Hfm Presentation

Design Considerations of Operating Unit Structure

Enable XXXs existing Shared Services Financial Model Access Control

Logical Partitioning of Data/ Transactional segregation

Design Consideration Scenario

Petaluma, GR & Canada facilities are to be considered for transitional processing, Taiwan entity will be considered for consolidation at a GL level

Acquisitions-Scalable Model Ability to Scale up operations in future via Mergers & Acquisitions.

Reporting Requirements

Multi Currency & Consolidation

Ability to generate- Statutory & Transactional Reporting from GL & Sub ledgers GR, Petaluma, Canada & Taiwan Entity.

Ability to perform multi currency transactions-USD, CAD, Taiwan DollarConsolidation- Consolidate US Set of Books- Petaluma, GR, Canada Set of BooksCAD & Taiwan Set of Books

Existing Legal Entity StructureXXX has 4 different legal entities -Petaluma, GR, Canada, Taiwan

Chart of Accounts – Accounting Flexfield Qualifiers

Optional- Used to track Management Reporting & AccessWill be determined during the course of gathering requirements around data security & access control

Management Segment

Functional Areas of Organization such as Accounting, ShippingKV may consider the following divisions

Incurring the cost Generating Revenue Holding inventory

Cost Center

Balance Journal entries for each value – Run Trial Balance

KV may consider different values for GR, Petaluma, Canada

Balancing Segment

Accounting Flexfield Qualifier Application/ Significance for XX

Represent Account types: Asset, Liability, Owners Equity, Revenue, Expense

Natural Account

This segment will be paired with the balancing segment when generating

account balances for the Retained Earnings account, Unrealized Gains or

Losses accounts, and the Cumulative Translation Adjustment account.In KV the Cost center can we paired with the balancing segment for

greater foreign currency transaction & retained earning analysis.

Secondary Tracking

Balance & Track Intercompany transactions across US entities & CanadaThis segment will have the same values as the values in the Balancing segments

Inter Company

Scalable consolidation

software

COA Maintenance

Financial Adjustments Mechanism

Multiple Systems for capturing financial data Manual process of consolidating legal entities Longer cycle time for closing & consolidation Limited Visibility & Control on overseas company

Manual process – inter company elimination, opening adjustments, foreign currency adjustments, audit adjustments, consolidation adjustments

Limited control mechanism as it is excel-based Difficult to maintain history

Accounts are mapped to Uniform COA manually

Higher Business and IT support

Typical Challenges- Taken care in HFM

Improved Reporting

Functionality

Excel and Power Point based reports

Longer cycle time to develop reporting package , ad-hoc reports

4

Hyperion Financial Management – Comprehensive Consolidation & Reporting Platform

Parameter As Is (Excel) To Be (HFM)Reporting in Dashboards

Manual Automated

Consolidation Manual Process AutomatedInter-company Eliminations

Manual Process Automated

Multi Dimensional No YesScalability Cumbersome

Error prone Process

Smooth, standardized processes

Allocations logics Manual Process AutomatedBackup facility Restricted Not restrictedMaintenance Manual Process AutomatedDrill back to transactional systems

(Oracle/SAP/PeopleSoft, Flat files)

Not Possible Possible

Flexibility to Changes

Difficult Easier adaptation

Key Drivers 5

Comparison between HFM & Oracle EBS

Consolidation Process & User’s convenience

Hyperion Oracle GL

Consolidation of multiple COA based GL

SupplementalData Collection/

Adjustments

Reporting

Currency Translation

Variance Analysis

Linking of data and reports to

MS Office products

HFM can source multiple COA based GL data, which will be mapped in FDQM/FDM to reporting COA of HFM

HFM allows to create supplemental accounts and templates to fulfill this requirement. HFM allows adjustment by using JEs.

Hyperion systems are implemented to have Actuals and plan data in most scenarios hence provide capabilities to do variance analysis of Financial statements between estimate vs. actual

Hyperion is a mainly consolidation and reporting tool and has lots of flexibility to report financial statements like by org, by business unit, by region without intervention of IT expert.

Currency conversion of trial balance is easy and in built feature in the HFM.

Hyperion products allow better presentation and reporting interfaces with MS Office like Excel, Power point and word doc

It will be cumbersome to map multiple COA based GL to any consolidation GL instance.

