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Hyperion Financial Management (HFM) Training

November 2009

Table of Contents
Overview of Financial Consolidation
Why HFM? EPMA vs. Classical Comparison Classic HFM Overview EPMA Overview Financial Consolidation Using HFM Building Application Running Consolidation Viewing Results Appendices Appendix A: Access control through Shared Services Appendix B: Starting HFM(checklist) Appendix C: HFM Resources

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Overview of Financial Consolidation

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Financial Consolidation
Financial consolidation and reporting is the process of aggregating an organization's financial performance across its businesses to provide the consolidated view, dealing with accounting challenges as currency translation, revaluation, intercompany eliminations and minority interests.

Consolidation is the process of


Gathering data from dependent entities and Aggregating the data to parent entities. After you enter or load data into base entities, you perform a consolidation to aggregate the data through the organization.

As data consolidates, the system performs following activities


- currency translation - Intercompany eliminations - calculation for derived accounts using rules

After Consolidation , the consolidated results are available at every level of hierarchy in the organization. These results enable mangers to take better decision at each and every level of Organization.
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Why HFM?

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Why 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. Key Features Key Benefits Compliance with multi-GAAP, IFRS and local statutory reporting requirements Complete audit trails, workflow, internal review, validations and controls "Smart dimensions" to identify and report new sources of profitability and cash flows Powerful reporting and analysis tools built for use by end-users; Support for MS- Office Full integration with transaction systems, legacy applications and ERP systems Architected for the web so users can quickly, easily and securely input and access Global financial information from any location, using a standard web browser Improved close cycle times and reduced costs Spend more time on forward-looking activities and less time checking and doublechecking actual results Reduce the cost of compliance and increase confidence in the numbers by reducing the control risks Fast time to benefit - packaged financial intelligence ensures a requirement for less customization to implement Leverages existing investment in ERP systems; no changes to underlying transaction systems - cost and effort can be minimized Finance owned - no requirement for IT to administer the system

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EPMA vs. Classic Approch

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EPMA vs. Classic


EPM Architect was introduced in System 9.3 and offers developers a different tool for administering and managing databases for HFM. Developers must choose between legacy HFM, or Classic, and managing databases through EPMA. Classic Advantages Stability. Been around for several years (since the initial product release). Less of a learning curve for existing HFM customers for existing clients upgrading, remaining on legacy means there is simply less to learn/change/test as EPMA introduces a new paradigm in database management. Easy to manage/operate for small applications. EPMA Advantages Architecture. EPMA provides a web based solution that does not require an installation on the local PCs. Hierarchy maintenance across Hyperion products. Once a dimension has been built in EPMA it can be used within HFM, Planning, or Essbase . This may make metadata/outline synchronization across products much simpler in the future.

Classic Disadvantages Development will not focus as much attention on Legacy as on EPMA. Hyperion sees EPMA as the future so we can expect less focus on the legacy HFM administration in the future in the way of new features. This has already been seen with 11.1 and Calculation Manager.

EPMA Disadvantages Instability. As of 11.1, this product is essentially a Version 2 product. So, expect some buggy behavior. In the field there has been more instability seen with Planning than there has been with HFM.

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Classic HFM Overview

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Start Financial Management from the Windows desktop

HFM can be started from All Programs as shown above.

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Open Application

Click Here

A new application can be open from left panel as shown above.

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Connect to server: View all application

Click Here

Connect to the server for creating new application.

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Select Application to open

After connecting to the server , list of all available application will be listed. Select the application and then Click on the Open Application to open it.

Click Here

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Entering into Application

Selected Application Name will appear on the header . Here IFRS2.

All options are available in the left panel. -Data -Journal -Reports -Application( Manage Metadata) -Load -Extract

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Making New Application


Following basic steps are there for making new application
1) 2) 3) 4) 5)

Create Profile Load Metadata Load Data Load Rules (if available/ required) Load Journals /Security files (if available/ required)

These topics will be covered in detail in the Financial Consolidation Using HFM section under the Building Application subsection.

