SlideShare a Scribd company logo
1 of 24
HFM
META DATA(12-Dimensions)
     Configuration
           &
   RULE -FUNCTIONS

        Satish kumar.L
     Charted Financial Analyst(CFA)
HFM-12 Dimensions
ACCOUNT                                    SCENARIO
(Hierarchy of Natural accounts)            (ACTUAL, BUDGET, FORECAST)

VALUE                                      YEAR
                                           (FISCAL,CALENDER YAER)

ENTITY                                     PERIOD
(Management & legal Reporting structure)   (time periods(quarters &months)

ICP                                        VIEW (PERIODIC, YTD,QTD)




                                 4- CUSTOM DIMENSIONS
CHART OF ACCOUNTS
ACCOUNT TYPES (Account dimension )

ASSET

Liability

Revenue

Expense

Flow -    Store periodic and year-to-date values
Example : change in accounts receivables , change in accounts payables
Balance - Store unsigned values that relate to a particular point in time
          Example: Tax Rate,salaryrate ,average sales avg profit ,ROA
Balance recurring--Store unsigned value   that relate to a particular point in time and that
re-occur in future periods
Currency

Group label -

Dynamic accounts
Account dimension
  Account type          Time balance
                                       Intercomp accounts
    behavior              behavior

  Group label

Dynamic accounts




                             Account




                                             Other account
Custom dimensions                             properties
Account
•   The account type determines the Chart of accounts of an application
•   Account type determines whether child values are added or subtracted from their
    value.
• This determines enables you build financial calculations directly into the COA.
Dynamic account:
• Dynamic account type is needed for correct calculation of parent values for custom
    dimension, time periods & data views.
• Results are calculated on the fly, data is not stored.
• Periods to data views calculate correctly.
Group Label:
• You can use group account label account type to group related accounts that do
    not needed to be aggregated to the total.
• Example: you can create a Top –level account named Balance sheet accounts that
    groups balance sheet accounts.
• No data value is stored for members with group label account type; thus database
    size & calculation time are reduced.
Calc attribute : Text that describes the calculation in the rule file that are done for
    this account (information displayed on the Data forms /data grids)
Use line items : whether the account have line items .
NumDecimal places: specifies the no of digits to the right side of decimal points to be
    displayed.
Account
ICP properties:
IS ICP : specify, whether the account is used for Intercompany
     transactions .
PLUG Account : specify the account used for identify discrepancies in
     ICP-transaction.
ICPTOP Member :Specify which top member in the hierarchy of the
     entity dimension is valid for the account.
Time balance behavior :
• Account type determines how balance accumulates over time.
• Revenue ,expense & flow total across all periods
• Remaining account types do not total across all periods.
• Time balance behavior does not apply to the Dynamic, currency
     & group label accounts
Custom-Dimension



ACCOUNT         CUSTOM




                                     CTA
                            (CURRENCY TRANSLATION
                                 ADJUSTEMNT)

                         SWITCH SIGNFLOW /SWITCH TYPE
                                     FLOW
CUSTOM-DIMENSION

•   Four Custom dimensions are available for analysis of accounting data
•   Create alias (assign description to the custom dim) for custom dimensions , you
    cannot change the custom names .
•   Alias displays in data forms/grids/journals/templates/HFR reports.
•   Custom dimensions work in conjunctions with the account dimension ,providing
    additional details for accounts .
•   This dimension enables to specify additional details for accounts such as
            Products,
            Departments ,
            Flow,
             markets,
             Channels Of Distribution,
             Multi GAAP reporting(Local GAAP ,IFRS ,USGAAP)
             Forex Exposure reporting,
              Maturity Information reporting,
             and Weekly sales reporting. etc..
Custom -Dimension
To assign custom members to a accounts:
1)     For the account dimension ,create dimensions association between each custom top member
       property and the generic dimension that assigned the corresponding custom dimension
       member .
2)     For each account in the custom dimension ,select a top member from each custom dimension .
       The selected member and its descendants are the only custom members valid for data load and
       data entry for the account .if you do not assign a top member , no members of that dimension are

      valid for that account   .
For example :
Balance Sheet Movement & Custom dimension
•   FLOW/Roll FORWARDS : analysis that explains the movement of account balances between two
    reporting periods .
•   Custom dimension members to track movement detail for balance sheet accounts .
•   All the balance sheets accounts are mapped to the appropriate Top member of this hierarchy for
    tracking the flow. The flows are basically classified into Long term and Short term.
•   Typical balance sheet accounts are asset or liability accounts that show a running balance . You can
    use custom dimension members to track periodic movement for these accounts.
•   CTA (currency translation adjustment ) –applied for balance sheet movement .
•   Switch sign for flow : To change the flow behavior for custom members .(movement during the
    period are converted at the average rate for the period )
•   Switch type for flow : To reverse the sign for custom members .(movements which are in
    decreasing in balance )
CTA
      (Currency Translation Adjustment)
•   Currency Translation Adjustment – Account that stores the difference in account balance
    arising out of translation to currency other than the functional currency of the entity.

