HFM Intro for new users

An Introduction
To
Hyperion Financial Management

Vasundhara Sasmal
Corporate Consultant
Vasundharasasmal.blogspot.com

Agenda :
Fundamentals of Financial Consolidation
Describe the features of Financial Management
Describe the Hyperion products bundled with
Financial Management
Describe the product architecture
Describe related Hyperion products

HYPERION FINANCIAL MANAGEMENT
Hyperion Financial Management is a financial consolidation
and reporting application built with advanced Web technology, but
used and maintained by the finance team. It provides financial
managers the ability to rapidly close and report financial results,
meet global regulatory requirements, reduce the cost of compliance
and deliver confidence in the numbers.

WHAT IS FINANCIAL CONSOLIDATION
Financial Consolidation [ The Merger of Two Enterprises ]
: The combined financial statements of a parent company and its subsidiaries.
or
Because consolidated financial statements present an aggregated look at
the financial position of a parent and its subsidiaries, they enable you to
gauge the overall health of an entire group of companies as opposed to one
company's stand alone position.
Business Intelligence
In another accounting context, financial consolidation refers to various
processes that will streamline the internal financial reporting of a single
company

 Consolidating financial data from diverse locations and across multiple
general ledgers, performing multi-currency conversions, untangling outmoded
spreadsheet based data collection processes, incorporating changes from
reorganizations, mergers, and acquisitions.

Consolidate data quickly from multiple general ledgers and multiple
charts of account?
Consolidate data from various business perspectives and by multiple
structure versions (this year, last year, proposed)?
Support local and multiple base currency reporting?
Report on the impact of currency fluctuations (actual, forecast and
budget rates)?

When do we need Financial Consolidation :
 Consolidated financial statements are required when there are two or more
affiliated companies. When a parent company either directly or indirectly
controls a majority interest of a subsidiary, consolidated financial statements
must be presented. (Cash flows, and financial position of the combined entity)
 When one company acquires another company, a consolidated balance
sheet needs to be prepared. The first step is to eliminate the effects of any
inter-company transactions.

The problems - consolidating financial data from diverse locations and across
multiple general ledgers, performing multi-currency conversions, and untangling
outdated spreadsheet based data collection processes, incorporating changes
from reorganizations, mergers, and acquisitions.

Financial Data Quality Management :Financial consolidation solutions can meet
this challenge by streamlining data collection and integration from multiple
sources, making the monthly close faster and more efficient while turning
disparate data into useful, business critical information.

Financial Consolidation
types
The Consolidation Module enables the user to generate the following
Consolidated
Financial Statements:
• Consolidated Balance Sheet
A balance sheet in which assets and liabilities of a parent company and its
controlled subsidiaries are combined, thereby presenting balance sheet items
for the parent and its subsidiaries as if they were a single firm.

• Consolidated Trial Balance

• Consolidated Profit & Loss Statement

Spreadsheets
When the spreadsheet approach is used, spreadsheet templates are
created by central headquarters and e-mailed to remote locations. Then, on a
monthly or quarterly basis, these spreadsheets are updated and e-mailed
back to central headquarters, where they are consolidated into a master
spreadsheet—usually with complex macros. The only advantage of this
approach is low cost because there is no software or hardware to buy.
Everyone in the organization already has e-mail access and a spreadsheet
application on the desktop.

Financial Consolidation, Reporting, and Analysis
Financial Management enables highly efficient collection and consolidation of
data from diverse sources. It includes these features:
• Process management for tight control of the review and approval process
Data validation
• Currency translation to support multiple local currencies
• Automatic eliminations for intercompany transactions

Financial Management is designed for large-scale, centralized Web deployment. You
can use Financial Management to consolidate data from diverse general ledger systems
and locations around the globe.

KEY FEATURES
 Global consolidation features
 Scalable web architecture
 Smart dimensionality
 Complete audit trails
 Powerful reporting and analysis tools

 Robust data integration FDQM

FINANCIAL COMPLIANCE
In Sarbanes Oxley 404 scenario, it is important to keep some things in mind
which help in the overall controls in the financial closing process.
1. Has the management documented the entire financial closing process in
sufficient detail from data collection to final report making.
2. Have control activities been documented which define the controls realting
to the financial closure process.
3. Has a risk assessment been conducted to assess the inherent risks in the
closure processs.
4 How and by whom is the financial closure process monitored. How is
completeness of the process determined.
5. How are communication procedures defined which ensure a smooth
financial closure in a timely manner.
The users of a company’s financial statements —investors, lenders, and
management—wish to see accurate results from the latest reporting period as
soon as possible

HFM LIFECYCLE OVERVIEW
Server
Calculate

Adjust data
Loading …

22
44
Load & Add data 66
Translate &
33
Consolidate
55
77 11
Run & Publish Reports 11
11

Lock data
22
44
66

Approve data

FINANCIAL MANAGEMENT
 What are the challenges we are facing?
 An increasing desire to have continuous,
comprehensive planning and reporting
 The challenges/struggles of making (external)
GAAP-based financial reporting mesh with
(internal) fund accounting-based reporting
 The systems we have/are putting in are not all
that conducive to this type of reporting (for fund
accounting, for higher education)

FINANCIAL MANAGEMENT

Financial Management comes bundled with three products that extend its
capabilities:
Financial Reporting is a reporting and charting tool for Web or print
distribution of financial reports.
Smart View for Office is a spreadsheet add-in based on Excel for reporting
and analysis.
 Shared Services enables user provisioning and sharing of metadata and
data among Financial Management applications or between Financial
Management and other products.

HFM Artifacts
 Management, legal, and tax reporting
 Complex currency translations
 Intercompany and minority interest eliminations
 Complete audit trails
 Journal adjustments
 Multidimensional analysis
 Cash flow reporting
 Extensible Business Reporting Language (XBRL) reporting

Using Hyperion Tools to Integrate
Hyperion Detailed
Planning Budgeting Different Levels of
Data Detail as
Financial Relevant to the
Reporting Different Needs

Strategic
Distributed and Modeling
Customizable
Modeling; Real-time
Access
Hyperion
Hyperion Strategic
Financial Finance
Management
Automated
Data
Integration
Between the Systems

In Next Session We’ll Learn
 Application Fundamentals.
 Types of Application
Classic Application and EPM Application
 Creating Application

THANK YOU

To learn more about hyperion please visit

http://vasundharasasmal.blogspot.com

HFM Intro for new users

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HFM Intro for new users