Collaborate 2019 Oracle EPM Cloud

Collaborate 2019Oracle EPM CloudWhat’s New What’s Coming in Financial Close

Al MarcianteSr DirectorEPM Product Management

S A F E H A R B O R S TAT E M E N T

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, timing, and pricing of any features or functionality described for Oracle’s products may change and remains at the sole discretion of Oracle Corporation.

Copyright © 2019, Oracle and/or its affiliates. All rights reserved. |

Program Agenda

On Premises Update

Financial Close Overview

Consolidation and Close

Account Reconciliation

Reporting

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Program Agenda

On Premises Update




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Do you know the LSP for on-premises?

Copyright © 2019, Oracle and/or its affiliates. All rights reserved. |Copyright © 2019, Oracle and/or its affiliates. All rights reserved. | 6

On-premises Strategy

• Oracle strategy for premier support across all applications through 2030

• Enhancements driven completely by customer needs and priorities

• More nimble delivery mechanism with smaller releases for easier adoption

Ongoing commitment for lifetime support


Support Policies

• Lifetime support stages

– Premier, Extended, Sustaining

– http://www.oracle.com/us/support/lifetime-support/index.html

– http://www.oracle.com/us/support/library/lifetime-support-applications-069216.pdf

• Error Correction Policy

– EPM Policy Document 1617238.1

– Grace Periods 1590676.1

http://www.oracle.com/us/support/lifetime-support/index.html

http://www.oracle.com/us/support/library/lifetime-support-applications-069216.pdf

Copyright © 2019, Oracle and/or its affiliates. All rights reserved. | 8

On-Premises EPM Release:• 11.1.2.4

– Defect Fixing, 3rd party certification updates, enhancements thru Dec 2020

• 11.2

– Scheduled for mid 2019

– Uplift to FMW 12g release

– Repository Simplification• Replacing of Foundation services with a simpler RDBMS repository • Content migration for FR/Workspace to RDBMS repository

– 3rd party certifications* including:• OS: Linux 7, AIX 7.2, Windows 2016• RDBMS: Oracle 12.2, SQL Server 2019, • Browser: Edge, Chrome, Firefox• JDK 1.8

– Technical upgrade – out of place install

– Followed by a series of feature bearing PSUs• Modelled on the 11.1.2.4.20x series

* Not an exhaustive list


11.2.x Planned Features

• Hyperion Planning

– Smart Push

– Dimension Editor SV extension

– Extended Attribute support

– Valid Intersections

• Data Relationship Management

– Scheduled Import, Exports & Books

– DRG Mass Approvals

• Hyperion Financial Management

– Automated Consolidations

– Web based Metadata Editor

– Archiving\Deleting unwanted data

– Performance improvements

• SV, DB batch processing, etc.


Let’s move forward


Program Agenda

On Premises Update




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Connect allPlanning

Close with Confidence

Reinvent Analytics & Reporting

Outperform with Intelligence

Operations

MarketingSales

FinanceHR IT

Align Enterprise Data

Oracle EPM Cloud

Completely Agile


Operations

MarketingSales

FinanceHR IT

COMPREHENSIVE FINANCIAL CLOSE

FINANCIAL CONSOLIDATION

RECONCILIATIONS & COMPLIANCE

TAX PROVISION & REPORTING

CLOSE PROCESS ORCHESTRATION

TRANSFER PRICING

INTELLIGENT PROCESS AUTOMATION

NARRATIVE REPORTING & DISCLOSURES

Connect allPlanning

Close with Confidence

Reinvent Analytics & Reporting

Outperform with Intelligence

Align Enterprise Data

ORACLEEPM CLOUD: Completely Agile


2018 Cloud Financial Close Solutions MQ

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Magic Quadrant for Cloud Financial Close Solutions, 26 July 2018, Analysts: John Van Decker, Christopher Iervolino

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Oracle. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Link to Distributable Copy of Report:

http://www.gartner.com/reprints/oracle?id=1-59X8GKJ&ct=180730&st=sb

http://www.gartner.com/reprints/oracle?id=1-59X8GKJ&ct=180730&st=sb


Oracle Financial Close Commentary: Strengths

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Oracle has many large customers, a global reach, a large implementation partner ecosystem and a large service organization, with broad business domain and industry coverage. Oracle is able to exploit these attributes to increase the market penetration of its cloud financial close products. Oracle supports both midsize and large organizations as well as having enterprisewide use. Thishas been demonstrated by the reference study usedas part of this research.

