finit solutions getting the most out of epm - financial close and disclosure management

The Finit Solutions Series

Getting the Most out of EPM: Introduction to Financial Close Management and Disclosure ManagementManagement

May 12 2010May 12, 2010

Presented by Rob Cybulski

www.finitsolutions.com

The Finit Solutions Series

About Finit Solutions


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Introduction to Financial Close Management and Disclosure Management

Finit IntroductionThe Finit Solutions Series

Finit Solutions specializes in consulting services in the Oracle Hyperion Enterprise Performance Management Solutions suite of products:

Financial Consolidation– Financial Management (HFM)

Hyperion Enterprise

Planning and Business Intelligence– Planning

Essbase– Hyperion Enterprise

– Financial Close Management

– Disclosure Management

– Essbase

BI+ Reporting ToolsFinancial Reporting

Integration– Financial Data Quality Management

(FDM)

– Financial Reporting

– Smartview

– Web Analysis

Essbase Excel Add in( )

– Oracle Data Integrator (ODI)

– Data Integration Management (DIM)

– Other (EPMA, ERPi, etc)

– Essbase Excel Add‐in

www.finitsolutions.com‐ 3 ‐

Other (EPMA, ERPi, etc)

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Finit’s Consolidation ExperienceThe Finit Solutions Series

•Finit has helped companies use Hyperion consolidation tools for performing the financial close activities since inception (2002).

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•More recently, Finit has helped companies complete the ‘last mile of the close’ by completing their external reporting disclosures and then creating XBRL instance documents.

•Finit has one of the largest practices of HFM certified consultants on staff in the country. We have experience back to the early versions of HFM and have assisted clients with all aspects of HFM deployments from full lifecycle implementations to application optimization / redesign activities.


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Finit’s Client Service The Finit Solutions Series

W t k li t i i l

Finit s Client Service

We take client service very seriously.

Our client service approach has led to 100% customer satisfaction for every Finit client f y

(119 and counting).


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HFM and FDM: Upgrading to the Fusion Edition

Some Finit ClientsThe Finit Solutions Series

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About the Presenter The Finit Solutions Series

Rob Cybulski

About the Presenter

([email protected])

• Co‐Founder of Finit Solutions• More than 10 years of experience• More than 10 years of experience

implementing Hyperion products• Frequent presenter at Hyperion

fconferences• Serves as the Hyperion Enterprise

and HFM Domain Lead for h O l H i S i lthe Oracle Hyperion Special Interest Group


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How to Ask a QuestionThe Finit Solutions Series

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AgendaThe Finit Solutions Series

• Overview of Release 11.1.2

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• Introduce Financial Close Management

P id i f Fi i l Cl M t• Provide an overview of Financial Close Management functionality

• Introduce Disclosure Management

P id i f Di l M t• Provide an overview of Disclosure Management functionality


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11.1.2 Release Overview


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Fusion Edition, Release 11.1.2The Finit Solutions Series

• Oracle EPM Fusion Edition 11.1.2 was released in April 2010 and represents a major EPM release.

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• Version 11.1.2 provided existing product enhancements and new functionality.

One example is the introduction of Smart View ‘Smart slices’ for HFM– One example is the introduction of Smart View Smart slices for HFM.

• Version 11.1.2 also introduced new modules to the Oracle EPM Suite:– Financial Close Management – Task management & status across Oracle

EPM products

– Disclosure Management – External Reporting including XBRLg p g g

– Public Sector Budgeting – Planning module for public sector and education organizations

– Oracle Analytics Link – Integration between HFM & Essbase / relational


Oracle Analytics Link Integration between HFM & Essbase / relational databases


Introduction and Overview of Financial Close ManagementFinancial Close Management


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Current Financial Close StatusThe Finit Solutions Series

• The Financial Close activities for a company involve many different processes and tasks each month that are performed by different end users throughout an organization.

