hyperion system 9 planning: design considerations for fico clients

8/10/2019 Hyperion System 9 Planning: Design Considerations for FICO Clients

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Copyright 2007, Hyperion. All rights reserved.3 0000 | Title of Presentation

BearingPoint Synopsis

BearingPoint, Inc. (NYSE: BE - News) is one of the world's largest providers ofmanagement and technology consulting services to Global 2000 companies andgovernment organizations in 60 countries worldwide.

Based in McLean, Va., the firm has over 17,000 employees and major practice areasfocusing on the Public Services, Financial Services and Commercial Services markets.

For nearly 100 years, BearingPoint professionals have built a reputation for knowing what ittakes to help clients achieve their goals, and working closely with them to get the job done.

For more information, visit the Company's website at http://www.BearingPoint.com.

BearingPoint means helping ourclients set direction to achieveend results

Serve more than 2,100clients, including more than 700Global 2000 companies, medium-

sized businesses, governmentagencies and other organizations

15,000+ professionals

$3.1 billion in revenues

NYSE: BE


4/31Copyright 2007, Hyperion. All rights reserved.4 0000 | Title of Presentation

BearingPointGeo Presence

~ 16,000 employees in 39countries around the world

Over 600 World Class Financepractitioners with 190 focusedon BPM Solutions

Successfully implementedglobal development model forHyperion implementations

To date 12 projects have utilizedoffshore practice capabilities

GDC India Hyperion Application

Development

GDC China

Stress and Volume Test(SVT) using Mercury Loadrunner

ETL/Data warehousedevelopment



BearingPointWorld Class Finance PracticeWe are global, we serve more than 2,100 companies and we are proud to list 704of the Global 2000 as our clients.

World-Class Finance Solution Services

Finance Strategy &Transformation

Enterprise RiskManagement

Enterprise PerformanceManagement

Strategic Role of Finance

Finance OperationsOptimization

Shared Services/Business Process

Outsourcing Advisory

Risk Assessment &Strategy Development

Risk ManagementImplementation

Compliance Solutions

PerformanceManagement Strategy

PerformanceManagementImplementation

Business Intelligence &Data Warehousing



BearingPoint Has Extensive BPM Experiencewith Many Leading Companies

Solutions

Clients

Sample Clients

Alcoa

Carlson Companies

Carnegie Mellon

CoBank

District of Columbia

Follett Corporation

General Motors

George Washington University

Harris Bank

ING Direct

J&J

KBR

MetLife

Microsoft

Moodys

Motorola

Pfizer

Reuters

Symbol Techologies

Temple U Health System

United Technologies

Verisign

West Pharmaceuticals

Wolters Kluwer

XM Satelli te RadioLennox

Planning and

Budgeting

BI,

Dashboards,

Scorecarding

Business Performance Management

Financial

Consolidation and

Reporting


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Presentation

Background


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Abstract

For a number of years Hyperion solutions have beenimplemented at clients using SAP as their ERP solution. In thispresentation the presenters address dimensional modeling

aspects that are typical for SAP FICO clients. Using cost centerand profit center planning as an example, learn about a designsolution to integrate FICO output in Hyperion System 9 BI+cubes. The presentation also will include design considerations

and challenges relating to cube sizing and attribute data, andpresent design recommendations to tackle such challenges.


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Presentation Focus

Prepared from a perspective of Hyperion Planning System 9

FICO Foundational Concepts Modules Downward Flow Processes

FI

Overview Key ElementsOrganizational Data, Master Data, Rules, Transactions

CO Overview

Key ElementsOrganizational Data, Master Data, Rules, Transactions Design Considerations


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SAP R/3 Platform

ERPCollections of logically related transactions within identifiable

business functions e.g.PP (Make)MM (Buy)SD (Sell)FI and CO (Track)

HR Document Concept

Each business transaction that writes data to the database creates auniquely numbered electronic document

Each document contains information such asResponsible personDate and time of the transactionCommercial contentOnce created, a document can not be deleted from the database


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Downward Flow Concept

Sales Order to Procure to Receive Sales Order to Produce to Deliver


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Process Concept

Downward flow is key to the process concept

Not all processes create a posting to FI

All steps create a document


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Reporting ScopeFI and CO

Financial Accounting (FI)

External Reporting Retained

Earnings

Report

Liquidity

Calculation

Income

Statement

Balance

Sheet

Cost

Center

Reports

Profit

Center

Reports

Profit

Margin

Managerial Accounting (CO)

ProductCosts

Reports

Internal Reporting


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FI Module

The Financial Accounting (FI) module is designed to collect datanecessary for the preparation of Financial Statements for external

users SAP R/3 FI Audience

External & Internal

Preparation and presentation of external reporting:Balance Sheet

Income Statement

Statement of Cash


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Basic Foundations of BusinessProcess Integration