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EPMA Overview

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EPMA Overview
Oracle Hyperion EPM Architect is a feature of Oracle Hyperion Financial Management, Oracle Hyperion Planning and Oracle Hyperion Profitability and Cost Management. Performance Management Architect enables administrators to manage, create, and deploy Hyperion applications within one interface. Creation and deployment: Create applications by dragging and dropping Design applications graphically, within one environment Configure dimensions and define properties from predefined, sample libraries Create filters to select specified members of a dimension. For example, select the Balance Sheet accounts of the Account dimension. This enables you to have one dimension to maintain but not use the full dimension in all applications. Duplicate applications for testing or what-if analyses Upgrade applications from previous releases to place them in the Dimension Library and Application Library. This ensures that you are ready to get started with the functionality within Performance Management Architect The following components make up EPMA. These components are accessed via the Workspace from the Navigate, Administer menu. Dimension Library Contains dimensions and associated members that are either shared (available for all applications) or local (unique to a specific application). Application Library Contains and defines applications for the various products in the Hyperion suite. Data Synchronization Defines and controls syncing of data from one application to another, including dimension to dimension linking and member mapping. Note: Application Upgrade component is also there. It converts a classic application into an EPMA application ( To be used only once per application)

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Running EPMA workspace

User can launch the Workspace URL as shown here.

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Workspace: Login

After launching the workspace following page will come.

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Entering Workspace

This is first page after logging into workspace. Here all recently opened workspace is listed. From File menu or Favorites user can go to specific projects.

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Administrator options Various Administrator option are shown here.

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Opening application from file menu

User can open application from file menu as shown here.

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Opening Application

User can open project from recently opened project list.

User can open application from recently opened projects

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Opening Application Library/ Dimension Library

User can go to application library as shown here .

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Application Library: Contains all application

Application library contains stores all the application created deployed by the users..

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Dimension Library
Contains all dimensions for selected application or available in shared library. A dimension can also be local to specific application.

Shared Library contains all the library which are shared across all application.

Dimensions describe an organizations data and usually contain groups of related members. Examples of dimensions are Account, Entity, and Period. Financial Management supplies eight system-defined dimensions and enables you to populate up to four custom dimensions that you can apply to accounts. Dimension members are arranged in hierarchies. Upper-level members are called parent members, and a member immediately below a parent member is referred to as the child of a parent member. All members below a parent are referred to as descendants. The bottom-level hierarchy members are called base-level members.
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Financial Consolidation Using HFM

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Financial Consolidation Using HFM : Building Application

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Building New Application


In classic HFM following basic steps are there for building a new application
1) 2) 3) 4) 5)

Create Profile Load Metadata Load Data Load Rules (if available/ required) Load Journals /Security files (if available/ required)

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Managing application: Profile creation

User can create profile from the Define Application profile as shown here.

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Creating Application Profile: Enter Language

User can enter currency details here.

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Time period settings

User gets option to do time period settings for their organization .

If the Organization financial cycle is starts from April , user can start the months by April instead of Jan.

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Edit Frequencies

User can enter view results here.

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Edit period

Period detail related to application is shown here.

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Save Profile

User can save the created profile as shown here.

Click finish to save your profile

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Manage Metadata

Here user can load the Meta data into the system. Manage Metadata->Open File->select .xml or .app file for your application

Managing metadata consists of mainly two work. First one is creating account/entity structure for the organization and second is to configure them according to requirement.

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Select Metadata Item to be displayed

The selected Metadata item will be shown in Tree view by default. Other option is list view next to it. On right side, properties corresponding to selected item will be displayed

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Selected Metadata Item : Account

A sample account structure is shown here. User can add new account here . User can change account settings in right panel or go to List view for changing property.

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Creating Account Structure

A sample account structure is shown here. User can add new account here by clicking at icon as shown in the figure. User can add child or sibling as required.

