Hyperion System 9 Capital Expense Planning

Agenda
Overview Key Features Walk through Questions

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Feature and Functionality

Plan for new capital expense and intangible expense Planning of multiple asset requests Depreciation/Amortization calculations Straight Line, Declining Balance, Sum of Years Digit, Conventions Predefined global assumptions e.g. Useful Life, Depreciation conventions Planning for asset related expenses e.g. Maintenance, Insurance,Repairs Planning for Improvements on Existing assets Planning for Sale and Writeoff Planning for Transfer Planning for impairments on intangible and corresponding amortization impacts
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Feature and Functionality

Reporting at entity level or at aggregated corporate level across asset class
Capital Expenditure Summary and details Balance Sheet Impact Profit & Loss Impact Cash flow Impact

Provision to specify CAR # (Capital Acquisition Request), Justification, Priority Additional hidden fields Freight, Installation, Tax,Retirement Obligations and Additional Charges

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What makes up the Module

Accounts Line Items Asset Classes Data forms
Including Composite Forms

Smart Lists Business Rules Menus Predefined Process

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Account Dimension
Capital Assumptions
Assumed to be Global Assumptions across the application.

Useful Life (in Years)

Depreciation Method Depreciation Convention Cash Flow Incidence Funding % Funding Incidence Insurance % Repairs % Maintenance % Amortization Method Depreciation Rate

Asset Properties Accounts

Primarily Associated with New Additions

Asset Control Members Balance Sheet Accounts

PPE Gross Accumulated Deprec

Asset Properties Asset ID Asset Description CAR No. UOM Purchase Reason Code Justification Priority Physical Location

Expense Accounts
Deprec Exp, Insurance Exp, Gain/Loss on Sale

Cash Flow Accounts

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Out of the Box Global Assumptions

Useful Life Depreciation method SLN (straight line method)

SYD (Sum of years digits)

Depreciation expense = (Cost - Salvage value) x n, n-1.. / (1+2+3+...+ n)

Declining Balance By Year (Declining balance by Year) Declining Balance By period (Declining balance by Period)
Depreciation = Book value x Depreciation rate Book value = Cost - Accumulated depreciation

Depreciation Conventions Cash Flow Incidence Funding % Funding Incidence

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Dimension - Asset Classes

Two Categories of Asset Classes Tangible
Items you are accustomed to seeing, Machinery & Equipment Furniture Fixtures Computers Etc

Intangible
Extensive List of items Goodwill, Patents, Copywrites Distribution Rights

For Reporting you will need to link together Accounts and Asset Classes to see PPE by Category

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Dimension Line Item

Two types of Lines Items
New Existing

New
Out of the box comes with 30 preset members you can add more Allows you to detail out the acquisitions Add New Asset business rule adds the new members to the form.

Existing
Two Types Specified Unspecified

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Dimension Line Item - Contd

Specified Existing Assets
Allows you to either enter or upload existing assets The purpose for these members is if you needed to plan improvements to an existing asset for some reason. The existing asset and its balance is expected to go into the Base SP member and the improvements can be entered into the IM1 SP1 member. You can therefore have multiple improvements to an existing asset. Out of the box you have 10 pre-built members Asset Control Properties accounts can be used to identify the specific existing asset. Can be helpful if you use the transfer asset business rule. Think carefully when implementing this functionality. Application could get very big client might want to track all assets

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Dimension Line Item - Contd

Unspecified
Bring in information on existing assets at a summary level by asset category for reporting purposes You could use this member to load depreciation expense generated by the clients fixed asset system for existing asset by categories. There are pre-defined members that you can use to adjust the asset categories

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Forms
Fifteen predefined Forms Forms for
Adding New Asset vs Managing Existing asset Adding a Tangible vs Intangible asset Summary Forms P/L Impact Forms Balance Sheet Impact Forms Cash Flow Impact Forms What If forms

Some forms are composite forms

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Out of the Box Business Rules

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Flow
Main Form is the Global Assumptions Form
Set Useful lives by asset category for the entire application. Will need to customize if Useful lives vary Entity or region etc or if there are many useful lives for a single category Set the Depreciation method SL, SYD, Declining Balance Set Deprecation Convention Convention etc Set the Cash Flow Incidence When will the asset be paid for Set the Funding %, Funding Incidence Will it the company be taking a loan to get the asset When will the company get the funds to pay for the asset Funding % indicates how much the company will get from the outside to make the purchase. Set the Repairs & Maintenance, Insurance cost for asset additions Set the Amortization Method

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Flow Contd
Planners go in and add new assets Run Depreciation Expense Manage existing Assets
Improve existing Assets, Transfer Assets, Retire etc

Run rules
Depreciation Expense P&L Impact Balance Sheet Impact Cash Flow

Right Click Menus

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New Asset Request

Form is a Composite Form Additions are entered to BegBalance, No Year members by Scenario and Version
Design Consideration Planning Multiple Years how do you not overwrite this years additions for say FY09 vs. Next year Budget for FY09.

Associated Rules
CalcDeprec calculates depreciation and a whole lot more

Can add multiple line items at once Process Demo

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New Asset Request

In Service Date is used for Depreciation Expense whereas Purchase Date is used for Cash Flow Business Rules are complex will take some time to modify.

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Modifications/Things to Think About

Deprecation Methods
Offers 3 typically customers only use 1 method Tests for the different conventions may want to remove the unused methods.

Physical Location
Need to update smart list

CAR #
Typically Planners dont know the number in advance

Depreciation is for one category at a time vs. all categories may get frustrating for clients
May want to modify RTP to do multiple categories

Forms total spending might want to change point of view to asset class in the rows

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Modifications/Things to Think About

Business Rules
Many rules have aggs at the end. Need to think of the process and when and if each agg is required. Many rules Calc Dim on Periods probably can remove them. Fix Statements could probably be improved
FIX ([Hidden_Scenario], [Hidden_Version], [Department], [AllAssetClass]) CLEARDATA [LocalLineItem]; ENDFIX FIX ([Hidden_Scenario], [Hidden_Version], [Department]) CALC DIM ("Period"); @ANCESTORS([LocalLineItem]); @ANCESTORS([AllAssetClass]); ENDFIX Could be re-written FIX ([Hidden_Scenario], [Hidden_Version], [Department]) Fix [AllAssetClass]) CLEARDATA [LocalLineItem]; ENDFIX CALC DIM ("Period"); -remove @ANCESTORS([LocalLineItem]); @ANCESTORS([AllAssetClass]); ENDFIX

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Business Rules
Each rule has calc dim statements at the end. No real rule that aggregates the Entity for the User Rules do not have Set Calcupdate off in them. Need to modify Rollup Entity rolls up the entire Entity dimension.
May want to add a Run Time Prompt for Entity and fix rule

Out of the box Deprec Rule handles crossing years. Doesnt handle crossing over Scenarios Rules have many hidden prompts for various expense. Need to determine if they should be exposed.

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