•   While the balance sheet movement captured in entity currency value will equal the closing
    balance, exchange rate differences will arise when these members are translated into
    another currency.
•   This difference will be broken down into difference arising on account of opening balance and
    difference arising on closing balance for every account mapped.
•   The sum of this CTA will equal the Currency translation adjustment that will be booked under
    equity.
•   CTA will be calculated value and not a “Plug.”
•   CTA will be calculated in HFM rules and custom dimensions (Roll forwards) will be used to
    provide greater visibility to currency translations. Roll forwards will be configured using
    custom dimensions to enable improved reporting of Balance Sheet movements.

•   Balance sheet accounts contributing to CTA will be provided with breakup of CTA arising on
    account of opening balance and period movement.

•   The CTA adjustment will be calculated for the Balance Sheet accounts (except equity
    accounts) based on the flow members .
•   CTA will not be computed for “Scenarios”.
Scenario-Dimension
  Enable audit                                                             frequency
     data
                                  scenario
                                                                           Data view
                                                   Actual
                                                                                Default view:
                                                   Forecast                     periodic / YTD
   Line item detail-LID                            Budget

                                                                         Missing data

                                Process management


• Actual Scenario contains data from general ledger, reflecting past and current business
  operations
• Budget Scenario contains data that reflects the targeted business operations
• Forecast Scenario contains data that corresponds to predictions for upcoming periods
Scenario-Dimension
•   Frequency :the frequency of a scenario specifies the time period level at which the data can be
    input .for example :months or quarters .
•   Frequency & view :financial management gives you the flexibility to input and view either
    periodic or year to data values .
•   Example 1 :you load actual data on monthly basis ,so the frequency for the actual scenario is set to
    monthly .
•   Example 2 : you forecast earnings on a quarterly basis , so you set the frequency of the forecast
    scenario to quarterly .data input is not permitted in months.




    Missing Data : missing data can be interpreted as either ZERO for the current period (periodic) or as
    zero for year to date (YTD).
•   BUDGET scenario uses ZERO view :-periodic
•   Forecast scenario uses ZERO view :- YTD
•   Specify settings for Adjustment data & Non Adjustment data .


                                                                                                 Data for February
                                                                                                is missing , you can
                                                                                                 interpret as ZERO
Value -Dimension
  journals                            App settings      ICP & ICP
               Entity
                                                       Elimination

                                                          Currency settings


                                                         Plug account/inter co
                                                         DIFF PLUG ACCOUNT
Custom 1& 2
 dimensions
                                                      VAL/PVA -
                         Value                        METHODS



                                                     Methods
 NODE
security
                                                       Translation
                          view
                                                      Triangulation
                        Audit trial
VALUE
                          VALUE -DIMENSION
  NODE SECURITY                                                      Contribution Total


                                                  contribution              Contribution adj
     ALLOW
                             Proportion
   ADJUSTMENT
  FROM CHILDREN              Elimination
                                                    Parent total

                                        parent                          Parent adj

                                  Parent currency total
ALL0W
ADJUS
TMEN                 Parent currency           Parent currency adj
  T
              Entity currency Total


