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11092
Rounding in Oracle Financial Close and Consolidation (HFM and FCCS)
Automated scaling, rounding, and
footing of financial data in Oracle
Consolidation and Close
April 9, 2019
Matt Currie and Eisar Mortazavi
Huron Consulting Group
Huron’s Enterprise Solutions& Analytics Practice
70+ Financial Close Professionals
100+ Planning Practice Professionals
35+ Profitability Professionals
100+ Analytics Professionals
120+ Certified Cloud Professionals
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Oracle Cloud Excellence Implementation (CEI) Certification
Average Annual Growth 40% over the last 4 years
Agenda
• Benefits• Rounding Solution for HFM
• Overview• Vertical Rounding• Horizontal Rounding• Management of Rules
• Rounding in FCCS• Overview• Defined Logic
Financial Rounding
and Footing in HFM
Benefits of Rounding Logic
• Automated as part of the consolidation process
• No need for manual plugs
• Data will always foot
• Eliminations are accounted for in a separate Data Source
• Rounding/Footing plugs are tracked separately
• Limited maintenance
• Saves time and effort
• Easily auditable
• Consistent methodology across Entities, Years ,Periods, and Secenarios
• Data is centralized and stored in the app
Financial Rounding Overview
• Automate financial rounding and footing during the consolidation process without a
need for manual adjustments or plugs
• Perform both vertical (sub accounts foot to the parent of those accounts) and horizontal
(child entities aggregate and foot to their rounded parent entity) rounding and footing
• Adjustments or plugs to rounded data will be stored in a separate Data Source for easy
audit traceability
• Accounts at a higher level (Net Income, Total Assets, etc.) are given priority to lower
level accounts for correctness
HFM Solution Overview
• Rounding is performed on each Base entity and Base Account
• Rounding adjustments for accounts calculate the difference between the rounded totals
and the aggregation of the rounding
• Rounding for parent entities calculates the difference between the sum of the children
unrounded numbers and the aggregation of the rounding. This difference will be stored
in a separate data source
• The Base entity rounding, and the parent adjustments will consolidate into the Total
Rounded number
Vertical Rounding
and Footing in HFM
Vertical Rounding Overview
• Each base account is rounded and scaled for every base entity, then stored to a
separate data source (Round_K and Round_M)
• Then, adjustments are automatically calculated from the bottom up to foot the sum of
child accounts to the rounded amount of the parent.
Total Unrounded Total Rounded Round_K Round_K_Adj
Parent Account 9,850 10 9 1
Sub Acct 1 5,400 6 5 1
Sub Acct 2 4,450 4 4 -
Vertical Rounding Overview
• Higher-level accounts (Total Assets, Net Income, etc.) must be correctly rounded, so
some child accounts underneath may not tie exactly to its rounded data.
• This is mathematically necessary for data to foot at the parent account level.
• These adjustments are stored to a separate data source (ADJ) to increase visibility of
the logic to the users.
Horizontal Rounding
and Footing in HFM
Horizontal Rounding Overview
• Rounding for Parent Entities will calculate the difference between the rounded and scaled raw
data of the entity and the aggregation of the rounding. This difference will be stored in a separate
data source (ELIM).
Managing Rounding
Logic in HFM
Rounding and the Data Source Dimension
• Rounding is tracked in the data source dimension. This provides visibility to any adjustments
being made during the process.
• Rounding is scaled to both thousands (Round_K) and Millions (Round_M).
Managing Rounding Logic
Two components to managing rounding logic:
1. Cell Text: Specifies when to fire the rounding logic, which Data Source member to use,
which Account hierarchy to round, and the scaling and decimals to store the data to.
2. UD Fields of the Account dimension: Specifies which parent accounts the
vertical rounding logic should be applied to and where to plug any rounding differences.
Cell Text
• After: Where to fire the rounding code within Sub Calculate
• Account: The top-level parent account to apply vertical rounding
• Factor: The data scaling being used (Thousands or Millions)
• Decimals: The number of decimals to use (0 or 1)
• DataSource: The Data Source to apply the rounding logic
• DataSourceSuffix: The identifier being used to distinguish vertical and horizontal adjustments to multiple account
hierarchies
Account UD Fields
• First, specify whether vertical rounding needs to be applied; Then
need to specify the logic to be used:
• Round:True – Foots the parent account directly from a child account underneath it. This
means that no child accounts underneath this parent need to have vertical rounding logic
applied to them.
• Round:Plug – Skips over a parent account until the accounts underneath it have vertical
rounding applied to them. Thus, this account is plugged after rounding is applied to lower level
accounts that contain the Rounding:True keyword in their UD field
Account UD Fields
• Next, specify the accounts in which to apply the vertical rounding
adjustments
• First – Applies the rounding adjustment to the first Base level account underneath a given
parent.
• Account Value – A specific account member is specified to record the rounding
adjustment.
Adapting Logic to
FCCS
Rounding Logic in FCCS
• Since FCCS also uses a Data Source dimension, new members need to be set up
outside of the out of the box Data Source hierarchy
– This will keep the rounding Data Sources from interfering with any standard FCCS logic for
Eliminations, Minority Interest, Cash Flow, etc.
• The Base Entity/Account data can be written to the proper Data Source using a simple
Member Formula in FCCS.
– This should only be applied at Entity Currency to Base Entities and Accounts
– Two Pass calculation must be enabled for this to work properly
Rounding Logic in FCCS
• The vertical and horizontal footing in FCCS needs to use the configurable calculations
functionality in FCCS, specifically the Final Calculations for both the Local Currency
and Translated sections.
Rounding Logic in FCCS
• From the Configurable Calculations, a script needs to be written, similar to the script used in HFM, to start from the bottom of the account hierarchy and works its way up to the top
• Since FCCS/Essbase Accounts do not used User Defined fields, the script will work its way through the entire hierarchy. Using this methodology, the script will check to ensure all children of a given Account are Level 0 descendants before making any plugs. If any of the Children under an Account are also Parent members, the script will keep going until it encounters a Parent with only Level 0 descendants.
• In order to aggregate the values in FCCS, an AGG function is used each time data is plugged during the rounding routine
– It is extremely important to limit this AGG to only the Rounding Data Source. Otherwise, serious performance issues will arise
Session ID:
Remember to complete your evaluation for this session within the app!
11092
