
50
75
50
75
Translated YTD
150
150
150
200
75 50 = 25
X
2
50
Current period
increase/decrease at
current period rate plus
prior period balance
150
200
Consolidation Settings
Org by Period
Aggregation for Intercompany accounts
Custom consolidation rules
| HFM
| HFM
Org by Period
Enable Org by Period if you need entity structures that vary from period to
period.
Org by Period lets you mark entities as active or inactive for each period.
Example: Plant2 was sold in January, so you mark it as inactive from February
forward
January
Geographical
United States
California
Europe
Connecticut
Plant 1
France
Global Sales
February
Geographical
United States
Italy
California
Plant 2
Europe
Connecticut
Plant 1
France
Global Sales
Italy
Plant 2
| HFM
Intercompany Aggregations
The IntercompanyAggregationWeight property lets you specify a consolidation
percentage for intercompany entities to their parent ICP Top.

A value of 1 represents 100% (for example, specify .5 for 50%).
ICP Top
Plant1
West Sales
| HFM
Additional Features
Intercompany Reporting ICP enables to calculate the Intercompany Transactions.
Ownership Management To distribute the calculation / consolidation percentage to the
immediate parent based on the pre-defined value.

Rules For creating the business / custom defined calculation scripts for the accounts /
entities based on the requirement.
Security Easy security module connecting to the current Active Directory / LDAP.
Task Automation Provides added advantage for automating any tasks like Consolidate,
Load, Extract etc.
Common Member Properties

These properties are common to members in most dimensions:
Member
Description
Security Class
Default Parent
UserDefined1
UserDefined2
UserDefined3
Member names cannot contain these characters:
Period ( . )
Plus sign ( + )
Minus sign ( - )
Asterisk ( * )
Slash mark ( / )
Number sign ( # )
Braces ( {} )
Comma ( , )
Semicolon ( ; )
At sign ( @ )
Double quotation marks ( " )
| HFM
| HFM
Setting Document Attachment Limits

Document attachment size
Number of attachments per user
Number of characters for cell text
| HFM
Loading and Extracting Metadata

You access the Load Metadata and Extract Metadata tasks from the Browser View .
| HFM
Load Options
You can merge the metadata in the file with the existing application metadata or
you can replace the existing metadata.
| HFM
Data Load Files

Load files are divided into sections with an exclamation point as the section delimiter.
Sections can be in any order in the file.
The default column order is Scenario, Year, Period, View, Entity, Value, Account, ICP,
Custom1, Custom2, Custom3, Custom4.

Fields for the items within a section are delimited with any of these characters:
,~@#$^&_|:;?\
| HFM
Loading Data
Use the Browse button to identify multiple
data load files.
The files are loaded in sequential order.

A Progress window shows the progress of
each load.
| HFM
Merge Option
Application
Data Load File
Account
Value
Account
Value
Sales
100
Sales
50
Returns
20
Purchases
30
Purchases
No Data
Results of Load
Account
Value
Sales
50
Returns
20
Purchases
30
| HFM
Replace Option
Application
Data Load File
Account
Value
Account
Value
Sales
100
Sales
50
Returns
20
Purchases
30
Purchases
No Data
Results of Load
Account
Value
Sales
50
Returns
No Data
Purchases
30
| HFM
Accumulate Option
Application
Data Load File
Account
Value
Account
Value
Sales
100
Sales
50
Returns
20
Purchases
30
Purchases
No Data
Results of Load
Account
Value
Sales
150
Returns
20
Purchases
30
| HFM
Accumulate Within File Option

Merge with Accumulate within File
Replace with Accumulate within File
Application
Data Load File
Account
Value
Sales
100
Returns
20
Purchases
No Data
Account
Value
Sales
50
Sales
60
Results of Load
Account
Value
Sales
110
Returns
20
Purchases
No Data
Merge with Accumulate

within File
Changing the Grid Layout and Display

Click the grid settings button.
| HFM
Selecting Members for Dimensions

Point of view (POV) bar. Click to select members for point of view dimensions.
Click to select members for rows and columns.
| HFM
| HFM
Saving Data Grid Settings

Click the save settings button.
Private data grids are displayed in the

Documents list of the users who created them.
Filling Multiple Cells
| HFM
| HFM
Spreading Data
You can spread data from summary periods to base periods.
Click the submit data button.
1
Enter amount
in summary
time period.
Adding Cell Text
Default length limitation is 8000.
| HFM
Adding Line-Item Detail
Adds a new row
| HFM
| HFM
About Intercompany Transactions

