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Product Spotlight:Oracle Financial Close Management (FCM)
Ernest Iocca, OracleRJ Linehan, Innovus Partners
Key Goals of Financial Close and Compliance Processes
• Improve efficiency and timeliness• Strengthen financial governance• Increase transparency and reliability• Adapt to perpetual change
Finance Organizations of Today
Central Challenges of Financial Close
• 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
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
Finance Organizations of Today
Financial Close Process
Business Events
Data Entry &
Adj.
Manual Journal Entries
External Interfaces
Transformation & Conversion
Business Transact
ions
Input
Data Collection
Continuing Transactions
Process
GL Close Consolidation
Sub-Ledger
Systems
Accruals &
Prepaids
Estimates
Closing Entries
Consolidation Process
Intercompany Eliminations,
Equity/ Minority
Interest, Joint Ventures,
ForEx Calculations, Allocations,
Top Side Adjustments
Output
Reporting
Internal Reporting
External Reporting
Financial Reporting
Cash Flow and Other Reporting
Management Reporting
GAAP Reporting
Footnotes and
Disclosures
Compliance Reporting
Challenges• Lack of integrated systems
slows flow of data• Absence of automated
auditing capabilities prevents transparency
• Manual entries cause inaccuracies and misalignment
Financial Close - Input
Business Events
Data Entry &
Adj.
Manual Journal Entries
External Interfaces
Transformation & Conversion
Business Transact
ions
Input
Data Collection
Continuing Transactions
External Documents
User XL
Inbound Flat Files
Manual Updates
User Data Collection
Manual Data
Transfer
Manual Data
Transfer
Manual Updates
Manual Data
Transfer
Email Trail
Word Docs
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
Financial Close - Process
Process
GL Close Consolidation
Sub-Ledger
Systems
Accruals &
Prepaids
Estimates
Closing Entries
Consolidation Process
Intercompany Eliminations,
Equity/ Minority
Interest, Joint Ventures,
ForEx Calculations, Allocations,
Top Side Adjustments
Email Trail
Word Docs
User Database
User XL
Manual Data
Transfer
Scheduled Data
Transfer
Outbound Data Transfer
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
Financial Close - Output
Output
Reporting
Internal Reporting
External Reporting
Financial Reporting
Cash Flow and Other Reporting
Management Reporting
GAAP Reporting
Footnotes and
Disclosures
Compliance Reporting
User XL
Word Docs
Email Trail
User Database
External Database
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
Oracle Hyperion Financial Close Management
Oracle Enterprise Performance Management System
BI Foundation
EPM and BI Applications
InformationDelivery
Key Features• Task scheduling and management feature to track and prioritize
close tasks• Pre-built, web-based dashboards for monitoring progress of
financial close• Security-driven views based on users’ tasks (Calendar, Task List,
Gantt)• Interactive calendars and task lists allowing users to launch
applications and complete tasks• Support for lights-out process through automation feature• Roll-forward feature to create new calendars based on prior
financial close• Control over account reconciliation through the Account
Reconciliation Manager
Oracle Hyperion Financial Close Management
FCM/ARM Demonstration
Product Spotlight:Oracle Financial Close Management
Ernest Iocca, OracleRJ Linehan, Innovus Partners
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