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Fusion 11.1.1.2, HFM & Reports

Equity Pick-Up module &
Customized Intercompany Matching
November 26, 2009
Evoluon Eindhoven
Using the Equity Pick-Up module and an alternative way of doing
intercompany matching in one of the latest releases of HFM. Advantages
and disadvantages for the closing process, the users and the administrators
and the impact on the quality of data reported.
Agenda
Introduction of Pearle Europe
Equity Pick-Up in Fusion 11.1.1
New Intercompany matching Process
Questions
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Introduction - Pearle Europe Profile
Professional optical retail company
Started in 1996 with the acquisition of Pearle Netherlands
Since 1996 the Group has entered new (European) markets
every year through the acquisition of strong, local retail formats.
Present in 27 countries and 4 continents
Stores: 2,750 optical retail stores (of which 25% franchise)
Sales: over 1,5 billion in 2008.
FTEs: 10,400 across Europe.
Main shareholder: HAL, which is listed at Euronext
Apollo: Germany
Pearle: 1 of 2 brands in the Netherlands Synoptik: brand in DK & SW
Avanzi: Italy
Brand examples
Pearle Group Accounting targets / strategy
Save time on reporting data (Users & Administrators)
Improve quality of data
More focus on data analysis
Extend the use of management reporting in HFM
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Focus of this presentation:
Equity Pick-up
Intercompany Matching
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Pearles Equity Pick-Up in HFM v3.4
Equity Pick-up in (Sub) calculation rules
Time consuming manual calculation/translation/consolidation
procedure for consolidation from bottom to top level (hours)
Static solution
Extensive code in rules (> 1000 lines)
Poor maintainability
No transparency
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Output
Investment of Holding equals Equity of Subsidiary
Result Participations equals result of subsidiary
Input
Shares
Exchange rates
Multiple Equity/P&L accounts
EquityPickUp routine
Runs for all entities with shares in subsidiaries
Source and destination accounts can be chosen
EPU Calculations can be a automatic booking or a correction
Equity Pick-Up Module requirements
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Dynamic
Just 100 lines
of code
assets Subsidiary eq/liab
Income o/t yr 500
Equity Pick-Up calculations An example
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assets Holding eq/liab
Investm inc 500
Investm inc cta Income o/t yr 500
Investm div
investm
Holding P&L
Result Subs 500
EPU rules
Standard rules
Equity Pick-Up Module The process
1. Load Data 2. Run EPU
3. Check Results
Without details
which are
calculated by the
EPU routine
Takes a few
seconds
Customized report
displays all EPU
calculations along with
shares %
Transparency
Speed
Consolidated Holding Sub
EPU - Report
Investment in group
companies =
Equity * % shares owned
% shares owned by
Holding
Questions
13
Intercompany Matching (ICM)
Need for more transparency and flexibility
Better high level overview of intercompany bookings
Higher quality of data
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ICM routine
All entities must load data
All entities must be calculated (or consolidated)
Details can be checked ICM Report
Differences will block Process Control
New Intercompany Matching (ICM)
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Preparations
Create metadata to store ICP counterparty details on own entity
Create section in calculation rules to populate ICM accounts
Create a report (in Fin Reports) to display all ICM amounts
Intercompany Matching The process (1/3)
5. Check ICM report
Customized
report displays all
Intercompany
matching
bookings
4. Run Calculations/Consolidation
ICM could be before or
after EPU, but always
after Data load of all
entities
IC amounts of other entities
are pulled to own entity
1. Load Data 2. Run EPU
3. Check Results
Without details
which are
calculated by the
EPU routine
Takes a few
seconds
Customized report
displays all EPU
calculations along with
shares %
Intercompany Matching The Report (2/3)
ICP A
ICP B
ICP C
ICP A
ICP B
ICP C
Intercompany Matching The Report (3/3)
All empty lines are
suppressed
Differences in red exceed
the limit and will block
approvement of data
Left column:
Receivables
(of IC party)
Right column:
Payables of
own entity
IC party
New Intercompany Matching (ICM)
More transparency
Better high level overview
Higher quality of data
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Questions
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