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Selected Metadata Item : Application Settings

Here application settings are shown . User can modify the settings as per requirement.

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Selected Metadata Item : Consolidation methods

Here all consolidation methods are shown. These are default consolidation methods provided by the system.

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Selected Metadata Item : Currency

Here all currency members are shown.

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Selected Metadata Item : Custom1

Here a sample custom account is shown.

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Selected Metadata Item : Entity

Entity Structure is shown here . In List view one can see and change entity properties.

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Selected Metadata Item : Scenario

Here various scenario is shown. These scenario can be created or loaded to the system . Once loaded their property can be changed from here.

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Load Options

The left panel shows various load option available . These option help user to fulfill the requirement faster.

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Load Data

Here user can load the data into the system.

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Load journal file

Here user can load the journal file into the system.

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Load Rules

User can load rules from here to the system. These rule will be used while doing the consolidation.

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Extract Options

The left panel shows various extract option available . These option help user to maintain various version of application related files.

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Extract Metadata

Here user can extract the loaded metadata. This gives user option to store various version of metadata for security reasons.

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Extract Data

Here user can extract the loaded data. This gives user option to analyze the data available in the system.

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Saving work done on new Application


The state of application is saved automatically after every change in the system and if any change is done outside the system the user need to logoff and login again to see it.
Incase user want to save it work in tangible form it can extract metadata and data and other files as and when required. These files are really helpful in creating various versions and getting back to old versions if anything goes wrong in the current version. Note: Every time user opens the application, the metadata needs to be loaded from the xml/app files again.

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What next?
Now Running the application is continued from EPMA. User need to register the classic Application as shown in the figure.

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Registering classic application with EPMA


After registering the application user can work on the application through EPMA workspace.

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Building a new application using EPMA


User can work on classic application after registering it in EPMA . User can also create new application in following steps. 1.

Load dimensions into Master View


Open Web Client and Logon Navigate to Dimension Library Select File-Import-Create Profile Give Profile Name Select type of Flat File Select Upload and Browse to find the file sampleapps/ ApplicationName/metadata/SimpleApp.ads Select the file and select Upload Select the Ok button Select Next at the File Properties screen (accept all defaults) Select the Create dimensions for the non-mapped dimensions with the source dimension name check box and hit Next- This will load the files into the Master View

2.

Accept all defaults at the Map Properties page and select Finish
Select Yes to the popup asking Do you want to execute the profile now

Navigate to the Job Console to review status of the Import process. Once complete proceed to step 3 (you can also view if dimensions are loaded by refreshing the Dimension Library) From the Dimension Library select File-New - Application Select Create blank application option Name Simple Type Consolidation
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3.

Loading Sample Application on Web Client


4. Drag and drop the following dimensions into the Center Pane
-Account, Alias, ConsolidationMethod, Currency, Entity, Products, Customers, Custom3, Flow, ICP, Period,Scenario, SecurityClass, Value, View, Year (note that both Period and Year must be local dimensions)

5. 6.

Select the application name in the main pane select the Category(Consolidation) on the Property Pane Set the following Properties (note you need to save properties by selecting the disk icon on the property tab)
Default Currency: USD Security For Entities, Security For Scenarios: Select Node Security: Entity Default Rate for Balance Accounts: Rate1 Default Rate for Flow Accounts: Rate2 Use PVA for Flow Accounts: Select

Use PVA for Balance Accounts: Select


ICP Entities Aggregation Weight, Default Value for Active: 1

7. 8. 9.

Define Dimension Associations for Application


Select the application and right mouse click and select Activate All Associations

Navigate to Application Library Select the Simple app and right click
Validate will ensure all settings are correct before deploying Deploy will create the application on the HFM application server

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Loading Sample Application on Web Client


10. Once the application is deployed you will need to assign Administrator access to the user
11. Once app is deployed select Navigate-Applications-Consolidations- ApplicationName to continue 12. Load Data
Use file AllData.dat located in Data directory Ensure File Contains Ownership Data is checked Merge or Replace mode

13.

