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Oracle Analytics Partner of the Year
1,000+ EPM projects
completed, 50+ in EPM Cloud
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interRel Highlights and Company Overview
Introduction to Account Reconciliation Cloud (ARC)
Terrance D. Walker, PMP
epm.bi/Videos
Disclaimer
• These slides represent the work and opinions of the presenter and do not constitute official positions of Oracle or any other organization.
• This material has not been peer reviewed and is presented here with the permission of the presenter.
• This material should not be reproduced without the written permission of interRel Consulting.
What is a Reconciliation?
• Validation that the balance in an account is “accurate”
• Different types of accounts are validated or reconciled differently
Cash – Compare the GL balance to the bank balance
AP – Compare GL to sub-ledger
AR – Compare GL to sub-ledger and analyze the aging of receivables
Fixed Assets – Compare GL to sub-ledger and perform a roll-forward
Pre-paids (e.g. Insurance) – Document the composition of the balance and justify
Accruals (e.g. Bonuses) – Document the composition of the balance and justify
Provisions and Reserves – Document the composition of the balance and justify
Challenges in the Account Reconciliation Process
• #1 non-data related delay in the close process
• Honest questions What percentage of close time are you spending on account recs? Is it even happening? What tools are you using? Excel? Emails back and forth? Is every account truly being reconciled? Are we reconciling at the correct level(s)? Are recs updated as balances change during close?
• The result Limited visibility into completion status Limited reporting across recs Lost reconciliations Inefficient processes and lost time High risk and non-compliance
Challenges in the Account Reconciliation Process
Manual process
Incomplete information
Audit issues
Limited visibility
Security/compliance
Limited governance
ARC Addresses these Pain Points and Challenges
Manual process
Incomplete information
Audit issues
Limited visibility
Security/compliance
Limited governance
Enables automated
account reconciliations
Provides governance and real-time status
reporting
Addresses security and risk
concerns
Account Reconciliation Cloud (ARC)
• Addresses the global reconciliation process
• Reduces risk, providing real-time visibility into the performance of account reconciliations
• Ensures all reconciliations are properly qualified
• Helps companies streamline and optimize performance by automating certain reconciliation tasks and supporting risk-based reconciliation cycles
• Integrated with transaction systems
• Simplified UI for Cloud
• Analytics covering performanceand compliance
Easy To Use SUI for Completing Reconciliations
Profile Properties
Workflow Support for Account Rec Process
Manage the Overall Process
• Real-time visibility into the progress and status
• Assign resources/teams to specific items to be reconciled
• Analytics to review trending and areas for improvement
Report and Analyze on the Account Rec Process
• Pre-built reports
• Supports creation of custom reports and report groups
Fully integrate Account Reconciliation into the Close
• Integrate data from Oracle EBS, ERP Cloud and other ERP systems General Ledger
A/R, A/P & Fixed Asset Sub-ledgers
Cash Management
• Leverage existing on premise IT investments
• Automate with EPM Automate Routineso Import Profiles
o Import Balances
o Import Pre-mapped Balances
o Run Auto-match
Oracle Business Processes
How to subscribe? Part of 4 Main Business Processes
• Available with both EPM Standard and EPM Enterprise
• Oracle is shifting away from Cloud Services to 1 solution that supports 4 primary business processes:
This does mean that except for legacy customers, the products will not be sold separately
What was a “product” is now just a “business process” inside Oracle EPM Cloud
1. Planning: Planning, Profitability & Cost Management
2. Financial Close: Financial Consolidation & Close, Account Reconciliation, Tax Reporting
3. Narrative Reporting: Narrative Reporting, Dashboards
4. Enterprise Data Management: Enterprise Data Management / Governance
https://www.oracle.com/applications/performance-management/products.html
Oracle EPM Standard
ERPs Data Warehouses Unstructured Data Excel