Oracle has a large base of Oracle HFM customers that are anxious to move to Oracle FCCS; this will further expand the pervasiveness of this solution. During the past year, Oracle has become a significant competitor in the reconciliation management market and competes wellagainst leading best-of-breed products.

Oracle remains a Leader in this market, due to its market traction with Oracle FCCS; its geographic, sales and product strategy; and its business model.

Reference customers for Oracle reported that their top-three product selection criteria, in order, were ease of use, their using other Oracle products, and price.

Oracle claims that Oracle FCCS has now achieved functional parity with Oracle Hyperion Financial Management (Oracle HFM).

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• Comprehensive built-in functionality to address management and legal entity consolidations

• Configurable, with limited need for customization

• Extended close process management with intelligent process automation

ORACLE COMPREHENSIVE FINANCIAL CLOSECONSOLIDATION & CLOSE RECONCILIATIONS

NARRATIVE REPORTING

BUDGET

FORECASTTAX PROVISION

• Comprehensive Tax Reporting solution: Tax Provision, Country by Country (CbCR), Uncertain Tax Positions, Workflow & Task Management

• Integration with Cloud and on-premises ERP, financial consolidation and reporting solutions

• Transfer pricing

RECORD TO REPORT

CONTROLLER

• Narrative Reporting for Management, Tax and Statutory reporting use cases

• Annual reports• Statutory disclosures• Country by Country Tax

reporting

• Balance Sheet Reconciliations• Instant visibility into progress

of reconciliation lifecycle• Transaction Matching to

automated high-volume & complex reconciliations

• Perform and monitor variance analysis



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Consolidate and Report with Confidence and Build for the Future

• Focused on Best Practices from 30+ years experience

• Extended close from sub-ledger to final reporting

• Integration with ERP, EPM, and 3rd party sources

• Dramatically reduced maintenance cost

• Start leveraging Automation (IPA), AI and Machine Learning

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Best Practice Consolidations

Supplemental data

Workflow

DashboardData Management


Best Practice Consolidation Out-of-the-Box

• Leverages built-in best practices for an accurate and efficient financial consolidation and close

• Makes it easier for finance departments to meet global financial regulation requirements like IFRS and GAAP

• Significantly reduces timescale, cost and risk in the financial consolidation and close process

Key design principles of Financial Close on EPM CloudThe most innovative offering in the market

• Holistic approach to Record to Report process that includes

✓ Consolidations

✓ Close orchestration

✓ Supplemental/Ad hoc data collection

✓ Heavy emphasis on collaborative reporting (dashboards, reports, Office, etc)

✓ Reconciliation

✓ Tax Provision

• Pre built functionality and out box of content

✓Configurations v/s Customizations

✓Based off 30+ years of consolidation experience

✓Best practices from HFM, Enterprise and practical experience


Confidential – Oracle Internal/Restricted/Highly Restricted

Consolidation Capability EPM Cloud – Consolidation HFM

Opening Balance Carry Fwd Out of box Customized via VBScript Rules

Opening Balance Ownership Changes Out of box Customized via VBScript Rules

Balance The Balance Sheet Out of box – Configuration via UI Customized via VBScript Rules

Configurable Calculations Customized via CalcMgr Rules Customized via VBScript Rules

Default Translations Out of box Out of box

Translation Overrides Configuration via UI Customized via VBScript Rules

FX Calculations Out of box Customized via VBScript Rules

CTA/CICTA Calculations Out of box – Configuration via Enable Feature Customized via VBScript Rules

Proportionalization Out of box Out of box

Eliminations Out of box Out of box

Configurable Consolidation Configuration via UI Customized via VBScript Rules

• Investment in Subs• Minority Interest• Owners Equity

Out of box – Seeded Rules Customized via VBScript Rules

KPI Ratios Out of box – Configuration via Enable Feature Customized via VBScript Rules

Indirect Cashflow Out of box – Seeded Members No seeded members


1200+ Customers


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Confidential – Oracle Internal/Restricted/Highly Restricted 25


Moving from HFM to EPM Cloud ? …We can help!

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EPM Cloud Marketplace

• Access to methodology and tool are published.

• HFM to EPM Cloud solution

https://cloudmarketplace.oracle.com/marketplace/en_US/listing/40140621


• Application Metadata Migrated

• Created application has no validation errors and is accessible with no further steps

• Best Practices to migrate the remaining artifacts

– Data

– Journals

– Etc.

