financial close suite - oracle | integrated cloud ...€¦ · financial close suite ... –replaced...

Financial Close Suite What’s New What’s Coming

Matthew Bradley SVP Development Business Analytics June, 2015

Oracle Confidential – Internal/Restricted/Highly Restricted Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |

Copyright © Oracle and/or its affiliates. All rights reserved. |

Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

2


Implementing a World Class Close

Oracle Hyperion Financial Close Solution

Financial Close Management

Close Manager Account Reconciliation

Manager

Supplemental Data Manager

Journal Entry Manager

ERP: Oracle, SAP,

Legacy, Other

Financial Management Analytics Dashboard

Data Management

Systems and Hardware

Middleware

Database

Financial Consolidation

Tax Provision

Operational Transfer Pricing

Internal & Statutory Reporting

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |

Hyperion Financial Management

Oracle Confidential


• Platform Independent – Windows and Linux (Exalytics) support

• Solaris coming soon!

• Significant Performance Improvements – Multi-core scaling for Consolidation, Data

Retrieval/Loads, Metadata Loads

– Fast UI Interactions and Responsiveness

– Improved Database Interaction (ODBC replaced ADO driver)

• Simplicity – Simplified Deployment Architecture

– Support for Multiple Databases per instance

– Streamlined Integrations, Java based API

– Online monitoring (Exalytics only)

• Easy Install and Upgrade – One click install (Exalytics only)

– No application changes required

– Full support for LCM including data and process status

Hyperion Financial Management 11.1.2.4 Lighter, Faster, Simpler & Portable


HFM 11.1.2.4 – Performance 2-5X faster than prior releases

• Multi-core scaling for Consolidation

– During consolidation while traversing through entity hierarchy continue taking advantage of all hardware cores available.

• Centralized Data Retrieval

– Optimized central data query engine used for FR, SmartView, & Web

• CalcStatus redesign

– Store only used currency, reducing unnecessary storage of numbers and improving metadata/data loads

• Increased User Interface Interactions and Responsiveness

– Replaced Webservices with Thrift optimizing the transfer of objects between C++ server and Java based web tier.

• Use SmartHeap

– Improved memory allocation and reduce thrashing of heap

• Replaced ADO with ODBC driver

– Better performance with Oracle RDBMS

6 Oracle Confidential – Internal


HFM 11.1.2.4 – Early Customer Validation Results

• Global Mining Company

– HFM 11.1.2.2

– 450 Users

– 2200 Accounts, 2800 Entities, 400 custom members

Financial Services Company

– HFM 11.1.2.1

– 850 Users

– 10000 Accounts, 15000 Entities, 3000 custom members

– 4 million rec. year/scenario

Construction Materials Company

– HFM 11.1.2.1

– 800 Users across 60 countries

– 3400 Accounts, 12000 Entities, 400+ custom members

– 11 million rec. year/scenario

Oracle Confidential – Internal 7

“Change in regulations will force us to collect more data.11.1.2.4 performance will

definitely help us tremendously.” -- Financial Services Customer

• Performance Gains

Consolidation: 2 hr 6 min

Publish Data: 11 min 1.30 min


Consolidation: 53 min 21 min

Extract Data: 1hr 12 min

Load Security: 25 min 2 sec


Consolidation: 40 min 5 min

Load Metadata: 50 min 3 min


Windows v/s Exalytics Comparison Action 11.1.2.3

Windows 11.1.2.4

Windows 11.1.2.4 Exalytics

Load Data 33 29 23

Retrieve Data 162 32 19

Consolidation 612 248 135

Response times in seconds for typical activities

Data was loaded for 96,000 records. The file size was 8.2 MB. Retrieve Data was run by opening grids with 40,000 cells (2,000 Entities on rows x 20 Accounts on cols). Consolidation times are the average for 5 different consolidations, each consisting of 500 - 600 entities and 1.1 - 1.2 million records consolidated.


