Logical Partitioning of Data/ Transactional segregation

Design Considerations of Scenario Design Consideration Operating Unit Structure

Existing Legal Entity Structure

Petaluma, GR & Canada facilities are to be considered for transitional processing, Taiwan entity will be considered for consolidation at a GL level XXX has 4 different legal entities -Petaluma, GR, Canada, Taiwan

Access Control

Enable XXXs existing Shared Services Financial Model

Acquisitions-Scalable Model

Ability to Scale up operations in future via Mergers & Acquisitions. Ability to generate- Statutory & Transactional Reporting from GL & Sub ledgers GR, Petaluma, Canada & Taiwan Entity. Ability to perform multi currency transactions-USD, CAD, Taiwan Dollar Consolidation- Consolidate US Set of BooksPetaluma, GR, Canada Set of BooksCAD & Taiwan Set of Books

Reporting Requirements

Multi Currency & Consolidation

Accounting Flexfield Qualifier

Balancing Segment

Chart of Accounts Accounting Flexfield Qualifiers

Application/ Significance for XX
Balance Journal entries for each value Run Trial Balance
KV may consider different values for GR, Petaluma, Canada Functional Areas of Organization such as Accounting, Shipping KV may consider the following divisions Incurring the cost Generating Revenue Holding inventory Optional- Used to track Management Reporting & Access Will be determined during the course of gathering requirements around data security & access control Represent Account types: Asset, Liability, Owners Equity, Revenue, Expense This segment will be paired with the balancing segment when generating account balances for the Retained Earnings account, Unrealized Gains or Losses accounts, and the Cumulative Translation Adjustment account. In KV the Cost center can we paired with the balancing segment for greater foreign currency transaction & retained earning analysis. Balance & Track Intercompany transactions across US entities & Canada This segment will have the same values as the values in the Balancing segments

Cost Center

Management Segment

Natural Account

Secondary Tracking

Inter Company

Scalable consolidation software

Typical Challenges- Taken care in HFM

Multiple Systems for capturing financial data Manual process of consolidating legal entities Longer cycle time for closing & consolidation Limited Visibility & Control on overseas company Manual process inter company elimination, opening adjustments, foreign currency adjustments, audit adjustments, consolidation adjustments Limited control mechanism as it is excel-based Difficult to maintain history Accounts are mapped to Uniform COA manually Higher Business and IT support

Financial Adjustments Mechanism

COA Maintenance

Improved Reporting Functionality

Excel and Power Point based reports Longer cycle time to develop reporting package , ad-hoc reports

Hyperion Financial Management Comprehensive Consolidation & Reporting Platform

Key Drivers
Parameter
Reporting in Dashboards Consolidation Inter-company Eliminations Multi Dimensional Scalability

As Is (Excel) To Be (HFM)
Manual Automated

Manual Process Automated

Manual Process Automated

Allocations logics Backup facility Maintenance Drill back to

No Cumbersome Error prone Process Manual Process

Restricted

Yes Smooth, standardized processes Automated

Not restricted

Manual Process Automated Not Possible Possible

Consolidation of multiple COA based GL

Comparison between HFM & Oracle EBS

Hyperion Oracle GL
HFM can source multiple COA based GL data, which will be mapped in FDQM/FDM to reporting COA of HFM It will be cumbersome to map multiple COA based GL to any consolidation GL instance. HFM allows to create supplemental accounts and templates to fulfill this requirement. HFM allows adjustment by using JEs. Currency conversion of trial balance is easy and in built feature in the HFM. GL is highly referential integrated system with less option for custom processes.

Consolidation Process & Users convenience

Standard Functionality

Supplemental Data Collection/ Adjustments

Currency Translation

Variance Analysis

Hyperion systems are implemented to have Actuals and plan data in most scenarios hence provide capabilities to do variance analysis of Financial statements between estimate vs. actual

Oracle EBS are mostly design to capture transactions which are Actuals by nature. Plan data does not go into GL systems so no variance analysis.

Linking of data and reports to MS Office products

Hyperion products allow better presentation and reporting interfaces with MS Office like Excel, Power point and word doc

GL has limited functionality for interfaces with MS office products for reporting purposes like ADI.

Reporting

Hyperion is a mainly consolidation and reporting tool and has lots of flexibility to report financial statements like by org, by business unit, by region without intervention of IT expert.

