finit solutions getting the most out of hfm - he to hfm webinar session 1

The Finit Solutions Series

Hyperion Enterprise to HFM:Design Considerations andDesign Considerations and Best Practices (Part I)

July 22 2009July 22, 2009

Presented by Rob Cybulski

www.finitsolutions.com


About Finit Solutions


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HE to HFM: Design Considerations & Best Practices Part I

Finit IntroductionThe Finit Solutions Series

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

Financial Consolidation and Reporting

– Financial Management (HFM)

– Hyperion EnterpriseHyperion Enterprise

– BI+ Reporting Tools

Data Integration

– Financial Data Quality Management (FDM)

– Oracle Data Integrator (ODI)

– Data Integration Management (DIM)

Planning and Business Intelligence

– Planning

– Essbase

www.finitsolutions.com‐ 3 ‐

ssbase

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Finit’s HE to HFM ExpertiseThe Finit Solutions Series

• Many of Finit’s consultants are former Hyperion Enterprise administrators and

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have been working with Hyperion Enterprise since the early 1990's. Finit’s two founders were Big 6 Hyperion Enterprise consultants in the late 1990’s.

• Finit’s certified HFM consultants design and implement HFM applications, upgrades, redesigns, and conversions from Hyperion Enterprise for middle market companies to some of the largest companies on the Fortune 500.

• Our combined expertise in HE and HFM, as well as our accounting and finance‐based backgrounds, enable us to quickly understand what clients are currently g q y ydoing in HE, translate that into an HFM application, and take advantage of the additional features and functionality available in HFM.


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Finit’s Client ServiceThe Finit Solutions Series

W t k li t i i lWe take client service very seriously.

Our methodology of efficiently developing effective solutions and exceeding expectations on every

project has resulted in a 100% client satisfaction rate at more than 100 clients.


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Some Finit ClientsThe Finit Solutions Series

•


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About the PresenterThe Finit Solutions Series

Rob Cybulski([email protected])

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

with the Hyperion suite• Frequent presenter at Hyperion

fconferences• Serves as the Hyperion Enterprise,

HFM, and FDM 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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Purpose of the Webinar


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Purpose of this SessionThe Finit Solutions Series

• Geared towards organizations on HE

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• To demonstrate functionality and dimensionality differences between HE and HFM

• To detail application design differences, including how the following are handled in each product:– Multiple organization structures

– Sub‐entity structures

– Sub‐account tables


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Purpose of this SessionThe Finit Solutions Series

• To address application design considerations for converting from HE to HFM including:

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converting from HE to HFM, including:– Why you won’t need your ‘Sub’ and ‘DSub’ Chart logic

h ’ h d ll h d f h– Why you won’t have to do rollovers at the end of each year

Wh / h t C t di i– When / why to use Custom dimensions

– Options for handling constant rate foreign currency analysisanalysis

– Chart of account considerations


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Purpose of Session #2The Finit Solutions Series

• Part 2 of this webinar will be held on August 19 and will continue on the topic of HE to HFM

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and will continue on the topic of HE to HFM conversions and cover the following items:

P j l i f i l i– Project planning for an implementation• Detail on the different project phases

• Key requirement / design decisions that will impact project• Key requirement / design decisions that will impact project timing

– End user training optionsEnd user training options

– Technical considerations

– Implementation resource commitments


Implementation resource commitments


About Hyperion Enterprise


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About Hyperion EnterpriseThe Finit Solutions Series

• Has been in use since 1991 and has helped many finance and accounting departments across the globe produce

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and accounting departments across the globe produce their internal and external financials.

• Has 5 dimensions (Entity, Account, Category, Year ‐Has 5 dimensions (Entity, Account, Category, Year Period, Frequency.)

• End user data entry options via a Data Entry module or y p ythrough Schedules.

• Reporting options include HE Reporting (web or client p g p p g (based), HE Retrieve and HE Analyst (Excel.)


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About Hyperion EnterpriseThe Finit Solutions Series

• Easily owned and maintained by the finance / accounting department with very little IT

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accounting department with very little IT involvement after initial setup

l h d b• Built with a proprietary database– HE originally had support for running on relational

b b h hdatabases, but that support was dropped with 6.5.

• Built for LAN and WAN, but not specifically for the web (some web functionality is available today)



Common Hyperion Enterprise Application StrugglesApplication Struggles


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Common HE StrugglesThe Finit Solutions Series

• Constrained by 5 dimensions (Entity, Account, Category, Year ‐ Period Frequency )

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Year Period, Frequency.)

• Visibility into Intercompany Elimination detail is limited (how did my plug account get so big?!)(how did my plug account get so big?!)