11.1.2.4

• Removal of Windows dependency

• Multi-core scaling

• Exalytics support

– Linux (X3-4, X4-4)

• Metadata merge utility

• Web profile editor

• Embedded OFMA in HFM

11.1.2.4.100

• Exalytics support

– Solaris(T5-8)

– Insights

– Rule Profiling (TBD)

• Journals workbench

• UI Enhancements

• Application creation wizard

Oracle Confidential – Internal/Restricted/Highly Restricted 9

11.1.2.4 PSU TBD

• Web based member list editor

• Web based metadata editor

• Auto archive of data audit

• Multithreaded metadata load

• Web based utilities

HFM Roadmap for 11.1.2.4


Journals Workbench

• View journals

• Filter journals

• Perform journal actions

• Edit Journal

• Entity Details report

• Analyze Journals

• Offline editing

• Create journal from grid or form


Web Metadata Management

• Manage Metadata

• Compare

• Collaboration

• Audit

• Statistical Data

• Grid Tree View

• Export to Excel


Introducing Oracle EPM Cloud

• Oracle EPM Cloud is Proven

– Based on Hyperion EPM technology deployed at thousands of global customers

– Infused with self service operations and overhauled cloud management enhancements

– Spans the needs of corporate and operational finance across management and statutory processes

• Oracle EPM Cloud is Comprehensive

– Planning and Budgeting Cloud Service: General Availability

– Enterprise Performance Reporting Cloud Service: General Availability

– Financial Consolidation Cloud Service: Active Development

– Account Reconciliation Cloud Service: Active Development


PBCS As of April 2015

Built on over 15 years of Product Innovation

Launched: February 14, 2014

Clients across industry

Financial Services, Higher Ed, Consumer Goods, Retail, Professional Services, High Tech

500+ Customers to date

30500+ End Users and growing!

Available and Supported Globally 24 X 7 X 365

Oracle’s EPM Cloud Leadership


• Address Management and Legal Entity consolidation needs for broad spectrum of customers

• Significant out of the box functionality with limited need for customization (no scripting)