GL is highly referential integrated system with less option for custom processes.

Oracle EBS are mostly design to capture transactions which are Actuals by nature. Plan data does not go into GL systems so no variance analysis.

Consolidation module in Oracle EBS has limited ability to report at different levels of Organization hierarchy with entities in different currencies

Standard Functionality

GL has limited functionality for interfaces with MS office products for reporting purposes like ADI.

6

Comparison between HFM & Hyperion Essbase/Planning

Consolidation Process & User’s convenience

HFM Hyperion Essbase

Consolidation of multiple COA based GL

Intercompany Eliminations/Adjustments

Planning

Currency Translation

Variance Analysis

Linking of data and reports to

MS Office products

Multiple COA based GL data can be mapped in FDQM/FDM to reporting COA of HFM

HFM has in-built intercompany eliminations feature.

Variance analysis need to be customized in HFM or Users have to do manually in Excel

HFM supports limited feature for planning processes.

Currency conversion of trial balance is easy and in built feature in the HFM.


Essbase does not support Intercompany Eliminations.

Variance analysis can be done by defining formula scenarios in Essbase and no manual calculation in excel.

Currency translations need to be customized in Essbase

7


Essbase supports features of planning processes.

Multiple COA based GL data can be mapped in FDQM/FDM or preferably in Oracle staging area to reporting COA of HFM

Reporting All reporting can be done by refreshing data

directly in excel and MS products. All reporting can be done by refreshing data

directly in excel and MS products.

Recommended future state of reporting architecture

© 2009 Copyright Genpact. All Rights Reserved.

Oracle EBS

GL Consolidation Functional Data marts

Third party Systems

Excel & Other MS Products OBIEE & Other Reporting tools

Transaction Layer

Data Warehouse Layer

Reporting Layer

Requirements of KV for consolidation process HFM EssbaseConsolidation of 3 Main GL feeds (Great Plains, Syteline,G-Slide) Yes YesIntercompany Eliminations Yes NoCurrency Translation Yes YesCost center level planning for SG&A, expense and other P&L items Yes YesVariance reporting between Actuals,Forecast,Budget and prior year Acutals respectively. Yes YesVariance reporting between Actuals,Budget and prior year Acutals respectively. Yes YesMonthly Bank reporting with and without G slide in MTD and YTD. Yes YesMonthly BS report with variance analysis among Actuals, budget of CY and Actuals of PY. Yes YesLinking to MS Products like excel, power point for reporting Yes YesCash Flow Reprting Yes YesSales by Channel reports Yes YesConsolidated Income statements Yes YesHeadcount model and reporting No YesLinking to MS Products like excel, power point for reporting Yes Yes

Requirements of KV in consolidation and planning processes

Pros and Cons if KV goes with only HFM or Essbase

HFM EssbasePros:1. Intercompany elimination is in-built feature

in HFM2. Currency conversion is in built feature in

HFM and easy to go process.3. Reports in MS office products can be

refreshed via HFM at click.4. In-built SOX compliance process due to

workflow.

Pros:1. Planning processes are excellently handled in the

Essbase environment.2. Hyperion Planning cube has in-built Business rules

which can be kicked by users from planning web forms to calculate planning variables without waiting for IT support

3. Calculations and aggregations are heart of Essbase engine.

4. Headcount model can be easily implemented along with Work force planning module to implement Compensation and Benefits model.

5. Reports in MS office products can be refreshed via Essbase at click.

Cons:1. Planning business rules are not supported

in the HFM2. Calculations and aggregation of plan data

will be customized in HFM.3. HFM supports limited planning processes.4. Cash flow report will be a custom solution

in HFM

Cons:1. Intercompany elimination is not supported in

Essbase2. Currency conversion is a customized solution

Essbase.3. SOX compliance are handled with shared folders

or support centrals which can be accessed by auditors.

Multi Phase HFM Implementation

Phase 2 (Post-EBS Go-Live)Phase 0 (Pre-Requisite)

Chart of Accounts Standardization

Phase 1 (Pre-EBS Go-Live)

Implement Hyperion without EBS GL Go Live

EBS GL Goes live

Study legacy systems and their with segments values.