Consolidation module in Oracle EBS has limited ability to report at different levels of Organization hierarchy with entities in different currencies

Comparison between HFM & Hyperion Essbase/Planning

7

HFM

Hyperion Essbase

Consolidation of multiple COA based GL

Consolidation Process & Users convenience

HFM has in-built eliminations feature. intercompany Essbase does Eliminations. not support Intercompany Currency conversion of trial balance is easy and in built feature in the HFM. Currency translations need to be customized in Essbase

Multiple COA based GL data can be mapped in FDQM/FDM to reporting COA of HFM

Multiple COA based GL data can be mapped in FDQM/FDM or preferably in Oracle staging area to reporting COA of HFM

Intercompany Eliminations/ Adjustments

Currency Translation

Variance Analysis

Variance analysis need to be customized in HFM or Users have to do manually in Excel Hyperion products allow better presentation and reporting interfaces with MS Office like Excel, Power point and word doc

Variance analysis can be done by defining formula scenarios in Essbase and no manual calculation in excel. Hyperion products allow better presentation and reporting interfaces with MS Office like Excel, Power point and word doc Essbase supports features of planning processes.

Linking of data and reports to MS Office products

Planning

HFM supports limited feature for planning processes.

Reporting

All reporting can be done by refreshing data directly in excel and MS products.

All reporting can be done by refreshing data directly in excel and MS products.

Recommended future state of reporting architecture

Excel & Other MS Products

OBIEE & Other Reporting tools

Reporting Layer

GL Consolidation

Functional Data marts

Data Warehouse Layer

Oracle EBS
Transaction Layer

Third party Systems

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Requirements of KV in consolidation and planning processes Essbase Requirements of KV for consolidation process HFM
Consolidation of 3 Main GL feeds (Great Plains, Syteline,G-Slide) Intercompany Eliminations Currency Translation Cost center level planning for SG&A, expense and other P&L items Variance reporting between Actuals,Forecast,Budget and prior year Acutals respectively. Variance reporting between Actuals,Budget and prior year Acutals respectively. Monthly Bank reporting with and without G slide in MTD and YTD. Monthly BS report with variance analysis among Actuals, budget of CY and Actuals of PY. Linking to MS Products like excel, power point for reporting Cash Flow Reprting Sales by Channel reports Consolidated Income statements Headcount model and reporting Linking to MS Products like excel, power point for reporting Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Pros and Cons if KV goes with only HFM Essbase Pros: Pros: HFM or Essbase
1. 2. 3. 4. Intercompany elimination is in-built feature in HFM Currency conversion is in built feature in HFM and easy to go process. Reports in MS office products can be refreshed via HFM at click. In-built SOX compliance process due to workflow. 1. 2. 3. 4.

5.

Planning processes are excellently handled in the Essbase environment. Hyperion Planning cube has in-built Business rules which can be kicked by users from planning web forms to calculate planning variables without waiting for IT support Calculations and aggregations are heart of Essbase engine. Headcount model can be easily implemented along with Work force planning module to implement Compensation and Benefits model. Reports in MS office products can be refreshed via Essbase at click.

Cons:
1. 2. 3. 4. Planning business rules are not supported in the HFM Calculations and aggregation of plan data will be customized in HFM. HFM supports limited planning processes. Cash flow report will be a custom solution in HFM

Cons:
1.

2.
3.

Intercompany elimination is not supported in Essbase Currency conversion is a customized solution Essbase. SOX compliance are handled with shared folders or support centrals which can be accessed by auditors.

Multi Phase HFM Implementation

Phase 0 (Pre-Requisite) Phase 1 (Pre-EBS Go-Live) Phase 2 (Post-EBS Go-Live)

Chart of Accounts Standardization

Implement Hyperion without EBS GL Go Live

EBS GL Goes live

Study legacy systems and their with segments values. Design and confirm COA for EBS and HFM with Hierarchies Sign off from KV on COA Design hierarchies of mapped segments in HFM

Mapping of Source systems COA to COA of HFM Build Hierarchies of mapped segments in the HFM Design and build GL feeds for Great Plains, Syteline and Taiwan feeds. Load GL feeds in HFM and Hyperion Planning Design, Build and Test Go-live (HFM on Legacy systems)

Switch source COA from Legacy systems to Oracle EBS Build current month feed from Oracle EBS Load GL feed into HFM and Hyperion Planning Test

Go-live (HFM on Oracle EBS)

**COA: Chart of Accounts

L1 -Financial Consolidation and Planning processes (Pre-EBS Go-live)-Phase 1

User interface

Hyperion Great Plains GL Feed (KV,KV Canada,Holding, Elim, Asia) Syteline GL Feed FF G slide GL Feed Consolidation application (in HFM) Smart view / Financial Reporting

