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www.finitsolutions.com
Getting the Most out of EPM:A ‘Deep Dive’ into Account Reconciliation Manager
February 28, 2014
Jay Hampton
www.finitsolutions.com- 2 -
About Finit In business over 11 years: Company
founded in July 2002. 60+ employees in 20+ states (mostly
East Coast, South, and Midwest) 80+ HFM Clients Recognized as the Market Leader in
ARM/FCM Recognized as the World Leader in
FDM Project Work and FDM Customizations
50+ Planning / Essbase Clients Finit has managed many of the
largest EPM projects in the U.S. Our employees are generally CPA’s,
MBA’s, and have extensive Product and Financial Reporting Backgrounds
Implementation Services Full cycle implementations Infrastructure and Data Services Project / Program Management Product Upgrades Redesign / Enhancements Dedicated Support – Finit Answers Access to Hyperion SME’s (Dedicated
support team and guaranteed response times)
Customer Service Focus Flexible Time and Material support
packages with a ‘Pay as you Go’ option
Technical and Admin / Functional Support
Contact Greg Barrett ([email protected]) for info
Finit Overview
www.finitsolutions.com
Finit Solutions Introduction
Finit as a company: Who we are….Why? How?
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We believe in making and delivering personalized financial reporting solutions and experiences for others. Making Solutions with Personalized Experiences
We value craftsmanship, authenticity and solution making
We believe in listening, questioning and analyzing the issues and wishes of those we work with.
We look to build relationships, not as company to company but person to person.
We are honestly aligned to the cause of those we work with.
We are Makers and Doers who roll up their sleeves and dig in.
WHY is Finit Here?
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Running Finit like a Family
Finit has no debt or external owners.
This lets us keep focused on the customer in all cases as Finit’s goal is not to maximize profit but maximize the value we add to clients.
All owners are involved in the business.
We do not use contractors, employees only.
Finit’s compensation model is based upon client satisfaction with consultant’s work, not utilization / chargeability.
HOW do we achieve our beliefs?
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Below are Finit’s core values
These are the same values we ask you to provide consultant feedback on
Finit Values
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Our values, culture and approach to becoming a trusted advisor to clients has led to 100% customer success for every Finit client (200+ and counting) and for every Oracle Hyperion project (over 350+ and counting).
Finit’s Client Service
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Some Finit Clients
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Jay Hampton
Partner with Finit Solutions
10 Years experience with Hyperion EPM Software
Financial Close Primarily (HE, HFM, FDM/ERPi, FCM)
Cincinnati, OH
Annabelle’s Webinar Debut!
About the Presenter
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Financial Close Manager (FCM) Overview
Account Reconciliation Manager (ARM) Overview
Standard Process Flow
Set Up and Configuration
New Features currently available in 11.1.2.3
“Potential” New Features soon to be available in 11.1.2.3.500
Lessons Learned from implementations
Agenda
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Released with EPM 11.1.2.0 Part of the EPM Suite Integrated with Shared Services and Workspace Currently 2 Products are Part of Financial Close
Close Manager Task Management Solution – “…anything that needs to be done during the close process…”
Reconciliation Manager
Road map calls for More “modules” Supplemental Data Manager Journal Entry Manager
Financial Close Overview
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Account Reconciliation Manager designed to Manage and Monitor your Global Account Reconciliation Process General Ledger Reconciliations (aka “Balance Sheet Reconciliations”) Consolidation System Reconciliations Tax Reconciliations Any other reconciliation that performs a periodic validation of an
account balance
Competes against: Excel Based Reconciliations Other Account Rec Tools
Trintech AssurenetBlackline
Requires ERPi (FDMEE) for Data Integration Component Cannot load General Ledger data via FDM Classic
ARM Overview
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ARM solves a compliance documentation problem
Manages the reconciliation processes and stores evidence that reconciliations occurred
Key characteristics of accounting reconciliationsThey are process-specific
Focused on period-end balances
Generally managed by corporate accounting or shared services
Performed by divisional accountants world-wide
May use reconciliation compliance software
Accounts Reconciliation Manager (ARM)
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Risk of missing accounts
No visibility into the status of completion
Incomplete explanations
What happens if the balances change? Are reconciliations updated?