• Out of the box calculations, hierarchies and reports for quick deployments

• Built in task orchestration for management of overall process

• Flexible, robust user owned reporting

• Fully integrated with the EPM Cloud

Oracle EPM Cloud Oracle Financial Consolidation Cloud Service


Financial Close Cloud Service What do you need to do or find? Jamie Frost

Fee

db

ack

Jamie FrostUpdate my photo

Create Open Tour

5 Journal Entries

6 Open Tasks

5 Approvals

2 Validation Issues

Close Books Journals Process Control

Reports

Intercompany

Console Setting

Academy

Tasks

Swipe right to access Financial Analytics dashboard


Financial Analytics

Financial Close Cloud Service What do you need to do or find? Jamie Frost

Revenue

EBIT

$614,054,000

-1.9%

Contribution Margin

$1,387,058,000

5.2%

Revenue

Service Revenue

Product Revenue$1.1 B

2013 2014

$1.4 B

2015Budget

$1.8 B

2015Forecast

$2.2 B

2016LRP

$2.4 B

2017LRP

$2.6B Return on Assets

18.5%

Return on Equity

7.4%

Cashflow

18.5%

Return on Equity

0.3%Analyze Refresh Export

Operating Expenses

Salary

Benefits 7 tax

Marketing

Professional Fees

Travel & Entertainment

Office Expense

Outside Services


FDMEE

Oracle Confidential


History of FDMEE

• Initial release CY 2013

• Latest release – 11.1.2.4

– All commonly used FDM features included

– Additional FDM parity items / new features

• Features not migrated from FDM – Certification and Assessment

– Tax adapter

– Timeline

– Enterprise Adapter

• FDMEE included in Planning and Budgeting Cloud Service

Oracle Confidential


Direct Integration - Supported Source Systems

Source Version Data Metadata Drill-Through Write-back

EBS 11i/12x Yes Yes Yes Yes

Peoplesoft Fin Peoplesoft HCM

9.X Yes

For PSPB Yes

For PSPB Yes No

Yes No HCM data

Fusion Fin GL 11.1.X Yes Yes Yes Yes

JD Edwards 9.0, 9.1

Tools 9.1.x Yes No Yes No

SAP SAP BW

4.6c,4.7, ECC 6 7.0+

Yes No

In 11.1.2.4+ Yes No

Oracle Confidential


Data Synchronization

• Specify EPM application as a source

– All types except for Account Recon and Supplemental Data Manager

• User defined source filter

– Includes HFM journals

• Write back to source GL as Actual or Budget - EBS and Peoplesoft only

• Concatenate > 5 source columns

• For example – load Essbase from HFM, write-back HFM journals to EBS

Oracle Confidential


FDMEE Near Term Roadmap – 11.1.2.4.100

• Migration utility – FDM to FDMEE

• Hybrid implementation support

• DRM Integration

• Enhanced Financial Close Manager integration to lock FDMEE POV

• Universal Data Adapter

• SAP BW metadata

• Additional minor parity items

Oracle Confidential


FDMEE Roadmap – Long Term

• Metadata loading

• Updated SAP adapter

• Fusion Commitment Control

• Non-numeric planning data

• Mapping review mode

• Mobile access to drill-through page

• Filter balance sheet and income statement accounts

• Remaining minor parity items

Oracle Confidential


Financial Close Management

Oracle Confidential


Oracle Hyperion Financial Close Management

Close Manager

ARM Account Reconciliation

Manager

Supplemental Data Manager

22

CM

SDM TM/ARMCS


Oracle Hyperion Financial Close Management Large and growing customer base

23

Technology Financial Services & Insurance Industrial Consumers

http://www.cnoinc.com/cnoinc_index.aspx


What these customers are telling us

FCM is the global standard for managing worldwide financial close activities

Reduced time-to-close

Reduced risk across the organization

Positive ROI in as little as 18 months

24


Close Manager

25


Close Manager supports both manual and integrative tasks

• Manual tasks

– Any task or activity requiring users to perform an action and then mark the task as complete

• Integrative tasks (unique to Close Manager)

– Tasks that navigate a user to the location where a task must be performed

– Tasks that do something in an external application; for example: • Run reports in HFM

• Open/close subledgers, or execute concurrent manager requests in EBS

– Tasks that monitor if something has occurred • Has a specific journal been posted or approved?

• Has a ledger been closed?

26


Integrative tasks available for

• E-Business Suite

• Hyperion Financial Management

• Hyperion Planning

• PeopleSoft

• Financial Reports

• Financial Data Quality Management

• CalcManager

• Other…

• KM 1555945.1 contains the full list of available integrations and is kept up-to-date for each release

• This guide explains how to build custom integrations

– http://www.oracle.com/technetwork/middleware/bi-foundation/fcm11122-task-integration-1585700.doc

27

https://mosemp.us.oracle.com/epmos/faces/DocumentDisplay?id=1555945.1

http://www.oracle.com/technetwork/middleware/bi-foundation/fcm11122-task-integration-1585700.doc


ARM

28


ARM Features

• Designed to manage global reconciliation processes

– Balance Sheet Reconciliations

– Consolidation System Reconciliations

– Budget to Actual P&L Reconciliations

– Local GAAP Reconciliations

• For each Process

Verify Completeness

Track Assignments

Manage Preparation & Review

Identify Risk Conditions

Help Optimize the Process

29

Including reconciliation of accounts in third party

ledger systems


Post 11.1.24


Transaction Matching

• Facilitate preparation of reconciliations through transaction-level matching features

– Common use cases • General Ledger account reconciliations

– Intercompany reconciliations

– Accruals (intra-account netting)

– Bank Reconciliations

– Subledger-supported account reconciliation

• Operational reconciliations (often industry-specific)

– Retailers: Deposit verification, gift cards, ACH, Credit card reconciliations, warranty reconciliations

– Banks: Nostro reconciliation, confirmation matching, ATM reconciliations, etc.

A new module within FCM


Transaction Matching

• Definition of “Match Processes” which contain the logic for matching transactions

– How matches are found

– How to account for variances

– Tolerance levels authorized for each user

• Automated matching scheduler

• Interactive matching workbench

Key Features


• Address the global reconciliation process

• For each process provide complete lifecycle including – verifications, tracking of assignments, managing preparation and review, minimizing risk and optimizing the process.

• Integrated with transaction systems

• Flexible and robust user owned reporting

• Fully integrated with the EPM Cloud

Oracle EPM Cloud Oracle Account Reconciliation Management Cloud Service

Account Reconciliation Management Cloud Service

What do you need to do or find? Jamie Frost

Feedback

Jamie Frost Update my photo

Create Open Tour

5 Reconciliations

6 Open Tasks

5 Alters

2 Validation Issues

Reconciliations Profiles Loads

Reports

Periods

Console

Settings

Academy

Tasks


Enterprise Performance Reporting


Value of Narrative Reporting

• Error-prone in combining Data (what) with Narrative (who, when, why) – Re-keying of data into report

– Unable to analyze data to validate narrative

• Challenging to bring Subject Matter Experts into the process – Weak security to support “Need

to Know” access to content

– Insufficient collaboration features for centralized commenting on content

– Hard to track progress and who is currently responsible for individual areas of content

35

Looking at Data Only…. What does it tell you?

Looking at Data + Narrative… What does it tell you?


