Oracle Hyperion Financial Management in the Cloud Currency Conversion Feature

Posted by Deborah Jelley

Jan 23, 2015 8:41:00 AM

currency

Could you do it in the Cloud? Would you, could you do it in your office? (with apologies to Dr. Seuss…)

Why would you want to perform a direct currency conversion on Oracle's Hyperion Financial Management (HFM) in the Cloud? Maybe it’s important to be able to look at data that comes in from your subsidiaries and translate it immediately to see if the currency fluctuation is material. Well, consider this: you may have your physical HFM application set to always translate your actual data and populate canned reporting on an overnight or perhaps even a continuous basis during your closing cycles. That’s fine for your final reports, but what about translating data on the fly? 

If you move HFM to a cloud environment, would you lose the ability to run a conversion program whenever you wanted to? The rule of thumb is that whatever you do in your physical instance of HFM you will be able to do on HFM in the Cloud. We find that most clients prefer having the data already translated when they open the report. If it’s not translated or refreshed on a regular basis, analysts and people reviewing the report can make erroneous assumptions and conclusions. The on the fly translating feature can certainly be made available to your users, but it would be easier and less confusing if converted data was delivered regularly whenever consolidation programs have to be run.

What does it take to set up currency conversion?

Without wading too far into the details, the structure for a currency conversion would be set up the same way through EPMA (Enterprise Performance Management Administration) in the Cloud. 

Metadata example:

AppSettings:

  • Default currency – typically USD in U.S. companies
  • Rate for Balance Accounts – typically a Spot Rate
  • Rate for Flow Accounts – typically an Average Rate
  • USD – U.S. Dollar; CAD – Canadian, EUR – Euro, etc.
  • For example: you have three physical plants: one in France, one in the U.S. and one in Canada.  The French entity would be assigned the Euro, the U.S. plant would be USD and the Canadian plant would be CAD. 
  • These are accounts identified to hold the currency rate itself – typically <AvgRate> and <SpotRate>.

Currency Definitions

Assign Entity Currencies

Define CurrencyRate Accounts in the Account Dimension

Currency Data:

You load currency data using the data loader available in EPMA on the Cloud.

Translate your Data on the fly:

currency_conversions

This example shows a web form that has entities by the two different currencies selected and when you highlight the CAD box – in blue – you right-click, bringing up a dialog box. Select translate from the drop-down box where you want the translated currency to display. You have to do that for every box where you want the values translated from the default currency to the target currency. 

Tiresome, eh? Yeah, better to select translation against <AllAccounts> point of view and have that set up for you in the web form to easily select and run, or investigate having  it run as a program in the background.

Summary

If you have a background currency conversion program running in your physical HFM instance, migrate it to HFM on the Cloud too and all will be well. If you have a lot of data to get translated, you can have the program running after each subsidiary upload and refreshing the standard web reports you’ve built, so when a user opens the report, all the data, both default currency and destination currency will be pre-populated.

Strafford can help you migrate HFM to the cloud and build you a proper conversion program so you can get back to the analytical work you were hired to perform. Click here to learn more.

Topics: EPM Support, Cloud Hosting, Hyperion Financial Management (HFM)