hyperion tax introduction & update marc seewald senior director epm product management rajesh...

Hyperion TaxIntroduction & Update

Marc SeewaldSenior DirectorEPM Product Management

Rajesh BhatiaVice PresidentEPM Product Development

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 2

Safe Harbor StatementThe following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.


Program Agenda

Introduction to the Hyperion Tax Transparency Suite

Hyperion Tax Provision & Roadmap

Operation Transfer Pricing

Tax Governance

Q&A

1

2

3

Oracle Confidential – Internal/Restricted/Highly Restricted 3

4

5


Oracle Hyperion Tax TransparencyEnd-to-End Tax Data Governance

ERP & Sub-Ledger

Transactions Assurance Data Management & Reporting Compliance

Metadata Management

DataAssurance

Indirect TaxReturn

Direct Tax Return

Financial Reporting

Tax Governance

Tax Analytics / Dashboard

Tax DataStore

Tax Provision

Transfer Pricing

Tax Planning


ERP & Sub-Ledger


Metadata Management

DataAssurance

Indirect TaxReturn

Direct Tax Return

Financial Reporting

Tax Governance


Tax DataStore

Tax Provision

Transfer Pricing

Tax Planning

EBS, JDE, SAP, Peoplesoft

FDM

DRM

HPCM

HTP/HFM

HFM

FCM

OBIEE

HTP / HSF

Oracle Hyperion Tax TransparencyProduct Analysis

HTP & TG


Program Agenda




Tax Governance

Q&A

1

2

3


4

5


Hyperion Tax Provision

Introduced in February 2013; Targeting a worldwide customer base

Nice cross section of customers: – US GAAP & IFRS

– Pharmaceutical, financial services, utilities, mfg, oil & gas, etc.

– Global multinationals & US domestic companies

100% early-adopter satisfaction

Winning competitive deals & displacing incumbent tax provision systems

“HTP is a game-changer in the tax provision space…”

“HTP is clearly the next generation of tax provision

solutions…”

“It has significantly exceeded our expectations…”

“The best IT Implementation in the last three years…”

Licensed customers well into in the double digits and growing rapidly:

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal 14

Hyperion Tax ProvisionBring Finance & Tax Together

Purpose-Built / Out-of-Box: a Tax Provision solution that is built on the Hyperion Financial Close Suite:

1. Data Collection - automated & manual2. Tax Provision Calculation - US GAAP & IFRS3. Tax Reporting - out-of-box tax reports & ad-hoc

Owned by Tax: Leverage your existing investment in Hyperion, but both Tax & Finance retain the flexibility they need

Integrates with Tax Compliance: Enhances & integrates with tax compliance software

Rapid Implementation & Ease of use: the technology & expertise is already in the Finance organization

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal 15

Tax & Finance Share the Same DNA

Financial Close

Tax Close

Review & Approve

Consolidate

Consolidate Consolidating Adjustments

Day 0

Financial Statements

Trial BalanceBy Legal Entity

Data - Metadata - People - ControlsClose

G/LDisclosure &

Filing

SubmitSchedules

Trial Balance

SubmitSchedules

Review & Approve

Tax Journal Entry

& Tax Note


Oracle Hyperion Tax ProvisionInvesting to Extend Oracle’s Lead

• Hyperion Tax Provision• Comprehensive tax provision • US GAAP & IFRS• Web tax package• Provision reporting & analysis• Maintenance wizards• Integration with SmartView, FDM, & rest of

EPM/BI suite of products

• Financial Consolidation & Close• Configurable Dimensionality• ADF based UI revamp• Financial Management Analytics• EBS/Fusion Integration

• Hyperion Tax Provision• Interim reporting • Risk provision rollforward (FIN 48)• Enhancements to balance sheet

approach (Canada & Europe)• Deferred Tax Proof (IFRS)• Expanded equity reporting (UK)• Reporting on tax losses by year• Tax Automation enhancements• Mobile

• Financial Consolidation & Close• HFM, Smartview enhancements• Tax KPIs added to OFMA

• Hyperion Tax Provision• Early adopter priorities• Loss automation• FIN 48 enhancements• State enhancements• Country-by-Country Reporting• Smartview-based Maintenance Wizard• Additional preconfigured supplemental

schedules (e.g. Unremitted earnings)• Continued investment in maintenance &

administration

• Continued EPM Technical Innovation• Technical enhancements across the

entire EPM application portfolio

• Tax Transparency Suite • Operational Transfer Pricing• Tax Governance

Hyperion Tax Provision11.1.2.2

Hyperion Tax Provision11.1.2.3 & 11.1.2.3.501/502

Future DirectionIn the next 12 months & beyond

Feb 2013 June 2013/April 2014/ July 2014


Next Portfolio Release (11.1.2.4)

Platform Independent

– Exalytics support

– Removes all Windows dependencies

– Java Based API

– ODBC data connection

Performance Improvements

– Multi-core scaling for Consolidation/Calculations

– Data retrieval improvement – web and reporting

– Removes Web Services for Web server communication

Simplicity

– Installation/configuration

– All product integrations leveraging the same Java API

Features

– Application Creation Wizard

– Full support for LCM

– Full ODL compliant

– Support for Tax Supplemental Schedules; new module in 11.1.2.4


Program Agenda




Tax Governance

Q&A

1

2

3


4

5


Why is OTP Important?