For SAP ModulesConfigurationsOrganizational Data

A hierarchy in which the organizational units in an enterprise are arranged

according to tasks and functions.The definition of organization units is a fundamental step, it is a critical factor in

how the company will be structured

Master DataMaster data is relatively fixed E.G. Material master, Vendor master, Customer

Master, Supplier Master, General Ledger master dataProceeds setting up organizational structures

RulesDefines the parameters and functionality for Master Data and Transactions

Relatively fixedChanges as policy changes

TransactionsIncludes transactions that describe business activitiesTransactional data is dynamic - it constantly changes, many times per day


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FI Organizational Data

Consolidated financial statements arecreated at the company level

A company can include one or morecompany codes

All company codes must use the same

chart of accounts and fiscal year A chart of accounts must be assigned to

every company code

Several company codes can use thesame chart of accounts

A legally independent entity

The smallest organizational unit forwhich accounting can be carried out

Business transactions are processed atthis level

Accounts are managed at this level

Legal financial statements, such as thebalance sheet and the incomestatement, are generated at this level

Consideration:- What detail to bring in actuals?-What detail to plan by scenario?- Naming Conventions- Grouping

-Accounts-Company Codes


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FIMaster Data

Local currency

Foreign currency

Tax category

Open item management

Line item display Sort key

Reconciliation accounts

Sold-to party.

Ship-to party.

Bill-to party.

Payer.

Movable assets

Operating facilities

Land and buildings

Assets under

construction Low-value assets

Intangible Assets

Address

Control

Payment Transactions

Accounting Information

Correspondence

Purchasing Data

Partner Functions.

Material Type

Industry Sector

Maintenance Features

Organizational Levels

MRP 1, 2, 3, 4

Work scheduling

Storage

Warehouse management

Quality management

Accounting 1, 2 Costing 1, 2

FICustomer MasterFIGL

FIMM (Material)

FIFixed Assets

FIMM (Vendor)

Sales org

General

Plant

Foreign tradeexport

Text

Purchasing

Accounting 1

FISD

German/

English

D DebitorsCustomers

K Kreditors/

VendorsS Sachkonto/

GeneralLedger

A Anlagen/Assets

M Materiel/Material

This is just a snap shot of master data information


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FIRules and Transactions

Posting Periods Fiscal years are divided into one or more posting

periods 12 months and 4 quarter ending postingperiods

Each posting period is delimited by both a startand finish date

Tolerance Groups Internal control -- amount limits that serve to

define the maximum authorization levels for youremployees

Payment Program Select payment method and bank

Cash discount periods

Payment document

Payment medium

Document Number & Types Number Ranges

Document Principles Each completed accounting transaction writes data

to the database and creates a unique electronicdocument

Audit trails allow an accountant to begin with anaccount balance on a financial statement and tracethrough the accounting records to the transactions.

Each document contains information such as:Responsible person, Date and time of thetransaction, Commercial content, Company codes

Document Numbers Unique Codes

Document Types SA General ledger account documents DR Customer invoices DG Customer credit memos DZ Customer payments

KR Vendor invoices KG Vendor credit memos KZ Vendor payments KN Vendor net invoices and credit memos

Posting Keys Debit or a credit Type of account


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CO Module

The Managerial Accounting and Controlling (CO) module is designed to collect data for thepreparation and analysis of reports for use by internal users

Utilizes the SAP R/3 information system to help the organization hit its targets

Involves planning, monitoring, reporting, advising, and informing

Is not bound to the rules of GAAP

Cost and Revenue Element Accounting

Overhead Cost Controlling

Cost Center Accounting

Internal Orders

Activity-Based Costing

Product Cost Controlling:

Product Cost Planning

Cost Object Controlling Actual Costing/ Material Ledger

Profitability Management

Profitability Analysis

Profit Center Accounting


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COOrganizational Data

Controlling Area A self-contained, organizational element for which

the management of costs can be performed A controlling area may include one or more

company codes

Cost Centers Operates as a cost collector One or more value-added activities are performed

within each cost center Unit that is distinguished, for example, by area of

responsibility, location, or type of activity Copy center Security department Maintenance department

Internal Order Temporary cost object that is used to collect,

plan, and monitor costs of a distinct event,activity, or project e.g. Company picnic, Trade

show, recruiting campaign Profit Center

Organizational unit that is evaluated on profit orreturn on investment

Both revenues and costs are collected Organizations are commonly divided into profit

centers based on Region Function Product


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COMaster Data

FI CO Connection Cost Elements: Used to categorize costs Primary

Originate in the General Ledger within FI postings Automatically transferred to CO

Secondary Secondary cost elements are used exclusively in

Controlling (CO) for allocations and settlements to Between Controlling (CO) objects

