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[HFM TRAINING]
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Consolidation At-a-Glance
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Consolidation Process
What is Financial Consolidation?
Consolidation in financial accounting is a technique that summarizes a group of companies' financial statements
into one. This offers the benefit of viewing the whole group's financial information together to see how all
companies are doing combined.
Increasingly, global organizations need to integrate data from multiple transactional systems, transition to new
international financial reporting standards, and improve their transparency and regulatory compliance
procedures.
Companies use a variety of tools (spreadsheets, emails, pivots and queries) to identify and summarize all
business unit activity that interacting with other business units.
This can often mean thousands of transactions, all of which must be identified, reconciled and eliminated!
Elimination
Intercompany elimination refers to the process for removal of transactions between companies included in a
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platform to support:
1.
2.
3.
4.
5.
6.
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Example :Journals
Elimination (intercompany)
Work flow Management
Ownership Management
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forecast
It supports the multi GAAP reporting
Line item details.
Quick month end close.
Easy consolidation process.
Journal adjustments
Intercompany eliminations.
Process management.
Currency translation.
After the consolidation reports can be generated at
business level
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HFM Architecture
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Calculate
Feature
Data Entry Forms /
Grids
Hyperion Reports /
Smart View
Consolidation
Process Management
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Expanded Dimensionality
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HFM Login
HFM Client Login :
Start Programs Oracle EPM System Financial
Management
HFM Web Login :
Http://ServerName:PortNumber/Workspace/Index.jsp
HFM Shared Services :
Http://ServerName:PortNumber/interop/Index.jsp
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Application Profile
We have to create application profile before creating an application in HFM .
In Application profile three dimensions are covered .
1. Year
2. Period
3. View
These are the predefined dimensions we have application profile concept in classic
method and once in a life time of the project crate application profile .
In case if you want to modify we have to delete the existing application and
workspace .
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Dimensions
In HFM , There are 12 dimensions as follows
1 . Scenario
2. Year
3. Period
4. View
5. Entity
6. Account
7. ICP(Inter company partner)
8. Value
9. Custom1
10. Custom2
11. Custom3
12. Custom4
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C1
Teams
C2
Departments
Account-Sales
C3
None
C4
None
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2. Year:
The Year dimension represents the fiscal or calendar year for data.
An application can contain data for more than one year. You specify a
year range when you create the application and then select a year
from the Year dimension to process data.
3. Period:
The Period dimension represents time periods, such as quarters and
months. It contains time periods and frequencies by displaying the
time periods in a hierarchy. For example, if the Actual scenario
maintains data on a monthly basis, generally 12 periods of data are
available for this scenario in a year. Hyperion Financial Management
supports years, months, and weeks for the period dimension. It does
not support days for the dimension. You edit periods and frequencies
in the application profile
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4.Entity
The Entity dimension represents the organizational structure of the company,
such as the management and legal reporting structures. Entities can represent
divisions, subsidiaries, plants, regions, countries, legal entities, business units,
departments, or organizational unit. You can define unlimited entities.
The Entity dimension is the consolidation dimension of the system. Hierarchies
in the Entity dimension reflect various consolidated views of the data. Various
hierarchies can correspond to geographic consolidation, legal consolidation, or
consolidation by activity. All relationships among individual components of the
members that exist in an organization are stored and maintained in this
dimension. Entities in an organization are dependent, base, or parent entities.
Dependent entities are owned by other entities in the organization. Base entities
are at the bottom of the organization structure and do not own other entities.
Parent entities contain one or more dependents that report directly to them.
You use the Manage Metadata module on the Desktop to define attributes for
members of the Entity dimension, such as the default currency and security
class, and to specify whether the entity allows adjustments and stores
intercompany detail.
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5. Value:
The Value dimension represents the different types of
values stored in your application, and can include the input
currency, parent currency, adjustments, and consolidation
detail such as proportion, elimination, and contribution
detail. For example, the Entity Currency member stores the
value for an entity in its local currency. The Parent
Currency member stores the value for an entity translated
the to currency of its parent entity.
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6. Account:
The Account dimension represents a hierarchy of natural
accounts. Accounts store financial data for entities and
scenarios in an application. Each account has a type, such
as Revenue or Expense that defines it accounting behavior.
You use the Manage Metadata module to define attributes
for members of the Account dimension, such as the
account type, the number of decimal places to display, and
whether the account is a calculated, consolidated, or
intercompany partner account.
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7. Intercompany:
The Intercompany dimension represents all intercompany
balances that exist for an account. This is a reserved
dimension that is used in combination with the Account
dimension and a custom dimension. Hyperion Financial
Management can track and eliminate intercompany
transaction details across accounts and entities. You can
also run intercompany matching reports to view
intercompany transactions.
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8. View:
The View dimension represents various modes of calendar
intelligence, for example, Periodic, Year-to-Date, and Quarterto-Date frequencies. If you set the view to Periodic, the
values for each month are displayed. If you set the view to
Year-to-Date or Quarter-to-Date, the cumulative values for the
year or quarter are displayed.
9..12 . Custom Dimensions
Four custom dimensions are available for analysis of detailed
data. You can use custom dimensions to store additional
details associated with accounts, such as products, markets,
channels, balance sheet movement, or types of elimination.
For example, custom dimensions could include Product Line,
Region, Channel, or Customers.
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Editing Periods
You can edit period labels and add descriptions.
Each hierarchy level corresponds to a frequency.
Add multiple
periods.
Add
child.
Add
sibling.
Save application profiles either locally or on the application sever with the extension .per.