Google 2.4% rate shows how $60 Billion Lost to Tax Loopholes (Bloomberg)

Medtronic fights $2.7 billion in adjustments related to transfer pricing, other issues (BNA Transfer Pricing Report)

Chrysler agrees to pay Canada $1.5 billion (BNA Transfer Pricing Report)

IBM reports $2 billion 482 adjustment (BNA Transfer Pricing Report)

AstraZeneca pays IRS $1.1 billion to settle transfer pricing issues (BNA Transfer Pricing Report)


What is Driving Companies to Act Now?The Pressure is On… Globally!

• July 2013 - At the request of G20 Finance Ministers, in July 2013 the OECD launched an Action Plan on Base Erosion & Profit Shifting (BEPS)

• January 2014 - OECD issued its draft discussion paper as part of the BEPS Action Plan

• In the US - The IRS continues to increase the resources allocated to transfer pricing enforcement & audits. Staff focusing on international issues has more than doubled since 2010.

• January 2013 - The BRICS countries' (Brazil, Russia, India, China and South Africa) tax authorities have agreed to share information to strengthen their tax systems.


A Typical Excel Based Process…


Stage 4 to 5Regions to Markup

Stage 1 to 2GL to Mgmt Fee

Stage 2 to 3Mgmt Fee toChargeable Costs

Stage 3 to 4Chargeable Costs to Regions


The Operational Transfer Pricing Management Process

Manual data collection, Adjustments, Data Enrichments & Pre-allocated analysis

Cost Pools & Inter-entity Allocations

What-if Scenarios

Reporting & Analysis

Forecast/ Actuals Data Collection & Staging

Transfer Pricing Allocations

Variance Analysis

Invoicing & Journal Entries

Adjust GL to meet benchmark range

Sourcing Trial Balance, Prices & Allocation Drivers


Oracle’s Operational Transfer Pricing Solution

Forecast/ Actuals Data Collection & Staging

Transfer Pricing

Allocations

Variance Analysis

Invoicing & Journal Entries

HFM / HTP HP

HPCM

Tax Governance (Oracle Financial Close Manager)

Transfer Pricing Dashboard (Oracle Business Intelligence)

Financial Reports & Smartview

EPM Foundation

Services• Data Quality• Data Sync• EPMA

EBS AGIS / HFM ICP

1. Allocations to Close the Ledgers via Invoices & JEs2. “What-if” Allocations to Optimize Tax Impacts


Compliance with Confidence using HPCMIntegration from A to Z

– Data - Data never leaves Hyperion resulting in a seamless audit trail & strong internal controls

– Metadata - Shared metadata with financial systems results in significantly less maintenance (e.g. cost centers, entities, etc)

– Governance – Provides native integration to Oracle/Hyperion ensuring control & governance over the entire process

Traceability Maps & Reporting– Transparency – Traceability maps provide unparalleled transparency.

Smartview & Hyperion Financial Reporting works across all data – providing boardroom-quality reports and superior ad-hoc analysis

– What-if – Run new scenarios in seconds

Ease of Use & Maintenance– Easy to maintain – Allocation stages, drivers and hierarchies all

can be maintained by functional users as opposed to IT.

– Expertise – Leverage in-house Oracle/Hyperion resources resulting in lower cost of ownership


Program Agenda




Tax Governance

Q&A

1

2

3


4

5


Oracle Hyperion Tax TransparencyEnd-to-End Tax Data Governance

ERP & Sub-Ledger


Metadata Management

DataAssurance

Indirect TaxReturn

Direct Tax Return

Financial Reporting

Tax Governance


Tax DataStore

Tax Provision

Transfer Pricing

Tax Planning


Hyperion Tax Governance

Tax GovernanceTax

Operations

Task Management Workflow

Calendaring

Tax Supplemental

Schedules

Advanced Data Collection

I. Tax Operations: Workflow & Calendaring Engine

Reduces bottlenecks & improves internal controlsProvides visibility to task-level statusPre-built integration across Oracle / Hyperion products

Pre-built: Tax Close, Controversy Management, Compliance

II. Tax Supplemental Schedules: Data Collection

Complements multi-dimensional data collection in HTPManage distributed surveys & formsFilterable lists (e.g. relational data from sub-ledger - such

as details of reserves or accruals)Pre-built Content: R&D Credit & FIN48

Pre-Built ContentBuilt on a proven platform.

(Hyperion Financial Close Management)


OperationsTax Governance


Tax Operations


Tax Operations

Legal Entity Tax Package - Frame


Tax Operations


Tax Operations

Tax Provision (120)Compliance (175)


Supplemental SchedulesTax Governance


Tax Supplemental Schedules


R&D CreditData CollectionTax Supplemental

Schedules


Reporting


Program Agenda




Tax Governance

Q&A

1

2

3


4

5

hyperion tax introduction & update marc seewald senior director epm product management rajesh...

Documents

oracle andor

sole discretion of oracle

general product direction

program agenda introduction

oracles products

safe harbor statement

information purposes

purchasing decisions