Finit solutions getting the most out of hfm - intercompany matching and eliminations webinar
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Transcript of Finit solutions getting the most out of hfm - intercompany matching and eliminations webinar
The Finit Solutions Series
Getting the Most out of HFM:Intercompany Matching andIntercompany Matching and Eliminations
September 16 2009September 16, 2009
Presented by Angie Apple
www.finitsolutions.com
Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
Finit IntroductionThe Finit Solutions Series
Finit Solutions specializes in consulting services in the Oracle Hyperion Enterprise Performance Management Solutions suite of products:
Financial Consolidation and Reporting
– Financial Management (HFM)
– Hyperion EnterpriseHyperion Enterprise
– BI+ Reporting Tools
Data Integration
– Financial Data Quality Management (FDM)
– Oracle Data Integrator (ODI)
– Data Integration Management (DIM)
Planning and Business Intelligence
– Planning
– Essbase
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ssbase
Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
Finit’s HFM ExpertiseThe Finit Solutions Series
• Finit provides a unique combination of advanced HFM product expertise and solid accounting backgrounds . Our HFM‐certified consultants come from audit, finance, d i d f l CPA d/ MBA
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and accounting, and most of our consultants are CPAs and/or MBAs.
• We design and implement HFM applications, upgrades, redesigns, and conversions from Hyperion Enterprise for middle market companies to some of the l i h F 500largest companies on the Fortune 500.
• In addition to intercompany issues, we also design solutions around complex foreign currency analysis (including constant‐rate reporting), phased financial close l d t ti IFRS d US GAAP dj t t d t il d h flcalendars, tax reporting, IFRS and US GAAP adjustments, detailed cash flow
analysis, and various other advanced accounting requirements.
• Finit is a member of the Oracle HFM Customer Advisory Board. In this role, we k di tl ith d t d l t d lit i i t t ddwork directly with product development and quality engineering teams to address
future enhancements to HFM.
• Rob Cybulski, co‐founder of Finit, is the HFM domain lead for the Oracle A li ti U G ’ S i l I t t G
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Applications User Group’s Special Interest Group.
Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
Finit’s Client ServiceThe Finit Solutions Series
W t k li t i i lWe take client service very seriously.
Our methodology of efficiently developing effective solutions and exceeding expectations on every
project has resulted in a 100% client satisfaction rate at more than 100 clients.
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Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
Some Finit ClientsThe Finit Solutions Series
•
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Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
About the PresenterThe Finit Solutions Series
Angie [email protected]
• One of Finit’s 2 founding partnerspartners
• HFM Certified Consultant• Has been designing and
i l ti H iimplementing Hyperiontools for over 10 years
• Specializes in conversionsf H i E ifrom Hyperion Enterpriseto HFM
Lily and ReesieLearning about intercompany
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g p y
Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
How to Ask a QuestionThe Finit Solutions Series
Q
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Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
Purpose of this SessionThe Finit Solutions Series
• To explain and demonstrate how metadata settings in the Account and Entity dimensions affect Intercompany Matching & Elimination
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• To explain and demonstrate how the Account, Entity, ICP, and Value dimensions work together to perform intercompany eliminations
• To show examples of intercompany eliminations, including matches and mismatches in both local and translated currencies
• To demonstrate options for setting up the system‐generatedTo demonstrate options for setting up the system generated Intercompany Matching reports
• To provide best practices for designing a dynamic consolidating report (with intercompany eliminations) in BI+ Financial Reporting
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The Finit Solutions Series
Intercompany Basics(for the non‐accountants)(for the non accountants)
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Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
Intercompany BasicsThe Finit Solutions Series
• Subsidiary companies (or departments, or segments, etc) frequently have intercompany transactions with each other, which
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q y p y ,results in intercompany balances on each subsidiary’s books at the end of the month.
• These intercompany balances must be ‘eliminated’ within the consolidation, so that the consolidated company does not include , p yany balances that are the result of intercompany transactions.