        Entity currency                Entity currency adj
Value -Dimension
•   For value dimension view always -YTD
•   Journals: During a financial period ,you may need to adjust data ,after it is entered or loaded in to
    base level entities.
•   Allow adj: The property enables posting of journal adjustment to the entity currency adjustment
    member for an entity .
•   Allow adj from children : the property enables postings of journal adjustments to the parent
    adjustment and contribution adjustment nodes of the value dimension.
•   Parent adjustments :apply for an selected parent with in entity (those entity has more than one
    parent entity)
•   Contribution adjustments: apply when the adjust value that contributed to the parent after %
    ownership has been applied .
•   Node security : the property enables you to specify whether users can access value dimension
    members that contain parent data.
•   Node security :specifies users security access above the parent currency total.
•   Default rate for FLOW account :identifies the account that stores exchange rates to translate
    values for all accounts with a flow behavior.
•   Default rate for Balance account :specifies the account that stores exchange rates to translate
    values for all accounts with a balance behavior.
•   Default currency :this property to specify the default currency for the application.
•   ICP elimination value are stored in VALUE dimension Posted at intercoDiff plug account .
Currency-Mechanism
•   Translation : convert one currency to another currency.
•   Triangulation :is a way to convert balances from one currency to another currency using a third
    ,common currency .
•   VAL-Method :Default translation method at entire current period balance at current exchange rate .
•   PVA-Method :a process of currency conversion that applies the periodic exchange rate values over
    time to derive converted results .
•   Translates ,only the current month change in the YTD value is translated at the current period
    Exchange rate .the translation result is added to the balance from the previous period ,translated at
    the exchange rate of the previous period .
•   Data grids –setup :
                  ROW dimension (custom-1) :-Source currency
                  Column dimension(custom-2):-Destination currency.
Entity Dimension
         ORG BY PERIOD

   Holding comp/subsidiary
            comp
                                CONSOLIDATION
         Management/
         Legal reporting




                                    ENTITY
  JOURNALS                        DIMENSION                      ICP


                                                                       Is ICP
 Allow adjustments

                                                                  SECURITY CLASS
Allow adj from children
                                                                   SECURITY AS
                                  CURRENCY                           PARTNER



                                            Value dimension
                                         Custom 1& 2 dimension
Entity -Dimension
•   ICP-TOP : Specify which top member in the hierarchy of the entity dimension is valid for the
    account.
•   Holding company: Holding companies are used in statutory consolidations ,for which the
    ownership structure may or may not match the dimension hierarchy. The property identifies the
    owner of a member; the owner is not necessarily the parent of the member in the hierarchy .
•   Org by period :enable org by period if you need entity structures that vary from period to period .
•   Gives you the option to mark the entities as active or inactive for each period .
•   Make them validation(validate) for consolidation in an organization structure entity structure .
•    the default for active property specifies whether entities are in active by default or active for
    default (0=in active ,1-active )
•   Percent consolidation :the portion of child value ,that is consolidated into its parent.
•   Percent control : identifies the extant to which an entity is controlled with in the context of its
    group .
•   Metadata based on filtering :you use this property to enable or disable filtering of metadata
    based on user security access .
•   Validation account :this property identifies the validation account for your application used by
    process control (make it active for process control ) /data locking and submission phase.
•   Note : the balance in the validation account must be ZERO before the data can be promoted
    ,approved & locked.
ICP-Dimension
                   ENTITY
 ACCOUNT
                                   VALUE

CUSTOM Dim



                    ICP


                  ICP-PROCESS
               (ICP ELIMINATION)


               Reports/monitori
                      ng
ICP-Dimension
ICP properties:
IS ICP : specify, whether the account is used for
   Intercompany transactions .
PLUG Account : specify the account used for identify
   discrepancies in ICP-transaction.
ICPTOP Member :Specify which top member in the
   hierarchy of the entity dimension is valid for the account
ICP aggregation property :this property lets you specify a
   consolidation percentage for intercompany entities to
   their parent ICP top .
Security as partner : specify more than one security class
   for an entity acts as an ICP partner .
Consolidation
         Consolidation accounts              Org by period
Entity

                   ICP                      Meta data based
                                              on filtering
value    Ownership/Minority Equity
               adjustments

              Equity pick up




                 Consolidation


                                           Set up
                                     Data grids/validation

                                      Process control
consolidation
•   Holding company
•   Subsidiary company
•   Minority interest
•   ICP transaction
•   ICP –elimination
•   Basic rules for consolidation
•   Equity –pick up
•   Equity adjustments
RULE -FUNCTIONS

More Related Content

What's hot

Security and Auditing in HFM
Security and Auditing in HFMSecurity and Auditing in HFM
Security and Auditing in HFMAlithya
 
FDMEE Tutorial - Part 1
FDMEE Tutorial - Part 1FDMEE Tutorial - Part 1
FDMEE Tutorial - Part 1Van Huy
 
HFM Zero view settings
HFM Zero view settings HFM Zero view settings
HFM Zero view settings faizan uddin
 
HFM Business Rule Writing Tips and Techniques
HFM Business Rule Writing Tips and TechniquesHFM Business Rule Writing Tips and Techniques
HFM Business Rule Writing Tips and TechniquesAlithya
 