Load Journals Optional

Use DemoJournals.jlf located in Journals directory Ensure that period is open before loading the journal . This can done through manage period tab under Journal.

14.

Consolidate System

The Data loaded can be consolidated using the Process Control screen. Make sure you change the Scenario and Year before consolidating the above periods.

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Financial Consolidation Using HFM : Running Consolidation

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Running Consolidation: Various Aspects

Data Preparation

Entity wise Consolidation

Currency Translation

Journal Entry

Inter Company Partner(ICP) Transaction

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Data Preparation
Scenario; Year; Period ;view; entity; value; account; icp; custom1; custom2; custom3; custom4;value Below is sample data has been prepared in the required format . The first ACTUAL scenario here. Similarly Year is 2006 and Period is December ,view is YTD and so on.

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Running Consolidation: Various Aspects

Data Preparation

Entity wise Consolidation

Currency Translation

Journal Entry

Inter Company Partner(ICP) Transaction

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Entity wise Consolidation : Settings

A typical Account structure is shown.


Here Cash, Inventory ,Goodwill etc are Base accounts . It means they do not have any account under them. Assets , Liability Expense etc are up in the hierarchy and they need to be consolidated from their descendents. In Metadata , the account properties of the accounts should be checked IsConsolidated, if user wants the account to be used in consolidation process. If IsConsolidated is not checked the account the will ignored while consolidation and entries may go to default account or [none] account or lost.

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Entity wise Consolidation

Here , one can see that IsConsolidated is marked for most of the accounts meaning they will be used while cosolidation. Accounts like GrossProfit is not marked IsConsolidated because it is a drived account. And It will be calculated based on values of other accounts. The formula of calculation of derived accounts will be written in business rule sub routines. Such accounts will be marked IsCalculated.

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Entity wise Consolidation

While consolidation, all calculation related formula will be picked up from Sub calculate routine in the rule file. Here one can see that formula for account like

NetIncome =revenue expense


Gross Profit = Revenue-COGS PBIT= Revenue-COGS-OperatingExpense has been mentioned. In Metadata , all these derived accounts will be marked against IsCalculated and will not be marked against IsConsolidated. So all these accounts will not be consolidated but will be calculated as per rules mentioned in the rule file Sub calculate routine.

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Entity wise Consolidation

For doing consolidation, the user need to go to the Task->Data Task->Process Control option. Following screen appears as per selected scenario , period and entity. User need to change point of view according to its need. The arrow shows button for consolidation.
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Entity wise Consolidation

For doing consolidation, the user need to select the entity and then click on Consolidate option as shown in the figure. The system will start consolidation for the selected entity.

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Entity wise Consolidation

Here top level entity ABC Ltd has been consolidated with all its descendents. Note that after successful consolidation the Calc Status is changed to OK. The ECA status is related to journal entry and res flag shows that some journal entries present but not consolidated due to some criteria not met while doing the consolidation.
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Running Consolidation: Various Aspects

Data Preparation

Entity wise Consolidation

Currency Translation

Journal Entry

Inter Company Partner(ICP) Transaction

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Currency Translation For currency Translation entry should be given in the data file. Here the entries are done according to standard data load pattern which is Scenario; Year; Period ;view; entity; value; account; icp; custom1; custom2; custom3; custom4;value

Here Rate1 and Rate2 as account are being used for translating USD to INR at rate I USD=50 INR. USD and INR entry is done as custom1 and Custom2 accounts for currency translation. The System automatically does the translation.

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Currency translation

For viewing the currency Translation got to , In mange documents-> New data grid. In setting point of view (POV) currency tab select <Entity Currency> to see the currency entries in the grid. Here one can see that last two entries 476 and 577 are in USD and add to 1053 but the total figure of 60,402 has come after currency translation using 1 USD=50 INR.