• How to transform HFM rules?

• HFM application migrated for tips and troubleshooting

• Specific methodology documented

Methodology – HFM to EPM Cloud Tool Best Practices Example HFM Apps

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https://cloudcustomerconnect.oracle.com/posts/c4857033c0


Migration Tool

• Utility to automate application build

• Moves all artifacts using Lifecycle Management

• Respects capabilities and validations of EPM Cloud

• Works with the latest monthly release

– Updates to tool as metadata changes each month

• Persists all mappings

• 11.1.2.3 and 11.1.2.4 HFM applications are supported

– Process can only be run once per target application

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EPM Cloud Marketplace

HFM Reports to EPM Cloud solution

https://cloudmarketplace.oracle.com/marketplace/en_US/listing/50393071

Recent Highlights R&D Underway Looking Forward

For Event Use Only. The above is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, timing, and pricing of any features or functionality described for Oracle’s products may change and remains at the sole discretion of Oracle Corporation.

➢ Adv. Consolidations• Manage Ownership• Proportional Consolidations• Equity Eliminations/Min Interest• Org by Period• Configurable rules

➢ Configurable translations and calculations➢ HFM Migration Toolkit➢ Performance improvements➢ Intelligent Process Automation➢ Enh Intercompany Matching options➢ Automated Consolidations➢ Extend custom dimensions➢ Consolidation trail report➢ Currency display in all reports➢ Process Control➢ On Demand Rules

➢ Adv. Consolidation• Equity Pickup support

➢ Metadata Validations➢ Account Type Flexibility➢ Parent/Contribution Input➢ New Rate Accounts➢ Opening Balance from Another Scenario➢ Input Currency➢ Simplified COA➢ Improvement Filtering in copy/clear➢ Partner Elim (P-Elim) support➢ Task Manager

• Integrated with EPM Cloud Apps• Due date reminders• Reassignment approvals

➢ Supplemental Data Manager• Large Data Set optimizations• Redeploy forms on the fly

➢ Journal Entries• Integration with any ERP• Single click create• Drill from report

➢ Predictive Actions (powered by Machine Learning)

➢ Adv. Consolidation• Investment Register

➢ No input rule capabilities➢ Archiving of data➢ YTD Journals➢ Data Management

• Updated user experience• Task Manager

• Enhanced notification management• AI for scheduling tasks

➢ Supplemental Data Manager• Integrated within Planning Cloud

Oracle EPM Cloud: Financial Consolidation and Close

03/2019Copyright © 2019 Oracle and/or its affiliates. All rights reserved

2019 Priorities

• Archiving

• Journals module

• Investment register

• No input rules

• Equity Pick Up

• Simplified COA

• New rate account

• Automation

• Config Consol update

• EPM Platform Integration

– Close Manager & Supplemental Data Manager will reside within EPM platform

– All EPM platform applications will include CM & SDM functionality

– Rename Close Manager to Task Manager


2019 Priorities

• Extended Dimensions

• Metadata Validation

• Process Management

• On demand rules

• Custom top member

• Journals/Data input flexibility


Extended dimensions

When and what• Available 18.10

• Support for up to 4 custom dimensions

• Expected faster consolidations, refreshes, etc

• No migration – requires rebuild of application

– Some minor modifications will be required

• Plan is to roll into the standard service in mid CY19–Migration support

Applicable to:

- Scenario

- Period

- Account

- Intercompany

- Movement

- Data Source

- Multi-GAAP (if exists)

- client-created Custom dimensions

Primary members must exist before shared members ("above" the shared member in the hierarchy).

Example validation message:

Shared member should not exist before the primary member.

Resolution:

Move the shared member to a position below the primary member.

Metadata Validations:PRIMARY MEMBERS MUST EXIST BEFORE SHARED MEMBERS

39Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

Valid Data Storage Types:

Entity and Movement dimensions:

- Store

- Never Share

- Shared

Account, Data Source, Multi-GAAP and client-created custom dimensions:

- Store

- Never Share

- Shared

- Dynamic Calc

The Data Storage type must be valid for all level 0 members.


The Data Storage should be Store, Never Share, Shared or Dynamic Calc for Level 0 members.

Resolution:

Change the Data Storage selection as described.

LEVEL 0 MEMBER DATA STORAGE TYPES MUST BE VALID


Applicable to:

- Account

- Data Source



Any valid level 0 Dynamic Calc member must have a valid Member Formula.