Finit solutions getting the most out of hfm - web data forms tips and tricks
Finit solutions   getting the most out of hfm - web data forms tips and tricksFinit solutions   getting the most out of hfm - web data forms tips and tricks
Finit solutions getting the most out of hfm - web data forms tips and tricksfinitsolutions
 
Dimensionality & Dimensions of Hyperion Planning
Dimensionality & Dimensions of Hyperion PlanningDimensionality & Dimensions of Hyperion Planning
Dimensionality & Dimensions of Hyperion Planningepmvirtual.com
 
Where Did That Come From? Techniques for Debugging HFM
Where Did That Come From?  Techniques for Debugging HFMWhere Did That Come From?  Techniques for Debugging HFM
Where Did That Come From? Techniques for Debugging HFMfinitsolutions
 
Hfm to Financial Consolidation and Close Cloud
Hfm to Financial Consolidation and Close CloudHfm to Financial Consolidation and Close Cloud
Hfm to Financial Consolidation and Close CloudAlithya
 
HFM Member List Tips
HFM Member List TipsHFM Member List Tips
HFM Member List Tipsaa026593
 
Simplify Complex Consolidations and Close Processes with Oracle Financial Con...
Simplify Complex Consolidations and Close Processes with Oracle Financial Con...Simplify Complex Consolidations and Close Processes with Oracle Financial Con...
Simplify Complex Consolidations and Close Processes with Oracle Financial Con...Alithya
 
Hyperion Implementation Questionaries
Hyperion Implementation QuestionariesHyperion Implementation Questionaries
Hyperion Implementation QuestionariesAmit Sharma
 
Deep dive on dynamic member lists
Deep dive on dynamic member listsDeep dive on dynamic member lists
Deep dive on dynamic member listsfinitsolutions
 
How to go from HFM (on prem) to FCCS(cloud) with a horizontal learning curve
How to go from HFM (on prem) to FCCS(cloud) with a horizontal learning curveHow to go from HFM (on prem) to FCCS(cloud) with a horizontal learning curve
How to go from HFM (on prem) to FCCS(cloud) with a horizontal learning curveDoga Pamir
 
D53155 hfm 9.3.1_rules_student_guide
D53155 hfm 9.3.1_rules_student_guideD53155 hfm 9.3.1_rules_student_guide
D53155 hfm 9.3.1_rules_student_guideariffsharif
 
Oracle FCCS Getting Started Guide II
Oracle FCCS Getting Started Guide IIOracle FCCS Getting Started Guide II
Oracle FCCS Getting Started Guide IIRati Sharma
 
HFM Extended Analytics
HFM Extended AnalyticsHFM Extended Analytics
HFM Extended Analyticsaa026593
 
Cash Flow Series, Part 2: How to make HFM do the dirty work
Cash Flow Series, Part 2: How to make HFM do the dirty workCash Flow Series, Part 2: How to make HFM do the dirty work
Cash Flow Series, Part 2: How to make HFM do the dirty workfinitsolutions
 

What's hot (20)

Security and Auditing in HFM
Security and Auditing in HFMSecurity and Auditing in HFM
Security and Auditing in HFM
 
FDMEE Tutorial - Part 1
FDMEE Tutorial - Part 1FDMEE Tutorial - Part 1
FDMEE Tutorial - Part 1
 
HFM Zero view settings
HFM Zero view settings HFM Zero view settings
HFM Zero view settings
 
HFM Business Rule Writing Tips and Techniques
HFM Business Rule Writing Tips and TechniquesHFM Business Rule Writing Tips and Techniques
HFM Business Rule Writing Tips and Techniques
 
Finit solutions getting the most out of hfm - web data forms tips and tricks
Finit solutions   getting the most out of hfm - web data forms tips and tricksFinit solutions   getting the most out of hfm - web data forms tips and tricks
Finit solutions getting the most out of hfm - web data forms tips and tricks
 
Dimensionality & Dimensions of Hyperion Planning
Dimensionality & Dimensions of Hyperion PlanningDimensionality & Dimensions of Hyperion Planning
Dimensionality & Dimensions of Hyperion Planning
 
Oracle hyperion financial management
Oracle hyperion financial managementOracle hyperion financial management
Oracle hyperion financial management
 
Where Did That Come From? Techniques for Debugging HFM
Where Did That Come From?  Techniques for Debugging HFMWhere Did That Come From?  Techniques for Debugging HFM
Where Did That Come From? Techniques for Debugging HFM
 
Oracle FCCS: A Deep Dive
Oracle FCCS: A Deep DiveOracle FCCS: A Deep Dive
Oracle FCCS: A Deep Dive
 