• In addition to performing many different activities, users interact with various software tools to perform the complete closewith various software tools to perform the complete close activities. This can include:– General Ledger systems – Oracle E‐Business Suite, SAP, JDE, PeopleSoft

– Data Integration – Hyperion FDM, DIM, ODI

– Financial Consolidation – HFM, Hyperion Enterprise

– Reporting – Smart View, Financial Reporting, XBRL tagging toolsp g p g gg g

• In the current state, each product runs relatively independently from the others. This leads to each product having its own overall task management / status capabilities


task management / status capabilities.

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Financial Close Cycle ActivitiesThe Finit Solutions Series

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• Activities: Booking of all transactions, review of balances and sub‐ledgers to finalize monthly balances

General Ledger Close Activities balances.Activities

• Activities: Data Loading and Mapping to Consolidation Tool. End user / IT driven to populate General Ledger balances into Consolidation tool

Oracle EPM Data Integration General Ledger balances into Consolidation tool.Integration

• Activities: Aggregation, Consolidation and Translation of financial information. Key business rule calculations / validations Consolidation adjustments

Financial Consolidationcalculations / validations. Consolidation adjustments.

• Activities: Review and analysis of Consolidated / ‘Local’ financial data. Used to support internal management decision making

Internal Management Reporting management decision making.Reporting

• Activities: Quarterly Collection and finalization of external disclosures / 10K & 10Q. Creation of the XBRL Instance Doc ‘Last Mile of Close’

External Reporting (Quarterly)


XBRL Instance Doc. Last Mile of Close .(Quarterly)

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Financial Close Cycle with Oracle EPMThe Finit Solutions Series

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• Software: Oracle EBS, PeopleSoft, SAP, etc• Activities: Booking, review and closing of all t ti

General Ledger Close Activities transactionsActivities

• Software: Primarily FDM, DIM, ODI• Activities: Data Loading and Mapping to C lid ti T l

Oracle EPM Data Integration Consolidation ToolIntegration

• Software: HFM, Hyperion Enterprise• Activities: Consolidation, Translation, Calculations, C lid ti Adj t t I t M t hi

Financial ConsolidationConsolidation Adjustments, Interco Matching

• Software: Smart View, Financial Reporting, Other• Activities: Consolidated / ‘Local’ reporting and

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Internal Management Reporting analysis to support internal management decisionsReporting

• Software: Disclosure Mgmt, Excel + XBRL Tool• Activities: Collection / Finalization of external di l / 10K & 10Q XBRL I t D



disclosures / 10K & 10Q, XBRL Instance Doc(Quarterly)

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Hyperion FDM Status VisibilityThe Finit Solutions Series

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HFM Status VisibilityThe Finit Solutions Series

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Current Financial Close StrugglesThe Finit Solutions Series

• While each product does a good job reporting status and task results individually, there is a lack of overall status reporting between the

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products. As a result, it is hard to manage the entire close.

• Since activities and the close process are closely linked together in many cases, activities have clear dependencies. Some examples include:– General Ledger account balances cannot be loaded through Hyperion FDM

until the General Ledger is closed.

– Intercompany Matching cannot begin until sites have loaded and p y g gconsolidated their results.

– Internal Management analysis of consolidated balances cannot begin until all Corporate consolidation journals have been posted. Consolidation p j pJournals cannot be posted until all base entity data has been loaded, reviewed and promoted.

• Prior to release 11.1.2, these activities had to be managed manually


Prior to release 11.1.2, these activities had to be managed manually through Excel / Email or looked at individually in Oracle products.

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Financial Close ManagementThe Finit Solutions Series

• Oracle created a new module, Financial Close Management to help organizations manage and look at the entire close process. This

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includes looking across software products and managing the different tasks and processes that various users perform.

• The purpose of Financial Close Management is to be able to streamline and better manage the financial close activities across different systems. It was designed to integrate across software products and to provide an overall picture to the financial close status.status.