Design and confirm COA for EBS and HFM with Hierarchies

Sign off from KV on COA

Design hierarchies of mapped segments in HFM

Mapping of Source system’s COA to COA of HFM

Build Hierarchies of mapped segments in the HFM

Design and build GL feeds for Great Plains, Syteline and Taiwan feeds.

Load GL feeds in HFM and Hyperion Planning

Design, Build and Test

Go-live (HFM on Legacy systems)

Switch source COA from Legacy systems to Oracle EBS

Build current month feed from Oracle EBS

Load GL feed into HFM and Hyperion Planning

Test

Go-live (HFM on Oracle EBS)

**COA: Chart of Accounts**COA: Chart of Accounts

L1 -Financial Consolidation and Planning processes (Pre-EBS Go-live)- -Phase 1

Hyperion

Consolidationapplication

(in HFM)

Great Plains GL Feed

(KV,KV Canada,Holding, Elim, Asia)

Plan data collections via Planning forms in

Hyperion

HyperionPlanning(Cube)

Plan Feed

Smart view / Financial Reporting


User interface

Reports


Syteline GL Feed

FF

G slide GL Feed

Mappingof

SourceCOA to

ReportingCOA of

HFM

Dimensionality – To-BE HFM ConsolidationDimension Description

AccountsAssets, Liabilities,Equity,Revenue and

Expense accounts

Years FY07-FY16

Period

Months, Quarters, YearTotal, BegBalance,

Dynamic time Series (M-T-D, Q-T-D, Y-T-D)

Scenarios Actual, Budget, Forecast Scenarios

Legal Entity KV,KV-Canada,PET,Taiwan

ICP Intercompany partners

Cost Center IT, Sales, HR

Channel All Sales channels

ProductUSD, Local currencies like CAD,Asian

currencies

Dimensionality – To-BE Hyperion Planning applicationDimension Description

AccountsAssets, Liabilities,Equity,Revenue and

Expense accounts

Years FY07-FY16

Period

Months, Quarters, YearTotal, BegBalance,

Dynamic time Series (M-T-D, Q-T-D, Y-T-D)

Scenarios Actual, Budget, Forecast Scenarios

Legal Entity KV,KV-Canada,PET,Taiwan

Cost Center IT, Sales, HR

Channel All Sales channels

Product All Products

CurrencyUSD, Local currencies like CAD,Asian

currencies

L1 -Financial Consolidation and Planning processes (Post-EBS Go-live)-Phase 2

Hyperion

Consolidation

application

(in HFM)Oracle EBS- GL Feed

Plan data collections via Planning forms in

Hyperion

HyperionPlanning(Cube)

Plan Feed



User interface

Reports


Mappingof

SourceCOA to

ReportingCOA of

HFM

Implementation Approach of HFMStudy of existing legacy systems during pre-design phase. It will broadly cover analysis of: Business Requirements

Analyze Chart of Accounts of Accounts for -Great Plains, Skyline and Taiwan feed.

Analyze proposed( TO BE) COA of the proposed Oracle EBS and HFM

User/User Groups, profiles and mapping

Any custom features

Consolidation modeling processes

Study of existing legacy systems during pre-design phase. It will broadly cover analysis of: Business Requirements

Analyze Chart of Accounts of Accounts for -Great Plains, Skyline and Taiwan feed.

Analyze proposed( TO BE) COA of the proposed Oracle EBS and HFM

User/User Groups, profiles and mapping

Any custom features

Consolidation modeling processes

© 2009 Copyright Genpact. All trademarks appearing herein belong to their respective owners.

Analyze

Design,Build,Test & Pre-EBS Go-Live Design and build Hierarchies of mapped segments in the HFM


Design and build GL feed considering accounting code and data scalability requirements Define allocations and adjustments logics.

Design and build rule file ( Business Rules)

Load historical data and current period feed in HFM

Design and build security for different type user profiles and groups

SIT and UAT

Automation of HFM processes & Production Deployment

Design and build Hierarchies of mapped segments in the HFM


Design and build GL feed considering accounting code and data scalability requirements Define allocations and adjustments logics.

Design and build rule file ( Business Rules)

Load historical data and current period feed in HFM

Design and build security for different type user profiles and groups

SIT and UAT

Automation of HFM processes & Production Deployment

Post EBS Go-Live Switch source COA from Legacy systems to Oracle EBS



Conduct UAT,Re point Automated processes to Oracle EBS and Production deployment with Oracle EBS rollout.