Example validation messages:

Level 0 members should not be Dynamic Calc without member formulas in Consol data storage.

Level 0 members should not be Dynamic Calc without member formulas in Rate data storage.

Resolution:

Change the Rates Consol Operator to Not Used For Cube (unless the dimension member is required in the Rates cube)

Or: Add a valid formula to the Dynamic Calc member

Or: Change the Data Storage properties to Store, Never Share or Shared.

LEVEL 0 MEMBERS SHOULD NOT BE DYNAMIC CALC WITHOUT FORMULAS


Applicable to:

- Entity

- Account

- Movement

- Data Source



Parent members should not have Member Formulas.


Parent member should not have member formula.

Resolution:

Remove the member formula from the parent member.

PARENT MEMBERS SHOULD NOT HAVE MEMBER FORMULAS


Valid aggregation operators:

Entity dimension:

- Consol cube

• Ignore

- Rates cube

• Ignore

Other dimensions:

- Consol cube

• Ignore or Never

- Rates cube

• Ignore

The aggregation operator should be Ignore or Never if a member is a child of a dimension name.


The Consol Operator for all children of the dimension name should be Ignore.

The Consol Operator for all children of the dimension name should be Ignore or Never.

Resolution:

Change the aggregation operator as described. Note that the aggregation operators for seeded members should already be correct.

Metadata Validations:AGGREGATION OPERATORS FOR ALL CHILDREN OF DIMENSION NAMES MUST BE IGNORE OR NEVER


Revenue / Revenue Addition

Revenue / Expense Subtraction

Revenue / Asset Subtraction

Revenue / Liability Addition

Revenue / Equity Addition

Expense / Expense Addition

Expense / Asset Addition

Expense / Liability Subtraction

Expense / Equity Subtraction

Asset / Asset Addition

Asset / Liability Subtraction

Asset / Equity Subtraction

Liability / Liability Addition

Liability / Equity Addition

Equity / Equity Addition

Within the balanced Balance Sheet in the Account dimension, the account types of the parent and child accounts must match with the appropriate aggregation operator.

The combination of parent Account Type and child Account Type determines whether the aggregation operator should be Addition or Subtraction.

Ensuring that the account types and aggregation operator match will ensure that the balance sheet data aggregates properly to a balanced Balance Sheet.

If the “normal sign” (i.e. Debit or Credit) of the account type is the same for the parent account and child account then the aggregation operator must be Addition.

If the “normal sign” of the account type is different for the parent account and child account, then the aggregation operator must be Subtraction.

Metadata Validations:ACCOUNT TYPE AND AGGREGATION OPERATORS MUST MATCH


Note that:

The Account Type and aggregation operator validation is applied to all hierarchies within the FCCS_Balance Sheet grouping with the exception of the seeded Cash Flow Balance Sheet.

This will allow clients to create additional alternative hierarchies and apply this validation to those hierarchies.

Account hierarchies to which this validation should not be applied can be created in the FCCS_Income Statement grouping.


Account Consol Operator should be Addition based on parent and child account types.

Account Consol Operator should be Subtraction based on parent and child account types.

Resolution:

Change the Account Type of the parent or the child or change the aggregation operator.

Note that if the aggregation operator is changed, the sign of the entered data will also need to be changed in order to maintain a balanced Balance Sheet.



Additional Account dimension considerations (not yet included in the validation checks):

The seeded balance sheet “grouping” account (FCCS_Balance Sheet) must be the first member following the seeded system accounts and exchange rate accounts.

The first child of FCCS_Balance Sheet must be the seeded balanced Balance Sheet top member. Currently either:

• FCCS_Total Balance Sheet-Net Asset Approach

• FCCS_Total Balance Sheet-Traditional Approach

The aggregation operator for these accounts can be Addition, Subtraction or Ignore. Ignore is suggested (but not required) unless you intend to report from the “grouping” member,

The aggregation operator for any other children of the FCCS_Balance Sheet grouping should ideally be Ignore but can be Addition or Subtraction if reporting from the grouping member is required.

Any descendants of the immediate children of FCCS_Balance Sheet must be Addition or Subtraction and must match the combination of the child and parent account types.



Applicable to:



Parent members that are Store or Never Share data storage should not be used as a Shared member in an alternative hierarchy.


A Store or Never Share primary parent member should not be used as a Shared member.