•Custom Plan Types•Workforce•Projects•CapEx•Scenario Modeling• Financials
PLANNING
•Consolidation•Account Reconciliation•Task Management•Supplemental Data
FINANCIAL CLOSE
DATAMANAGEMENT
Ad Hoc Management ReportsNarration Mobile
Oracle EPM Enterprise
ERPs Data Warehouses Unstructured Data Excel
•Custom Plan Types•Workforce•Projects•CapEx•Scenario Modeling• Financials• Freeform (Essbase)•Groovy
PLANNING
•Consolidation•Account Reconciliation•Task Management•Supplemental Data•Advanced Consolidations•Transaction Matching•Tax Reporting
FINANCIAL CLOSE
ENTERPRISEDATA
MANAGEMENT
Ad Hoc Management ReportsNarration Mobile
Profitability & Cost Management
EPM Cloud Standard vs. Enterprise
Business Processes EPM Cloud Standard EPM Cloud Enterprise
Planning Planning & BudgetingPackaged modules: Workforce, Capital, Financial Project Planning Scenario Modeling1 Custom Hybrid BSO & 1 Custom ASO
+ Advanced Customization and modeling (Groovy)Intelligent Performance Management Intelligent Process AutomationFree Form Planning
Financial Consolidation & Close Financial ConsolidationTask Management
+ Advanced consolidation (on-demand business rules, custom calculations)Intelligent Performance Management Intelligent Process Automation
Narrative Reporting Narrative Reporting + XBRL Reporting
Account Reconciliation Account Reconciliation + Transaction Matching
Tax Reporting Not available Tax Reporting
Profitability Not available Profitability and Cost Management
Enterprise Data Management Not available Enterprise Data Management with 5,000 records limit
New Names of EPM Products (“Business Processes”)
• EPBCS/PBCS –> Planning
• EPRCS –> Narrative Reporting
• ARCS –> Account Reconciliation
• FCCS –> Financial Consolidation and Close
• PCMCS –> Profitability and Cost Management
• TRCS –> Tax Reporting
• EDMCS –> Enterprise Data Management
Into the Details of ARC
ARC Home Screen
• Simplified User Interface (SUI) across all EPM Cloud products
• Role-based views of ARC functionality
• ARC Cards: Worklist
Reconciliations
Matching
Dashboards
Reports
Application
Tools
Academy
Worklist
• The Worklist Card reflects a listing & the status of reconciliations
• Summary of the status by All, Late, Due Today or Due in 7 days
• Leverage Filter bar to filter by attributes such as name or account type.
Reconciliations
• Balance Summaryo Source System
& Sub-system balances
o Format Details
• Prior Ending Balanceso Balance Trending
o Imbalance review
• Reconciliation Metricso Assignee
o Status
o Attachments
o Commentary
Matching
The Matching Card notes all reconciliations created with Transaction Matching and shows a description, the name of the preparer and whether there are unmatched items.
The process for performing matching involves:
Importing Transactional Data
Confirming Suggested Matches
Creating Manual Matches
Creating the Reconciliation Balancing Report
Application
• Overview displays recent reconciliation activity by different users, data loads, and the number of change requests for today, last seven days, and all
• Profiles used to define reconciliation templates which are basis for which data points are reconciled
• Periods allows for opening, closing or locking periods
• Configuration used to set up, configure, and maintain ARC application settings, i.e. –Currencies, Formats, Organizational Units, etc.
• Match Types allows for creating match types for Transaction Matching and Calendars
Application (cont’d)
• Jobs displays the jobs performed in ARC – Jobs History maintains a history of the jobs run in Transaction Matching and allows for: importing transactions, deleting imported transactions, importing balances, and running Auto Match
• Services allows a Service Administrator to restart or run the following: email notifications, open reconciliations or system maintenance tasks such as synchronizing users
• Archive allows a Service Administrator to keep the size of the database in check and help performance by using archive, restore and purge functionality
• Report Configuration allows for creating custom reports, creating report queries, and group reports
Academy
Into the Details of the Reconciliation Process
Profiles
• Grouping of Account IDs that are subject to reconciliation Created to meet the reconciliation requirement(s)
Can contain multiple G/L segments – Entity-Account-LOB
• Assigned a type, format, preparer, reviewer, balance, etc.