• Elimination entities must be added at every common parent where eliminations might occur.p g

• The admin must perform a ‘rollover’ every year, to make ‘Actuals’ the current year. The timing of this can get y g gawkward.– Alternatively, categories for each year can be used, but this can


lead to increased report maintenance.

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• Backups and system maintenance can result in downtime requiring all users to exit the system

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downtime requiring all users to exit the system.

• HE requires an investment in a third party h l l l b ftechnology to scale to a larger number of users.

• A large amount of subtotal logic is needed to perform aggregation totals by sub‐account details. – e.g. salaries across all SG&A items

• Entity substructures can become large (.inp, .adj, .tot, .usdadj, usgaapadj, totusd, etc.)


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• The Data Entry and Database screen are fixed to only allow for months in the columns and accounts in the

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allow for months in the columns and accounts in the rows.– This can limit the ability to easily enter and report on amounts.

• Limited certification / validation options exist:l l l k f d l d– Only a single locking account for data validation.

– Difficult to add many validations and ensure users are reviewing them

– Only way to determine status of an entity is locked / unlocked.

– No certification functionality or a controlled user experience exists. Users must click around the different modules to complete all close activities.



Common Hyperion Enterprise Application WorkaroundsApplication Workarounds


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Common HE ‘Workarounds’The Finit Solutions Series

• Building multiple applications for different reporting requirements (external management tax legal )requirements (external, management, tax, legal.)

• Building additional dimensionality into the Entity dimension (e.g. Product, Region, etc.)dimension (e.g. Product, Region, etc.)

• Building additional dimensionality into the Account dimension (e.g. Cost Centers, Rollforwards, etc.)( g , , )

– Sometimes leads to reporting difficulties and additional maintenance as new requirements emerge.q g

• Creating special Reports & Retrieve sheets for ad hoc analysis and storing financial data ‘off‐line.’


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Common HE ‘Workarounds’The Finit Solutions Series

• Working in two apps simultaneously at year‐end (one has been rolled one has not )(one has been rolled, one has not.)

• Creating separate entities for different groups of d l h f d ffdata to control the timing of access to different account groups.

• Implementing Citrix technology to provide remote access to a centralized Enterprise application. – Can add additional expense and administrative requirements to the system.



Comparison of HFM to Hyperion EnterpriseHyperion Enterprise


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HFM to HE ComparisonThe Finit Solutions Series

Hyperion EnterpriseHyperion Financial Management

Client-Server architecture

Built to unify all financial data

Scalability to 1000s of users12 “Smart” dimensions 5 fixed dimensions

Built for consolidation process

E t t i W b UI

Distributed deployment + some Weby

Web-architected centralization

HTML i i d

24/7 support Offline maintenance and backup

Object-oriented reporting

Easy to customize Web UI

Process work flow

HTML programming required

N/A

N/A

Part of Oracle’s Enterprise Standalone financial application

Robust controls and audit trails for improved SOX compliance Some controls and audit trails


Performance Management SuiteStandalone financial application

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• User Friendly– Web‐based (application and reporting)

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Web based (application and reporting)

• Flexible– Additional dimensionality (12 dimensions, including 4 customs)

• Custom dimensions can be used to fit your reportingCustom dimensions can be used to fit your reporting requirements.

– Data grids can be set up with any combination of dimensions in the columns and rows for easier ad‐hocdimensions in the columns and rows for easier ad hoc viewing

– Cell text available to explain numbers


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• More Functionality

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– Enhanced intercompany reporting (end user driven)– Controlled end‐user experience through task lists– Process Management provides insight into unit’s statusProcess Management provides insight into unit s status, who performs what activities, and when users have access

– Ability to tie validation checks to end user sign‐offV lid i d ll h l i l d fl i– Validations and cell text can help include fluctuation analysis in the system, versus offline methods

– Maintenance can be performed when users are in the system

– Reporting – centralized, dynamic, less maintenance


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• Hyperion Enterprise customers who have migrated to HFM have seen the following benefits:

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– More controlled end user process with consistent, controlled workflow

R d d ti f C t ‘ t hi ’ i t k b– Reduced time for Corporate users ‘catching’ mistakes by including more data quality validations and certification steps

– Improvements at each level of the organizationp o e e ts at eac e e o t e o ga at o• Data Loaders through FDM, controlled task list and validations

• Corporate consolidations through improved intercompany elimination and journal functionalityand journal functionality

• Reporting users through increased level of detail stored and analysis capabilities. Reporting is improved through HFM’s dimensionality (easier to do By‐By‐By reporting )


(easier to do By‐By‐By reporting.)


