Hyperion TaxIntroduction & Update
Marc SeewaldSenior DirectorEPM Product Management
Rajesh BhatiaVice PresidentEPM Product Development
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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.
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Program Agenda
Introduction to the Hyperion Tax Transparency Suite
Hyperion Tax Provision & Roadmap
Operation Transfer Pricing
Tax Governance
Q&A
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Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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
EBS, JDE, SAP, Peoplesoft
FDM
DRM
HPCM
HTP/HFM
HFM
FCM
OBIEE
HTP / HSF
Oracle Hyperion Tax TransparencyProduct Analysis
HTP & TG
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Program Agenda
Introduction to the Hyperion Tax Transparency Suite
Hyperion Tax Provision & Roadmap
Operation Transfer Pricing
Tax Governance
Q&A
1
2
3
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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:
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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
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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
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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
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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
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
Program Agenda
Introduction to the Hyperion Tax Transparency Suite
Hyperion Tax Provision & Roadmap
Operation Transfer Pricing
Tax Governance
Q&A
1
2
3
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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)
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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.
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A Typical Excel Based Process…
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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
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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
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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
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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
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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 30
4
5
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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)
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OperationsTax Governance
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Tax Operations
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Tax Operations
Legal Entity Tax Package - Frame
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Tax Operations
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Tax Operations
Tax Provision (120)Compliance (175)
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Supplemental SchedulesTax Governance
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Tax Supplemental Schedules
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R&D CreditData CollectionTax Supplemental
Schedules
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R&D CreditData CollectionTax Supplemental
Schedules
Tax Supplemental Schedules
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Reporting
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Tax Supplemental Schedules
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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 44
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5
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