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