Recorded at Kscope 21 Hosted by Geordan Drummond

2. How do I love Cash
Flow? Let me count the
ways…
Geordan Drummond

3. Agenda
• Introductions
• Framework Recap
• Dimension configuration
• Data loading and mapping
• Data input
• Calculations
• Reporting
• Q&A

4. Introductions
• Customer – Lincoln Financial Group
• Enterprise Administrator
• HFM Administrator
• Vendor – Hyperion / Oracle
• HFM Consultant
• Partner – Alithya
• Consultant (Consolidation, Account Recs, Tax, Reporting)
• Close and Consolidation Product Manager
• Financial Close and Consolidation certified
• Narrative Reporting certified
• Oracle ACE

5. Recap of the Cash Flow Framework

6. Recap of the FCC Cash Flow framework
• This presentation covers the Indirect Method, although
Direct Method is also possible
• Main concepts:
• Instead of picking and choosing selected items, the entire Balance
Sheet is considered for the statement
• The classification of activity in the Balance Sheet is intrinsic to the
generation of the statement
• Adjustments can be made for additional detail
• The change in Cash for the period is the inverse of the net Balance
Sheet activity excluding Cash
• All activity is recorded at the lowest level of the organizational
structure, which facilitates other impacts like translation and
eliminations

7. Recap of the FCC Cash Flow framework
• Movement dimension
• Two main hierarchies are mirror images of each other
• Level 0 members are shared
• Movements hierarchy
• Rollforward structure
• Activity
• Cash Flow hierarchy
• Follows the statement presentation and groupings
• Takes signage into account (Add/Sub on members)
• Cash Change
• FX
• Cash Open/Close
• Closing Balance Variance (not for C/F but used for validation)

8. Recap of the FCC Cash Flow framework
• Account dimension – Balance
Sheet
• Primary hierarchy – Reporting
• Secondary hierarchy – Cash and
Non-Cash
• Supplemental members outside of
these hierarchies may be useful for
disclosure based rollforwards
• Custom dimensions (optional)
• Not required but sometimes helpful
• Can facilitate tracking and reporting

9. Recap of the FCC Cash Flow framework
• Translation
• No specific configuration required
• Since the activity is being input,
Movements and Cash Flow line
items are at the Average Rate
• Eliminations
• No specific configuration required
• Since the data is loaded to a
combination of the Account and
Movement, the eliminations for
the Cash Flow organically follow
from the Balance Sheet

10. Recap of the FCC Cash Flow framework
• Out of the box calculations
• Opening balance
• Closing balance (aggregation)
• FX impact
• Open balance impact
• Activity impact
• This is netted across Accounts for FX
impact on Cash line
• Opening Cash
• Closing Cash

11. Dimension Configuration

12. Dimension Configuration
• Several alternatives for creating activity
portion of Movement hierarchy
• Level of detail options:
• Use more common members
• Minimizes # of members
• Can get tedious when trying to determine if a
C/F line needs additional member or not
• Use more distinct members
• More flexible in arrangement
• Adds bulk to dimension
• At a minimum need to match C/F
statement line detail, sometimes more for
audit trail purposes

13. Dimension Configuration
• Movements grouping options:
• By Functional type/Account
• This helps organize rollforwards better
together
• Can help dynamically generate report and
form line items
• By Cash Flow section
• These are the out of the box parent
members
• Not quite as useful as the groupings already
exist in the Cash Flow hierarchy

14. Dimension Configuration
• Custom dimension
• To track adjustments across members
• Should net to zero
• For multi-dimensional items
• For example, transfers in/out
• Can simplify Movement detail
• Need to balance functionality with user
experience
• Account dimension
• Alternate groupings possible but not ideal

15. Data Loading and Mapping

16. Data Load and Mapping – G/L
• Several options for loading activity data as
part of TB dataset
• Derive mapping from Accounts
• Most common approach
• Works if there is no supporting detail available
• Map change in balance for period to a
Movement member
• Typically many-to-one mapping (e.g. multiple
A/R Accounts to one single change in A/R
Movement member)

17. Data Load and Mapping – G/L
• Map using other G/L chart field
• Typically limited to specific regions of the Balance Sheet
(e.g. Taxes)
• If not already in use, may take some time to build up a full
fiscal year’s worth of accurate data
• Data needs to be consistently populated via subsystem or
JEs in order to source it
• Will ultimately be a multidimensional map as some lines are
only based on Account

18. Data Load and Mapping – Calculate Movements
• Similar to loading from G/L
• Load life to date balances instead
of period activity to
FCCS_ClosingBalance_Input
• Configuration:
• Flag Movement members as
mappable
• Configure Movement mapping in
Account dimension instead of Data
Integration
• Enable business rule
• Be aware of potential performance
implications