Profiles
• Profiles can be updated as business changes
• Updated profiles will apply for future reconciliations
Will not impact or change past reconciliations
Profile
Reconciliation is created based on
Profile
Formats
• Define what the reconciliation will look like
• What information will be required from preparers during reconciliation
• Formats can also be created
• Pre-built Format are delivered with ARC AP, AR, Accruals, Bank Reconciliation, Fixed Asset, Tracking Only…
Standard Formats
• Prebuilt formats for you to use for reconciliations
• Balance comparison, account analysis or variance analysis reconciliation methods
• Prior period balance and net activity are not displayed across standard formats
You can clear the hide check box to display
• Simplified definitions for system and subsystem adjustments but you can update and change
Format Design
• Will determine the info presented in the Balance Summary
• Defines the types of transactions, attributes, and rules for the rec, auto-recs and controls
• Design at the account type level for accounts easily reconciled (e.g. Sub ledger to GL)
• Create custom formats for accounts that require manual reconciliation / more complex
Pre-paids, accruals, provisions and reserves Design formats to reduce risk for these items Add rules that validate data or require attachments Add questions to the reconciliation to ensure quality Target highest risk accounts
• Snapshots of formats are taken with each period’s reconciliations
Reconciliation Method – Balance Comparison
• Compare balances to a balance from another source (sub-ledger, bank balance, or other)
• Calculates a difference
• If difference exists, user enters adjustment on source and/or subsystem to explain/resolve the difference
Reconciliation Method – Account Analysis
• Used for accounts that have no comparative balance
• Preparers enter/load the Source System Balance
• Preparers enter/load the items that make up that balance on the Explained Balance tab
• Use Adjustments if there are any unexplained differences
Account Reconciliation Process
Load Data
Auto Rec Notify Prepare Review Monitor
Load Data
• Supports pre-mapped data loads (non-Admins)
• Supports Data Management for mapping source system data to Account IDs
• FDMEE (on-premises) direct ARC integration with EPM cloud
• Source system balances, sub-system balances, transactions
Load Data - Balances
• Preparers load from Reconciliations; admins from the Console or Reconciliations
• Import for period Data can be imported for periods that
have pending, open or closed status
• Define the file, source type, and currency bucket
• Click Import
Load Data - Import to Any Status
• Data can be imported for periods that have pending, open or closed statuses
• Balances If the balances change and the status was Closed or Open with Reviewer,
will be changed to Open with Preparer
If balance doesn’t change, the status does not change
• Transactions Changed to Open with Preparer
Data Management
• Data integration tool that provides a single, systematic process for loading data from disparate systems into target analytical applications
• FDMEE “Lite” (Financial Data Quality Management, Enterprise Edition)
• ETL for the business user
• Provides visibility, traceability, integrity and verification processes
• Mapping capabilities by end users
• Targets and sources
• File-based
• Drill-through to source data (Landing Page)
• Fully automated with EPM Automate
Auto Reconciliations
• Configurable for low risk accounts
• Standard auto rec rules Authorized zero balance
accounts
Matching G/L to sub-G/L within tolerance
• Customized auto rec rules with specific logic for your organization and compliance rules
Notify
• Preparers and reviewers receive email notifications for status changes, upcoming due dates and delinquencies
Preparers
• View balances loaded into reconciliations
• Review executed auto-reconciliations
• Review executed automated rules
• Copy forward previous activity
• Review notifications
• Complete reconciling items
• Provide balance explanations
• Attach supporting information (doc, xls, pdf) to reconciliations
• Provide commentary
• Calculate amortizations
Reviewers
• Review notifications
• Review reconciliations
• Provide feedback through commentary and flagging
• Approve or Reject reconciliations
• Multiple reviewers are supported
• Monthly, quarterly & yearly frequencies
• Risk Ratings
• Post reconciliation Commentary and view only
ARC Dashboards
Overview Dashboard