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Financial Close ManagementThe Finit Solutions Series

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Financial Close Management FeaturesThe Finit Solutions Series

• Overall Financial Close Process Task Status (across products)

• Task Activity views in different formats:

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y– Calendar View

– Task List Views

A t ti d N tifi ti• Automation and Notification– Workflow automation for certain tasks

– Email Notification when tasks complete

• Process Monitoring

• Overall Status Reporting

• Account Reconciliations– Functionality to assist with General Ledger Account Reconciliations / Balance

Sheet fluctuation analysis


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Financial Close Management Task StatusThe Finit Solutions Series

• Tasks can be integrated with Oracle E‐Business Suite and Oracle EPM items.– Current release includes EPM product task integration with HFM, FDM and

Financial Reporting.

– Future releases will included expanded task integration in those products and additional integration with Planning, Essbase, DRM and Disclosure Management.

• Financial Close Management Activity Tasks can be stored andFinancial Close Management Activity Tasks can be stored and tracked by different attributes:– By Task Type – Groupings of similar tasks

B O / R ibilit– By Owner / Responsibility

– By Approver

– By Priority Levels


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Task DetailsThe Finit Solutions Series

• Tasks allow for sufficient detail including:– Instructions

– Links to documents / supporting information.

– Questions specific to the task for sign‐off and completion.

– CommentsComments

– Workflow that consists of a series of review and approval by individuals of certainby individuals of certain tasks.


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Task ViewsThe Finit Solutions Series

• Tasks can be viewed in different views:– Calendar View

– Tasklist View

– Gantt ViewGantt View

• The Task view can be customized by each user in ‘M W kli ’‘My Worklist’.

• Task views can be filtered by task type, user,by task type, user, approver, status, etc.


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Automation and NotificationThe Finit Solutions Series

• One key design element to Financial Close Management is approval workflow Each taskapproval workflow. Each task can have a workflow set up.

• The workflow facilitates notification as approvers /notification as approvers / reviewers can receive email notification when a task completes.completes.

• Automation within EPM products also exists for the automation of certain tasks.automation of certain tasks. Examples can include having tasks similar to HFM Task Flows (run multiple consolidations).


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Monitoring and ReportingThe Finit Solutions Series

• Overall monitoring of tasks can be viewed in the

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Dashboard View.

• Users can view the schedules and tasks thatschedules and tasks that they have access to.

• The dashboard view can be customized with different ‘portlets’. Portlets include Task Schedules, StatusTask Schedules, Status Charts and Status Overviews.

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• Filtering exists for views.

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Account ReconciliationsThe Finit Solutions Series

• In the next release of Financial Close Management, it will contain features and functionality to assist with Account Reconciliations.

• The Account Reconciliation functionality can help organizations with two types of reconciliation activities:

General Ledger Account Reconciliation review explanation and approval– General Ledger Account Reconciliation – review, explanation and approval of General Ledger Account activity.

– HFM Chart of Account level Balance Sheet Fluctuations – review, explanation and approval of balance sheet movements at the HFM Chart ofexplanation and approval of balance sheet movements at the HFM Chart of Accounts level.

• The Account Reconciliation feature will have reviewer / approver kfl ll f l d ffworkflow to allow for complete review and sign‐off.

• Supporting detail and schedules will be able to be attached to explanations.


explanations.


