HFM AND RULES DOCCUMENTATION
Problems and Challenges
Many finance executives face the daunting task of consolidating their Companies financial and operating results using spreadsheets that are difficult to maintain and audit.
While some are dependent on general ledger-based approaches that can’t pull data from numerous transactional systems without significant IT support.
What is needed is a single version of the truth-one view of financial and operational results integrated from multiple systems - without delays.
What is HFM?
Oracle Hyperion Financial Management is a comprehensive, Web-based application that delivers global financial consolidation, reporting and analysis in a single, highly scalable software solution. Oracle Hyperion Financial Management utilizes today's most advanced technology, yet is built to be owned and maintained by the enterprise's finance team.
Why HFM?
PLAN + Powerful FEATURES + Design Considerations + Reporting Tools =
· Less confusion less time
· Shorter closes and Transforms data into usable information
· Viable WEB delivery mechanisms
· Process management for tight control of the review and approval process
· Data Validation
· Currency translation to support multiple local currencies.
· Automatic elimination for intercompany data and transactions.
Features of HFM:-
· Accelerate reporting cycles—Reduce closing cycles by days, deliver more timely results to internal and external stakeholders.
· Improve transparency and compliance—Helps reduce the cost of compliance (as stipulated by the Sarbanes-Oxley Act, electronic filing, and other regulatory requirements) and support disclosure requirements, such as sustainability reporting.
· Perform strategic analysis—spend less time on processing and more time on value-added analysis.
· Deliver a single truth—provide a single version of the truth to support financial management and statutory reporting.
· Easily integrate—integrate not only with Hyperion products but also with your existing infrastructure.
What is consolidation?
Aggregating the data from child account in an entity to parent account.
Consolidation is the period–end process of combining the financial results of separate subsidiaries with the parent company to form a single, combined statement of financial results.
Consolidation is the process of gathering data from descendants and aggregating the data to parent entities. Consolidation applying only to Entity dimension.
After loading or entering data into base level entities we run a consolidation for a selected scenario or period to aggregate data throughout the organization.
Financial Management enables highly efficient collection and consolidation of data from diverse sources. It includes these features:
• Process management for tight control of the review and approval process.
• Data validation.
• Currency translation to support multiple local currencies.
• Automatic eliminations for intercompany transactions.
Consolidation Types and Methods:-
Types:
1. Legal Consolidation
2. Geographical Consolidation
3. Consolidation by entity
Methods:
1. Consolidate
2. Consolidate all
3. Consolidate all with data
Consolidate:-
Only entities that require logic or consolidation are updated by the system.
Consolidate All:-
Any Parent entity regardless of its status. NODATA are also consolidated.
Consolidate All with Data:-
It is available for any parent entity regardless of its status. NODATA are skipped.
Dimensions:-
Data in HFM stored across these dimensions. Dimensions are parameters or pointers to an amount. There are 12 dimensions.
1)Scenario 2)Entity 3)Account 4)Period 5)Year 6)Value 7)View 8)Intercompany 9)Custom1 10)Custom2 11)Custom3 12)Custom4.
Scenario:-
It represents set of data such as Budget, actual or forecast.
Budget: A Budget defines future income and expenses.
Actual: It defines present expenses.
Forecast: Estimate future trends by examining and analyzing available information.
Entity:-
It represents the Organizational structure of a company.
Account:-
It represents hierarchy of natural accounts.
Period:-
It represents time periods such as quarters and months.
Year:-
It represents calender year for data.
Value:-
It represents different types of values stored in application.
View:-
It represents various modes of calender intelligence.
Intercompany:-
It represents all intercompany balances that exits for account b/w two organizations.
Custom Dimensions:-
Four custom dimensions are available for analysis of detailed data. (Ex-custom1, custom2...)
HFM Architecture:-
Financial Management uses a multitier architecture that includes a client tier, an application tier, and a database tier.
The client tier contains the user interface. It communicates with the application tier. The primary function of the client tier is to display, enter, and maintain data and to maintain metadata.
