Oracle Financial Consolidation and Close in the Cloud

Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |

Session 10485: Oracle Financial Consolidation and Close in the Cloud

Richard Wilkie, Sr DirectorOracle EPM Product Management


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The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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How are you keeping up with the increased business complexity & reporting requirements?

More than 70% of companies have more than 5

reporting standards.

Sources: E&Y’ Connected reporting Responding to complexity and rising stakeholder demands: 2014

50% of companies increased staff in the last 3

years to keep up with requirements

Copyright © 2016, Oracle and/or its affiliates. All rights reserved. | Confidential – Oracle Internal/Restricted/Highly Restricted

EXAMINEYOUR CONSOLIDATION & CLOSEPROCESS

68%

57%

use Excel or e-mail to track the financial close, reporting, and filing process

State they have inadequate visibility across the close

86%

Say Non-Financial data is greater than 25% of required Filings

4Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |

Source: The Challenge of Corporate Reporting Research Study carried out by Dynamic Markets on behalf of Oracle and Accenture.

Manage the entire process…


E&Y Confident Reporting, 2014

Just 27% say that they are highly effectiveat efficiency of production in corporate reporting,

and only 25% are very effective at speed of closing.

63% fewer FTEs used by Top

Performers in the Account-to-Report

Process.

Hackett A2R Performance Study, 2013


DO YOU HAVE…

- increasing regulatory reporting requirements such as IFRS or local GAAP?

- a desire to streamline your close and perform more analysis on the results without increasing headcount?

- a single source for both financial & non-financial information?

- insight to real-time status of your close & a means of reviewing performance for continuous improvement opportunities?


Evolution of Hyperion Consolidation Solutions

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Micro Control Hyperion Enterprise

Hyperion Financial

Management

Financial Consolidation

and Close Cloud

30+ years of experience and best practices allow us to constantly improve and evolve


Best Practice Consolidation Out-of-the-Box

Comprehensively Address the Extended Close Process

Integrated, Secure and Auditable

Consolidate and Report With ConfidenceOracle Financial Consolidation and Close Cloud Service


Ensures the use of best practices for an accurate and efficient financial consolidation and close

Makes it easy for finance departments to meet global financial regulation requirements like IFRS and GAAP

Significantly reduces timescale, cost and risk in the financial consolidation and close process

Best Practice Consolidation Out-of-the-Box



Reduce the time it takes to complete the financial close

Ensure visibility and predictability in financial consolidation and close

Trust and reliability that the numbers are complete and accurate

No need to replace/alter existing transactional systems

Increase collaboration

Comprehensively Address the Extended Close Process



Secure anywhere anytime access to latest financial information that remove the dependency on finance for generating reports and analysis

Improve the security, consistency and quality of financial reporting

Contain / reduce audit costs

Confidence in compliance with regulations

Integrated, Secure and Auditable



• Consolidation– Predefined dimensions with built-in Financial

Intelligence

– Flexible application configuration with pre-built forms & reports

– Standard consolidations & eliminations

– Currency translations and FX adjustment calculations

– Built-in KPI ratio analysis

– Custom calculations using member formula

– Automated Cash Flow

– Data source detail tracking with drill through capability

– Multi-GAAP support

– Approvals

– Journal entry with approvals

– Intercompany matching

– Data audit

– Data Management

• Close Calendar (can be used standalone)

– Task Management

– Workflow

• Supplemental Schedules (can be used standalone)

– Data Collections

• FCCS Dashboards

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FCCS Functionality


State of the Union

• Hundreds of customers to date

• Many large customers and deployments – Over $1B

– Over 100 users

• Every Region - APAC, EMEA, NA/LAD

• Partners around the world have been trained

• Early Adopter Support ensuring success

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FCCS Customers March 2017


Modernizing the Financial CloseThayer Lodging Case StudyKevin Hebbel, Senior Manager – SC&H Group