Hfm to Financial Consolidation and Close Cloud
Hfm to Financial Consolidation and Close CloudHfm to Financial Consolidation and Close Cloud
Hfm to Financial Consolidation and Close Cloud
 
HFM Member List Tips
HFM Member List TipsHFM Member List Tips
HFM Member List Tips
 
Simplify Complex Consolidations and Close Processes with Oracle Financial Con...
Simplify Complex Consolidations and Close Processes with Oracle Financial Con...Simplify Complex Consolidations and Close Processes with Oracle Financial Con...
Simplify Complex Consolidations and Close Processes with Oracle Financial Con...
 
Hyperion Implementation Questionaries
Hyperion Implementation QuestionariesHyperion Implementation Questionaries
Hyperion Implementation Questionaries
 
Hfm intro
Hfm introHfm intro
Hfm intro
 
Deep dive on dynamic member lists
Deep dive on dynamic member listsDeep dive on dynamic member lists
Deep dive on dynamic member lists
 
How to go from HFM (on prem) to FCCS(cloud) with a horizontal learning curve
How to go from HFM (on prem) to FCCS(cloud) with a horizontal learning curveHow to go from HFM (on prem) to FCCS(cloud) with a horizontal learning curve
How to go from HFM (on prem) to FCCS(cloud) with a horizontal learning curve
 
D53155 hfm 9.3.1_rules_student_guide
D53155 hfm 9.3.1_rules_student_guideD53155 hfm 9.3.1_rules_student_guide
D53155 hfm 9.3.1_rules_student_guide
 
Oracle FCCS Getting Started Guide II
Oracle FCCS Getting Started Guide IIOracle FCCS Getting Started Guide II
Oracle FCCS Getting Started Guide II
 
HFM Extended Analytics
HFM Extended AnalyticsHFM Extended Analytics
HFM Extended Analytics
 
Cash Flow Series, Part 2: How to make HFM do the dirty work
Cash Flow Series, Part 2: How to make HFM do the dirty workCash Flow Series, Part 2: How to make HFM do the dirty work
Cash Flow Series, Part 2: How to make HFM do the dirty work
 

Similar to HFM-Implementation

Hyperion-Strategic Finanace
Hyperion-Strategic FinanaceHyperion-Strategic Finanace
Hyperion-Strategic Finanacesailajasatish
 
New Business Intelligence
New Business IntelligenceNew Business Intelligence
New Business IntelligenceMAIA_1KEY
 
Mas 90-mas-200-general-ledger-1x
Mas 90-mas-200-general-ledger-1xMas 90-mas-200-general-ledger-1x
Mas 90-mas-200-general-ledger-1xmtsisolutions
 
01. sap fi co training
01. sap fi co training01. sap fi co training
01. sap fi co trainingadityafico
 
CNA’s Journey to Workday Accounting Center
CNA’s Journey to Workday Accounting CenterCNA’s Journey to Workday Accounting Center
CNA’s Journey to Workday Accounting CenterWorkday, Inc.
 
Ariba Knowledge Nuggets: Procurement Reporting
Ariba Knowledge Nuggets: Procurement ReportingAriba Knowledge Nuggets: Procurement Reporting
Ariba Knowledge Nuggets: Procurement ReportingSAP Ariba
 
SAP TREASURY_Money Market.pptx
SAP TREASURY_Money Market.pptxSAP TREASURY_Money Market.pptx
SAP TREASURY_Money Market.pptxDhaval Gala
 
Sap organizational hierarchy
Sap organizational hierarchySap organizational hierarchy
Sap organizational hierarchyOmkar Raj
 
SAP MM IM Physical inventory -cycle counting
SAP MM IM Physical inventory -cycle countingSAP MM IM Physical inventory -cycle counting
SAP MM IM Physical inventory -cycle countingLokesh Modem
 
14843 lsampath wp_1 (1)
14843 lsampath wp_1 (1)14843 lsampath wp_1 (1)
14843 lsampath wp_1 (1)jan_99in
 

Similar to HFM-Implementation (20)

Hyperion-Strategic Finanace
Hyperion-Strategic FinanaceHyperion-Strategic Finanace
Hyperion-Strategic Finanace
 
New Business Intelligence
New Business IntelligenceNew Business Intelligence
New Business Intelligence
 
Mas 90-mas-200-general-ledger-1x
Mas 90-mas-200-general-ledger-1xMas 90-mas-200-general-ledger-1x
Mas 90-mas-200-general-ledger-1x
 
