ERP Integration With EPM

Integrating Oracle ERP with Oracle Hyperion EPM - overview and update Michael van der Merwe Director, Financial Close Solutions

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 • Oracle Disclosure Management Overview

2

Agenda • • • •

Financial Data Quality Management (FDM) Overview Feature Review FDM Roadmap Customer Case Study – The Macerich Company

• Questions and Answers

3

EPM Data Quality Customer Challenges - Data • Errors in financial data and meta data collection • Inconsistent account structures • Heterogeneous sources • Increasing data volumes OLTP & ODS Data Warehouse Systems Data Mart

Exadata

OLAP Sources

Packaged Applications (Oracle, SAP, Others)

Strategy Management

Planning & Forecasting

Financial Close and Reporting

Profitability Management

Unstructured & SemiStructured

Excel XML/Office

4

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

Data Management can become a real headache!

5

What is Financial Data Quality Management (FDM)? • Combines four functions/processes – 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

6

Oracle EPM System Delivers Confidence with FDM Data Collection and Transformation

Audit Trails • Integrated Control questions • Store current and historical mapping definitions, docs • Allow dynamic drill through to source ERP and files • “Defendable” Data

FDM

Repeatable Processes • Single standard and

defined solution for any target application • Standardized database schema • Standard upward data certification process • Fast turn around times

• 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

7

FDM offers unique ERP Integration for EPM Data

Data & Meta data

Oracle EBS, PeopleSoft, SAP R/3

Financial Close

EPM WorkSpace Financial Reports

Data Warehouse Data Mart

Planning & Forecasting

SmartView

FDM Strategic Planning Other Systems

Profitability Management

File Excel XML

Drill-through & Write-back

8

Feature Review

9

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 Strategy Planning Management Essbase Financial Close Strategic Finance and Reporting HPCM via Essbase cube Enterprise Generic tax applications. (Tax Stream)

Planning and Forecasting Profitability Management

10

Import from Any Source

End users “Import” their source financial data (from files, DB’s or ERP) into FDM eliminating all manual changes ensuring complete accuracy.

11

Smart Dimensional Mapping

Invalid dimension mapping problems are identified for easy correction. FDM allows for simple or complex cross-dimensional and conditional mapping of data.

12

User Driven Data Validation Rules

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.

13

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 by default.

14

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 load portion of the close process.

15

Supports Sarbanes Oxley Certifications and Assessment Requirements

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.

16

Drill-Through to Source System to Audit Data • From HFM, Planning, Financial Reports and Smartview

*Drill through from Enterprise 6.5.1 to FDM only

17

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

18

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 Map source PSFT HR fields to target PSB accounts

19

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

20

Enhanced Essbase Support • Load metadata and data for ASO/BSO cubes • Drill through to ERP source system from Smartview or Financial Reporting Data

Data & Meta data

Oracle EBS, PeopleSoft, SAP R/3

Data Warehouse Data Mart

FDM

Essbase ASO/BSO

Financial Reports SmartView

Other Systems

File Excel XML

Drill-through

21

Roadmap

22

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.

23

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 HR data load to generic planning applications

24

The Macerich Company

25

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 ƒ 250 Hyperion users 26

The Solution The Software ƒ Hyperion Planning v.11.1.1.3 ƒ ERPi v.11.1.1.3 ƒ Oracle eBusiness Suite v.11.5.10.2 The Design 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 27

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

3. Drilldown from Hyperion Planning to Underlying Transaction

28

The Architecture

29

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)

30

ERPi Drill Through ERPi launch page

2

1

3

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 31

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

32

For More Information go to: www.Oracle.com/epm www.Oracle.com/demos

33

34