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Oracle Financial Close Management: Embrace the Change

Prepared by:RJ LinehanManaging Partner, Innovus PartnersBoard Member, OAUGNYCrj.linehan@innovuspartners.com

Streamline Your Financial Close Process with Oracle FCM

Session ID#: 15019

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Today’s Agenda

■Today’s Finance Organizations

▪ Goals

▪ Pain Points

■Financial Close Management Architecture

■Financial Close

■Account Reconciliation Manager

■Q&A

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Today’s Finance Organizations

What are they up against?

Streamline Your Financial Close Process with Oracle FCM

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Finance Organizations of Today

Key Goals of Financial Close Process

■Improve efficiency and timeliness

■Strengthen financial governance

■Increase transparency and reliability

■Adapt to perpetual change

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Finance Organizations of Today

Central Challenges of Financial Close Process

■ Inability to improve accuracy of financial reporting due to lack of visibility

■Failure to reduce time to complete processing

■Ever expanding breadth of rules and regulations from regulatory agencies

■Shrinking headcounts supporting additional work

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Finance Organizations of Today

Symptoms of Not Addressing Challenges

■ Inability to accommodate demands for transparency and consistency

■Failure to satisfy requirements of regulatory agencies

■Lack of capacity to reduce workload of Finance staff

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Financial Close Process

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Financial Close Process - Input

Challenges

■ Lack of integrated systems slows flow of data

■ Absence of automated auditing capabilities prevents transparency

■ Manual entries cause inaccuracies and misalignment

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Financial Close Process - Process

Challenges

■ Activities unrelated to close process occur at critical points

■ Manual intervention and lack of communication creates delays

■ Inability to track performance and identify bottlenecks

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Financial Close Process - Output

Challenges

■ Disconnect between reports and inputs leads to confusion

■ Lack of integration and accuracy between internal and external reporting causes uncertainty among users

■ Level-of-effort required to satisfy agency filings jeopardizes due dates

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Oracle Hyperion Financial Close Management

Close the Problem with a Business Solution■ Centralized web-based solution managed by business

users for business users

■ Supports all financial close tasks

▪ Ledger and sub-ledger close

▪ Data loading and mapping

▪ Financial consolidation

▪ Account reconciliation

▪ Internal and external reporting processes

▪ Tasks associated with extended financial close

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Let’s do a quick poll…

Streamline Your Financial Close Process with Oracle FCM

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Oracle Enterprise Performance Management System

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Oracle Financial Close Suite

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Oracle Financial Close Management Architecture

Account Reconciliation

Manager (ARM)

Close Manager

Core Product

FDMEE

Integrations

Integration Layer

General Ledger

EPM Apps

EDW

Application Layer

Data Flow

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Close ManagerKey Features

■Task scheduling and management feature to track and prioritize close tasks

■Pre-built, web-based dashboards for monitoring progress of financial close

■Process automation feature that offers lights-out support

■Powerful filtering and ad-hoc reporting capabilities

■Roll-forward feature to create new calendars based on prior financial close

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Close ManagerProcess Overview

■Plan Close Process

■Initiate Close Process

■Perform Close Process

■Complete & Review Close Process

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Close ManagerPlan Close Process

■ Identify tasks

■Categorize tasks

■Align task categories to integrated applications

■Create template for group of tasks that represent close process (no calendar)

■Populate template with tasks

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Plan Close Process

Task

Template Schedule

Task Type

Application Integration

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Plan Close Process – Task Types

■ Direct users to application (End User)

■ Schedule execution of application processes (Automated)

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Plan Close Process – Task Types

■ Assign ‘Integration Type’

■ Define ‘Run As’ ID to execute task

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Integrated Applications (PeopleSoft Financials)

■ PeopleSoft Financials Integration Pack XML File

▪ End Users Tasks

▪ System Automated Tasks

Area Task NameTask Type

Define Final Depreciation Run Control EExecute Final Depreciation Process SDefine Create Accounting Entries Run Control EExecute Create Accounting Entries Process SDefine Depreciation Close Run Control EExecute Depreciation Close Process SBook Expense Accruals EEnter any adjustment vouchers EReview and correct vouchers with errors EReview and correct match exceptions EDefine Open AP Liability Report Run Control EExecute Open AP Liability Report SReview Incomplete Deposits EResolve Pending Item Posting Errors EDefine Aged AR Trial Balance Run Control EExecute Aged AR Trial Balance SWrite Off Balances as Appropriate EUpdate Doubtful Receivables E