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Running Consolidation: Various Aspects

Data Preparation

Entity wise Consolidation

Currency Translation

Journal Entry

Inter Company Partner(ICP) Transaction

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Journal Entry

For journal Entry : Go to Tasks and then click on Journal Task. Click on process Journals. Screen as shown in right will come. Click on New to do new Journal entry or click on open to modify existing journal entry . Note : For doing any Journal entry , the corresponding period should be open. One can open the period from Manage periods.

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Journal Entry

When user clicks on New , following page will come. The system gives option to create Single entry journal or template based. Type can be decided as per requirement. Click on Ok after choosing the options . This will lead the user to journal entry page.

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Journal Entry

This is journal entry page . User can give detail here. Balance Type shows type of Journal is balance or not. For balance journal Final addition of all changes related to journal should effect overall value of entity.
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Journal Entry

Click below the Account to create new entry. Place the curser there and then click on Pick members .It will give option to select the account. User can manually enter the debit or credit amount. Variance is being calculated to show the net effect on the system once the journal gets approved and posted.

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Journal Entry

After giving Journal Details. Give a unique Label to the journal and then save it. After saving the journal now it can be processed. Click on the Process Tab . It gives user the option to Submit ,Approve and Post the Journal.

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Running Consolidation: Various Aspects

Data Preparation

Entity wise Consolidation

Currency Translation

Journal Entry

Inter Company Partner (ICP) Transaction

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Inter Company Partner (ICP) Transaction


Doing an Intercompany transaction in HFM requires similar steps as for doing journal entry. But after doing all the steps the System usually gives error like Cell does not support intercompany transactions
This is because the HFM does not enable inter company transfer by default and user need to do following entry corresponding to their accounts to which they want to do Inter company Transfers. The entry need to be done in the Transactions() sub routine of the rule file.

Rest of the steps are similar to the journal entry. First user need to go in task and then click on IC transaction tasks.

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Inter Company Partner (ICP) Transaction

Once user Clicks on IC transaction Tasks, below option related to IC transaction are displayed. User need to Click on Process IC Transaction. The page shown will be displayed.

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Inter Company Partner (ICP) Transaction

Here various option related to Inter Company Partner (ICP) Transaction task is displayed. To post any IC transaction , the corresponding period should be open .This can be achieved through Manage IC Periods option shown above. For getting , modifying the reason for IC transaction , user need to click on Manage IC Reason codes. Rest all steps are similar to journal entry.
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Financial Consolidation Using HFM : Viewing results

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Viewing Results : Various Aspects

Consolidation Results

Journal/ICT Reports via Web Client

Customized reports via Reporting Studio

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Viewing Consolidation results

After Account Structure, Metadata has been created and data has been loaded for various entities, following basic steps are required to be done for doing the consolidation process. Step1: Login to Web Client. Open the desired project or application and go to the Tab Administration. Click on Manage Documents .

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Viewing Consolidation results

Step 2:After User clicks on Manage documents following screen comes. Click on Data Grids tab and then on New Data Grid

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Viewing Consolidation results

Step 3:After User clicks on Data Grids tab and then on New Data Grid following screen comes. On the top default point of view is shown. User needs to change the point of view to see desired consolidated results.

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Viewing Consolidation results

Step 3:After User changes the point of view, user need to click on grid settings option to set result format. Right now, the Row dimension is set to entity and column dimension is set to Period. This will show entity wise consolidation. To see account wise consolidation user need to change row dimension to Account.

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Viewing Consolidation results

Step 4: To see account wise consolidation user need to change row dimension to Account. As shown above. If User want to see both entity and account wise consolidation simultaneously then user need to add both Entity and Account to the row or column dimension . If User want to see year wise consolidation then the Column dimension need to be changed to Year rather than Period.

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Viewing Consolidation results

Step 5: After Point of View setting and grid setting has been done HFM will automatically populate the grid based on data and consolidation Settings. Here account level consolidation is shown for Patna branch office for the period December ,2006 for the view YTD and scenario Actual.

