1. Fusion 11.1.1.2, HFM & Reports
Equity Pick-Up module &
Customized Intercompany Matching
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.
November 26, 2009
Evoluon Eindhoven
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2. Agenda
 Introduction of Pearle Europe
 Equity Pick-Up in Fusion 11.1.1
 New Intercompany matching Process
 Questions
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4. 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.
 FTE’s: 10,400 across Europe.
 Main shareholder: HAL, which is listed at Euronext

5. Brand examples
Apollo: Germany Avanzi: Italy
Synoptik: brand in DK & SW Pearle: 1 of 2 brands in the Netherlands

6. 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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7. Focus of this presentation:
 Equity Pick-up
 Intercompany Matching
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8. Pearle’s 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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9. Equity Pick-Up Module – requirements
Input
Shares
Exchange rates
Multiple Equity/P&L accounts
EquityPickUp routine
Dynamic Runs for all entities with shares in subsidiaries Just 100 lines
of code
Source and destination accounts can be chosen
EPU Calculations can be a automatic booking or a correction
Output
Investment of Holding equals Equity of Subsidiary
Result Participations equals result of subsidiary
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10. Equity Pick-Up calculations – An example
assets Holding eq/liab Holding P&L
Investm inc 500 Result Subs 500
Investm inc cta … Income o/t yr 500
Investm div …
investm …
assets Subsidiary eq/liab
… Income o/t yr 500
EPU rules
Standard rules
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11. Equity Pick-Up Module – The process
Speed
1. Load Data 2. Run EPU
3. Check Results
Takes a few
Transparency
seconds
Without details
which are
calculated by the Customized report
EPU routine displays all EPU
calculations along with
shares %

12. EPU - Report
Consolidated Holding Sub
% shares owned by
Holding
Investment in group
companies =
Equity * % shares owned

13. Questions
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14. Intercompany Matching (ICM)
 Need for more transparency and flexibility
 Better high level overview of intercompany bookings
 Higher quality of data
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15. New Intercompany Matching (ICM)
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
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
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16. Intercompany Matching – The process (1/3)
1. Load Data 2. Run EPU
ICM could be before or
after EPU, but always
3. Check Results
Takes a few after Data load of all
seconds
Without details entities
which are
calculated by the Customized report
EPU routine displays all EPU
calculations along with
shares %
4. Run Calculations/Consolidation 5. Check ICM report
Customized
report displays all
Intercompany
matching
IC amounts of other entities bookings
are pulled to own entity

17. Intercompany Matching – The Report (2/3)
ICP A
ICP B
ICP C

18. Intercompany Matching – The Report (3/3)
Differences in red exceed
All empty lines are
the limit and will block
suppressed
approvement of data
ICP A
IC party ICP B
ICP C
Left column: Right column:
Receivables Payables of
(of IC party) own entity

19. New Intercompany Matching (ICM)
 More transparency
 Better high level overview
 Higher quality of data
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20. Questions
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