Mapping of Source COA to Reporting COA of HFM

Smart view / Financial Reporting Plan Feed

Plan data collections via Planning forms in Hyperion

Hyperion Planning (Cube)

Reports

Smart view / Financial Reporting

Dimensionality To-BE HFM Dimension Description Consolidation

Accounts Years Assets, Liabilities,Equity,Revenue and Expense accounts FY07-FY16 Months, Quarters, YearTotal, BegBalance, Dynamic time Series (M-T-D, Q-T-D, Y-T-D) Actual, Budget, Forecast Scenarios KV,KV-Canada,PET,Taiwan Intercompany partners IT, Sales, HR

Period

Scenarios Legal Entity ICP Cost Center

Channel

All Sales channels

Dimensionality To-BE Hyperion Dimension Planning Description application

Accounts Years Assets, Liabilities,Equity,Revenue and Expense accounts FY07-FY16 Months, Quarters, YearTotal, BegBalance, Dynamic time Series (M-T-D, Q-T-D, Y-T-D) Actual, Budget, Forecast Scenarios KV,KV-Canada,PET,Taiwan IT, Sales, HR All Sales channels All Products

Period

Scenarios Legal Entity Cost Center Channel Product

L1 -Financial Consolidation and Planning processes (Post-EBS Go-live)Phase 2

User interface

Hyperion Consolidation application Oracle EBS- GL Feed Mapping of Source COA to Reporting COA of HFM (in HFM) Smart view / Financial Reporting

Smart view / Financial Reporting Plan Feed Reports Hyperion Planning (Cube)

Plan data collections via Planning forms in Hyperion

Smart view / Financial Reporting

Implementation Approach of HFM

Analyze

Study of existing legacy systems during pre-design phase. It will broadly cover analysis of:
Business Requirements

Analyze Chart of Accounts of Accounts for -Great Plains, Skyline and Taiwan feed.
Analyze proposed(Design,Build,Test &the proposed Oracle EBS and HFM TO BE) COA of Pre-EBS Go-Live

Design and build Hierarchies of mapped segments in the User/User Groups, profiles and mapping HFM Any custom features
Consolidation Source systems COA to COA of HFM Mapping of modeling processes

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Design and build GL feed considering accounting code and data scalability requirements Define allocations and Post EBS Go-Live logics. adjustments Switch source COA from Legacy systems to Oracle EBS Design and build rule file ( Business Rules) Build current month feed from Oracle EBS Load historical data and current period feed in HFM Load GL feed into HFM and Hyperion Planning

Implementation Approach of Hyperion Understand Planning requirements and number of planning Planning
Analyze

cycles in fiscal year with key financial planning process

owners of KV.

Design,Build,Test & Pre-EBS Go-Live

Design and build Hierarchies of mapped segments in the

2009 Copyright Genpact. All trademarks appearing herein belong to their respective owners.

Hyperion Planning Design and build actual feed to planning cube. Load actual data feed in Hyperion Planning Design and build Hyperion web forms for plan data collection by platforms. Design and build security for different type user profiles and Post EBS Go-Live groups source COA from Legacy systems to Oracle EBS Switch Automation of Hyperion admin processes Build current month feed from Oracle EBS Design and Build Plan feed to load plan data from Hyperion Load GL feed into HFM and Hyperion Planning planning to HFM.

Approach involves following

BEMO & Harris Bank transmit Lox box receipt file to K&V Oracle EBS System
The file is then interfaced using Oracle AR Auto Lockbox Functionality Receipts are created automatically in the Oracle AR system Lockbox is configured to accept the interface file format from the Bank

Lock Box Functionality-Solution Approach

Lock Box File

The matching rules ensure the automatic application of receipts to open AR Transactions.

Import Program AR_PAYMENTS_ INTERFACE TABLE AutoLockbox Validation AR_INTERIM CASH RECEIPTS AR_INTERIM_LINES Post QuickCash Receivables Tables

Lockbox Execution Report

Lockbox Execution Report

Post QuickCash Execution Report

Intercompany Transactions
Invoice Required Invoice Not Required
Initiator
Enter / Update Transaction Send Transaction Create AR Invoice Update GL Open Interface

Recipient

Reject Transaction

Update Transaction

Approve Transaction

Create AP Invoice

Update GL Open Interface

Initiator creates an Inter company transaction with one or more recipient lines, enters initiator accounting and submits the batch. Recipient receives the Inbound Transaction, enters recipient accounting and approves transaction. The recipient may approve or reject the transaction either in Oracle Advanced Global Inter company System UI or from the Workflow Notification online or in email format.. The transaction status is updated for the initiator and recipient when the transaction is approved or rejected. When the transaction is approved, Oracle Advanced Global Inter company System determines whether an invoice is required for the transaction or not. If the Legal Rules and Transaction type options determine an invoice is required, Receivables and Payables Invoices are created. If an invoice is not required, the transaction is transferred to General Ledger of the initiator and the recipient.

