The finance executives can face various challenges in the consolidation activities regarding their financial and operating results. The spreadsheets can be arranged in a way that they find difficult to maintain and audit. The custom reporting solutions do not even scale the global requirements properly. The general reporting solutions are totally dependent with simple ledger based approach which cannot draw the transactional system without the support of IT. The Oracle HFM can play a great role here.
Importance of HFM: Less time is required to activate the whole process as there is less confusion. The data can easily be transformed into the useful information through HFM. The delivery mechanisms are also viable and easily accessible. For the review and the approval process, the process management can be used combining with the HFM and a tight control can be ensured. The data validation and the currency translation can be supported with the multiple local currencies. The intercompany data and the transactions can automatically be eliminated through HFM.
Product Architecture: The multitier architecture including the client tier, application tier, and the database tier can use the HFM effectively. The client tier can include user interface while communicating with the application tier. The major function of the client tier is to maintain, display and enter the data as well as the metadata. On the other hand, the application server contains the report, applications as well as the web servers. The web servers can help you in accessing the whole web based portions of the HFM. It also includes financial intelligence and relational database connections. For managing the metadata, the application server can contain architect. The data tier includes the entire relational database for the financial management metadata and the overall source data.
Benefits of HFM: With the help of the HFM, you will be able to conduct various analyses of the key performances and the operational metrics. The time taken for the reporting cycle and the consolidation process can be decreased by weeks or by days. Accurate reports can be delivered within deadline through both internal and external regulatory bodies. Profitability and the sources of the cash flow can be identified with the product, brand, company and the customer levels.
Different Essential Components: The essential components of the HFM are explained below.
- Single sign in– This component can be used by the users for logging in to the Workspace for assessing the HFM, reporting tools and the architect.
- Single Console– The users can create, manage and deploy the architect applications with the help of the application management and the creation activities. The applications can be opened in HFM for retrieving data and the data output.
- Centralized repository– This component can be used for observing the key dimensional elements of different products
- Centralized console– For controlling the data flow of the applications, this component can be used.
HFM Dimensions: The dimensions of HFM can be explained as the data of the organization which includes the group of the related members. The examples of the dimensions are entity, period and account. The HFM can supply 8 system-defined dimensions and help you activate up to 4 dimensions and can customize if required for the sake of accounts. The members of the dimensions can be arranged in hierarchies. The members in the high levels are called the parent members while the members situated below are the child members.
Therefore, the HFM is generally designed for the centralized web deployment in large scale. It can be used for consolidating data from various sources through the general ledger system.