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SC&H Group Overview

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Thayer Lodging at a Glance• Thayer Lodging is a leading global hospitality investment company, with more than two

decades of experience in creating value from owning and operating hotels.• Thayer Lodging’s goal is to be the world’s premier private equity hotel investment firm.• Thayer has established relationships with several leading international hotel brands such as

Marriott, Hilton, Starwood and Hyatt


Thayer’s Close Process – Before Transformation

Background

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• Growing company with consistently changing portfolio of hotels

• Existing financial systems are inflexible

• Cannot produce seamless reports across their entire portfolio

• Need dual purpose application to enable consolidated reporting and detailed hotel level reporting



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• Executing financial close/consolidation and related reporting processes via a manual and spreadsheet-centric process

• Close process took too long to complete with quarter and year-end closes dragging on further

• Difficulty meeting reporting and audit deadlines

• Excessive rework, reconciliation and review of the reporting and board packages

• Dependency on Excel to collect data and produce consolidated reports

Key Close Process Challenges

MANUAL PROCESSES

INCOMPLETE INFORMATION

AUDIT ISSUES



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• Entity structure includes over 150 entities with intercompany challenges and partial ownership considerations

• Availability and granularity of data is limited and burdensome to collect resulting in inadequate analysis capabilities

• Numerous manual hand-off points of data and reports

• Lack of visibility and control into consolidated data and adjustments

Key Close Process Challenges

SECURITY QUESTIONS

LACK OF GOVERANCE

LIMITED VISIBILITY


Thayer’s Close Process – Before TransformationData Flow

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Thayer Solution Overview

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Thayer Solution Overview

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Key Requirements:1. Reduce Time to Close2. Enhance Visibility and Control3. Compliance with Global Standards4. Cloud Based5. Rapid Implementation6. Owned by Finance and Accounting7. Minimal IT Investment

Solution Overview:Combined implementation of:1. Oracle Financial Consolidation and Close

Cloud Service (FCCS)2. Enterprise Resource Planning Cloud

Financials


Thayer’s Solution OverviewProduct Selection and Implementation Timeline

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Thayer Solution OverviewData Flow Diagram – Before Transformation

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Thayer Solution OverviewData Flow Diagram – After Transformation

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Thayer Solution OverviewProject Results

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• Rapid deployment to quickly yield benefits from the investment

• Significant reduction in time to close

• Complete visibility into entire close process from data collection to reporting

• Created dual purpose application for corporate consolidated reporting and detailed hotel reporting

• Compliance with global accounting standards

• Reduced the dependency on Excel

• Eliminated risk, manual processes and excessive reconciliation and rework

• Increased confidence in the reporting of financial results

• Accounting and Finance team have the control with limited IT resource requirements


Thayer Solution OverviewProject Results

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Before Transformation

Average Close – 12 business days

Lack of control and manual processes

Limited visibility into the close

Complete dependency on Excel

Complex and manual data integrations

Manual and error prone Excel reports

Existing systems required regular updating

IT capital investment and resources a concern

After Transformation

Average close – 6 business days

Best-in-class control and automated processes

Constant understanding of close status

Excel used for ad-hoc analysis

Seamless and automated data integrations

Consistent system driven reporting

Upgrades are automatic

Minimal IT Investment


Thayer Solution OverviewLessons Learned

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Lessons

Learned

1. Involve the end-user community early and often as they are the key to change management on a rapid implementation.

2. Begin testing and knowledge transfer as early as possible in the project life-cycle.

3. Keep it simple and recognize that the solution brings value without requiring complexity.

4. Be realistic about project team time commitments and mitigate this risk before the project starts.


Financial Consolidation and Close CloudWhat’s Next?

