An Introduction To Hyperion Financial Management By Amit Sharma
[email protected]
Agenda : Fundamentals ls of Financial Consolidation Fundamenta Describe the features of Financial Management Describe the Hyperion products bundled with Financial Management Describe the product architecture Describe related Hyperion products
Hyperion Financial Management
Hyperion Financial Management is a financial consolidation and repor reporting ting appli application cation buil builtt wit with h advanced Web techn technolog ology y , but used and mainta tain ined ed by the finance team.. It pr team prov ovid ides es fi fina nanc ncia iall ma mana nage gers rs th the e ab abil ilit ity y to ra rapi pidl dly y clos cl ose e an and d re repo port rt fi fina nanc ncial ial re resu sult lts s, meet glo global bal regu regulat latory ory requirements,, red requirements edu uce the cost of co com mpliance and de deli live ver r confidence in the numbers.
What
is Financial Consolidation
Financiall Consolid Financia Consolidation ation [ Th The e Mer erge gerr of Two En Ente terrpr pris ises es ]
: Th The e co comb mbin ined ed fi fina nanc ncia iall st stat atem emen entts of a pa pare rent nt co comp mpan any y an and d it its s su subs bsid idia iari ries es.. or Bec Be cause consolid ida ated fi fin nancia iall stateme men nts present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge the overall health of an entire group of companies as opposed to one compa co mpany ny's 's st stan and d al alon one e po posi sitio tion. n. Business Intelligence
In another accounting context, financial consolidation refers to various processes that will streamline the internal financial reporting of a single company Consolidating financial data from diverse locations and across multiple gene ge nera rall le ledg dger ers, s, pe perf rfor ormi ming ng mu mult ltii-cu curr rren ency cy co conv nver ersi sion ons, s, un unta tang ngliling ng ou outm tmod oded ed spreadsheet based data collection processes, incorporating changes from reorga reo rganiz nizati ations ons,, merg mergers ers,, and acq acquis uisiti itions. ons.
Consolidate
data quickly from multiple general ledgers and multiple char ch arts ts of ac acco coun unt? t? fro om various business perspect ctiives and by mult ltiiple Consolidate data fr stru st ruct ctur ure e ve vers rsio ions ns (t (thi his s ye year ar,, la last st ye year ar,, pr prop opos osed ed)? )? Supp ppor ortt lo loca call an and d mu mult ltip iple le ba base se cu curr rren ency cy re repo port rtin ing? g? Su Report on the impact of currency fluctuations (actual, forecast and budget bud get rat rates) es)? ? hen n Whe
do we ne need ed Fi Fina nanc ncia iall Co Cons nsol olid idat atio ion n:
Consolidated financial statements are required when there are two or more affi af fili liat ated ed co comp mpan anie ies. s. When a parent company either directly or indirectly controls a majority interest of a subsidiary, consolidated financial statements must mu st be pr pres esen ente ted. d. (C (Ca ash fl flow ows, s, and fi fina nanc ncia iall po posi siti tion on of th the e co comb mbin ined ed en enti tity ty)) W hen one company acquires another company, a consolidated balance sheet needs to be prepared. The first step is to eliminate the effects of any inter-compan inter -company y transa transactions ctions..
The problems - consolidating financial data from diverse locations and across mul ulttip iple le ge gene nera rall le ledg dger ers s, perform rmin ing g multicurrency con onv versi sio ons ns,, and untangling outd tda ate ted d sp spre rea adsh shee eett based data collection processes, incorporating changes from reorganizations,, mergers reorganizations mergers,, and acquisitions acquisitions..
Financial Data Quality Management :F :Fin inan anci cial al co con nso sollid idat atiion solutions can meet this challenge by st stre ream amli lini ning ng da data ta co coll llec ecti tion on and integration from multiple sources, making the monthly close faster and more efficient while turning disparate data into useful, busi bu sine ness ss cr crit itic ical al in info form rmat atio ion. n.
Financial Consolidation types The Consolidation Module Module enables the user to generate the t he following Consolidated Financial Statements: Consolidated Balance Sheet A balance balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they t hey were a single firm. Consolidated Trial Balance Consolidated Profit & Loss Statement
Spreadsheets When the spreadsheet approach is used, spreadsheet templates are created by central headquarters and e-mailed to remote locatio ion ns. Th The en, on a monthly or quarterly basis, these spreadsheets are updated and e-mailed back to central headquarters, where they are consolidated into a master spreadsheet²usually with complex macros. The only advantage of this approach is low cost because there is no software or hardware to buy. Everyone in the organization already has e-mail access and a spreadsheet appl ap plic icat atio ion n on th the e de desk skto top. p.
Financial Consolidation, Reporting, and Analysis Financial Management enables highly efficient collection and consolidation consolidatio n of data from diverse sources. It includes these features: Process management management for tight control of the review and approval processData validation Currency translation to support multiple local currencies Automatic eliminations for intercompa intercompany ny transactions Financial Management is designed for large-scale large-scale,, centralized Web deployment. You can use Financial Management to consolidate data from diverse general ledger systems and loca cati tio ons aro roun und d th the e glo lob be.
KEY FEATURES
Global consolidation features Scalable web architecture Smart dimensionality Complete audit trails Powerful reporting and analysis tools Robust data integration
FDQM
Financial Compliance In Sarbanes Oxley 404 scenario, it is important to keep some things in mind which help in the overall controls in the financial closing process. 1. Has the management m anagement documented the entire financial closing process in sufficient detail from data collection to final report making. 2. Have control activities been documented docum ented which define the controls realting to the financial closure process. 3. Has a risk assessment been conducted to assess the inherent risks in the closure processs. 4 How and by whom is the financial f inancial closure process monitored. How is completeness of the process determined. 5. How are communication com munication procedures defined which which ensure a smooth financial closure in a timely tim ely manner. manner. The users of a company¶s financial statements ²investors, lenders, and management²wish to see accurate results from the latest reporting period as soon as possible
HFM Lifecycle Overview Server Calculate Adjust data
Loading «
22 44
Load & Add data
66
Translate & Consolidate
33 55 77
Run & Publish Reports
11 11 11
Lock data 22 44 66
Approve data
Financial Management
What
are the challenges we are facing?
± An increasi increasing ng desire desire to have have continuou continuous, s, comprehensive planning and reporting ± The challeng challenges/st es/strugg ruggles les of making (extern (external) al) GAAP-based financial reporting mesh with (internal) fund accounting-based reporting ± The systems systems we have/are putting in are not all that conducive to this type of reporting (for fund accounting, for higher education)
Financial Management
Financial Management comes bundled with three products that extend its capabilities: Financial Reporting is a reporting and charting tool for Web or print distribution of financial reports. Smart View for Office is a spreadsheet add-in based on Excel for reporting and analysis. Shared Services enables user provisioning and sharing of metadata and data among Financial Management applications or between Financial Management and other products.
HFM Artifacts Management, legal, and tax reporting Complex currency translations Intercompany and minority interest eliminations Complete audit trails Journal adjustments Multidimensional analysis Cash flow reporting Extensible Business Reporting Language (XBRL) reporting
Using Hyperion Tools to Integrate Inte grate Hyperion Planning
Detailed Budgeting
Financial Reporting
Different Levels of Data Detail as Relevant to the Different Needs Strategic Modeling
Distributed and Customizable Modeling; Realtime Access Hyperion Financial Management
Hyperion Strategic Finance Automated Data Integration Between the Systems
In Next Session We¶ll Learn Fundamentals. als. Application Fundament ypes s of Application\ Classic Application and and Type EPM Application Creating Application
Questions?
