Optimizing the Close Process with a Source-to-Report View of Financial Data
Optimizing the Close Process with a Source-to-Report View of Financial Data David Watson Concentric Solutions Agenda 1 Introduction 2 Enterprise Performance Management 3 The Road to Fast Close Reporting 4 Client Perspectives 5 Creating a Source-to-Report View of Financial Data About Concentric company profile Enterprise Performance Management (EPM) consultancy formed in 2005 with offices in the UK and Germany Experts in Financial Close solutions, Budgeting, Planning & Forecasting solutions and Executive Dashboard applications Qualified accountants, certified IT professionals, Oracle Hyperion Specialized consultants Recognised by our customers - UK Oracle User Group Silver Hyperion Partner of the Year 2011-12 - UK Oracle User Group Gold Hyperion Partner of the Year 2010-11 - UK Oracle User Group Gold Hyperion Partner of the Year 2009-10 Enterprise Performance Management The EPM Vision Integrated management processes Operational decisions are linked to strategic goals Consistent, reliable insights that drive action A lower cost of reporting and reduced system complexity A single version of the truth Set Goals Model Report Insight Performance Action Analyze Plan Monitor The Challenge of Corporate Reporting Fast close vs data quality Fragmented reporting supply chains Autonomy vs accountability Decentralised vs single stream Audit controls vs flexibility to keep pace with change Too many spreadsheets…. Accounting irregularities have brought financial reporting into the spotlight The Challenge of Corporate Reporting PwC survey of FTSE350 16% Base reporting on strategy 27% Clearly explain underlying revenue drivers Compliance-driven approach to external reporting Focus on financial measures to the detriment of non-financial reporting Increasing pressure of timely reporting to investors and markets 35% Align KPIs to strategy Governance more important than transparency? 19% Link external drivers to strategic choices Finance overwhelmed by factors not aligned with the reporting risks 7% Communicate detailed commentary across reporting models by segment Source: PwC Competitive Edge Survey 2011 The Challenge of Corporate Reporting Average Collect data World Class <2 Days 6 Days Close 12 Days Adjustments Report Currency I/C Subsidiaries Management Legal External 6 Days More time! Collect Close Adjustment Report Source: Hackett Group Benchmarking-Solutions Book of Numbers Analyze and Forecast Analyze The Road to Fast Close Reporting Optimizing the Financial Close Process Close sub ledgers into GL (AR, AP, FA, etc.) Sub Ledger Close General Ledger Close Gather and validate complete data sets to support all financial reporting needs Data Assurance Perform Reconciliations and Post Accruals Consolidation Deliver self service financial reporting to the organization Internal Management Reporting Automate consolidated financial reports leveraging multiple hierarchies and calculations External Financial Reporting Automate and deliver external & statutory filings Filing Create external reports with disclosures and financial data Optimizing the Financial Close Process Best Practices Get it right first time! Apply a corporate close calendar for feeder systems to G/Ls. Automate allocations and accruals in the G/L. Standardise reporting formats for reliable data and faster review. Central Finance efficiency Perform intercompany reconciliations ahead of month end. Use phased submissions to act on availability of site data. Create automated ledger integrations for fast load of financial data. Intelligent review Design hard and soft validations to facilitate one-touch reviews. Streamline the approval process – focus on what matters. Use process controls to minimize post-close entries. Consolidation & Reporting Automate top-side adjustments and equity eliminations. Build consolidation hierarchies that match cycle requirements. Use exception reporting with drill through analytics. Integrate financial and management reports as production packages. Client Perspectives Merlin Entertainments Group A client perspective Bruce Moyes, Merlin Entertainments Group Client Success: Corus Deployment of HFM reduces close by 2 weeks £12 Billion t/o service and steel manufacturing company “The new Group Reporting System successfully merges multiple reporting models across the group, improving the efficiency of our consolidations. We have reduced our monthly closing cycle by around 2 weeks and save 30+ man days of time at head office.” Group Financial Controller Tata Steel Europe Tata acquisition of Corus imposed fast close challenge Concentric business process review ensured project focus on key drivers for change Global deployment in 8 months Single stream, centrally architected solution cuts 2 weeks from closing cycle 4000 spreadsheet reports replaced with 300 HFM reports Creating a Source-to-Report View of Financial Data Hyperion Financial Data Quality Management SOURCE SYSTEMS GUIDED WORKFLOW USER INTERFACE DATA PREPARATION SERVER Excel G/L ERP, EBS, JDE Flat files ETL repositories Data cleansing and transformation Task scheduling Text and document archive Audit review Data staging BPM Adapters Prepackaged integration Data loading including supplemental data, line item detail Dimensional mapping verification Process management EPM SYSTEMS Hyperion Financial Management Hyperion Planning Hyperion Essbase Hyperion Enterprise Data Marts Data Integration with Hyperion FDM Source data files & Import Format - Load Any Source Data file - Load Any data direct from data base - Load data from EBS, JDE, PeopleSoft, Other DB’s Source to Target Maps & Validation - Map source dimensions to target Validation Check Report - Show post-load and calculated results from target Target System Results - Show load results in target Data Integration with Hyperion FDM Data is exported to HFM with a post-Export Validation Report as proof Load data from file or direct from data base Multiple Data loadEntities results displayed in imported in a single EPM Workspace after load Validation of source to phase, with scaling targetasaccounts takes applied data is read place and missing maps from source are flagged Import Results Import results are displayed on the Import Screen after the user clicks the Import button. FDM allows drill-back to source files at any time, now or in the future, offering a complete audit trail. If data is sourced from a DB, the drill-back will display the query used to retrieve the source data All files are archived on the FDM server which also allows attachments to data loads. Source to Target Maps & Validation FDM allows for online map changes and warns the user if any maps are invalid/duplicated. Once the data is mapped it will be validated and ready to load to the target application. Validation Check Report Checks Target application after data load and returns postload and calculation results for all entities within current data load. Allows for system to prompt user for more data, and can be fully customised to include any account. Target Application results & Drill-back FDM loads all data in data load file/DB table to Target application, in this case HFM. Target adapters exist for HFM, Planning, Essbase, HSF, Enterprise, Custom Systems Drill-back is available for the Workspace, Financial Reports and SmartView for Excel Hyperion Financial Management Client Browser/Windows/Smart View Data Entry & Consolidation MS Office Integration Formatted Reports Server Fail-Over and Load Balancing GAAP IFRS Compliance Rules Engine Inter-Company Processing Dashboards Currency Translation Journals & Eliminations Process Management Line Item Management Role-Based Security Custom & Predefined Dimensionality Data Data Import/Validation Meta Data Repository Security Documents attachments Cell text Interoperability Logs Audit Tracking Hyperion Financial Management Hyperion Financial Management Hyperion Financial Management Hyperion Financial Management Hyperion Financial Management Hyperion Financial Management Hyperion Financial Management Hyperion Financial Management Dashboards on an iPad Dashboards on an iPad Dashboards on an iPad Questions? Contacts UK & Ireland 99 Gray’s Inn Road London WC1X 8TY t: +44 (0)203 411 0140 w: www.concentricsolutions.com Germany & Austria City-Office Zenettistrasse 2 D-80337 Munich Germany t: +49 (0)89 72 99 77 74 20-23 Woodside Place Glasgow G3 7QF t: +44(0)141 582 1397 Thank you David Watson [email protected]
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