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
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
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