Improving%20Your%20Fiscal%20Close%20Process

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Improving Your Fiscal Close Process

• Jeff Jacoby
• Senior Sales Consultant Oracle EPM
• January 21, 2009

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Agenda

• The Fiscal Close Challenge
• Financial Consolidations At - A - Glance
• Compliance
• Reporting
• Consolidation Demonstration
• Q A

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The Fiscal Close Challenge
Reporting Goal High Value While Reducing Cycle
Times
6 Days
12 Days
Average
Collect data
Close
Adjustments Currency I/C Subsidiaries
Report Management Legal External
Analyze
Source Hackett Group Benchmarking -Solutions
Book of Numbers
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Financial Consolidation At-a-Glance
Collect Data
Calculate Adjust
Report

• Gather from multiple disparate applications
• Store data in a centralized repository

• Generate financial statements, managerial
  reports, and perform ad hoc analysis

• Apply FASB and IFRS consolidation rules
• Perform currency translation aggregation

Consolidations applications are seeing a
resurgence after what was considered a
maturing of this market, driven
primarily by compliance issues in the
United States (drivenby Sarbanes-Oxley) and
worldwide (driven by the pending International
Financial Reporting Standards). -- Kathleen
Wilhide and Henry D. Morris
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Business Pressures

• More Stringent Regulations
• What can I do to accelerate reporting as required
  by statutory regulations?
• How do I improve transparency, accuracy, and
  auditability?

• Mergers Acquisitions
• How can I ensure new acquisitions are
  quicklyintegrated into my company?
• How can I simplify keeping my books in synch with
  re-orgs?

• Demand for Growth
• How can I improve visibility into overall
  enterprise performance?
• How can I help my managers identify opportunities
  to improve profitability?

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Operational Challenges
Subsidiary 1

• Accounting Differences
• Charts of accounts
• Accounting methods
• Manual, Error-Prone Processes
• Data extraction, transformation, and load
• Adjustments and eliminations

• Currencies
• Calendars

Subsidiary 2
Parent Company


Consolidation

• Complex Ownership Structures
• Minority interest
• Cross holding
• Multiple, Fragmented Systems

Joint Venture

• Intercompanytransactions

Rs
Affiliate
Lengthy close process with weak internal
controls Rigid systems that cannot exploit new
opportunities Disconnect between strategy and
execution

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Potential Approaches
General ledgers/ ERP systems
Basic reporting and consolidation functionality
Spreadsheets
Built for individual, not enterprise tasks, no
audit trail
OLAP tools
Build approach, viable way to address specific
customer requirements
Packaged applications
Buy approach, includes best practices
functionality, fast time to benefit
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Oracles Hyperion Financial ManagementMarket-Lead
ing Financial Consolidation and Reporting
Application

• FEATURES
• Easy to Integrate
• Financial Data Quality
• Complete Audit Trails
• Flexible Workflow
• Powerful Reporting
• Finance Owned Operated

• BENEFITS
• Confidence in the Numbers
• Reduce Cycle Time
• Automate Collection Validation
• Lower Cost of Compliance
• Speed and Agility

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Why Hyperion Financial Management?

• Improved Close Process Speed and Visibility
• More Controls Auditability
• Better Reporting Flexibility

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Financial Data Quality ManagementThe Only One of
its Kind!
GUIDED WORKFLOW USER INTERFACE
SOURCE SYSTEMS
EPM Adapters
DATA PREPARATION SERVER
EPM SYSTEMS

• Prepackaged integration
• Data loading including supplemental data, line
  item detail
• Dimensional mapping verification
• Process management

• Hyperion Financial Management
• Hyperion Planning
• Hyperion Essbase
• Hyperion Enterprise
• Data Marts

• Excel
• ERP
• G/L
• Flat files
• ETL
• Oracle eBus

• Data cleansing and transformation
• Task scheduling
• Text and document archive
• Audit review
• Data staging

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Addressing Compliance Needs
Sarbanes-Oxley Requirement Financial Management
Section 302 - CEO/CFO Must Certify Section 404 Internal Control Report Section 401 Conditions for Useof non-GAAP Financial Measures U.S. Auditing Standards Accelerated Reporting Submissions contain audit trail Mandatory review/approval procedures Multiple organization hierarchies andchart of accounts Autonomy from transaction systems Web solution, I/C reconciliation, journals
IAS/IFRS Requirement Financial Management
EU Countries to comply by 2005 Recognition and Measurement Consolidation and Reporting IFRS, Multi-GAAP, and Local Statutory Custom dimensions financial intelligence, journals with audit trail Segment reporting, specialized currency, inter-company, disclosures
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Drill-through to General Ledger DetailsInsight
into Action in a Single System
Hyperion Financial ManagementHyperion Planning
Oracle EPM System
Hyperion FDM
Analyze Root Cause
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Flexible Reporting Options

• Financial Reports
• Web-based production report writer for producing
  highly formatted reports such as Financial
  Statements.
• Reports are easily developed and maintained by
  business
• Reports can combine data, graphs, text, and
  images .
• Flexible output options HTML, PDF, and
  hardcopy.
• Reports can be batched into books and automated
  to meet monthly, quarterly, and yearly reporting
  requirements.

• Dashboards
• Web-based, interactive reporting and analysis
  tool.
• Easy to create via drag and drop no help needed
  from IT.
• Useful for Execs and Analysts alike
• Flexible slice dice, Traffic lighting,
  Ranking/Sorting capabilities.
• Can display non-financial metrics with financial
  data.

• Smart View
• Enables business users to quickly and easily
  connect to Hyperion Planning using Microsoft
  Office tools (Excel, Power Point, Word, Outlook)
  for analysis and reporting.
• Allows users to view, import, manipulate,
  distribute and share data in Microsoft Excel,
  Word, and PowerPoint interfaces
• Reports and Dashboards can be easily incorporated
  into PowerPoint presentations and Word documents.
  Create once and quickly refresh to review the
  latest information.

• Smart Space
• The first gadget-based user interface designed
  specifically for Enterprise Performance
  Management
• Consists of a set of configurable gadgets that
  run on the desktop providing continuous access to
  financial, operational and performance related
  information.
• Includes a secure instant messaging system for
  shared decision making.

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Hyperion Financial Management 1300 Customers!
Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences Services/Other

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Questions