01. sap fi co training
01. sap fi co training01. sap fi co training
01. sap fi co training
 
24028183 fico-notes
24028183 fico-notes24028183 fico-notes
24028183 fico-notes
 
SAP BOFC Resume
SAP BOFC Resume SAP BOFC Resume
SAP BOFC Resume
 
CNA’s Journey to Workday Accounting Center
CNA’s Journey to Workday Accounting CenterCNA’s Journey to Workday Accounting Center
CNA’s Journey to Workday Accounting Center
 
Ariba Knowledge Nuggets: Procurement Reporting
Ariba Knowledge Nuggets: Procurement ReportingAriba Knowledge Nuggets: Procurement Reporting
Ariba Knowledge Nuggets: Procurement Reporting
 
SAP TREASURY_Money Market.pptx
SAP TREASURY_Money Market.pptxSAP TREASURY_Money Market.pptx
SAP TREASURY_Money Market.pptx
 
AVSR 091216
AVSR 091216AVSR 091216
AVSR 091216
 
sFIN - Process Area
sFIN - Process AreasFIN - Process Area
sFIN - Process Area
 
SAP_FICO.pptx
SAP_FICO.pptxSAP_FICO.pptx
SAP_FICO.pptx
 
Record to report (1)
Record to report (1)Record to report (1)
Record to report (1)
 
Sap organizational hierarchy
Sap organizational hierarchySap organizational hierarchy
Sap organizational hierarchy
 
4.1 fi aa basic concepts
4.1 fi aa basic concepts4.1 fi aa basic concepts
4.1 fi aa basic concepts
 
SAP MM IM Physical inventory -cycle counting
SAP MM IM Physical inventory -cycle countingSAP MM IM Physical inventory -cycle counting
SAP MM IM Physical inventory -cycle counting
 
14843 lsampath wp_1 (1)
14843 lsampath wp_1 (1)14843 lsampath wp_1 (1)
14843 lsampath wp_1 (1)
 
