FCCS Rules 101. Essbase Calculation Concepts for HFM Professionals. Session ID:

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1 Session ID: FCCS Rules 101 Essbase Calculation Concepts for HFM Professionals Prepared by: Julien Coudrette Experienced Manager Grant Thornton, Apr 25, 2018 Remember to complete your evaluation for this session within the app!

2 Your Presenter Julien Coudrette 13 years of experience with Oracle EPM Certified implementer of HFM, Essbase, Planning, DRM Leads Grant Thornton's Financial Close technical team Implemented Consolidation applications with Essbase! Speaks French, English, Portuguese, VB, Essbase Calc Script Currently lives in San Francisco, CA Has lived in: Paris (FR), Princeton (NJ), Curitiba (BR) Likes: Food, Motorcycles, Meditation, Running, Ideas,

3 About Grant Thornton Office locations 59 offices spread across 30 states and Washington D.C. Reach Serve 36% of companies on the 2017 Fortune 500 list and 25% of companies on the Russell 2000 list Our services Audit Tax Advisory People More than 8,500 professionals in the U.S. Partners 594 partners serving more than 8,000 clients nationwide Revenue GT U.S. net revenue equals $1.74 billion stats are as of 07/31/2017

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5 Agenda 1. Where can rules be configured? 2. Key Essbase Calc Script concepts 3. FCCS Consolidation Process 4. Cash Netting Example

6 Where can rules be configured?

7 Where can rules be configured? Member formulas Translation overrides Advanced consolidations Configurable calculations

8 Where can rules be configured? Member formulas A formula defined directly on a dimension member Similar to dynamic accounts in HFM but offers more potential Uses language similar to Essbase Calc Script Perfect for ratios for example Translation overrides Configurable consolidations Configurable calculations

9 Where can rules be configured? Member formulas Translation overrides Equivalent to what could be done in Sub Translate in HFM Uses a graphical UI instead of code Configurable consolidations Configurable calculations

10 Where can rules be configured? Member formulas Translation overrides Configurable consolidations Equivalent to Sub Consolidate rule in HFM Similar user interface as translations overrides Creates some specific logic to write on the Elimination member of the Consolidation dimension Configurable calculations

11 Configurable Consolidations

12 Where can rules be configured? Member formulas Translation overrides Configurable consolidations Configurable calculations Can be defined as specific "insertion points" in the consolidation process After the calculations of the opening balances and after balancing the balance sheet At the local currency, translated and consolidated levels Uses Essbase Calculation Script language

13 Accessing Configurable Calculations

14 Essbase Calculation Script Language

15 Comments Start with /* and end with */ Can span multiple lines (contrary to HFM) Example: /* Your comment here. */ /* Your Multi-line comment here. */

16 Semicolon End each command with a semicolon (;) This is one of the most common syntax error for beginners Example: "GP Margin" = "Gross Profit" / "Sales";

17 Double Quotes Member names need to be surrounded by double quotes in the following cases: contains spaces: "Gross Profit" starts with a number: "12MonthAverage" contains nonalphanumeric characters ("-", "*", "/", ) : " " Recommendation: always use double quotes around member names to make sure you don't forget any and to get a more consistent formatting Descriptions can be used in place of member names Example: "Opening Inventory" Inventory");

18 Cross-dimensional Operator -> Specifies the intersection of more than one dimension Equivalent to the dots in an HS.EXP statement It is not necessary to use the dimension name Example: "FCCS_Cash And Cash Equivalents" -> "FCCS_ClosingBalance"

19 FIX ENDFIX Defines the scope of your calculations Similar to members on the left side of HS.EXP Can include multiple members of the same dimension equivalent to using a for in HFM No need for a semicolon at the send of FIX or ENDFIX lines

20 FIX ENDFIX example FIX ("Entity Currency", "Entity Input") "GP Margin" = "Gross Profit" / "Sales"; ENDFIX Limits calculations on: Consolidation member "Entity Input" Currency member "Entity Currency". Equivalent to: "GP Margin"->"Entity Currency"->"Entity Input" = "Gross Profit" / "Sales";

21 FIX ENDFIX Nesting For clarity: FIX ("Entity Currency") FIX ("Entity Input") "GP Margin" = "Gross Profit" / "Sales"; ENDFIX ENDFIX

22 FIX ENDFIX Nesting To switch only part of a fixed area: FIX ("Entity Currency") FIX ("Entity Input") "GP Margin" = "Gross Profit" / "Sales"; ENDFIX FIX ("Entity Consolidation") "Sickness Ratio" = "Sick Days" / "Headcount"; ENDFIX ENDFIX