Ass

et M

anag

emen

tA

ccou

nts

Paya

ble

Acc

ount

s Re

ceiv

able

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Plan Close Process - Tasks

■ Create from ‘Task Type’

■ Assign task properties

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Plan Close Process - Templates

■ Define duration in terms of ‘Day 0’

■ Embed other templates (supports one level of embedding)

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Close ManagerInitiate Close Process

■Create schedule

▪ Assign template

▪ Apply calendar dates

▪ Assign other tasks

■Promote schedule status from pending to open

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Initiate Close Process - Schedules

■ Assign calendar to close process

■ Change status of schedule (Pending, Open, Close)

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Initiate Close Process - Schedules

■ Assign tasks to schedules

■ Change status of schedule (Pending, Open, Close)

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Close ManagerPerform Close Process

■Users perform tasks

▪ Email notification

▪ FCM via Web

▪ FCM via Smart View

■Approvers review and complete tasks

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Perform Close Process - Dashboard

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Perform Close Process – Gantt Chart

■ Track task progress across days

■ View task properties, instructions, and predecessors

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Perform Close Process – Task List

■ Customize task list to user preference

■ Sort and filter by task list fields

■ Display select fields

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Close ManagerComplete & Review Close Process

■FCM generates close binder

▪ HTML report of close process

▪ Publishable and accessible to users

■Users, Approvers, and Administrators review close process and make adjustments

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FCM Report Binder - Click Me

Complete Close Process – Report Binder

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Account Reconciliation ManagerKey Features

■ Control over account reconciliation

■ Flexible formats adaptable to each type of account

■ Easy-to-use features for maintaining reconciliation assignments (mass updates and import capabilities)

■ Seamless integration using Oracle Hyperion Financial Data Quality Management ERP Integration Adapter

■ Mapping feature to summarize low-level balances to the reconciliation level

■ Auto reconciliation of approved zero balance accounts

■ Configurable frequencies and unlimited level of approval

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Account Reconciliation ManagerProcess Overview

■Plan Account Reconciliation Process

■Initiate Account Reconciliation Process

■Perform Account Reconciliation Process

■Complete & Review Account Reconciliation Process

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Account Reconciliation ManagerPlan Process

■ Identify accounts to be reconciled

■Define reconciliation elements for each account

■ Identify users and assign roles

■Create ‘Formats’ that define reconciliation method and ensure data collection

■Create ‘Profiles’ that are assigned ‘Formats’, currency, workflow, and other attributes

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Plan Reconciliation Process

Format Profile

Profile Segment

FrequencyCurrency

Period

Workflow

Recon Type Account Type Account Recon

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Plan Reconciliation Process - Format

■ Identify Reconciliation Methods

▪ Account Analysis

▪ Balance Comparison

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Plan Reconciliation Process - Profile

■ Define Account ID using Profile Segments

■ Assign Format

■ Auto Reconcile

■ Specify Workflow

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Account Reconciliation ManagerInitiate Process

■Copy ‘Profiles’ to ‘Periods’ to initiate reconciliations with start and due dates

■Load balances from source system

■Change period status from pending to open

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Initiate Reconciliation Process – Manage Periods

■ Assign frequency

■ Apply Calendar

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Account Reconciliation ManagerPerform Process

■Preparer performs reconciliation

▪ Validate balance

▪ Provide supporting detail

■Reconciliation is reviewed

▪ One user cannot play both roles for the same reconciliation

■Reconciliation is approved

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Perform Reconciliation Process – ARM Task

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Account Reconciliation ManagerComplete & Review Process

■ARM generates close binder

▪ HTML report of close process

▪ Publishable and accessible to users

■Preparers, Reviewers, Commentators, and Administrators review close process and make adjustments

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Please complete the session evaluationWe appreciate your feedback and insight

You may complete the session evaluation either on paper or online via the mobile app