19. Data Load and Mapping – Other Sources
• Leverage Subledger data
• Load secondary dataset to layer in addition to original load
• Example:
• Fixed Assets – acquisitions, disposals, depreciation, writedowns
• Will likely need additional mapping
• Best practice is to use another unique Data Source member
to keep values clean and from being overwritten
• Offset values need to be created in order to not double count
• Use additional sources
• Use 3rd party data
• Examples:
• Investments – purchases, sales, gains/losses
• Other industry-specific sources

20. Data Input

21. Data Input Approaches
• For manual adjustments not in G/L detail
there are several options
• Data Forms
• Allows for POV to be much more specific and
layout more structured
• Best practice is to limit just to input intersections
and use a report to render the full rollforward
• Smart View
• Flexible, but may end up giving users the ability
to input into intersections that are not valid
Kscope Kode Challenge Code: CASHFLOWALITHYA21

22. Data Input Approaches
• Journal Entries
• Provides audit trail, but more
cumbersome to work with
• Can use a template for standard POV
• Supplemental Data
• Allows for much more detail
• Subtotals can be automatically pushed
into the correct intersections
• Requires more overhead and
processing steps
• Balancing needs to be considered as
adjustments need to net out
ultimately

23. Configurable Calculations

24. Configurable Calculations
• Income Statement calcs
• Pull values directly from P&L to
populate rollforward items, e.g.
Amortization
• This is frequently more accurate than
the change in balance from the
Balance Sheet Account
• Insertion Point Rules
• Will run all the time, even if there is no
change to the item
• On Demand Rules
• Will only run when triggered (e.g. as part
of a form)

25. Configurable Calculations
• Balancing calculation
• Offset entered values against net change
values loaded
• This way the net Balance Sheet impact is zero
• This can be a general rule if you have one
Movement member populated per Account
• If there are multiple Movement members per
Account you will likely need to hard code the
intersections
• Better as On Demand Rule
• Additional calculations
• M&A related reclass adjustments are also
possible, depending on complexity

26. Reporting

27. Reporting – Financial Statement
• Consolidated,
comparative report
• This is the standard
presentation used for
internal and external
reporting
• Zoom option can be
added to allow for
additional detail

28. Reporting – Matrix presentation
• Put Account dimension on one
Axis, Movement on the other
• This will give you a rollforward for
the full Balance Sheet and
indicate where on the Cash Flow
the amounts are mapped to
• Captures the sum total of all
inputs (loaded, calculated, or
adjusted)
• Can be done as either structured
or ad-hoc type report

29. Reporting – Adjustments view
• Adjustments can be
tracked across multiple
Cash Flow lines
• Net adjustment is zero in
total
• This uses a Custom
dimension for the
column classifications

30. Takeaways

31. Takeaways
• Ideal approach on level of detail on Movements is to look at C/F
lines and rollforwards in tandem – more detail is always easier to
work with
• Consider a Custom dimension for adjustments if necessary, for a
clean audit trail
• Simplify your input forms and use reports to display the full R/F
• Make sure all manual inputs or adjustments net to zero, whether
by Data Source or Custom
• Leverage cross-dimensional aspect when creating reports

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Don't Miss Our 12 Sessions at Kscope21! Alithya is a platinum sponsor of Kscope21
> Mike Killeen & Zubin Shah, Alithya
6/22/21 | 1:40 - 2:20 PM
> Geordan Drummond, Alithya
6/22/21 | 12:40 - 1:40 PM
> Seema Shah; Nick Boronski, Oracle, & Lee Divers, State Street
6/23/21 | 12:40 - 1:40 PM
> Ryan Ward & Sara Beth Good, Alithya
6/23/21 | 2:20 - 3:20 PM
> Andrew Laferla, Alithya & William Harned, MUFG Union Bank
6/24/21 | 11 AM - 12 PM
> Alecs Mlynarzek & Vatsal Gaonkar, Alithya
6/24/21 | 2:20 - 3:20 PM
> Kevin Black, Alithya & Robert Kursten, Viasat
6/25/21 | 12:40 - 1:40 PM
> Geordan Drummond; Nick Boronski & Tim Gaumont, Oracle
6/28/21 | 4 - 5 PM
> Kevin Black; Matthew Jacobsen, WillScot Mobile Mini
6/29/21 | 4 - 5 PM
> Alecs Mlynarzek, Alithya & Caroline Dill, General Dynamics IT
6/30/21 | 11 AM – 12 PM
> Alecs Mlynarzek & Geordan Drummond, Alithya
6/30/21 | 12:40 - 1:40 PM
> Andrew Laferla, Alithya
6/30/21 | 2:20 - 3:20 PM

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