related links are fundamental to using financial, and indeed many other
- When a new Chart of
accounts is designed, linking an account to its parent is key for future
aggregation of data.
- When legal entities
have to be sorted, hierarchies can be built according to dimensions such as
geography or organizations.
- In a General Ledger,
every accounting flexible field is a potential analytical dimension.
relationships is also very important when reorganizing sales territories taking
into account geography dimension, human resources, client or product
partners have a great opportunity to help their clients to better manage these hierarchies and relationships which are often used in EPM (Enterprise performance
management) and Business intelligence. Financial Applications share entire or
partial hierarchies with different levels of detail, different points of view. So, “Financial MDM” helps companies to be
more efficient because hierarchies and their relationships are managed in a
single place. Every modification impacts all applications at the same time.
This increases consistency and data quality among all hierarchies.
Financial MDM has got the same
DNA as other MDM domains and
is a key tool to help partners implement new systems, upgrades and migrations
for their clients because it accelerates deployment based on these coordinated
and validated hierarchies. Financial MDM manages
specific types of master data, such as:
- Charts of
accounts: consolidated, corporate or local. They can be different depending on
application type. For instance, granularity is not the same for actual
accounting or forecasting. They can be designed to meet different regulatory
requirements: local, IFRS, GRI sustainability reporting or Solvency II in the
- Legal entities
including different dimensions: geography, activities
dimensions : departments, business units, cost and profit centers
dimensions: using general ledger accounting flexible fields such as sales
channels or projects
- Reference data:
time, currencies, taxes.
data needs to be quickly and easily adapted to business changes at the fast
pace of business. Financial MDM is essential not only for minor modifications in
day to day business, when creating a new cost centre or modifying an existing
attribute for a legal entity, but also when making major changes such as
mergers, acquisitions, reorganizations or regulatory changes.
the key to allow business users to easily make their own updates, plus these
changes have to be part of a data governance process. A workflow is required to
define roles and responsibilities.
reasons to invest in a Financial MDM
financial business users
- Ensure consistency in business hierarchies and related links
- Link local needs to corporate standards and
consolidate all lines of business
- Accelerate Mergers & Acquisitions
- Analyze your master data across heterogeneous
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