Ax Presentation
Ax PresentationAx Presentation
Ax Presentation
 
SAP FICO
SAP FICOSAP FICO
SAP FICO
 
NEBA_ABONGNWI_CVA
NEBA_ABONGNWI_CVANEBA_ABONGNWI_CVA
NEBA_ABONGNWI_CVA
 

HFM-Implementation

  • 1. HFM META DATA(12-Dimensions) Configuration & RULE -FUNCTIONS Satish kumar.L Charted Financial Analyst(CFA)
  • 2. HFM-12 Dimensions ACCOUNT SCENARIO (Hierarchy of Natural accounts) (ACTUAL, BUDGET, FORECAST) VALUE YEAR (FISCAL,CALENDER YAER) ENTITY PERIOD (Management & legal Reporting structure) (time periods(quarters &months) ICP VIEW (PERIODIC, YTD,QTD) 4- CUSTOM DIMENSIONS
  • 3. CHART OF ACCOUNTS ACCOUNT TYPES (Account dimension ) ASSET Liability Revenue Expense Flow - Store periodic and year-to-date values Example : change in accounts receivables , change in accounts payables Balance - Store unsigned values that relate to a particular point in time Example: Tax Rate,salaryrate ,average sales avg profit ,ROA Balance recurring--Store unsigned value that relate to a particular point in time and that re-occur in future periods Currency Group label - Dynamic accounts
  • 4. Account dimension Account type Time balance Intercomp accounts behavior behavior Group label Dynamic accounts Account Other account Custom dimensions properties
  • 5. Account • The account type determines the Chart of accounts of an application • Account type determines whether child values are added or subtracted from their value. • This determines enables you build financial calculations directly into the COA. Dynamic account: • Dynamic account type is needed for correct calculation of parent values for custom dimension, time periods & data views. • Results are calculated on the fly, data is not stored. • Periods to data views calculate correctly. Group Label: • You can use group account label account type to group related accounts that do not needed to be aggregated to the total. • Example: you can create a Top –level account named Balance sheet accounts that groups balance sheet accounts. • No data value is stored for members with group label account type; thus database size & calculation time are reduced. Calc attribute : Text that describes the calculation in the rule file that are done for this account (information displayed on the Data forms /data grids) Use line items : whether the account have line items . NumDecimal places: specifies the no of digits to the right side of decimal points to be displayed.
  • 6. Account ICP properties: IS ICP : specify, whether the account is used for Intercompany transactions . PLUG Account : specify the account used for identify discrepancies in ICP-transaction. ICPTOP Member :Specify which top member in the hierarchy of the entity dimension is valid for the account. Time balance behavior : • Account type determines how balance accumulates over time. • Revenue ,expense & flow total across all periods • Remaining account types do not total across all periods. • Time balance behavior does not apply to the Dynamic, currency & group label accounts
  • 7. Custom-Dimension ACCOUNT CUSTOM CTA (CURRENCY TRANSLATION ADJUSTEMNT) SWITCH SIGNFLOW /SWITCH TYPE FLOW
  • 8. CUSTOM-DIMENSION • Four Custom dimensions are available for analysis of accounting data • Create alias (assign description to the custom dim) for custom dimensions , you cannot change the custom names . • Alias displays in data forms/grids/journals/templates/HFR reports. • Custom dimensions work in conjunctions with the account dimension ,providing additional details for accounts . • This dimension enables to specify additional details for accounts such as Products, Departments , Flow, markets, Channels Of Distribution, Multi GAAP reporting(Local GAAP ,IFRS ,USGAAP) Forex Exposure reporting, Maturity Information reporting, and Weekly sales reporting. etc..
  • 9. Custom -Dimension To assign custom members to a accounts: 1) For the account dimension ,create dimensions association between each custom top member property and the generic dimension that assigned the corresponding custom dimension member . 2) For each account in the custom dimension ,select a top member from each custom dimension . The selected member and its descendants are the only custom members valid for data load and data entry for the account .if you do not assign a top member , no members of that dimension are valid for that account . For example :
  • 10. Balance Sheet Movement & Custom dimension • FLOW/Roll FORWARDS : analysis that explains the movement of account balances between two reporting periods . • Custom dimension members to track movement detail for balance sheet accounts . • All the balance sheets accounts are mapped to the appropriate Top member of this hierarchy for tracking the flow. The flows are basically classified into Long term and Short term. • Typical balance sheet accounts are asset or liability accounts that show a running balance . You can use custom dimension members to track periodic movement for these accounts. • CTA (currency translation adjustment ) –applied for balance sheet movement . • Switch sign for flow : To change the flow behavior for custom members .(movement during the period are converted at the average rate for the period ) • Switch type for flow : To reverse the sign for custom members .(movements which are in decreasing in balance )
  • 11. CTA (Currency Translation Adjustment) • Currency Translation Adjustment – Account that stores the difference in account balance arising out of translation to currency other than the functional currency of the entity. • While the balance sheet movement captured in entity currency value will equal the closing balance, exchange rate differences will arise when these members are translated into another currency. • This difference will be broken down into difference arising on account of opening balance and difference arising on closing balance for every account mapped. • The sum of this CTA will equal the Currency translation adjustment that will be booked under equity. • CTA will be calculated value and not a “Plug.” • CTA will be calculated in HFM rules and custom dimensions (Roll forwards) will be used to provide greater visibility to currency translations. Roll forwards will be configured using custom dimensions to enable improved reporting of Balance Sheet movements. • Balance sheet accounts contributing to CTA will be provided with breakup of CTA arising on account of opening balance and period movement. • The CTA adjustment will be calculated for the Balance Sheet accounts (except equity accounts) based on the flow members . • CTA will not be computed for “Scenarios”.