Key Drivers
HFM Implementation Why?

Parameter
Reporting in Dashboards Consolidation Inter-company Eliminations Multi Dimensional Scalability

As Is (Excel)
Not Possible Single user Manual Process No Cumbersome Error prone Process Manual Process Restricted Manual Process Not Possible

To Be (HFM)
Possible Multiple users Automated Yes Smooth, standardized processes Automated Not restricted Automated Possible

Allocations logics Backup facility Maintenance Drill back to transactional systems

HFM benefits
Area
Web based interface Additional dimensionality Cell Text for additional explanation on each cell Line Item detail for additional break up of the figures Cell level Document attachment

Technical/Business Benefits
Access from any where Enhanced analytical capabilities

Better explanation about the numbers More detailed level data as and when require, with out adding members in the dimension Users can attach supporting document for detailed information Better process flow management in the Financial consolidation reporting process (review mechanism)

Process management

Area

HFM benefits Technical/Business continued

Benefits
Allocation, Consolidation, Translation logics built in the application. Less manual process.

Calculation scripts (Business rules )

Monthly review process

Dash board reporting

Manual process involved in Monthly review process can be automated (eg: Roll over)
Less manual effort in generating better graphical presentations.

Automated data loads

Intercompany elimination Intercompany Reports

Less manual intervention in data loads, more data accuracy

Automated intercompany elimination, increased productivity

System generated intercompany reports at various levels (posted, un posted, un matched, matched) Less manual intervention
Enhanced currency adjustments, system built

Our Understanding of the Pain Solution Recommendation 1 of 5

Problem Statement Manual ,People Dependent process, Excel based consolidation process

Genpact Solution - Real Time consolidation

Trial balance load using FDQM

Legal Entity rollup

Our Understanding of the Pain Solution Recommendation 2 of 5

Problem Statement Data Integrity

Genpact Solution Improved data integrity . Workflow ,audit trail and multiple security layers will ensure the integrity of data

Better Audit trail Transparency of data load Better Data management Accruals Better process flow management Data Accuracy

Our Understanding of the Pain Solution Recommendation

Problem Statement Manual process of COA codification

Genpact Solution Greatest possible flexibility with respect to mapping

Source account

Target Account

Our Understanding of the Pain Solution Recommendation 4 of 5

Problem Statement Manual process of booking and maintaining adjustment entries

Genpact Solution Adjusting data

Reclasses Entry Corrections Reversals Accruals Minority interest accounting entries Elimination adjusting entries True Ups Allocations

with journals

Journal

Account Balance

Journal Adjustments

Adjusted Account Balance

Our Understanding of the Pain Solution Recommendation 5 of 5

Problem Statement Manual ,excel & power point based reporting
Genpact Solution Easy adhoc reporting , better presentable reports can be prepared

Excel Based Reports using smart view

Dashboard reporting using Web analysis

Profitability
Analysis

Our Understanding of the Pain Solution Recommendation

Problem Statement Data validations at entity level to ensure accountability
Genpact Solution Automatic validations can be built into the data load process to provide easy check points to ensure accurate and high quality entity data.

Our Understanding of the Pain Solution Recommendation

Problem Statement Subsidiaries should own accountability for their own financials
Genpact Solution Users can answer key questions about their financials and sign off that the data sets are complete. .

Our Understanding of the Pain Solution Recommendation

Problem Statement How can corporate have visibility into the consolidation process
Genpact Solution Automatically created Process Monitor reports can tell where are the bottlenecks in the close process .

Solution Benefits
FINANCIAL MANAGEMENT BENEFITS
Improves financial close and reporting process and reduces internal control risk Helps reduce the cost of compliance and build a sustainable compliance framework Spend less time on processing, more time on value-added analysis

Helps deliver a single version of the truth to support financial management and statutory reporting
Integrates not only with Hyperion products but also with your existing infrastructure

FINANCIAL MANAGEMENT FEATURES

Complete audit trails and other controls
Smart Dimensionality Versatile scenario management Powerful, easy to use reporting and analysis tools Patented financial consolidation software and financial statement software features Web-based architecture Data integration tools and adapters Industry-standard tools and API's for extensibility