23 IF ELSEIF ELSE ENDIF; In a calculation script it needs to be associated to a database member Typically one of the accounts calculated inside the IF statement Uses of Boolean logic (AND, OR, NOT) No "Then", but condition needs to be in parenthesis Example: "DTA"( IF ( "DTA" + "DTL" > 0) "DTA"->"Reclass" = - "DTA"->"Input"; "DTL"->"Reclass" = "DTA"->"Input"; ELSE "DTA"->"Reclass" = "DTL"->"Input"; "DTL"->"Reclass" = - "DTL"->"Input"; ENDIF;)

24 Essbase Functions Start Return a member or member set or a value (Boolean, numeric, string, etc.) And Cash And Cash Equivalents")

25 UDA Functions UDA = User-Defined Attributes Replaces UD1..4 fields in HFM Boolean functions are used in an IF "Legal Entity") Member set functions are used in a FIX "Cash Account")

26 Hierarchy-Based Functions Generation is top-down Level is bottom-up Generations: positive starting with 1 Levels: negative starting with 0

27 Hierarchy-Based Functions Generation is top-down Level is bottom-up Generations: positive starting with 1 Levels: negative starting with 0 Entity United States West Coast San Francisco Las Vegas East Coast New York Miami HQ 0)

28 Hierarchy-Based Functions Generation is top-down Level is bottom-up Generations: positive starting with 1 Levels: negative starting with 0 Entity United States West Coast San Francisco Las Vegas East Coast New York Miami HQ Coast", 0)

29 Hierarchy-Based Functions Generation is top-down Level is bottom-up Generations: positive starting with 1 Levels: negative starting with 0 Entity United States West Coast San Francisco Las Vegas East Coast New York Miami HQ -1)

30 Hierarchy-Based Functions Generation is top-down Level is bottom-up Generations: positive starting with 1 Levels: negative starting with 0 Entity United States West Coast San Francisco Las Vegas East Coast New York Miami HQ 2)

31 CALC DIM (Dim1, Dim2, ); Used to calculate one or more dimensions Only needed if the result of these dimension calculations are needed for subsequent calculations Otherwise this would be done by the system calculation Unnecessary for dimensions calculated dynamically (e.g. Account, Consolidation, etc.) Example: CALC DIM ("Movement", "Product");

32 CLEARDATA Clears a data intersection Cannot be used inside IF Inside an IF statement, set the intersection to #Missing Example: CLEARDATA "Cash"->"FCCS_Mvmts_Cash";

33 Consolidation is the new Value FCCS consolidation process

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35 FCCS Consolidation Process

36 FCCS Consolidation Process

37 FCCS Consolidation Process

38 FCCS Consolidation Process

39 Putting it all together Cash Netting Example

40 Cash Netting Example Net amounts between cash and overdraft On specific entities Track on a separate Data Source member

41 Cash Netting Example Total does not change Now all on one side

42 Metadata

43 My First FCCS Script Note: semicolons member names in double quotes no mention of the dimensions IF/ELSE must be associated with a specific member no HS.GetCell

44 My First FCCS Script Areas of improvement: Works only for January Need to consider Closing Balance YTD, instead of Movement Periodic Does NOT work if the CashOverdraftReclass block is not created!

45 Notion of block Data Source The FCCS Consol cube contains many blocks of data Cash Reclass Data Input One block for each intersection of sparse dimensions that have data All dimensions are sparse, except account (dense) Jan Feb Period Entity,

46 Block Creations Data Source Cash Reclass Data Input "Cash Reclass" = - "Data Input" does nothing is Cash Reclass does not already exist Calculation expressions do not create block implicitly Blocks need to be created explicitly Jan Feb Period Entity,

47 @CREATEBLOCK Creates block(s) at the specified member or intersection Does not return anything, but needs to be associate to a member Does nothing if the block already exists Examples: FIX ("Data Input") "Entity Currency" ENDFIX FIX ("Data Input") ) ENDFIX

48 Structure of an Essbase Calculation 1. (Optional) Create required blocks 2. Clear calculated intersections 3. Aggregate dimensions for parent values needed 4. Perform calculations 5. Aggregate data (system calculation)

49 Structure of an Essbase Calculation 1. Create required blocks 2. Clear calculated intersections

50 Structure of an Essbase Calculation 3. Aggregate dimensions for parent values needed

51 Structure of an Essbase Calculation 4. Perform Calculations 5. Aggregate data (system calculation)

52 My First FCCS Script 2.0

53 My First FCCS Script 2.0

54 Two things to remember Read the Essbase Technical Reference! Create blocks before writing them

55 Upcoming events Join Grant Thornton for our upcoming events: Webcasts: 5/8: Optimizing the financial close: Account reconciliation automation 6/6: Planning for your HCM transformation Oracle conferences: 6/10 6/14: Kscope18 in Orlando, FL 6/11 6/14: OHUG global conference in Las Vegas, NV 8/20 8/22: INFOCUS in Denver, CO 10/21 10/25: Oracle OpenWorld in San Francisco, CA

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