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Viewing Results : Various Aspects

Consolidation Results

Journal/ICT Reports via Web Client

Customized reports via Reporting Studio

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Journal/ICT Reports via Web Client

Following basic steps are required to be done for doing the consolidation process. Step1: Login to Web Client. Open the desired project or application and go to the Tab Administration. Click on Manage Documents .

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Journal/ICT Reports via Web Client

Click

Step 2:After User clicks on Manage documents following screen comes. Click on Reporting tab next to Data Grid

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Journal/ICT Reports via Web Client

Step 3:After User clicks on Reporting tab next to Data Grid , following screen will come. Step 4: Select the report type. Here Report type is Inter company. User can change it according to the requirement.

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Journal/ICT Reports via Web Client

User have various option for generating the report. They are Intercompany ,Journal ,IC Transactions reports. File type by default is Report Definition file .It can be changed to XML and HTML if required.
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Journal/ICT Reports via Web Client

Fill the report details. Basically mention the entity , period , accounts and other relevant data for the required report . Save it. Click on print/preview tab to view it.
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Sample ICT report

A sample report generated is shown here. The data filled by user for generating the report is shown in upper part and lower part is the report generated by the system.

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Viewing Results : Various Aspects

Consolidation Results

Journal/ICT Reports via Web Client

Customized reports via Reporting Studio

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Customized reports via Reporting Studio

Customized reports can be generated via Financial reporting Studio . User can start reporting Studio as shown here.
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Customized reports via Reporting Studio

After user starts the Reporting Studio, it prompts for login/password .After valid login Reporting Studio will open following default page. Here user can mange all the report he/she will make. User can create folder here for specific use. For example POC Reports folder is created and rest folders were system generated.

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Customized reports via Reporting Studio

For creating new report , Go to file ->New->Report. It will open the reporting canvas for making the report.

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Customized reports via Reporting Studio

Click on Insert tab and then on Grid. Grid will ask for database connection. Valid connection will able user to use the account or entities made in HFM for generating Custom Reports. Provide proper connection settings and click OK to proceed further.

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Customized reports via Reporting Studio

After successful Database connection , system will show a grid for selecting the row and column dimensions. Here row dimension is Account and Column dimension is set to period .

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Customized reports via Reporting Studio

After user has specified the grid setting , system automatically generate a empty grid as shown above. Now user can select Account by clicking as shown here and user can change Scenario , year view etc.

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Customized reports via Reporting Studio

After user clicks on Account or other tabs, the system prompts for selecting members for generating reports. User can customize the required report from choosing various option here.
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Customized reports via Reporting Studio

After user have made customized report it can be saved in root folder or user created folder as shown above.

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Customized reports via Reporting Studio

Print preview

After user have Save the report in the Folder it can be open by clicking from there. User can click on print preview as shown above to see the report.
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Customized reports via Reporting Studio

A sample customized report is shown here.


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Appendix A: Access control through Shared Services

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Shared Service

Shared Service console can be started as shown above.

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Application Groups

Application groups are group of similar type of application.

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Provisioning Users

Provisioning Users will give respective user proper access to the system components.

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Giving rights through Provision option

Access to projects

User

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Appendix B: Starting HFM (Checklist)

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Starting HFM

Make sure LAN is connected , while staring computer and starting HFM. Switch off the anti-virus while starting HFM. On Staring of computer , by default all services related to HFM should be up except the annotation and agent service. Start Agent service manually. Annotation service is not required. After Agent service is up launch the Weblogic server . For launching Workspace URL successfully , the Weblogic server is not required. But when you login, for validation the Weblogic server should be up and running.

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Appendix C: HFM Resources

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HFM Resources

http://www.oracle.com/technology/products/bi/performance-management/financialmanagement.html http://www.oracle.com/appserver/business-intelligence/hyperion-financial-performancemanagement/hyperion-financial-management.html http://www.oracle.com/technology/obe/hyp_fc/HFM11.1.1_Overview/HFM_Overview_P art1.htm http://www.pureapps.com/short_demo/hfmdemo.html

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