HFM Dimensions


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HFM DimensionsThe Finit Solutions Series

HFM contains 12 dimensions, 8 of which are preset and 4 of which are optional. The 8 preset dimensions are:p p

1. Scenario – Type of Data (i.e. Actual, Budget, Forecast)2. Period – Can be the month, Quarter, etc to view the data

l ( )3. Year – Fiscal reporting year (2007, 2008)4. View – Frequency (Periodic, YTD, QTD)5. Entity – Hierarchies of the main reporting rollups needed (Legal, Tax,

M t t )Management, etc.) 6. Value ‐ The audit trail of an entity, including local currency, translated / pre‐

elimination amount, elimination amount and post elimination amount7 Account The HFM application chart of accounts7. Account – The HFM application chart of accounts 8. ICP – Intercompany Partners: The partner entity that the intercompany

relationship is with


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HFM DimensionsThe Finit Solutions Series

• Custom dimensions are ‘tagged’ to the Account dimension. Certain accounts may or may not use the custom dimension members.

• The custom dimension members could be your Hyperion Enterprise sub‐accounts or the dimensionality detail that was built into the Entities section (Product, Brand, etc.) ( , , )

• Some examples of custom dimension members include:

– Balance Sheet movements or Roll‐forward details

– Expanded cash flow analysis including calc, CTA and adjustment members

– Departmental details for SG&Ap

– Product, BU, Channel, Geography, Customer and / or Market information for Sales and Cost of Sales members

Adj t t d t il t ki f l l GAAP t US GAAP / IFRS


– Adjustment detail tracking from local GAAP to US GAAP / IFRS


HE to HFM: Dimension MigrationMigration


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HE to HFM: Periods & YearsThe Finit Solutions Series

HE HFMPeriod

Year


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HE to HFM: Category ‐> ScenarioThe Finit Solutions Series

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HE HFMHE HFM


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HE to HFM: Category ‐> Scenario + YearThe Finit Solutions Series

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HE HFMHE HFM


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HE to HFM: Frequency ‐> ViewThe Finit Solutions Series

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HE HFM


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Dimension ReviewThe Finit Solutions Series

Review of the Scenario, Period, Year and Frequency Dimensions:


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HE to HFM: EntityThe Finit Solutions Series

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HE HFM


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HE to HFM: Subentity ‐> Value + EntityThe Finit Solutions Series

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HE HFM


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HE to HFM: Acct.Subacct ‐> Acct + CustomThe Finit Solutions Series

HE HFM


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HE to HFM: Subaccount ‐> CustomThe Finit Solutions Series

HE HFM


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HE to HFM: Data IntersectionsThe Finit Solutions Series



Design Considerations


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Chart of AccountsThe Finit Solutions Series

A few choices exist when implementing HFM in terms of the chart of accounts:

• Keep the Chart of Accounts as close as possible to Hyperion Enterprise or existing p p yp p gsystem.

– Considerations: Easiest / quickest option, but may not give enough ROI for the HFM implementation. Does provide consistency with migration. Later phases to change the chart of accounts could require re workchart of accounts could require re‐work.

• Clean up / modify the Chart of Accounts, but keep the majority of the Chart of Accounts in place (level of detail / labels.)Accounts in place (level of detail / labels.)

– Considerations: Many existing systems have a lot of ‘clutter’ and this streamlines unused members. Relatively little difference to users over the first option.

• Modify the Chart of Accounts to include new labels / level of detail.– Considerations: Biggest impact in terms of migration (users, timeline, data activities.) Implementation is the best time to do a change like this as the project teams are set.


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Foreign Exchange Constant Rate AnalysisThe Finit Solutions Series

Foreign Exchange (FX) Constant Rate Analysis allows organizations to view financial results comparatively across years or scenarios while

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p y yevaluating all data at the same FX rates. By allowing the FX rate to be constant and evaluating all data at the same FX rate, it allows for a more ‘apples to apples’ comparison of financial data Constant Ratemore apples to apples comparison of financial data. Constant Rate Analysis can be performed inside HFM with one of two options:

•Option 1: Scenario Based MethodOption 1: Scenario Based Method–The Scenario based method uses separate scenarios in HFM to store and calculate the data at the different rates (i.e. one Scenario for Actual at Actual rates, one for Actual at Last Year rates, etc.)

•Option 2: Custom Dimension MethodOption 2: Custom Dimension Method–The Custom dimension method uses a custom dimension that is applied to all accounts. The custom dimension would contain members that store the data at Actual rates, Last Year rates, etc.


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Constant Rate Analysis Scenario MethodThe Finit Solutions Series

The Scenario method uses separate Scenarios to store and calculate the data at the different FX rates. With this method, the HFM app will

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, pphave more Scenarios in it. The following Scenarios typically exist:


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Constant Rate Analysis Scenario MethodThe Finit Solutions Series

The Scenario method requires data to be moved and consolidated in each Scenario. Depending on the number of Forecast Scenarios, this can result in a lot of data

d lid i F l J A l d ld d

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movement and re‐consolidation. For example, June Actual data would need to get copied from the Actual scenario to the Forecast scenario, as well as to all FX scenarios. Data can be copied manually or via rules; however, in all cases, each scenario needs to be re consolidated after the data is copied into itscenario needs to be re‐consolidated after the data is copied into it.