Today’s Reporting Tools Fall Short

• Error-prone in combining Data (what) with Narrative (who, when, why)

– Re-keying of data into report

– Unable to analyze data to validate narrative

• Challenging to bring Subject Matter Experts into the process – Weak security to support “Need to Know” access to content

– Insufficient collaboration features for centralized commenting on content

– Hard to track progress and who is currently responsible for individual areas of content

• Lacks versioning and auditing functionality

– Time wasted tracking versions

– Contributors unable to see history of individual areas of content


• Addresses the needs of external (statutory) and internal (management) reporting needs

• Combines narrative-based management and statutory reporting needs in one service

• Comprehensively address authoring, collaboration, commentary and delivery needs via a Report Package

• Deliver secure, auditable, and role-based access to users, on desktop and mobile devices

• Built on a modern, cloud-native technology architecture

– Mobility, Consumerization, Self Service

– Rapid time-to-value and lower cost of ownership

Introducing: Enterprise Performance Reporting Cloud Service – Available Now


Hyperion Tax Suite

Oracle Confidential – Internal 38


New Tax Capability:

1. Create Custom Tax Account Rollforward

2. US State/Provincial Deferred Tax Override Tax and Apportionment Rates

3. Tax Automation Enhanced

4. Allow Native Consolidation Eliminations in HTP

5. Consolidated Rate Reconciliation – IFRS

6. Tax Loss and Tax Credit Automation

7. Country by Country Reporting (OECD)

8. RTP Copy between scenarios

9. New Comparative and Consolidated Reports (total 14)

10. Tax Administration Screen (ported back to 11.1.2.3.504)

HTP 11.1.2.4.100 & 11.1.2.3.504/505 What’s New


Hyperion Tax Governance Tax Operations – Task Orchestration, Calendaring, Surveys

Each tax process setup as a schedule


Compliance with Confidence using HPCM

Integration from A to Z

– Data - Data never leaves Hyperion resulting in a seamless audit trail & strong internal controls

– Metadata - Shared metadata with financial systems results in significantly less maintenance (e.g. cost centers, entities, etc)

– Governance – Provides native integration to Oracle/Hyperion ensuring control & governance over the entire process

Traceability Maps & Reporting – Transparency – Traceability maps provide unparalleled transparency.

Smartview & Hyperion Financial Reporting works across all data – providing boardroom-quality reports and superior ad-hoc analysis

– What-if – Run new scenarios in seconds

Ease of Use & Maintenance

– Easy to maintain – Allocation stages, drivers and hierarchies all can be maintained by functional users as opposed to IT.

– Expertise – Leverage in-house Oracle/Hyperion resources resulting in lower cost of ownership


• Comprehensive stand-alone Tax Provision & Reporting solution

• Data Collection

• Calculation

• Reporting

• Integration with Oracle Financial Cloud Services (FCCS)

• FUSE-based UI

• Data & metadata integration with On-premise finance systems

• Secure: Role-based, auditable access on desktop and mobile devices

• Enterprise Grade: Security, High Availability, Scalability

• Fully Managed: Patched, Backed Up, Upgraded by Oracle

• Governance-Like capability included in cloud service

• TPCS migration from HTP

Oracle EPM Cloud Oracle Tax Provision Cloud Service


Oracle Hyperion Tax Suite Investing to Extend Oracle’s Lead

• Hyperion Tax Provision (11.1.2.4) • SmartView-based Maintenance Wizard • Unified Month-end maintenance screen • Statutory Balance Sheet Approach (IFRS) • Current tax Payable Analysis • State Enhancements • New reports

• Hyperion Tax Governance

• New Product (11.1.2.4)

• Operational Transfer Pricing / HPCM • Management Ledger (11.1.2.4)

• Hyperion Tax Provision

• Country-by-country template

• Tax account rollforward wizard

• Loss/credit Automation

• IFRS consolidated rate rec (Germany)

• New reports

• Hyperion Tax Governance (11.1.2.4.100)

• LCM Support

• Smart View

• Script code

• Operational Transfer Pricing / HPCM

• n/a

• Hyperion Tax Provision

• Upgrade automation enhancements

• Mergers & acquisition automation

• Continued investment in maintenance &

administration

• Hyperion Tax Governance

• Comprehensive FIN 48 enhancements

• Continued pre-built content

• Operational Transfer Pricing / HPCM

• Prebuilt Analytics

• Tax Provision Cloud Service (New)

Hyperion Tax Suite

Most Recent Release

Hyperion Tax Suite

Near-term

Future Direction

In the next 12 months & beyond


Questions?

Oracle Confidential – Internal/Restricted/Highly Restricted 44

financial close suite - oracle | integrated cloud ...€¦ · financial close suite ... –replaced...

Documents