Inability to report across reconciliations
Risk of lost reconciliations
Risks with Excel Account Reconciliations
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ARM Overview – Workflow
Load Balances
Auto Reconciliation
Email Notifications
Preparation
Review
Late Notices
Monitoring
GL System Balances Sub Ledger Balances ERPi (FDMEE) Data load
adaptors provided for: Oracle E-Business Suite 11i,
12 Oracle Fusion Financials PeopleSoft Enterprise
Financial Management 9.0, 9.1
JD Edwards Enterprise version 9.0
SAP ERP Financial 4.7c, ECC 6.0 enhancement pack 4.0+
Flat Files
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ARM Overview – Workflow
Load Balances
Auto Reconciliation
Email Notifications
Preparation
Review
Late Notices
Monitoring
Auto Reconciliation
Zero Balance Accounts
Accounts under a certain threshold
Accounts with No Activity
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ARM Overview – Workflow
Load Balances
Auto Reconciliation
Email Notifications
Preparation
Review
Late Notices
Monitoring
Email Notifications
Sent at designated times
Reminders that reconciliations should begin
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ARM Overview – Workflow
Load Balances
Auto Reconciliation
Email Notifications
Preparation
Review
Late Notices
Monitoring
Preparation
Configurable Formats
Adaptable to each account type
Instructions
Attach supporting docs
Loadable transactions
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ARM Overview – Workflow
Load Balances
Auto Reconciliation
Email Notifications
Preparation
Review
Late Notices
Monitoring
Review
Comments
Tickmark features
Approval and rejection workflow
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ARM Overview – Workflow
Load Balances
Auto Reconciliation
Email Notifications
Preparation
Review
Late Notices
Monitoring
Late Notices
Sent at designated times
Sent only to users who have missed a deadline
Notifications continue until work is complete
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ARM Overview – Workflow
Load Balances
Auto Reconciliation
Email Notifications
Preparation
Review
Late Notices
Monitoring
Monitoring
Status of reconciliations
Aging analysis
Warnings
Debit / credit violations
Aging violations
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1) Identify Accounts and Data Sources to Reconcile
Note: Level of Account Reconciliation is Very Important!
GL Account Level? GL Account + Cost Center Level? GL Account + Legal Entity Level? Etc.
2) Create Account Reconciliation “Profiles” and assign attributes and Reconciliation Preparers and Reviewers
3) Configure ERPi (FDMEE) to Map and Load General Ledger Data to Profiles
4) Create Monthly Reconciliations from Profiles
5) Load General Ledger Data into ARM
6) Open Reconciliations to Users
ARM Set Up Simplified
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Two Types of Reconciliations (Formats) Balance Compare Automated comparison of source
system and subsystem balances Accounts payable Accounts receivable Inventory Fixed Assets
Can “source” from Sub-Ledger
Account Analysis Justification of the source system
balance Prepaids Accruals Intangibles Any other account where the balance is
not derived from a subsystem
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PropertiesCharacteristics of the account reconciliation
InstructionsVisible to end users
WorkflowControls the ‘who’ and ‘how often’ of the reconciliation process
CurrencyAccess
Who can modify and maintain the account reconciliation
AttributesCustomizable properties
HistoryTo see property changes
Profile Set Up
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Account ID Account – Company / Account – Cost Center / etc.
Name/Description
Risk Rating - High, Medium, Low
FormatBalance Compare
Account Analysis
Normal Balance – Debit/Credit
Auto Reconciliation – Yes/No
Manually Enter Balances – Yes/No
Profile Set Up - Properties
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Preparer
Frequency
Start Day Offset
Duration
Newer versions support Groups
Reviewers
Can add as many as you want
Frequencye.g. 1 Reviewer for Monthly, 2 for Quarterly
Duration
Profile Set Up - Workflow
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Single – All reconciliations done in one common currency
Multiple – if reconciliations are done in more than one currency
Entered: Balances and transactions in the currencies in which they occurred
Functional: Balances and transactions in the currency associated with the entity that owns the account
Reporting: Balances and transactions in the currency used for system-wide reporting
Can enable/disable per Profile
Profile Set Up - Currency
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Commentators
Can view and add comments to Reconciliations
Supports Users or Groups
Viewers
Can view but not comment on Reconciliations
Supports Users or Groups
Profile Set Up – Access
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Custom AttributesAllow for different ways to Group or “Tag” Reconciliations for
analysis and tracking purposesExamples we’ve seen:
Profile Set Up – Attributes
GL System Legal EntityGeographical Location Shared Service CenterHFM AccountAction PlanReview MethodReview Date
Type Journal Entry NumberReconciliation Frequency Business Unit SegmentReconciliation GroupResponsibility Group
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New Features:11.1.2.3 (Currently Available)11.1.2.3.500 (Next Release)
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Net Activity Attribute from Prior ReconciliationCalculates the activity
on any reconciliation profile / account from the last reconciliation.
Displays as an amount along with the Beginning Balance, Ending Balance, Explained Balance, etc.
FCM / ARM Changes in 11.1.2.3
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Can Hide Options from Reconciliations Formats
Can choose to Hide an item such as Adjustments to Source Systems, Net Activity, etc.
FCM / ARM Changes in 11.1.2.3
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Can have Summary Reconciliations that pull from child reconciliations.
FCM / ARM Changes in 11.1.2.3
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Improved User Assignments of Reconciliations A user can assign a backup Can assign a group to a reconciliation (with members existing in the
group). The group exists as a Native group in Shared services. A user can request a workflow be reassigned to another user.
FCM / ARM Changes in 11.1.2.3
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Improvements to Auto Reconciliations (5 new methods added) Balance is zero & no activity exists Balance is within a range (based on prior reconciliation amount) Balance is within range and no activity (based on prior reconciliation amount) No Activity (based on prior reconciliation amount) Balance match (# tolerance) – less or equal to a tolerance amount.
