Optimizing the Close Process with a Source-to-Report View of Financial Data David Watson Concentric Solutions

Optimizing the Close Process with a Source-to-Report View of Financial DataDavid WatsonConcentric Solutions

Agenda

Introduction

Enterprise Performance Management

Client Perspectives

Creating a Source-to-Report View of Financial Data

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2

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4

5

The Road to Fast Close Reporting

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

InsightPerformance

Action

SetGoals

Model

Plan

Monitor

Analyze

Report

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

Accounting irregularities havebrought financial reporting into the spotlight

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….


PwC survey of FTSE350

16% Base reporting on strategy

27% Clearly explain underlying revenue drivers

35% Align KPIs to strategy

19% Link external drivers to strategic choices

7% Communicate detailed commentary across reporting models by segment

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

Governance more important than transparency?

Finance overwhelmed by factors not aligned with the reporting risks

Source: PwC Competitive Edge Survey 2011

Collect data Close AdjustmentsCurrencyI/CSubsidiaries

ReportManagementLegalExternal

Analyze

6 Days 12 DaysAverage

Collect Close Adjustment Report Analyze and Forecast

<2 Days 6 DaysWorld Class

More time!

Source: Hackett Group Benchmarking-Solutions Book of Numbers


The Road to Fast Close Reporting

Optimizing the Financial Close Process

Close sub ledgers into GL (AR, AP, FA, etc.)

Perform Reconciliations and Post Accruals

Deliver self service financial reporting to the organization

Create external reports with disclosures and financial data

Automate and deliver external & statutory filings

Gather and validate complete data sets to support all financial reporting needs

Automate consolidated financial reports leveraging multiple hierarchies and calculations

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 Financeefficiency

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.

Best Practices

Optimizing the Financial Close Process

Client Perspectives

Merlin Entertainments GroupA client perspective

Bruce Moyes, Merlin Entertainments Group

Client Success: CorusDeployment of HFM reduces close by 2 weeks

“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 ControllerTata Steel Europe

£12 Billion t/o service and steel manufacturing company

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

SOURCESYSTEMS

Prepackaged integration Data loading including

supplemental data, line item detail

Dimensional mapping verification

Process management

Excel G/L ERP, EBS, JDE Flat files ETL

repositories

Hyperion Financial Management

Hyperion Planning Hyperion Essbase Hyperion

Enterprise Data Marts

DATA PREPARATIONSERVER

EPM SYSTEMS

GUIDED WORKFLOW USER INTERFACE

BPM Adapters

Data cleansing and transformation

Task scheduling Text and

document archive Audit review Data staging

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

Load data from file or direct from data base

Multiple Entities imported in a single phase, with scaling applied as data is read from source

Validation of source to target accounts takes place and missing maps are flagged

Data is exported to HFM with a post-Export Validation Report as proof

Data load results displayed in EPM Workspace after load

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.

Import Results

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.

Source to Target Maps & Validation

Checks Target application after data load and returns post-load 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.

Validation Check Report

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

Target Application results & Drill-back


Browser/Windows/Smart ViewClient

MS Office Integration

Data Entry & Consolidation

Formatted Reports Dashboards

Currency Translation& Eliminations

JournalsRole-Based Security

Security

Logs

Meta Data Repository

Interoperability

Fail-Over and Load BalancingServer

Data

Inter-Company Processing

ProcessManagement

Line ItemManagement

Custom & Predefined Dimensionality

Audit Tracking

GAAP IFRSComplianceRules Engine

Data Import/Validation

Documents attachments Cell text









Dashboards on an iPad



Questions?

Contacts

UK & Ireland 99 Gray’s Inn Road 20-23 Woodside Place

London GlasgowWC1X 8TY G3 7QFt: +44 (0)203 411 0140 t: +44(0)141 582 1397

w: www.concentricsolutions.com

Germany & Austria City-Office

Zenettistrasse 2D-80337 MunichGermanyt: +49 (0)89 72 99 77 74

http://www.concentricsolutions.com/

Thank youDavid [email protected]