Financial Close Management User Workflow ExampleUser Workflow Example


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User Example – Receive NotificationThe Finit Solutions Series

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User Example – Review Task DetailsThe Finit Solutions Series

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User Example – Task ActionThe Finit Solutions Series

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User Example – Task DetailsThe Finit Solutions Series

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User Example – Review CalendarThe Finit Solutions Series

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User Example – Monitor DashboardThe Finit Solutions Series

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Introduction and Overview of Disclosure ManagementDisclosure Management


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Financial Close Cycle with Oracle EPMThe Finit Solutions Series

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Internal Management Reporting analysis to support internal management decisionsReporting




disclosures / 10K & 10Q, XBRL Instance Doc(Quarterly)

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‘Last Mile of Close’ Reporting FocusThe Finit Solutions Series

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Internal Management ReportingPotential

analysis to support internal management decisionsReporting



Primary Focus

Focus


disclosures / 10K & 10Q, XBRL Instance Doc(Quarterly) Focus

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‘Last Mile of the Close’ ActivitiesThe Finit Solutions Series

• The last mile of the close involves the activities and processes to produce the external disclosures such as the 10K and 10Q.

• The last mile of the close is often difficult and manually intensive• The last mile of the close is often difficult and manually intensive for companies for the following reasons:– The data can be very ‘unique’ from disclosure to disclosure, and some of

this information may not be captured or easily reported from source y p y psystems (i.e. Fair Value Measurement of investments, Stock‐Based compensation):


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‘Last Mile of the Close’ Cont.The Finit Solutions Series

• The disclosures in external documents contain a large amount of commentary and information other than amount balances (e.g. expected option life dividend yield etc )expected option life, dividend yield, etc.)


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‘Last Mile of the Close’ Cont.The Finit Solutions Series

• Many disclosures contain repetitive account balances that may be broken out into more detail. All balances must equal on the different disclosuresdifferent disclosures.


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‘Last Mile of the Close’ + XBRLThe Finit Solutions Series

• Until recently, organizations went through the last mile of the close steps internally and then proceeded to go through a process to EDGAR‐ize their external documents For some companies thisto EDGAR ize their external documents. For some companies this involved a process between their printer / publisher to submit the external document, publish in EDGAR format, review the document, re‐submit changes, etc.

• As of the fall of 2008, the SEC set a new schedule for companies related to filing their statements in XBRL format. Most companies g pare currently submitting their financial information in XBRL format now.

• XBRL adds a layer of ‘tagging’ the external disclosures with a taxonomy. This includes the financial statement amounts, block text and the amounts in the commentary in future periods.


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Disclosure ManagementThe Finit Solutions Series

• Oracle created a new module, Disclosure Management to help organizations manage the creation of critical reporting packages

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(10Q / 10K, Management reporting packages, Board reporting packages, etc.).

• Disclosure Management was built to help reduce the manual and• Disclosure Management was built to help reduce the manual and disconnected processes that mostly exist in the ‘Last Mile of the Close’ and with the creation of key reporting packages.

• Disclosure Management was designed to help companies output the packages into many different formats to satisfy the requirements of the end users:requirements of the end users:– External Reporting: XBRL, EDGAR, Word

– Internal Reporting: PDF, Word, HTML


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Document Creation FeaturesThe Finit Solutions Series

• Disclosure Management can combine multiple files into a master document.

• Sections of a master document can be broken down into ‘doclets’. An example would be for the 10Q having a doclet for the Tax Provision disclosure a separate doclet for the Cash FlowProvision disclosure, a separate doclet for the Cash Flow statement, etc.

• Each doclet can have the following:– Multiple files within it. Example would be a Word document that contains

the main commentary for the disclosure along with an Excel spreadsheet that contains the ‘report’ values. The multiple files can be merged into a cohesive document.

– Each doclet can have a workflow of reviewers / approvers. This means that the Tax Provision doclet could have its own approval process of tax


personnel reviewing and finalizing the data.

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Report / Data OptionsThe Finit Solutions Series

• Users have many options related to how to bring in the financial data into a doclet and complete document. The following options

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exist for users of Disclosure Management:– Using Microsoft Word and importing Financial Reporting reports into it.

• Financial Reporting reports can be imported into a Word Table layout to allow for XBRL tagging.

– Using Microsoft Word for commentary and overview information.

– Using Microsoft Word with Smart View links to HFM / Planning / Essbase to retrieve financial data.