•Overview dashboard used to check the status of account reconciliations:o Open reconciliation count
o Late reconciliations
o On-time reconciliations
Compliance Dashboard
• Compliance dashboard to view more details into the reconciliation process
• View completed, prepared on time, reviewed on time, rejected, and warnings
• User success tracking
Match Metrics Dashboard
• Match Metrics dashboard by Reconciliation Type
• Transaction import date
• Sorting by various status
ARC Implementation Methods
Consider a Phased Approach
Tracking Only
Auto Rec Accounts
Complex Accounts
Phase 1 – Tracking Only
• Every account should be reconciled
• Consider tracking only for first phase
Continue to use current reconciliation processes
Only use 1 – 2 formats to attach Excel reconciliations
• Quickly achieve benefits into rec process
Centralized database of recs
Monitoring / reporting
• Leverage prebuilt tracking formats
Two formats – Tracking Only and Tracking with Reconciling Items (Allows updating spreadsheet / uploading a spreadsheet with the ability for preparers to document reconciling items)
Phase 2 – Auto Rec Accounts
• Next implement the “easier” reconciliations Accounts supported by sub-ledger (AP, AR, FA)
Those that can be auto reconciled
• Automate sub-ledger and GL balance loads
• Design at the account type level
• Define auto reconciliations
Phase 3 – Complex Recs / Manual Recs
• Accounts that require manual reconciliation / more complex Prepaids, accruals, provisions and reserves
Transaction Matching
Design formats to reduce risk for these items
Add rules that validate data or require attachments, add questions
Target highest risk accounts
Training & UAT
• Training interRel Training Division ☺ ☺ ☺
Great training videos provided by Oracle on YouTube
Excellent subject matter videos available in the Academy
Search for the Account Reconciliation Cloud playlist• https://www.youtube.com/playlist?list=PL6gBNP-Fr8KWAW6NVVTqyFRUCKZHtJBQk
• UAT Reconciliations have the correct format and balances
Preparer assignments are correct
Review assignments are correct
Reconciliation rules working per expectation
Bringing It All Together
Ready to Ascend to ARC…
• You are manually reconciling accounts / using Excel or some other sub-optimal tool for account reconciliations
• You want to make your close process more efficient / spend more time on value added analysis of results
• You need visibility into accounts that present the most risk
• You need real time status and oversight of the reconciliation process
• Current ARM customers desiring to use ARC functionality
• No brainer if:X hours per month reconciling * Y cost per hour > $120
Available with both EPM Cloud Standard vs. Enterprise
Business Processes EPM Cloud Standard EPM Cloud Enterprise
Planning Planning & BudgetingPackaged modules: Workforce, Capital, Financial Project Planning Scenario Modeling1 Custom Hybrid BSO & 1 Custom ASO
+ Advanced Customization and modeling (Groovy)Intelligent Performance Management Intelligent Process AutomationFree Form Planning
Financial Consolidation & Close
Financial ConsolidationTask Management
+ Advanced consolidation (on-demand business rules, custom calculations)Intelligent Performance Management Intelligent Process Automation
Narrative Reporting Narrative Reporting + XBRL Reporting
Account Reconciliation Account Reconciliation + Transaction Matching
Tax Reporting Not available Tax Reporting
Profitability Not available Profitability and Cost Management
Enterprise Data Management Not available Enterprise Data Management with 5,000 records limit
Continuing Education
• Build an Oracle Planning & Budgeting Cloud
• Application from start to finish• Administer and automate your
solution• Migrate from on-premises to the
Cloud• Best practices for setting up
your Oracle EPM Cloud Instance
Essbase
Admin Studio Smart View
• Build a report package • Execute the reporting cycle
from start to finish• Sign off or reject the final
product• Assign security• Migrate objects between
environments
• Steps to set up your Oracle
Analytics Cloud instance
• How to build Essbase Cloud
cubes from start to finish
• Maintaining dimensions and
loading data
• Creating calculations and
calculating data
• Assigning security
Admin End User Advanced
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Admin/End Users
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Upcoming Webcast
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TBD: ANALYTICS & REPORTING
TBD: ANALYTICS & REPORTING
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