By Ndwyouell-Oracle on Jun 27, 2016
In a previous blog article (Series 1, part 6), I pointed out that the functionality of a multi-dimensional consolidation tool, like Oracle Hyperion Financial Management or Oracle Financial Consolidation and Close Cloud Service (FCCS), will assist in the transition phase adoption of the new revenue recognition guidelines. And, in concert with the capabilities built in to the ERP system, the consolidation tool is important to organization’s ability to measure and report revenue under the new recognition guidelines. But with the new revenue recognition rules, it is becoming increasingly important to report more than just the traditional consolidated financial statements.
In my discussion with Mike Malwitz, he mentioned that organizations are anxious for tools to help streamline the production of financial reports with supplemental details and narrative information.
Nigel Youell: “Mike, can you tell us about tools that will help with disclosure under the new revenue recognition guidelines? “
Mike Malwitz: “Sure, there are a few tools in the Oracle Hyperion Financial Close Management suite that should be considered for processing and reporting disclosure details under the new revenue recognition guidelines.
First, Supplemental Data Manager (SDM) is designed to collect, organize, update, edit, and manage supplemental data for financial analytical applications such as consolidation. SDM maintains the detailed multidimensional contract information and integrates it to the consolidation tool, where appropriate.
Most organizations want tools that provides intuitive and flexible authoring environment that provides easy access to Oracle and non-Oracle data from multiple on-premises and cloud sources. Ideally suited for these tasks, Enterprise Performance Reporting Cloud Services also offers a collaborative, workflow-driven environment for delivery of book-quality financial and management reports.
Finally, we’re also seeing that, under the new revenue recognition guidelines, organizations want to reduce risk of misstating revenue – automated reconciliation of revenue contract details would be advantageous. The Account Reconciliation Management module has helped companies reduce risk by introducing real-time visibility to the reconciliation process and it will prove to be an enabler for ensuring that the details of revenue contracts are properly qualified.”
To read Part A and Part B, click on the respective title.
Part A: New Revenue Recognition – Disclosure, the Forgotten Implication
Part B: New Revenue Recognition – Disclosure, the Forgotten Implication
To learn more about Enterprise Performance Management, click here.