– Using Microsoft Excel sheets that have Smart View formulas to retrieve the financial data out of HFM / Planning / Essbase.

– Using Microsoft Excel schedules that are not linked to Smart View.

• All of these different elements can be customized per doclet and organized in the right order to be combined correctly


organized in the right order to be combined correctly.

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DocletsThe Finit Solutions Series


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Notification / StatusThe Finit Solutions Series

• The workflow functionality, which defines the chain of reviewers / approvers per doclet, facilitates the notification functionality.

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Users can be notified via email when the tasks they are linked to have had activity (submitted, rejected, etc).

• Overall the status of the creation of the entire document can be• Overall, the status of the creation of the entire document can be reviewed and analyzed. This allows the group managing the creation of the document to see where in the process each major d l i i Th l l id ldoclet, or section is at. The approval process also provides a layer of integrity as once it has been submitted by a user they cannot change it unless it has been rejected.

• Documents can be archived to store the values and commentary at a point in time. Archives can also be compared to each other to understand changes and modifications


understand changes and modifications.

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XBRL FunctionalityThe Finit Solutions Series

• Disclosure Management provides a complete XBRL solution. It can handle many different aspects related to XBRL.

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• Oracle has partnered with UBMatrix to provide some of the functionality and components related to the XBRL functionality.

XBRL T M t• XBRL Taxonomy Management– Companies can maintain their XBRL taxonomies.

• Multiple XBRL Tagging optionsp gg g p– Report Level tagging – XBRL tags can be applied to at the report level.

Report level tagging means it is applied in Word or Excel where the line item is identified with the appropriate XBRL tag.pp p g

– EPM Application Metadata tagging – HFM, Planning and Essbase metadata labels can be tagged with the appropriate XBRL tag as a metadata attribute. This then applies to all reports where the account exists.


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• Creation and validation of the XBRL Instance Document

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XBRL Instance Doc WorkflowThe Finit Solutions Series

• Disclosure Management was designed to support the full XBRL Instance Document workflow (including validation).


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Document Output OptionsThe Finit Solutions Series

• Disclosure Management can support output to various regulatory authorities:

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– USGAAP – SEC

– IFRS – European Exchanges, SEC

• The master combined document can be output into a variety of• The master combined document can be output into a variety of formats:– XBRL

– EDGAR

– Microsoft Word

– PDF

– HTML and XHTML



Disclosure Management User Workflow ExampleUser Workflow Example


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User Example – New Office ToolbarThe Finit Solutions Series

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User Example – Multiple TaxonomiesThe Finit Solutions Series

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User Example – Report Level TaggingThe Finit Solutions Series

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User Example – Footnote CreationThe Finit Solutions Series

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User Example – Footnote PresentationThe Finit Solutions Series

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User Example – Integration with FCMThe Finit Solutions Series

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Contact and Future Webinars


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Upcoming WebinarsThe Finit Solutions Series

Getting the Most out of EPM:

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New Features and Functionality in Fusion Edition 11.1.2On June 16, you will learn about the new features and functionality in EPM Fusion Edition 11.1.2 for HFM, Planning, Essbase, FDM, Smart View, and Fi i l R ti T i ill i l d l i f th 11 1 2Financial Reporting. Topics will include a general overview of the 11.1.2 enhancements as well as specific discussion of new modules in 11.1.2, including Oracle Analytics Link, Public Sector Planning, Financial Close Management, and Disclosure Management.

To register, go to www.finitsolutions.com/Insights Webcast.htmlTo register, go to www.finitsolutions.com/Insights_Webcast.html


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Finit ContactsThe Finit Solutions Series

Q ti ?Questions? Rob Cybulski

[email protected]

215‐880‐2025

Email us for a

215 880 2025

Ed DeLise (VP of Sales)

d li @fi i l i

copy of the slides or

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[email protected]

678‐296‐3611

link to the [email protected]


finit solutions getting the most out of epm - financial close and disclosure management

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