The application tier contains the application, the report, and Web servers. The Web server enables you to access the Web-based portions of Financial Management. The application server contains the financial intelligence and connections to the relational database and OLAP engine. It also contains Architect for managing metadata.
The data tier contains the relational databases for Financial Management metadata and source data.
Note: By using URL we connect the client layer to application layer.
By using IIS we connect Browser client to application layer.
-->How to access Windows client?
Select start > programs > Oracle EPM system > Financial management > Financial management.
-->How to access workspace client?
Select start > programs > Oracle EPM systems > Workspace > Workspace URL
-->How to access shared services?
Select start > programs > Oracle EPM system > Foundation services > Shared services consol.
HFM Overview
Load and add data: To add data to your application by loading it from a file and by using data forms.
Calculate: After enter data, you can run calculation rules to populate calculated accounts.
Adjust data: After you calculate data, you can adjust the data by using journals that provide an audit trail of your adjustments.
Translate and consolidate data: After data for individual business units is entered and adjusted, you can translate and consolidate the data.
Approve data: After data is consolidated, you can submit the data for review and approval.
Lock data: After you receive the approval for the submitted data, you can lock the data to prevent further modifications.
Run and publish financial reports: You can run reports against the approved data.
Application Administration:-
* Define Application Profile
* Creating Application
* Managing Application Security
* Managing Metadata
* Load data, data forms, member lists, rules, and journals to the application.
Define Application Profile:
It defines the Years, periods and views available in the application.
In Windows client select define application profile.
Process: Select profile > Enter languages > define calendar > Edit frequencies > Edit periods > Save profile
Create Application:-
Through web enter into workspace.
Process:
Navigate > tasks > consolidation administration > create application
Through windows client select create application.
Assign Security:-
Before assigning security we register the application.
Register:
In workspace we register the existed application.
Process: Navigate > administrator > classic application administrator > consolidation administration > register application
After the registration of application we assign users, roles and security in shared services.
Users
Process: user directories > Navigate directory > user
Assigning Role:
Process: Application group > default application group > assign acess control
5 types of assign access controls is there.They are:
1) None: No access - User does not see that item exists.
2) Metadata: Sees that the dimension member exists but cannot view/edit data.
3) Promote: View data for dimension member and promote/reject in process control.
4) Read: View data for the dimension member but not promote/reject in process control.
5) All: Modify the item and promote/reject in process control.
Security:-
Process: select users and groups > select classes > assign access > security report.
Creating Metadata:-
In windows client select manage metadata.
This section focuses on building the entities, accounts, custom dimensions, scenarios, currencies and application settings.
Accounts:
It defines account type.
Mandatory Attributes: account type, security class, default parent.
Types of Accounts:
1)Asset 2)Liability 3)Revenue 4)Expense 5)Flow 6)Balance 7)Current Rate 8)Group Label 9)Balance Recurring 10)Dynamic.
Asset: An Asset is an item of property owned by a person or company.
Liability: Acompany's legal debts or obligationsthat arise during the course of business operations such as bank loans or account payable.
Revenue: For a company, this is the amount of money received by the company for goods sold or services provided i.e., total profit and loss during a certain time period.
Expense: Amount of money that you spend in order to buy or do something.
Flow: Behaves like an Expense or Revenue account, but will not translate.
Balance: Behaves like an Asset or Liability account, but will not translate.
Current Rate: It is the ratio of one currency valued against another value of a currency of one country. It whether depends on the demand and supply on free market or restricted by a government or by central bank.
Group Label: A field in a contact group used to identify the group to users, e.g. "family", or "colleagues".
Balance Recurring: Allows you to enter data in one period and have it carry forward until the end of the year.
Dynamic: Indicates that the account is calculated dynamically, “on the fly.” The accounts are typically simple ratios and require a special rule.
Currencies:
It defines currency type.
Mandatory Attributes: currency, scale, translation operation.
Entity:
It defines the location of transaction.
Mandatory Attributes: define currency, default parent.
Scenario:
It defines data type.
