Velocity News

Oracle Hyperion Enterprise and Oracle Hyperion Financial Management – To convert or not to convert?

Faster, more-detailed financial reporting has become a mandatory requirement worldwide. While Hyperion Enterprise continues to be an effective solution for basic legal and statutory reporting in environments with limited IT infrastructures, it may fall short as your company—and systems —strive to meet a growing laundry list of requirements: 

  • More detailed disclosures

  • Combined financial and operational results

  • More detailed audit trails

  • Fraud prevention and auditing

  • Electronic filing in XBRL and iXBRL formats

  • Error prevention

  • Electronic certification of results

  • Links to internal controls

  • Ability to handle multiple reporting standards simultaneously

  • Specific industry regulation and reporting like Solvency II for Insurance

Oracle Hyperion Financial Management (HFM) is the next generation of financial consolidation and reporting solutions, providing global collection, consolidation, reporting and analysis in a single, highly scalable, Web-based application. HFM is unique in that it uses today’s most advanced technology, yet can be owned and maintained by the finance team with minimal IT intervention.


Maximize HFM Time-to-Value

If your organization is considering an upgrade from Oracle Hyperion Enterprise (HE) to Oracle Hyperion Financial Management (HFM), Velocity and its team of experts can help evaluate the pros and cons in order to make a sound decision and realize the full benefits of your HFM investment.  

Technological Benefits and Reasons for Upgrading to HFM:

  • A three-tier web architecture system offering scalability for thousands of users, while HE client/server architecture is limited to 150 users.

  • HE is a client-heavy system where all of the applications, calculations, consolidations and user interface occur on the user’s PC desktop. As a result, it is very sensitive to operating system updates and Oracle has discontinued support for testing of new operating system updates and patches.

Advantages of HFM and the Integrated EPM Suite of Products:

  • The primary financial advantage of HFM compared to HE is the ability to use unlimited dimensionality with HFM as opposed to only four fixed dimensions with HE. The benefits of the increased dimensionality include:

    • The ability to combine financial reporting requirements with the detail-driven requirements of operational analysis. This is because the additional dimensions can be used to report multiple layers of additional reporting detail such as product lines, business segments, customers and cost center detail.

    • Greater ability to perform ad-hoc reporting and analysis as detailed reporting does not need to be incorporated in the entity or account structures as is the case with HE.

    • The ability to maintain GAAP and IFRS reporting standards until a full transition to IFRS can be made when required.    

  • HFM with the inherent capabilities of the chart of accounts hierarchy structure eliminates the need to write subtotal and total formulas.

  • Fully integrated with Microsoft Office products Excel, Word, PowerPoint and Outlook.

  • More detailed audit trails and process management capabilities to help with Sarbanes Oxley compliance.

  • Customers upgrading to HFM can also choose to purchase the Oracle Hyperion Financial Close suite of products which seamlessly integrates with HFM. Close products help to accelerate the monthly close process with solutions to streamline account reconciliation and the overall controls and management processes of monthly accounting close cycles.

Choosing Velocity for Your HFM Migration: Our Expertise

Velocity consultants offer:

  • Knowledge and experience in using both HE and HFM.

  • Financial expertise to help you design and build a new HFM application that takes advantage of all of the benefits of HFM over HE to achieve more detailed reporting, improve financial controls and accelerate the monthly close process.

Our Approach

The Velocity process includes taking the time to fully understand your current financial reporting and controls routine; determine the bottlenecks and inefficiencies in the current processes; and provide sound solutions for designing an application that will help you realize all the advantages that HFM offers over the current HE application.

  • A more advanced technology platform, robust financial reporting capabilities, increased control.

  • As part of Oracle’s Enterprise Performance Management (EPM) system, HFM can be used independently or with other EPM applications for an end-to-end management process.

Velocity’s Best Practices in HE to HFM Customer Conversions Include:

  • Historical Data Conversion: Data extracts have extremely limited fields in Hyperion, making conversion and validation tedious and time consuming. Velocity helps customers clearly define requirements at the onset, offering game-changing flexibility and customization to the multiple dimensions that HFM provides.

  • Intercompany Elimination: Because the Intercompany Dimension in HFM takes the place of the Intercompany Sub-Account table in Enterprise, clearly defined requirements —which Velocity aids in defining both early on and as a change agent—around ICP Entities and Accounts are critical.

  • Foreign Currency: With HFE, Reporting Analysis for different exchange rates leveraging the Scenario-based functionality now requires creating a separate scenario for Actual at Budget Rates, Actual at Last Year rates, etc.

  • Cash-flow reporting: Challenges with cash-flow reporting can be mitigated using one of two methodologies. The first option is a standard approach leveraging extensive HFM rules while the second uses new metadata to create BS Movement groups. Either is a viable solution, so long as requirements are clearly defined at the outset.

Oracle Hyperion Financial Management leverages more than 30 years of leadership in the financial consolidation and reporting market; but it is a large, complex applicationand getting more code heavy and customizable with every enhancement and release. Customers who choose to migrate to HFM can avoid both the common, and obscure, obstacles when upgrading HE to HFE with expert guidance and support from the Velocity team.  

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