  • 12. Scenario-Dimension Enable audit frequency data scenario Data view Actual Default view: Forecast periodic / YTD Line item detail-LID Budget Missing data Process management • Actual Scenario contains data from general ledger, reflecting past and current business operations • Budget Scenario contains data that reflects the targeted business operations • Forecast Scenario contains data that corresponds to predictions for upcoming periods
  • 13. Scenario-Dimension • Frequency :the frequency of a scenario specifies the time period level at which the data can be input .for example :months or quarters . • Frequency & view :financial management gives you the flexibility to input and view either periodic or year to data values . • Example 1 :you load actual data on monthly basis ,so the frequency for the actual scenario is set to monthly . • Example 2 : you forecast earnings on a quarterly basis , so you set the frequency of the forecast scenario to quarterly .data input is not permitted in months. Missing Data : missing data can be interpreted as either ZERO for the current period (periodic) or as zero for year to date (YTD). • BUDGET scenario uses ZERO view :-periodic • Forecast scenario uses ZERO view :- YTD • Specify settings for Adjustment data & Non Adjustment data . Data for February is missing , you can interpret as ZERO
  • 14. Value -Dimension journals App settings ICP & ICP Entity Elimination Currency settings Plug account/inter co DIFF PLUG ACCOUNT Custom 1& 2 dimensions VAL/PVA - Value METHODS Methods NODE security Translation view Triangulation Audit trial
  • 15. VALUE VALUE -DIMENSION NODE SECURITY Contribution Total contribution Contribution adj ALLOW Proportion ADJUSTMENT FROM CHILDREN Elimination Parent total parent Parent adj Parent currency total ALL0W ADJUS TMEN Parent currency Parent currency adj T Entity currency Total Entity currency Entity currency adj
  • 16. Value -Dimension • For value dimension view always -YTD • Journals: During a financial period ,you may need to adjust data ,after it is entered or loaded in to base level entities. • Allow adj: The property enables posting of journal adjustment to the entity currency adjustment member for an entity . • Allow adj from children : the property enables postings of journal adjustments to the parent adjustment and contribution adjustment nodes of the value dimension. • Parent adjustments :apply for an selected parent with in entity (those entity has more than one parent entity) • Contribution adjustments: apply when the adjust value that contributed to the parent after % ownership has been applied . • Node security : the property enables you to specify whether users can access value dimension members that contain parent data. • Node security :specifies users security access above the parent currency total. • Default rate for FLOW account :identifies the account that stores exchange rates to translate values for all accounts with a flow behavior. • Default rate for Balance account :specifies the account that stores exchange rates to translate values for all accounts with a balance behavior. • Default currency :this property to specify the default currency for the application. • ICP elimination value are stored in VALUE dimension Posted at intercoDiff plug account .
  • 17. Currency-Mechanism • Translation : convert one currency to another currency. • Triangulation :is a way to convert balances from one currency to another currency using a third ,common currency . • VAL-Method :Default translation method at entire current period balance at current exchange rate . • PVA-Method :a process of currency conversion that applies the periodic exchange rate values over time to derive converted results . • Translates ,only the current month change in the YTD value is translated at the current period Exchange rate .the translation result is added to the balance from the previous period ,translated at the exchange rate of the previous period . • Data grids –setup : ROW dimension (custom-1) :-Source currency Column dimension(custom-2):-Destination currency.
  • 18. Entity Dimension ORG BY PERIOD Holding comp/subsidiary comp CONSOLIDATION Management/ Legal reporting ENTITY JOURNALS DIMENSION ICP Is ICP Allow adjustments SECURITY CLASS Allow adj from children SECURITY AS CURRENCY PARTNER Value dimension Custom 1& 2 dimension
  • 19. Entity -Dimension • ICP-TOP : Specify which top member in the hierarchy of the entity dimension is valid for the account. • Holding company: Holding companies are used in statutory consolidations ,for which the ownership structure may or may not match the dimension hierarchy. The property identifies the owner of a member; the owner is not necessarily the parent of the member in the hierarchy . • Org by period :enable org by period if you need entity structures that vary from period to period . • Gives you the option to mark the entities as active or inactive for each period . • Make them validation(validate) for consolidation in an organization structure entity structure . • the default for active property specifies whether entities are in active by default or active for default (0=in active ,1-active ) • Percent consolidation :the portion of child value ,that is consolidated into its parent. • Percent control : identifies the extant to which an entity is controlled with in the context of its group . • Metadata based on filtering :you use this property to enable or disable filtering of metadata based on user security access . • Validation account :this property identifies the validation account for your application used by process control (make it active for process control ) /data locking and submission phase. • Note : the balance in the validation account must be ZERO before the data can be promoted ,approved & locked.
  • 20. ICP-Dimension ENTITY ACCOUNT VALUE CUSTOM Dim ICP ICP-PROCESS (ICP ELIMINATION) Reports/monitori ng
  • 21. ICP-Dimension ICP properties: IS ICP : specify, whether the account is used for Intercompany transactions . PLUG Account : specify the account used for identify discrepancies in ICP-transaction. ICPTOP Member :Specify which top member in the hierarchy of the entity dimension is valid for the account ICP aggregation property :this property lets you specify a consolidation percentage for intercompany entities to their parent ICP top . Security as partner : specify more than one security class for an entity acts as an ICP partner .
  • 22. Consolidation Consolidation accounts Org by period Entity ICP Meta data based on filtering value Ownership/Minority Equity adjustments Equity pick up Consolidation Set up Data grids/validation Process control
  • 23. consolidation • Holding company • Subsidiary company • Minority interest • ICP transaction • ICP –elimination • Basic rules for consolidation • Equity –pick up • Equity adjustments