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Constant Rate Analysis Custom Dim MethodThe Finit Solutions Series

The Custom dimension method uses a dedicated custom dimension to handle the foreign currency translation. With this method, custom dimension members are

d h fi i l d h diff FX Th b i hi

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used to store the financial data at the different FX rates. The members in this dimension need to be applied to every account where constant rate reporting is performed.


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Movement AnalysisThe Finit Solutions Series

• Inside Hyperion Enterprise or other systems with limited dimensionality, it is difficult to capture the movement on the balance sheet. With HFM’s custom dimensions, one dimension can be used to capture the full movement on every balance sheet item. This

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p ydimension would be applied to all Balance sheet accounts. This aids Cash Flow analysis and fluctuation analysis.

• An example of how a Custom 2 hierarchy could be set up to handle movement on all balance sheet accounts is shown above. Only the EB_Tot member aggregates to the parent to avoid double‐counting, and BalSheetChange and BalSheetFX are calculated members to quantify constant‐rate movement and movement due to CTA, respectively.


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Movement AnalysisThe Finit Solutions Series

In the following example, the current period’s local currency (GBP) and translated (USD) balances are shown for several balance sheet accounts.

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Task ListsThe Finit Solutions Series

• Task Lists can be used inside HFM to facilitate the user experience of their closing activities.

• It enables end users to complete their closing process workflow without navigatingwithout navigating.

• Task lists can include Data grids, Web data entry forms, Reports, Link C d k hto FDM, Custom Documents and Tasks such as Process Management

or Journal Entries.

• Great, easy way to use a controlled process for end users. Very easy for training.


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Task ListsThe Finit Solutions Series


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Process ManagementThe Finit Solutions Series

• Process Management is the certification review of financial data.

• Process Management includes up to 9 levels of review and can be

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Process Management includes up to 9 levels of review and can be tied to Security. When this occurs, a user cannot modify the data once they have promoted it.

• Financial data can be promoted upwards or rejected downwards.

• Submissions can be tied to phases (optional)– Phased Submissions allows companies to break their close into multiple phasesPhased Submissions allows companies to break their close into multiple phases.

– With Phased Submissions you can promote (and lock) part of the financial data at different times.

– For example, a company whose process involves Flash on Day 1, Trial Balance p , p y p y ,submission on Day 4 and Supplemental on Day 6 can break those events into phases. When users get to their Supplemental submission, the Trial Balance and Flash data will already be protected and certified, which ensures that it will not change.


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Data Validation ChecksThe Finit Solutions Series

• Validation accounts can be tied to Process Management to determine whether Promotion and Sign Off can take place.

• A series of validation accounts can be created such as Accounts Receivable Aging total reconciling to the Accounts Receivable ending balance Roll forwards sales detail etc can also be usedbalance. Roll‐forwards, sales detail, etc. can also be used.

• Using the Task List, users can go through their submission and then run a validation report to tell whether they pass or failrun a validation report to tell whether they pass or fail.

• Upon passing those checks, a user can promote.

• This is a great way to take the burden of ensuring data integrity off of the Corporate finance team and place responsibility with end users.


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Data Validation ChecksThe Finit Solutions Series


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Historical OverridesThe Finit Solutions Series

With the addition of custom dimensions, overrides can be greatly expanded inside HFM. Some examples include:

– Rolling the override forward automatically. Thus, a user would only need to input the override one time.

– Computing a new override if one was not entered.• Detecting if there was a local currency change on the associated account and then taking that change against theassociated account and then taking that change against the AVG or EOM rate + the old Override.

– Flagging a validation account if an override account has a local h b t th USD t did t hcurrency change but the USD amount did not change.

– Overrides by currency if multiple currency roll‐ups exist (USD, Euro, CHF, etc.)


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Upcoming WebinarsThe Finit Solutions Series

Hyperion Enterprise to HFM: Design Considerations and Best Practices (Part II)

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On August 19, you will gain insight into planning and managing a conversion to HFM, including pre‐project architecture considerations, implementation resource commitment, and end‐user training plans.

FDM Application Settings: Getting the Most out of FDMOn August 5, we will review the basic application and configuration settings in FDM. You will learn how to change the user settings and web settings in FDM to modify FDM's appearance for the end user as well as how to change the wording on various FDM menuswording on various FDM menus.

To 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

l k h d

[email protected]

678‐296‐3611

link to the recording.


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