Conduct UAT,Re point Automated processes to Oracle EBS and Production deployment with Oracle EBS rollout.

Implementation Approach of Hyperion Planning Understand Planning requirements and number of planning cycles in fiscal year with key

financial planning process owners of KV. Understand Planning requirements and number of planning cycles in fiscal year with key

financial planning process owners of KV.

© 2009 Copyright Genpact. All trademarks appearing herein belong to their respective owners.

Analyze

Design,Build,Test & Pre-EBS Go-Live

Design and build Hierarchies of mapped segments in the Hyperion Planning Design and build actual feed to planning cube. Load actual data feed in Hyperion Planning Design and build Hyperion web forms for plan data collection by platforms. Design and build security for different type user profiles and groups Automation of Hyperion admin processes Design and Build Plan feed to load plan data from Hyperion planning to HFM. SIT and UAT Production deployments

Design and build Hierarchies of mapped segments in the Hyperion Planning Design and build actual feed to planning cube. Load actual data feed in Hyperion Planning Design and build Hyperion web forms for plan data collection by platforms. Design and build security for different type user profiles and groups Automation of Hyperion admin processes Design and Build Plan feed to load plan data from Hyperion planning to HFM. SIT and UAT Production deployments

Post EBS Go-Live Switch source COA from Legacy systems to Oracle EBS



Conduct UAT,Re point Automated processes to Oracle EBS, Production deployment with Oracle EBS rollout.




Conduct UAT,Re point Automated processes to Oracle EBS, Production deployment with Oracle EBS rollout.

Lock Box Functionality-Solution Approach

Approach involves following

BEMO & Harris Bank transmit Lox box receipt file to K&V Oracle EBS System

The file is then interfaced using Oracle AR Auto Lockbox Functionality

Lockbox is configured to accept the interface file format from the Bank

Receipts are created automatically in the Oracle AR system

The matching rules ensure the automatic application of receipts to open AR Transactions.

Lock Box File

AR_PAYMENTS_INTERFACE TABLE

AR_INTERIMCASH RECEIPTS

AR_INTERIM_LINES

Receivables Tables

Import Program

AutoLockbox Validation

Post QuickCash

Lockbox Execution Report

LockboxExecution Report

Post QuickCashExecution Report

Intercompany TransactionsEnter / Update

TransactionSend

Transaction

UpdateTransaction

Approve Transaction

InvoiceRequired

Invoice NotRequired

Create AR

Invoice

Create AP

Invoice

Update GLOpen Interface


RejectTransaction

Initiator

Recipient

Enter / UpdateTransaction

SendTransaction

UpdateTransaction

Approve Transaction

InvoiceRequired

Invoice NotRequired

Create AR

Invoice

Create AP

Invoice



RejectTransaction

Initiator

Recipient

Initiator creates an Inter company transaction with one or more recipient lines, enters initiator accounting and submits the batch.

Recipient receives the Inbound Transaction, enters recipient accounting and approves transaction.

The recipient may approve or reject the transaction either in Oracle Advanced Global Inter company System UI or from the Workflow Notification online or in email format..

The transaction status is updated for the initiator and recipient when the transaction is approved or rejected.

When the transaction is approved, Oracle Advanced Global Inter company System determines whether an invoice is required for the transaction or not.

If the Legal Rules and Transaction type options determine an invoice is required, Receivables and Payables Invoices are created. If an invoice is not required, the transaction is transferred to General Ledger of the initiator and the recipient.

HFM Implementation …Why?

Parameter As Is (Excel)

To Be (HFM)

Reporting in Dashboards Not Possible PossibleConsolidation Single user Multiple usersInter-company Eliminations

Manual Process Automated

Multi Dimensional No YesScalability Cumbersome Error

prone ProcessSmooth, standardized processes

Allocations logics Manual Process AutomatedBackup facility Restricted Not restrictedMaintenance Manual Process AutomatedDrill back to transactional systems (Oracle/SAP/PeopleSoft, Flat files)

Not Possible Possible

Flexibility to Changes Difficult Easier adaptation

Key Drivers

HFM benefits

AreaAreaTechnical/Business Technical/Business

BenefitsBenefitsWeb based interface Access from any where

Additional dimensionality Enhanced analytical capabilities

Cell Text for additional explanation on each cell Better explanation about the numbers