• If this rule did not exist, there would be enormous opportunity for companies to overstate their revenues by simply selling back and forth among subsidiary companies.
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Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
Intercompany BasicsThe Finit Solutions Series
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United States
SalesInterco : 0PurchasesInterco : 0
West Region
SalesInterco : 1500PurchasesInterco : 0
East Region
SalesInterco : 0PurchasesInterco : 1500
Los Angeles
SalesInterco: 1500
Denver
SalesInterco : 0
Philadelphia New York
PurchasesInterco: 0 PurchasesInterco : 1500
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Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
EntitiesThe Finit Solutions Series
• Flagging the IsICP attribute adds the entity to the list of Intercompany Partners in the ICP dimension. This means that p yother entities can book intercompany balances with this flagged entity.
• An entity that does not have IsICP flagged can book intercompany balances with other ‘IsICP’ entities; however, no entities would be able to book intercompany balances with the ‘non IsICP’ entityable to book intercompany balances with the non‐IsICP entity.
• It is generally not advisable to flag a parent entity as IsICP, because if th t t tit d t i t i ll tit ll th thif that parent entity does not exist in all entity roll‐ups, then the elimination will not occur. For example, the parent entity ‘East’ might exist in your Region roll‐up but not in your Segment roll‐up.
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Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
AccountsThe Finit Solutions Series
There are 3 account member attributes for setting up an intercompany account:
• IsICP – To flag the account as an intercompany account. −Y if ICP balances, including self‐ICP balances, are allowed for the account (not recommended)account (not recommended)
−R if ICP balances are allowed for the account, but entities cannot have ICP balances with themselves in this accountN if ICP b l t ll d f th t−N if ICP balances are not allowed for the account
• ICPTopMember ‐ Specifies which top member in the hierarchy of the ICP dimension is valid for the account
• PlugAcct ‐Must be the name of a valid account or blank. Used when IsICP is Y or R. If blank, no elimination occurs.
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Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
Plug AccountsThe Finit Solutions Series
• The plug account takes the offset of the intercompany elimination. When multiple intercompany accounts have the same plug account, thi t i t t h
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this generates an intercompany match.
• If the group of intercompany accounts does have matching balances, then the plug account will be zero at the consolidated , p gentity. If the group of intercompany accounts does not have matching balances, then there will be a leftover balance in the plug account at the consolidated entity.
• The plug account should be flagged as an IsICP account so that you can see the detail of each entity eliminating into the plug account.
• You should not assign a plug account to another plug account.
• If no plug account is assigned to an intercompany account, no elimination will occur
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elimination will occur.
Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
AccountsThe Finit Solutions Series
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PlugAcct is the common member that ties the accounts together e.g., IntercoDiffPL
Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
ExamplesThe Finit Solutions Series
• Example 1: Simple IC match (Philadelphia, New York)
• Example 2: Simple IC mismatch (Philadelphia New York)
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Example 2: Simple IC mismatch (Philadelphia, New York)
• Example 3: No plug account assigned (LT Rec / Pay)
• Example 4: Simple IC match at Region level (Philadelphia Denver)Example 4: Simple IC match at Region level (Philadelphia, Denver)
• Example 5: Simple IC match with translation
• Example 6: Simple IC mismatch with translationExample 6: Simple IC mismatch with translation
• Example 7: Base entity does not exist in all orgs
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Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
IC Matching ReportsThe Finit Solutions Series
• HFM’s intercompany matching reports are system generated and require very little set‐up
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• The matching reports can only be accessed via the workspace; they cannot be used from the HFM client or from BI+ Financial Reporting
S f th ti f tti i t t hi t• Some of the options for setting up intercompany matching reports include:
– Specifying the exact entities you wish to match (e.g. Philadelphia against New York)
– Matching a range of entities (e.g. all base entities)
– Suppressing matched balances within a specified tolerance thresholdSuppressing matched balances within a specified tolerance threshold
– Displaying or suppressing custom dimension members on the report
– Specifying the currency in which you wish to view the report
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Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
IC Matching ReportsThe Finit Solutions Series
• Example 1: Basic intercompany matching report
– All base entities against all base entities
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– User has security to all entities
• Example 2: Basic intercompany matching report
– All base entities against all base entities– All base entities against all base entities
– User only has security access to Mexico
– In USD, in MXP
• Example 3: Basic intercompany matching report
– Specific entity (e.g. Denver) against all base entities
– User has security to all entities y
• Example 4: Intercompany matching report with matches suppressed
– Zero tolerance
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– Non‐zero tolerance
Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
IC Matching ReportsThe Finit Solutions Series
Why don’t my intercompany matching reports work? Common causes:
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• Improper use of the override settings
– When in doubt, use the overrides. Worst case is that you may be selecting the sameWhen in doubt, use the overrides. Worst case is that you may be selecting the same settings that are already set up in the report.