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Financial Consolidation and Close Cloud: Current Release and Roadmap

• Alternate Hierarchy

support (full accounting

treatment)

• Ability to use Close

Manager and

Supplemental Data

Manager Standalone

• Tight integration with

Financials Cloud

including drill back

• Process Control

• Adv. Consolidation

Phase 2• Ownership Register

• Org by Period

• Close Manager • Monitoring tasks

• Cloud integrations

• Supplemental Data

Manager• Integrations to On

Premises

Current Current +2

• Adv. Consolidation

Phase 1 (Similar to Manage

Ownership in HFM)

• Config translation,

calculations and

consolidations

• Extend custom

dimensions

• Cross Pod Integration

• Close Manager

Integrations

• Platform Sizing and

Performance

Current +1

• Journal Entry Module• Integration with any

ERP

• Recurring and Auto-

Reversing

• Single click create

• Adv. Consolidation• Automatic Journaling

• Data lineage

• Automatic

consolidations

• Integrated XBRL from

EPRCS

• HFM Migration Toolkit

Future Post 12 month

HFM functional parity coming soon in 2017


Extended Dimensionality

• FCCS System dimensions include common customers in HFM– Data Source, Multi-GAAP

• Current designs limits analytic capabilities for some customer requirements

• Add new dimension to existing application– Historical data maps to NoXX member

• Create new application with up to 6 customs

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Custom Calculations

1. Calculation Manager will be opened up to allow partners to create Business Rules that can be executed at predefined points within the default consolidation process.

2. The library of predefined rules will be expanded to support common operations like Copy, Clear etc.

3. POV specific translation mechanism will be supported.

Oracle Confidential – Internal/Restricted/Highly Restricted 33


Configurable Translations

• Application Level– Periodic / YTD method (i.e. PVA or VAL)

– Average / Ending Rate

• Overrides– Applies to specific POV slice

– Select Translation Method – Periodic / YTD

– Select Rate Account (support relative reference – Current, Prior, First, Last) • Support new Rate Accounts

– Add / Subtract option (i.e. Translate using Rate1 – Rate2)

– Configurable UI – no script

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Update Default



Custom Override



Advanced Consolidations• Manage Ownership– Establishing ownership parameters such as Ownership %, Consolidation %,

Consolidation method period-by-period

• Proportional Consolidation– Applying consolidation percentage to proportionalization and standard eliminations

• Advanced Consolidation– Elimination rules for Investment / Owner’s Equity based on Ownership parameters

– Single or multiple ownership/cross holdings



Manage Ownership - Methods



Manage Ownership – By Entity



FCCS Benefits

• Single EPM platform

• Configure not customize

• Leverage best practices

• Always up to date

• Built on 30+ years of Hyperion expertise

Copyright © 2016, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted

Financial Close Cloud Complete Solution

Financial Consolidation

and Close

Account Reconciliations

Tax ReportingEnterprise

Performance Reporting

Complete End to End Close Offering


• Address the global reconciliation process

• For each process provide complete lifecycle including –verifications, tracking of assignments, managing preparation and review, minimizing risk and optimizing the process.

• Integrated with transaction systems

• Transaction Matching Option

• Flexible and robust user owned reporting

Oracle EPM CloudAccount Reconciliation


• Comprehensive Tax Reporting solution

• Tax Provision, Country by Country (CbCR), Uncertain Tax Positions, Workflow & Task Management

• Integration with ERP, financial consolidation and reporting solutions – Cloud and on-premises

• Mobile-enabled User Interface

• Fusion Tax Integration for “Total Tax Analysis”

Tax Reporting

Oracle EPM Cloud


• Narrative-based management and external reporting in one

solution

• Complete: Authoring, collaboration, commentary and delivery

• Robust Report Development Lifecycle Management

• Seamlessly leverage existing documents, data sources and

reporting content

• New centralized EPM Cross-Cloud reporting

• Secure: Role-based, auditable access on desktop and mobile

devices

Enterprise Performance Reporting

Oracle EPM Cloud


Questions?

Oracle Financial Consolidation and Close in the Cloud

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