A transaction between two entities in an organization is an intercompany transaction.
East Sales
Sale
1
3
West Factory
Intercompany
Invoice
(Transaction)
Goods shipped from

separate organization
Customer
| HFM
Elimination Process
USA
RentalRevenue: 0
RentalExpense: 0
California
Connecticut
RentalRevenue: 1500
RentalExpense: 0
RentalRevenue: 0
RentalExpense: 1500
Plant1
RentalRevenue: 1500
RentalExpense: 0
Sales West
Administration
East
EastSales
RentalRevenue: 0
RentalExpense: 1500
Marketing
East
| HFM
Plug Accounts
Intercompany Accounts
Non-Intercompany Account
Sales - Intercompany
Purchases - Intercompany
IntercoDiffPL
500
600
-100
Intercompany Eliminations
and the Value Dimension
Setting Up Entities for Intercompany Transactions
Specifies whether the entity is

displayed as a member in the
ICP dimension
Specifies a security class

for the entity for the ICP
dimension
| HFM
Setting Up Accounts for Intercompany Data

The following properties need to be set for intercompany accounts:
IsICP
PlugAcct
| HFM
Creating Matching Reports
| HFM
Running Intercompany Matching Reports
| HFM
| HFM
Consolidation Process
US
Connecticut
California
Processes:
Run calculation
Perform currency translations
Apply ownership percentages
Eliminate intercompany transactions
| HFM
Consolidation and the Value Dimension
Contribution Total stores the value that aggregates to

the parent.
These members store the intermediary values used

to derive Contribution Total.
Entity Currency stores the original input value.
Checking Calculation Status
| HFM
| HFM
About Consolidation Percentages
100%
100%
Geographical
United States
California
Europe
Connecticut
France
80%
Plant 1
Sample Organization
Ownership Structure
100%
90%
Italy
50%
East Sales
Plant 2
| HFM
Entering Consolidation Information

Using Ownership Management
Click Save
System account for

consolidation percentage
Running Consolidations
| HFM
Viewing the Progress Bar

Use the progress bar to view the status of the consolidation.
Clicking the red icon in the Stop Task column to stop the consolidation process, if
needed.
| HFM
| HFM
About Translating Data
USD
Entity Currency = USD
Geographical
EUR
Europe
Parent Currency = USD
Entity Currency = EUR
| HFM
Translating Data in Data Grids
Entities with a currency different from the

one shown in the POV bar show a status
of TR or TR ND until the data is
translated.
Selecting translate to translate data

to the currency showing in the POV
bar.
| HFM
Entering Exchange Rates

Exchange rate account
The custom dimensions contain system-defined currency members. In this example,

Custom1 is the source currency and Custom2 is the destination currency.
| HFM
About Organization by Period

Children can be marked as active or inactive by period.
January
February
Europe
France
March
Europe
Europe
Italy
France
Plant 2
France
Italy
Plant 2
Inactive for February
Italy
Plant 2
Inactive for March
Setting Up Organization by Period

Use the Ownership Management page to specify the active status.
| HFM
| HFM
Summary
Questions Session
Questions Please
Thank you for attending.

HFM Traning HITATHI

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

HFM Traning HITATHI

Încărcat de

Drepturi de autor:

Formate disponibile

| HFM

Pressure on Finance Departments

group in the preparation of consolidated accounts.

What is Hyperion Financial Management ?

based application that delivers global financial consolidation, reporting

and maintained by the enterprise's finance team.

US GAAP and IFRS Reporting

HFM is a finance-owned, IT-supported system that allows your

organization to quickly make changes as conditions warrant but

Microsoft Office (called Smartview) which allows users to forecast or

Cant we do the same in excel ?

We can do same in excel but maintaining huge data is difficult.

What HFM will do ?

Hyperion Financial Management Overview

Hyperion Financial Management Dimensions

create a new application profile .

Except custom dimensions rest are the standard dimensions.

associated with account dimensions for additional information.

Note: Always Account dimension is associated with custom

dimension which is a valid combination . In case if we wont

application with a valid intersection to view the data.

POV. If we want to use a member from any if the dimension

1.Scenario : Set of data where it can be actual or budget or

Creating Application Profiles

Accessing the Process Pad

You can enter up to 10 languages.

Defining the Calendar

You can edit the frequency labels

Access and Edit Metadata Files

Create and edit

Building Member Hierarchies

You can add a member to more than one parent.

Edit member hierarchies.

Editing Groups of Members

Before adding an entity, you should have this information:

The parent to which the entitys data rolls up

Entities and Intercompany Partners

The ICP dimension includes all

Members of the ICP

IsICP member attribute

Assigning Custom Members to Accounts

Custom1 members are

ClosingBalance and its

Account Properties for Intercompany

Configuring Exchange Rate and Translation Settings

Default / PVA Method

Local Currency YTD

percentage for intercompany entities to their parent ICP Top.

immediate parent based on the pre-defined value.

Common Member Properties

Member names cannot contain these characters:

Setting Document Attachment Limits

Loading and Extracting Metadata

Data Load Files

Custom1, Custom2, Custom3, Custom4.

Use the Browse button to identify multiple

data load files.

The files are loaded in sequential order.

Data Load File

Data Load File

Data Load File

Accumulate Within File Option

Data Load File

Merge with Accumulate