Cost Element Groups Groupings of primary and secondary cost elements

Facilitates reporting, planning, and allocating costs Statistical Key Figures

To support internal cost allocations e.g. number ofemployees, square footage

Activity Types - Measurement of productiveoutput from a cost center Used to facilitate the internal cost allocation

process Labor hours

Number of copies Machine hours


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CORules and Transactions

Rules ExampleControlling Areas are assigned document number rangesThe number ranges determine the treatment of a transaction as it

relates to primary or a secondary cost element

Transactions ExamplesPeriodic Allocations

Sender (CC/CE), Receiver (CC/CE) Rules, Percentage/FixedDistributions

Allocate the primary costs of a cost centerOriginal cost element is retained

SettlementsSettlements for other cost centers or allocationsAssessmentsRe-postings or transfers

Periodic re-postings for correcting cost center allocations


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Typical Design

Challenges and

Considerations


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PretextDisclaimer

Suggestions identified are meant to be just that

Depending upon the client, business, budget challenges theanswers to the design considerations may vary

The following discussion packages experiences from a HyperionPlanning integration standpoint

Design Consideration:


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Design Consideration:Account Dimension Accounts Dimension

Could have more than of 4000 accounts Different Level of Account Detail by Planning Scenarios

Suggestions: Summarize accounts by major account buckets

Treat Planning application as a planning application Consider Interactive Reporting or Web Analysis on SAP BW, SQL Database orASO/BSO for detail reporting

Try to achieve some level uniformity in the level of detail Utilize pre-population calculations of accounts as much as possible

Cost Centers/Cost Elements Cost Centers are not 1 to 1 to company codes Handling Cost Elements and Cost Centers Non SAP Cost Centers do not map to SAP cost centers

Suggestions: Isolate Cost Center Planning as a separate plan type or application Treat cost elements as part of the accounts dimension Associate currencies with cost centers rather than company codes Adding an attribute dimension called Cost Center Category may facilitate reporting and

analysis

Try to map Non SAP Cost Centers to SAP cost centers using a data process


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Design Considerations

Profit Center Planning within SAP is at a different level Profit Centers (at times synonymous with product) are in thousands e.g. 30,000 BOM Detail does not exist as opposed to FICO which is integrated with ERP Revenue Planning, Pricing data, Unit pricing, CVP Analysis detail from multiple SAP and Non-SAP sources

Suggestions: High number profit centers will result in high level of maintenance. Consider a separate revenue planning

plan type For a large number of profit Consider standard pricing and costing at a higher level of the profit center

hierarchy. Allow for planners to modify standard pricing/costing data. Try to finalize the pricing/costing prior to loading

to the planning application

Multiple Dimension Names/Aliases are common For example numeric codes will be same within FICO

Suggestions Utilize alphanumeric codes to create unique dimension names across databases

Transaction Level and Associate Detail is required Associated Master Data information is needed

Suggestions Consider Interactive Reporting or Web Analysis on SAP BW, SQL Database or ASO/BSO for detail reporting Consider AIS with Essbase


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Design Consideration

Data Reconciliations Cost Centers are not 1 to 1 to company codes Handling Cost Elements and Cost Centers

Suggestions: Isolate Cost Center Planning as a separate plan type or application

Treat cost elements as part of the accounts dimension Verify if currencies can be attributed with cost centers rather than company codes Adding an attribute dimension called Cost Center Category may facilitate reporting and

analysis

Hierarchy updates in Hyperion Planning If hierarchies are updated in Hyperion Planning, how will they be replicated in SAP?

Suggestions Multiple Options. Leverage MDM to institute a process especially when hierarchies are summarized A) Do not update Hyperion Planning. Maintain a regimen of importing hierarchies from SAP B) Replicate the IT process to update the SAP to update Hyperion Planning as well C) Isolated management

Design Consideration:


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Design Consideration:Data Synchronization and Reconciliations

Converting SAP Master Data and Integrating Special Purpose Ledgersin to hierarchies

Introducing dimensions such as business areas, management reporting areas

Suggestions Consider a reporting cube if the purpose of the added dimension is purely reporting Verify if the relationship between candidate master data element and another dimension is

one to many: Intermediate roll up Attribute Dimension

Checkered Planning Process Non SAP Cost Centers loading data to SAP using Excel and summarized data Planning steps such as allocations & assessments are executed at in excel (Non-

SAP) & CO (SAP) Suggestions Introduce a process. Try to convince Non SAP cost-centers to centralize planning

and then load the data back to SAP You have to ensure that the dimensionality captures the detail that is required to drive

allocations


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Design Consideration

Loading Data Back to SAPMaster Data SynchronizationData Synchronization

SuggestionsLeverage an intermediate repository or a process concept to re-process the

data to a loadable format to SAPIt will be challenging especially if summarized data export is loaded back. Data

may have to be forced to detail organizational elements for variance reporting


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No mirror ever became iron again;

No bread ever became wheat (again);No ripened grape ever became sour fruit (again).

Mature yourself and be secure from a change for theworse; Become the light.

Only from the heart Can you touch the sky

Jalal ad-Din Rumi quote

Famous Turkish Philosopher

1207-1273


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hyperion system 9 planning: design considerations for fico clients

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