Mandatory Attributes: default frequency, default view, security class, support process management, default frequency for IC transaction, default parent, zero view for non adjustment, zero view for adjustment.
Custom-1:
It defines the customers.
Mandatory Attributes: security class, default parent.
Custom-2:
It defines products.
Mandatory Attributes: security class, default parent.
Custom-3 and Custom-4:
If we have any other data we use these two customs.
Application Settings:
Application settings are not a hierarchy – not even presented as such – but rather they control. How the application works and enables some of the functionality.
Mandatory Attributes: default currency, default rate for balance accounts, default rate for flow accounts, ICP Entities agg weight, default value for active, validation account, consolidation rules, noad security, max cell text size, max doc attachments, max number doc attachments.
Consolidation Method:
Consolidation methods are used to provide settings for various types of consolidation that Address various ownership requirements.
Mandatory Attributes:
Consol method, to percent control comp, to percent control, percent consol.
Load Metadata:-
Load the data. If any errors are there those errors are shown in log file. Then we modify the errors and reload that data.
In windows client select load metadata.
In workspace first open the application for load metadata, extract metadata, data forms, data grids etc.
Application opening process:
Select Navigate > Application > consolidation > select application
Load metadata process:
Select tasks > load tasks > load metadata
Extract Metadata:-
It typically extracts all metadata options into a single file, make the changes and then do replace loads.
Extract metadata will done both in work space or windows client.
In workspace select tasks > extract tasks > extract metadata
In windows client we select extract metadata.
Extract Data:-
Which data we want to see, select that data by using POV selection, that selected data will converts into single file.
Extract data will done both in work space or windows client.
In workspace select tasks > extract tasks > extract data
In windows client we select extract data.
Explore Metadata:-
After loading metadata we can see all the data in explore data and also enter the values regarding point of view selection.
In windows client select Explore data.
Database Management:-
Any modification is required for data we have to modify in this. If you want copy the data from one scenario to other scenario and clear data also done in this database management.
Member list:-
It is used to adding the member and deleting the member. It is done in explore data. Member list is available for all dimensions.
There are 2 types of member lists.
1) System define member list
2) User define member list
User define member list
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Static member Dynamic member
List list
System define member list is a default option.
Member list is created by administrator. It has two subroutines.
1) Enum member list.
2) Enum member in list.
Enum member list: It is used to create the member list.
Enum member inlist: It is used to add (or) delete a member in existed list.
Journals:-
If any modification required in accounts, that modification was done with posting journals.
In workspace we do journals.
Process:
Select tasks > Journal tasks > process journals
Recurring Journal:-
Some Journals we use repeatedly. So, for that purpose, we will create recurring templates. By using the recurring templates, we will create recurring Journals.
Auto Reversing Journal:-
If we create a journal as Auto Reversing Journal, the journal will post in the next period by reversing the Debit and Credit.
Data forms and Data grids:-
It is used to review and analyze data, change data, consolidate and other tasks.
Data forms have so many advantages than data grids.
In workspace select tasks > data tasks > data forms (or) data grids
(OR)
Administrator > manage documents > data forms (or) data grids
Data Forms Data Grids
1) Point view is available. 1) Point view is available.
2) Import & Export to ex format 2) Import & Export to ex format
is possible. is not possible.
3) Print format is possible. 3) Print format is not possible.
4) Add (or) delete changes is possible. 4) Add (or) delete changes is Not Possible.
Process Control:-
Once a user loads data (or its loaded for them) and intercompany balances have been reconciled and adjustments have been made, the data is ready for consolidation into the company’s numbers.
Process:
Tasks > consolidation administration > data tasks > process control.
In process control we can follow these steps.
With the status now all good, we can promote. Below uses the toolbar to find Promote.
Start >promote > submit > approve > publish.
Rules
About Rules
Hyperion Financial Management rules provide powerful, customized calculations that you can use to perform the following tasks:
· Calculate data that cannot be calculated through a hierarchical.
· Aggregation, such as ratios or variance analyses.
· Perform complex currency conversions and calculate exchange rate.