Line Item detail for additional break up of the figures

More detailed level data as and when require, with out adding members in the dimension

Cell level Document attachment

Users can attach supporting document for detailed information

Process management

Better process flow management in the Financial consolidation reporting process (review mechanism)

Better Audit trails Better Transparency of data and SOX compliance

Better Data mapping capabilities Better transparency of data loads

Better Data validations during data loads

Better control on data loads, reduce repetition of load process

Drill back capabilities to the source files/systems

More granular data tracking with source systems and source files

Drill down capabilities in reports

Single report can provide multiple level of information. Number of reports would reduce.

Better security management - up to cell level Robust User and data management

HFM benefits continued

AreaAreaTechnical/Business Technical/Business

BenefitsBenefitsCalculation scripts (Business rules )

Allocation, Consolidation, Translation logics built in the application. Less manual process.

Monthly review process

Manual process involved in Monthly review process can be automated (eg: Roll over)

Dash board reporting

Less manual effort in generating better graphical presentations.

Automated data loads

Less manual intervention in data loads, more data accuracy

Intercompany elimination

Automated intercompany elimination, increased productivity

Intercompany Reports

System generated intercompany reports at various levels (posted, un posted, un matched, matched) Less manual intervention

Currency adjustments

Enhanced currency adjustments, system built members for currency adjustments. Better tractability..

Multiple currency reporting

On the fly currency translation for any selected currency

Microsoft Office products integration (Excel, Word, PPT) Better presentation and reporting interfaces

Better backup facility

Backup can run simultaneous with other users accessing the system. Less chances of data corruption,

Closing cycle time

With better allocation logics and interfaces with other HFM applications and data files, closing cycle time would be reduced considerably.

Genpact Solution - Real Time

consolidation

Problem Statement – Manual ,People Dependent process, Excel based consolidation process

Legal Entity rollup

Trial balance load using FDQM

Our Understanding of the Pain – Solution Recommendation 1 of 5

Genpact Solution – Improved data integrity . Workflow ,audit trail and multiple security layers will ensure

the integrity of data

Problem Statement – Data Integrity

Better Audit trail Transparency of data load Better Data management Accruals Better process flow

management Data Accuracy


Genpact Solution – Greatest possible

flexibility with respect to mapping

Problem Statement – Manual process of COA codification

Source account

Target Account

Our Understanding of the Pain – Solution Recommendation

Genpact Solution – Adjusting

data with journals

Problem Statement – Manual process of booking and maintaining adjustment entries

AccountBalance

JournalAdjustments

AdjustedAccountBalance

Reclasses Entry Corrections Reversals Accruals Minority interest accounting entries Elimination adjusting entries True Ups Allocations

Journal


Problem Statement – Manual ,excel & power point based reporting

Genpact Solution – Easy adhoc reporting , better presentable reports can be

prepared Excel Based Reports using smart view

Dashboard reporting using Web analysis Profitability

Analysis


Problem Statement – Data validations at entity level to ensure accountability

Genpact Solution – Automatic validations can be built into the data load process to provide easy check points to ensure accurate and high quality entity data.


Problem Statement – Subsidiaries should own accountability for their own financials

Genpact Solution – Users can answer key questions about their financials and sign off that the data sets are complete..


Problem Statement – How can corporate have visibility into the consolidation process

Genpact Solution – Automatically created “Process Monitor” reports can tell where are the bottlenecks in the close process.


Solution Benefits

FINANCIAL MANAGEMENT BENEFITS•Improves financial close and reporting process and reduces internal control risk

•Helps reduce the cost of compliance and build a sustainable compliance framework

•Spend less time on processing, more time on value-added analysis

•Helps deliver a single version of the truth to support financial management and statutory reporting

•Integrates not only with Hyperion products but also with your existing infrastructure

FINANCIAL MANAGEMENT FEATURES•Complete audit trails and other controls

•Smart Dimensionality

•Versatile scenario management

•Powerful, easy to use reporting and analysis tools

•Patented financial consolidation software and financial statement software features

•Web-based architecture

•Data integration tools and adapters

•Industry-standard tools and API's for extensibility

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