Financial Management Reference Model

Teradata Industry Logical Data Models Core Finance and Performance Management Subject Areas Comprehensive enterprise-wide model of finance business functions 22 subject areas 500+ business questions Technology neutral – not designed for any specific ETL tool, ERP system, or business intelligence tool Flexible and extensible architecture compatible with Decision Experts Core Areas: G/L, A/R, FA, A/P, Procurement and Project Assets Revenue Expense Liabilities Equity These extensions of the Finance and Performance Management subject area were released for the industry LDMs in 2005 under FM 4.0. In this release, we expanded our finance shared subject area beyond G/L to include A/R, A/P, FA, Procurement and Project Accounting. The data model extensions across the six subject areas are integrated with the Decision Experts product (see additional presentations for details on Decision Experts) providing customers with a rapid packaged solution for building out the financial components of their data warehouse while linking it with other data sets (CRM, Supply Chain, or Demand Chain for example) within their enterprise data warehouse. The FM 4.0 shared subject area is available on a standalone basis and was integrated into the industry LDM releases throughout 2006. [Enter any extra notes here; leave the item ID line at the bottom] Avitage Item ID: {{5DA559C1-BADA-4F48-9101-2E59F78F4E31}} G/L ACCOUNTS Accounts Receivable Fixed Assets Accounts Payable Procurement Project iLDM

General Data and Process Flows for General Ledger Business Requirements Focus on Summary Financials Income Statement Balance Sheet Transaction details Journal voucher Links to sub-ledgers like Accounts Payable and Accounts Receivable General Data and Process Flows for General Ledger CHANNEL PRODUCT PARTY CONTRACTS Purchase Order Project G/L Balance G/L Internal Organization AP Invoices Time Reporting G/L Product Segment Journal Entry Time Period Fixed Assets Project Accounting G/L Sub Account G/L Accounts GL Sub Ledgers AR Invoices SALES ORDER The General Ledger subject area describes the summary financial activity for a company for any given period of time. The General Ledger was the original focus of the Finance & Performance Management Subject areas. The General Ledger subject area takes a customer’s chart of account and breaks it down into the individual segments to facilitate reporting for each segment and any hierarchy to which it summarizes. Each valid chart of accounts number is assigned a Chart of Accounts Segment group ID to track journal entry transactions and account balances. Currency details are captured for G/L transactions and G/L balances. The transaction currency refers to the currency and rate applied to the transaction (for example, the currency in which the customer is billed). Functional currency is also known as “local currency.” For example, the functional currency for a legal entity in the United Kingdom would be the British pound. Global currency refers to the single currency used for reporting total company results externally. For US-based companies this would be the U.S. dollar. [Enter any extra notes here; leave the item ID line at the bottom] Avitage Item ID: {{5FCC83AF-199E-43C9-96DF-3BD249ED3451}} REVENUE EXPENSE ASSET LIABILITIES EQUITY Relates to: Set of Books Income Statement & Balance Sheet reporting Summary control accounts for sub-ledgers Transactional, functional and global (reporting) currencies Journal Entry transaction detail

General Ledger Business Questions What is the profitability by geography, business unit, and product line? How do actual results compare to budget? What areas have the greatest variance from plan results? How much has been written off against each general ledger account? What is the expense history across controlling areas and cost centers? How do my overhead costs compare by store and region? How is this quarter’s income distributed across legal entities? What is the current balance sheet position? Concepts Chart of Account Balance Journal Entry GL Main Account GL Sub Account GL Internal Org GL Product Segment GL Project Segment Asset Account Liability Account Equity Account Expense Account Revenue Account The concepts within the General Ledger fall within three categories: Chart of Accounts Related: Chart of Account related concepts include GL Main Account, GL Sub-Account, GL Internal Org, GL Product Segment, and GL Project Segment. The chart of accounts lists all the segment information required to post a transaction in a company’s General Ledger. Organization, a typical chart of account segment, is related to the General Ledger subject area through GL Internal Org. Reporting Related: The FM Asset Account, FM Liability Account, FM Equity Account, FM Expense Account, and FM Revenue Account are concepts used to map the key reporting needs from the General Ledger. Reference slide #4 to see how these entities map the G/L Accounts segment to support the reporting of company Balance Sheets and Income Statements. Other: G/L Balance shows the actual amounts at some point in time or budget amounts projected for a financial plan. Journal Entry records the monetary value of business transactions as debits or credits into G/L balances within a specified accounting period. This is the linkage point from sub-ledgers such as A/R, A/P or Fixed Assets into the G/L. Financial closing periods are defined in the Special Purpose Calendar subject area of an industry LDM. The date and accounting period to which a transaction belongs is mapped to the Fiscal Calendar. Calendar month and calendar year are often different from Accounting month and Accounting Year. [Enter any extra notes here; leave the item ID line at the bottom] Avitage Item ID: {{44F9BBF7-39B7-429A-82BD-9F9E9FAB8FDB}}

A single Financial and Operational View – FPM LDM Blueprint for Integrating Finance and Operational Data Pre-built industry LDMs spanning financial and operational data provide linkage between financial results and operational drivers Integration with TDE 12.0 domains provides speed of deployment Comprehensive enterprise-wide model of finance business functions Technology neutral – not designed for any specific ETL tool, ERP system, or BI tool Flexible and extensible architecture reduces implementation time and risk Industry-centric, Enterprise-wide data models including financial management data elements provides a flexible foundation for accelerating the integration of financial and operational data: CHANNEL LOCATION PARTY CONTRACTS PRODUCT Project G/L Balance G/L Internal Organization Purchase Order G/L Product Segment Journal Entry Time Period AP Invoices Inventory This conceptual diagram shows the core Finance & Performance Management subject areas including new areas for 2007. Areas of relationships to other parts of an industry model such as Party, Channel, and Product are shown in Orange. All new subject areas (shown in red) are integrated with the Teradata Decision Experts 12.0 domains. [Enter any extra notes here; leave the item ID line at the bottom] Avitage Item ID: {{E4E7495A-6432-40E0-AE49-67BFDC31EE77}} G/L Sub Account G/L Accounts GL Sub Ledgers Fixed Assets Project Accounting Labor Distribution Revenue Expense Asset Liabilities Equity AR Invoices Sales Order Training Admin Not all relationships are shown. Red indicates new in 2007. Payroll Human Resources Benefits Analysis