– Be very careful with the Value dimension. If you are using journals, be sure to always select the ‘Total’ member (e.g. <entity curr total>, USD Total, etc.)
• Not flagging IsICP for an entityThe intercompany matching reports will only include entities that have the IsICP flag– The intercompany matching reports will only include entities that have the IsICP flag turned on.
– Example: Cancun can book intercompany balances to other entities, but other entities cannot book intercompany balances against Cancun. Cancun will not appear
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on the intercompany matching report.
Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
IC Matching ReportsThe Finit Solutions Series
Why don’t my intercompany matching reports work? Common causes:
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y y p y g p
• Using generic intercompany entities– Example: If you book intercompany balances to a generic entity such asExample: If you book intercompany balances to a generic entity such as ‘GenericMexico_IC’, but ‘GenericMexico_IC’ does not itself have any data, then there is no match.
– The intercompany matching report will still show all the intercompany balances on the t b t th ill ll h t h d (b f t d treport, but they will all show up as unmatched (because, from a metadata
perspective, they don’tmatch.)
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Showing IntercompanyThe Finit Solutions Series
Showing IntercompanyEliminations in Financial Reporting
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Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
Showing IC in ReportsThe Finit Solutions Series
The elimination at any parent entity is always the sum of the elimination value members of all the children of that entity
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elimination value members of all the children of that entity:
+ Philadelphia <parent curr total> + East <parent curr total>+ Philadelphia <parent curr total>+ New York <parent curr total>+ Philadelphia [elimination]
+ East <parent curr total>+ West <parent curr total>+ East [elimination]
+ New York [elimination]= East <entity currency>
+ West [elimination]= United States <entity currency>
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Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
Upcoming WebinarsThe Finit Solutions Series
Getting the Most out of FDM:FDM Logging
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On October 21, you will learn about the different types of logging features in FDM that can be used to track the full data audit trail and the full detail around all activities performed in the application. This webinar will provide you with the tools to better leverage the FDM logging capabilities and to place tightertools to better leverage the FDM logging capabilities and to place tighter controls on your data and FDM application.
Getting the Most out of HFM:Financial Reporting Tips & TricksFinancial Reporting Tips & Tricks
The quality of your Financial Reporting reports is a large part of your organization’s perception of HFM, because many users only interact with those reports. On November 18, you will learn to apply best practices to yourreports. On November 18, you will learn to apply best practices to your Financial Reporting reports that will significantly improve the end‐users’ experience with HFM and reduce the maintenance workload on your corporate consolidations team.
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To register, go to www.finitsolutions.com/Insights_Webcast.html
Th Fi it S l ti S i
Getting the Most out of HFM: Intercompany & Eliminations
Finit ContactsThe Finit Solutions Series
Q ti ?Questions? Angie Apple (Partner)
215‐651‐4661
Email us for a
215 651 4661
Ed DeLise (VP of Sales)
d li @fi i l i
copy of the slides or
l k h d
678‐296‐3611
link to the recording.
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