Hyperion Tax Provision Challenges

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Hyperion Tax ProvisionSeptember 25, 2014

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Introductions

STEPHEN HILLApplication Sales Manager

Mobile: [email protected]

401 9th Avenue S.W.Calgary, ABT2P 3C5

3

JESSICA DOWNES, CPA,MSTPrincipal Solutions Consultant

Mobile: [email protected]

Willis Tower233 South Wacker DriveChicago, IL 60606

TOM SARETSKY, CMA Business Development Manager

Mobile: +1. [email protected]

Mobile: +1. [email protected]

CHRIS TESKE, PMPPRINCIPAL ARCHITECT

mailto:[email protected]

mailto:[email protected]


Hyperion Tax ProvisionBring Finance & Tax Together

Purpose-Built / Out-of-Box: a Tax Provision solution that is built on the Hyperion Financial Close Suite:

1. Data Collection - automated & manual

2. Tax Provision Calculation - IFRS & US GAAP

3. Tax Reporting - out-of-box tax reports & ad-hoc

Owned by Tax - Leverage your existing investment in Hyperion, but both Tax & Finance retain the flexibility they need

Integrates with Tax Compliance - Enhances & integrates with tax compliance software

Rapid Implementation & Ease of use: the technology & expertise is already in the Finance organization

ERP:

Oracle

JDE

SAP

Sub-

Ledger

Others

Transactions Assurance Reporting

Metadata

Management

Data

Quality Management

&

Financial

Reporting

SmartView

Financial Close Management

BI – Finance Dashboard

Tax Provision

Financial Consolidation

Shared DNA


Hyperion Tax ProvisionTax & Finance Share the same DNA

Financial Close

Tax Close

Trial Balance SubmitSchedules

Review & Approve

SubmitSchedules

Review & Approve

Consolidate

ConsolidateConsolidating Adjustments

Day 0Financial

Statements

Tax Journal Entry

& Tax Note

Trial BalanceBy Legal Entity

Data - Metadata - People - ControlsClose G/L

Disclosure & Filing


Financial & Tax Close Consolidation Process – Typical Challenges

Copyright © 2013, Deloitte Tax LLP . All rights reserved.


Demo

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Hyperion Tax ProvisionAbout Edgewater Ranzal

17+ Years700+ clients

1300+ projects

FocusServicesPeopleMethodologyCustomersPartnership


Hyperion Tax ProvisionHTP Case Study: Cenovus Energy Inc

• An “Upstream” Oil Exploration company based in: Calgary, AB

• Maintains a large Oracle Hyperion Footprint

• Organization is innovative in nature and one of the first live implementations of Hyperion Tax.

Searching for a Tax Solution

• With a comprehensive tax provisioning process; existing “filing” based commercial products were unable to meet provisioning needs:

• Thomson Reuters (OneSource)

• CorpTax (Provision)

• LongView (Tax)

• Vertex

• CCH (TaxPrep)

• Company also reviewed the option to create a “custom application” solution and conceded that would require a significant build effort

• Introduced to Hyperion Tax Provisioning (HTP), after several demos and discussions decided their best option was HTP

• The Oracle Hyperion HTP team are seasoned veterans in both tax processes as well as the technology


Hyperion Tax ProvisionHTP Case Study: IFRS for Canadian Companies

1. Hyperion Tax Provisioning (HTP) is a purpose built Tax Provisioning application with the following history:

In February of 2013, Oracle released the application offering: Hyperion Tax Provisioning (HTP) – Version: 11.1.2.2 (primarily for US GAAP)

In July of 2013, Version: 11.1.2.3.100 (included IFRS enhancements) was released

The current version, 11.1.2.3.501 (addressed IFRS requirements for Canadian Customers) was released in February of 2014• Canadian Partnership Calculation and Allocation

• U.S. Consolidated (Unitary) Filing Data Grouping

• Canadian legal entity grouping (CVE LE & CEMSL LE)

• Deferred Tax Proof (including State level data)

• Changing Base Scenario for Opening Balances

• Consolidated ETR Grouping

• Deferred Tax Expense and Current Tax Expense Reporting


Hyperion Tax ProvisionHTP Case Study: Project Setup

• Standard Waterfall Approach:

• Requirements

• Design

• Build

• Test

• Roll Out

• As part of the Early Adopter Program had direct access to Program and Development Staff

• Were able to provide feedback and commercially viable suggestions were incorporated in the release schedule


Hyperion Tax ProvisionHTP Case Study: RequirementsThe “As is” and “To Be” Process Review:

• Decomposed Current Processes to understand it in a way that it can be incorporated into HTP Data Structure (“As Is”)

• Next modify the “As Is” into a “To Be” format incorporating requested process changes (functional and design to the HTP format):


Hyperion Tax ProvisionHTP Case Study: Design

Rules Design:

Meta and Trial Balance Data Design:

Mapping of “To Be” Requirements to HTP Functionality:


Hyperion Tax ProvisionHTP Case Study: Build

• Build out Functional Process Flows (Task Lists / Data Forms as required to):

• Update Global Assumptions (assuming Tax Rate Updates)

• Update with Trial Balance Data• Perform Tax Automation• Address: Current Provision• Address: Deferred Provision and Deferred Tax Roll

Forward• Final Provision Reporting (including TARF)• Tax Journal Entry• Tax Footnote/ Extract for Filing Solution• Return to Accrual


Hyperion Tax ProvisionHTP Case Study: Test

• User Acceptance Test (UAT) consisted of End User Involvement and scripting replicating previous cycles:

• Prior Year Actual

• Prior Year Budget

• Outlook: 02/10

• Outlook: 03/09

• Q1/Q2

• Monthly

• Build out of Technical Document Deliverables:


Hyperion Tax ProvisionHTP Case Study: Roll Out

• Environmental Migration

• Perform:• Technical Hand Over Training • End User Training

• Ran in Parallel to confirm functionality / configurations nominal


Hyperion Tax ProvisionProject Success

• Go Live: June 28, 2014

• On: Time, Budget and Scope

• To Date, zero production defects have been reported

• Cycle Data Load (end to end system administrator function: 45 minutes)

• Automation and Current Provision (Tax Advisor readiness: 5 minutes)

• Advisor Adjustments (this is where additional time savings are being made), an overall two day process is reduced to two hours with no concern for disparate data