hyperion profitability and cost management building blocks

8/9/2019 Hyperion Profitability and Cost Management Building Blocks

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Oracle Hyperion Profitability

andCost Management

1

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Fundamentals of HPCM Model

End Point

of Analysis

A model is a representation of part or all of an organization, and contains costs and

revenue categories that are similar to the organization's chart of accounts.






Goal : Costs for each resource hiring cost(Preassessment, scrutiny, interview, post hiring process).Starting Point : Cost data for hiring process.Missing : Accurate tracking of the intermediate stepsor activities that contributesto costs for hiring process and support services

Costing Model : Enable you to add as manyintermediate levels as needed to allocatecosts to ultimate objects, such as products, candidatesand services

Example :

i) How much cost spent on advertisement and pre-assessment process.

ii) How many calls made to identify the right resources.

Fundamentals of HPCM Model






GL Account forHR Expenses

Allocated to

Model Hierarchy Allocation Model

HR Expenses for

Department which

are Allocated to

Functional Groups within

Each Departments, which

is allocated to

Activities Performed By

Different HR Group whichis allocated to

Service (Overall Hiring

Cost From parent to

individual)

The HR activities and HR processes that

consume costs within an organization have

complex relationships and dependencies.

The end HR service of one activity or

process is frequently the start point of

another HR activities or process. Therefore,

the costs calculated at one level in the model

become source value to be allocated to the

next level. HPCM applications allow modelswith up to nine levels






Multiple-Level Model Example : Levels 1 and 2

Level#1

Cost to recruit and Train internal workers

Per Head Cost of

Recruitment

Type of Recruitment and their

associated Cost.

Explicit Cost of recruitments







Level#2


Campus Interview

Career Fair

Requirements vendor

Employee Referral

Web GroupJob Portals

Print Media

Type of

Recruitment and

their associated

Cost.




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Level#2


Advertising

Agency Fees

Employee Referrals

Travel Costs

Relocation CostsRecruiter compensation and benefits

Healthcare costs per Employees

Explicit Cost of

recruitments





Model Components

1. Stages

2. Business Dimensions

3. Assignments

4. Driver

5. Measures Dimension

6. Point of view Dimensions





Business dimensions, which describe the objects within each stage inthe model, such as products, customers, regions, and so on. Thedimensions and members, which are created in PerformanceManagement Architect, are the foundation of the model.

Stages

Department Activities Const Input

HR-Hiring Advertising 300

HR-Hiring Agency Fees 400

HR-Compensation and Benefits Relocation Costs 500

HR-Compensation and Benefits Travel Costs 1200





Assignments

Assignments define the flow of data from sources to destinations. Theflow is established by creating relationships between a source anddestination for each node or intersection in the model, the destinationfor one member becoming the source for the next intersection in theallocation flow.

HR Cost

HR Hiring HR Compensation and Benefits

Advertising Agency Fees Relocation Costs Travel Costs





Drivers

Drivers provide the formulas for allocating source intersection values todestination intersection. For the example on the slide, the driver for the finishactivity allocates the Finish cost and the driver for the Sales visits activity allocatesthe Sales Visits costs.In the below example Cost Driver is given





Measure DimensionThe Measure dimension contains members that store the different types of

data for business dimension members that are required for the allocationprocess:

Driver measures store values used as parameters in driver formulas, such as

Quantity and Rate. There are ten predefined driver measures, but you canmodify these predefined driver measures.

Driver Measures

Reporting measures are designed for ease-of-use in report creation. Reportingmeasures form alternate hierarchies in the Measures dimensions. Reporting canbe done on any measure.

Reporting Measures





A Point of View in an HPCM application is defined much like a point of view inany Essbase or Planning application. The point of view dimensions typicallyinclude Year, Period, Scenario and Version. The POV(s) must be explicitly definedin a HPCM application. They can contain as few as one (1) or as many as four (4)dimensions. They represent the slices of the HPCM for which the allocations aredefined and processed. For example, one POV may be defined as

“2010,Jan,Actual” while another may be defined as “2009,Jan,Actual”.

Point of View




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hyperion profitability and cost management building blocks

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