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Application Requirements
You should have this information on hand before you create an
application:
The name of the application server cluster
The label and description of the application
The file name and path of the application profile (.per file)
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Setting Up Applications
You can access the Create Application task from the File menu.
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Select the
metadata type.
Search for a
member
Select a
member to edit
from the list
Create a new
file
Open a
file
Save changes
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Setting Up Entities
Entities define the consolidation path for your data.
Entity
Entity
[None]
[None]
Geographical
Geographical
UnitedStates
Activity
California
SalesServices
WestSales
Plant1
WestSales
Connecticut
EastSales
EastSales
EastSales and
WestSales occur
in alternate rollups.
EmeaSales
EmeaServices
Manufacturing
Activity
Development
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Plant1
West Sales
1000
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Adding Currencies
You must add a currency to the application for each default currency assigned to
an entity in the Entity dimension.
Add or edit
currencies.
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Setting Up Accounts
and Custom Dimensions
The Account dimension defines the chart of accounts for an application.
Custom dimensions provide additional detail for accounts.
Ten predefined account types provide built-in financial intelligence.
Account Types
Asset
Balance
Liabilities
Balance Recurring
Income
Currency
Expense
Dynamic
Flow
Group Label
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Setting Up Scenarios
The Scenario dimension represents a set of related data, such as budget, actual,
or forecast
Before you add a Scenario dimension member, you should have this information
ready:
The frequency for the scenario data
The frequency for intercompany transaction data
The default data view, periodic or year-to-date
The default data view for periods with missing data
Whether consolidation should be based on periodic or year-to-date values
Whether the scenario will support process management and, if so, the number
of review levels
Whether accounts can use line-item detail in this scenario
Whether changes to data for the scenario should be tracked in the data audit
log
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specify the accounts used to store exchange rates for flow accounts and balance
accounts.
Specify whether to use the PVA translation method.
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PVA Method
Jan
Feb
Jan
Feb
Exchange Rate
1:3
1:2
1:3
1:2
50
75
50
75
Translated YTD
150
150
150
200
75 50 = 25
X
2
50
Current period
increase/decrease at
current period rate plus
prior period balance
150
200
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Consolidation Settings
Org by Period
Aggregation for Intercompany accounts
Custom consolidation rules
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Org by Period
Enable Org by Period if you need entity structures that vary from period to
period.
Org by Period lets you mark entities as active or inactive for each period.
Example: Plant2 was sold in January, so you mark it as inactive from February
forward
January
Geographical
United States
California
Europe
Connecticut
Plant 1
France
Global Sales
February
Geographical
United States
Italy
California
Plant 2
Europe
Connecticut
Plant 1
France
Global Sales
Italy
Plant 2
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Intercompany Aggregations
The IntercompanyAggregationWeight property lets you specify a consolidation
ICP Top
Plant1
West Sales
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Additional Features
Intercompany Reporting ICP enables to calculate the Intercompany Transactions.
Ownership Management To distribute the calculation / consolidation percentage to the
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Period ( . )
Plus sign ( + )
Minus sign ( - )
Asterisk ( * )
Slash mark ( / )
Number sign ( # )
Braces ( {} )
Comma ( , )
Semicolon ( ; )
At sign ( @ )
Double quotation marks ( " )
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Load Options
You can merge the metadata in the file with the existing application metadata or
you can replace the existing metadata.
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,~@#$^&_|:;?\
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Loading Data
each load.
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Merge Option
Application
Account
Value
Account
Value
Sales
100
Sales
50
Returns
20
Purchases
30
Purchases
No Data
Results of Load
Account
Value
Sales
50
Returns
20
Purchases
30
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Replace Option
Application
Account
Value
Account
Value
Sales
100
Sales
50
Returns
20
Purchases
30
Purchases
No Data
Results of Load
Account
Value
Sales
50
Returns
No Data
Purchases
30
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Accumulate Option
Application
Account
Value
Account
Value
Sales
100
Sales
50
Returns
20
Purchases
30
Purchases
No Data
Results of Load
Account
Value
Sales
150
Returns
20
Purchases
30
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Application
Account
Value
Sales
100
Returns
20
Purchases
No Data
Account
Value
Sales
50
Sales
60
Results of Load
Account
Value
Sales
110
Returns
20
Purchases
No Data
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Spreading Data
You can spread data from summary periods to base periods.
1
Enter amount
in summary
time period.
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East Sales
Sale
1
3
West Factory
Intercompany
Invoice
(Transaction)
Customer
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Elimination Process
USA
RentalRevenue: 0
RentalExpense: 0
California
Connecticut
RentalRevenue: 1500
RentalExpense: 0
RentalRevenue: 0
RentalExpense: 1500
Plant1
RentalRevenue: 1500
RentalExpense: 0
Sales West
Administration
East
EastSales
RentalRevenue: 0
RentalExpense: 1500
Marketing
East
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Plug Accounts
Intercompany Accounts
Non-Intercompany Account
Sales - Intercompany
Purchases - Intercompany
IntercoDiffPL
500
600
-100
Intercompany Eliminations
and the Value Dimension
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Consolidation Process
US
Connecticut
California
Processes:
Run calculation
Perform currency translations
Apply ownership percentages
Eliminate intercompany transactions
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100%
100%
Geographical
United States
California
Europe
Connecticut
France
80%
Plant 1
Sample Organization
Ownership Structure
100%
90%
Italy
50%
East Sales
Plant 2
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Running Consolidations
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needed.
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USD
Geographical
EUR
Europe
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January
February
Europe
France
March
Europe
Europe
Italy
France
Plant 2
France
Italy
Plant 2
Italy
Plant 2
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Summary
Questions Session
Questions Please