FCM / ARM Changes in 11.1.2.3
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*Until they’re actually released, all Future Release Enhancements are subject to change
Guidance provided by Heather Lynds FCM/ARM Product Manager (best PM at Oracle!)
The following items are “likely” but not guaranteed to be included Improvements to reconciliation layoutEnhanced attribute configuration optionsNew custom attribute typeAction Plans for reconciliation transactionsQuestions for all rolesDefault dashboards and list views
Potential* New Features in 11.1.2.3.500
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Long Account Description
Improvements to Reconciliation Layout
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Displaying Individual Segments
Improvements to Reconciliation Layout
The configuration option is at the Format level, enabling customers more granular control over display options (rather than forcing a single configuration)
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Displaying Individual Segments
Improvements to Reconciliation Layout
If configured to display individual segments, each segment is displayed separately, preceded by the segment label
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New Other Attributes Section
Improvements to Reconciliation Layout
Attributes assigned to the Attributes tab on the Format or Profile dialogs will now appear in the Other Attributes section
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Renaming standard transaction attributes
Attributes have been exposed in Manage Attributes and limited edits to changing the name
Enhanced Attribute Configuration Options
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Removing / Re-ordering Standard Transaction Attributes
Enhanced Attribute Configuration Options
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Configuring Access Privileges
Enhanced Attribute Configuration Options
Access privileges can be assigned to both standard and custom attributes assigned to Formats or Profiles. Edit behavior depends on role assigned access, and the type of attribute (action plan attributes have different behavior than other attributes)
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Displaying Format Attributes on the Profile
Enhanced Attribute Configuration Options
Enables Administrators to see a comprehensive view of attributes that will appear in the Other Attributes section of reconciliations, including attributes added to the Format Attribute tab and the Profile Attribute tab
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Copying Reconciliation Attribute Values back to the Profile
Enhanced Attribute Configuration Options
Applies to all types of custom attributes; enables authorized roles to contribute information & files that should be stored on the profile and carried forward from period-to-period
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Prior versions of ARM support only a single “Text” type custom attribute; this attribute displays only a single line of text
Added new attribute type “Multi-Line Text” with optional attachments section
New Custom Attribute Type
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The multi-line text attributes can be assigned anywhere custom attributes can be assigned
Format Attributes & Transaction tabs
Profile Attributes tab
Assignment includes the access privileges feature
New Custom Attribute Type
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Typical Use Case
Action Plans for Reconciliations
Primary use case is to enable workflow users to edit Action Plan attributes after completion of their workflow responsibilities.
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Configuring a Set of Default Portlets
Default Dashboard and List Views
Administrators now have a second dashboard icon on their toolbar: Public Dashboard. Whatever portlets they configure on this dashboard become the default portlets that new users will see.
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Configuring Portlets
Default Dashboard and List Views
Each portlet has a “Save as Default” option available to Administrators. It saves the column configuration and applied filters as the default, causing these settings to apply to each new instance of the portlet.
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Configuring List Views
Default Dashboard and List Views
Each List View (Profile, Reconciliation, & Transaction) also has the Save as Default option available to Administrators. It saves the current column configuration as the default configuration to apply to all new users.
The Restore to Default option can be used by any user to reset the view to match the default view.
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Start Simple and Continue to Evolve
Use ARM as a chance to Standardize Recon Process
Use ARM as a chance to Drive Process Change
Plan to Expand ARM
Sub ledgers
Analytics
Leverage Custom Attributes
Leverage Complete Data Loads
Ability to Export / Import Profiles via Excel
Tips/Tricks/Lessons Learned
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Reconciliations should be consistent
Use ARM as an opportunity to standardize the recon process
All accounts don’t need to be reconciled the same but all the same accounts should be reconciled consistently
e.g. Cash can be reconciled differently than AR, but AR should be reconciled consistently across the organization
Opportunity for Standardization
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Most companies deal with Reconciliations on a ‘Reactive’ basis
Proactive approach would be to tie Recons, Mapping, etc. into the account activation
Add ARM process to new GL account request
Who’s the reviewer, what are the attributes, etc.
Opportunity for Process Change
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Consider relationship between GL accounts and your Consolidation Chart of Accounts
If supporting multiple ERP’s and source systems ARM can help bridge the gap and limit exposure
e.g. What % of your Balance Sheet balances are reconciled?
ARM Beyond a Transactional Recon Tool
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Provide additional views of the recons
Future reporting enhancements will allow for better analytics based on attributes
Simple to create and update
Leverage Custom Attributes
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All Profile Properties are in columns, can save as .csv and import
Import / Export Profiles Via Excel
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Questions?
Email us for a copy of the slides or link to the
recording.
Presenter
Jay Hampton
General Questions
Greg Barrett [email protected]
Joe Mizerk [email protected]
Thank you for attending!