Integrating Oracle Cloud EPM Financial Consolidation and Close with Oracle Analytics Cloud via Direct Connection

May 11, 2021 | 7 minute read
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Introduction

As we continue to work through the pandemic, we want to reflect on the impact of COVID-19 on our business, what were the areas impacted, and where we can make changes.

Managing the Financial Consolidation and Close process is a burden that takes time and resources that could better be used for analysis and decision-making.

Oracle Cloud EPM Financial Consolidation and Close (FCC) is a purpose-built business process available in the Oracle EPM Cloud for both effectively and efficiently managing the consolidation and close, end to end.

As a Financial Controller after performing your monthly close, you can always extend your reporting with Oracle Analytics Cloud (OAC).self-service insights

Oracle supports direct connectivity now between FCC and OAC, but also with other Oracle Cloud EPM applications (Planning or Tax Reporting)

In this blog, I would walk you through the steps to show you how easy you can now create Financial Reports and other visualizations with OAC sourcing from your FCC application.

The predefined or custom EPM reports/dashboards cannot be consumed or exported elsewhere, are limited to the EPM data cubes and don’t get a great variety of visuals.

 

Create an Oracle EPM Cloud Connection

The integration is very straightforward, on the Home page click Create, select Connection.

From the list of connectors, choose Oracle EPM Cloud.

Enter the details for your connection, together with your FCC (admin) Username and Password:

Enter the URL for the Oracle Enterprise Performance Management Cloud data source


Note: the above print screen is for an internal VM image; for a customer FCC environment you need the URL with this format https://epm-mySecurityDomain.epm.domain.mycloud.oracle.com/mySecurityDomain


Create the Data Set

Now that you have the connection created, you can go ahead to Create the Data Set. Choose the Consol cube as this is your source cube, which holds the data, the second cube Rates holds the exchange rates.


Create a Project

After adding the Data Set, click on Create Project on newly created set.

When adding the Dimensions in your Filters, always limit the members by None as first step (the default selection is Auto)

Default selection:

Click on the filter menu to select Limit Values by and change from Auto to None:

Also make sure that all dimensions are selected (Point Of View), otherwise you will get no data.

If you are on the right intersections, you should see the data in OAC.

Let’s see the canvases we can create, they are just some examples to showcase the possibilities with

OAC visualizations.

Hint: When you recreate your EPM POV through OAC Filters, you may want to choose for “fixed” dimension values to be filtered for all the canvases (Pin to All Canvases)


Income Statement

This is one of company’s core financial statement, and it is also known as Profit and Loss Statement, or P&L. It shows the revenues and expenses during a certain period of time.

It is easy to produce this kind of reports in OAC, as you see below, we can create a custom calculation to define the position of the Accounts in the Income Statement report and use this in a visualization to format the charts the way we want.


Balance Sheet

Reports a company's assets, liabilities and shareholders' equity. A Balance Sheet gives a snapshot of the financial health of your business at a point in time.


Cost analysis

The understanding of individual cost elements can provide you insights into where you have to make changes. Cost analysis is one of the areas which are under radar of executives. With ad-hoc self-service visualizations in OAC, it is easy to keep track of changes in your cost elements.

Natural Language Generation is an OAC functionality which we also used here to explain distribution of the costs (Language Narrative visualization).


Variances

Comparison is always important, whether you compare your Actuals with your Forecasted figures, whether you compare it with Last Year, Last Month, there is no financial reporting without variances.

In OAC we can always create calculations on the fly with the help of the Calculation Expression Editor.

Here is an example of using the calculation function to rapidly obtain the variance between our Actual and Plan.


Add this calculations to your charts to highlight the situation of your Actuals compared to the Plan on different dimensions.


Intercompany Transactions

Intercompany transactions, meaning transactions between parent companies and its subsidiaries, or between subsidiaries must be eliminated when consolidating.

In the below visualization we are zooming in on the Income Statement accounts – I/C Revenue and I/C Cost of Sales, highlighting the Elimination portion to gain more

Entity Consolidation Automatic Elimination

The consolidation process in FCC includes elimination of intercompany balances, which will occur when intercompany entities meet at the first common parent within the Entity hierarchy.

Summary

In this write up we showcased how easily we can integrate FCC and OAC with Oracle EPM Cloud direct connector and quickly build content on this data.

Prior to direct connection (since OAC 5.6) the only option to connect to EPM Cloud were through Essbase  by duplicating data (mirroring EPM cubes) and then connect Essbase to OAC, or to build a model with Oracle Analytics Developer Client Tool (RPD).

With EPM end users can only consume the content but self-service capabilities of OAC enable financial users to create impressive visuals on top of EPM Cloud applications in a matter of seconds and also add external datasets. The visuals can be shared or embedded in external sites providing context to data and enable collaboration.

Stay tuned for part 2 of a blog series on how to build OAC content on EPM applications. We look at what exists today on the standard EPM dashboards, and how we can extend and complement those with OAC self-service visualizations.  

Szidonia Grigore


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