Resolution:

Remove the shared member from the alternative hierarchy, create a new parent in the alternative hierarchy and share the level 0 members under the new parent.

Metadata Validations: PARENT STORE OR NEVER SHARE MEMBERS OF A CUSTOM DIMENSION SHOULD NOT BE USE AS A SHARED MEMBER



• From the Application Overview card, select:

• Actions

• Validate Metadata

• Then select:

• Run

– The total number of errors is listed and the dimension name for each dimension with errors are displayed.

– Expand the dimension name to display the errors.

How to?



Process Management▪ Feature enabled by Scenario

▪ Process Management ON / OFF➢ Phase Submission ON / OFF

➢ Phase Dependency ON / OFF

▪ Promotional Path ➢ Flexible Approval Unit Hierarchy

➢ Promote to Owner (User or Group)

➢ Optional Reviewer(s)

▪ Availability of Data➢ Only Owner can modify data

➢ Reviewer can view data when promoted

➢ Anyone outside of promotional path can view data when Approved


On Demand Rules▪ Create Rules from Calc Mgr

▪ Scope per RTP – S/Y/P/E/Consolidation/Currency plus any other rule level RTP

▪ Same function / member restriction as Insertion Rule

▪ Same validation / deployment as Insertion Rule

▪ FCCS handles housekeeping / status handling

▪ Calculation OUTSIDE of Consolidation process

▪ Invoke from Rules card – RTP for S/Y/P/E/C/C

▪ Attach rule to Data Forms

• Invoke from Forms will use form POV


Journals/Input Data

• Allow ability to create and post journals to different currency than entity currency

– Eventually allow data input at alternate currency as well

• Allow ability to create new data source members for journal postings


Top Member Processing Option▪ Global option to select Custom dimension

▪ Apply to System Calculation

▪ Opening Balance carrying forward

▪ Balance Calculation

▪ FX and CTA calculation

▪ Calculation will use single member instead of all level 0

▪ Retrieved from “Total CustomX” member

▪ Write to “No CustomX” member

▪ Performance gain if many level 0 members

▪ Not applied to outside of “Total CustomX”


Automated Consolidations*

• Run financial consolidations in the background without explicit user action

– Intelligent

– Configurable

– Granular operation

–Optimal performance

• Major step towards Continuous Close vision

* Roadmap

Copyright © 2019, Oracle and/or its affiliates. All rights reserved. |Copyright © 2019, Oracle and/or its affiliates. All rights reserved. |

epmbot

• Type of Intents

• Example intents/conversation

• epmbot has memory• Simple conversations• Scrolling and Paging

• Data drill down • Charts and Images• Access to Web UI

Conversational Interface for EPM

• Login• Set/Get POV• List of Journals• Action on Journals

• Review Close Status• Review Reconciliations• Help• and more…


Chatbots


Chatbots

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Chatbots

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Chatbots

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Want More?Announcing Customer Connect Event on Apr 18

https://cloudcustomerconnect.oracle.com/posts/1b938430b9

If unable to join live, replay and slides will be posted to the same link within 24-36 hours of webcast.

https://cloudcustomerconnect.oracle.com/posts/1b938430b9


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Exploit Automated Account Reconciliations• Fully integrates the Account

Reconciliation process into the financial close

• Workflow support for the account reconciliation process including monitoring, reporting and analysis

• Automation of the transaction matching process

• Flexible Matching Rules with Configurable Tolerances

• Proactive matching resolves issues prior to financial close


• Data Management Integration to Transaction Matching

Integration update


Integration update

• Convert BAI format into TM

– Delivered with DM



➢Integrated EPM Business Processes Destination

➢Enhanced Matching & Period-End Integration

➢Parallel Approval Workflow➢Recon Management

• User Self Service• Request any recon

➢Transaction Matching• Journals Tracking/Posting• Team Assignments• Native SWIFT MT940 adapter• Import/Export Match Type

➢Integrated EPM Business Processes Source

➢Chat Bot Interface➢Journal Entry Management➢Exception Management➢Report Automation➢Bulk Team Management➢Transaction Matching

• Match filtering & grouping• DM field count and size• Saved adjustment settings

➢Machine Learning & Artificial Intelligence Updates

➢Profile Management➢Data Management UI

Updates➢Enhanced Role Config➢Transaction Matching

• Enhanced Interactive Dashboards & Reporting

• Detail vs. Summary Views• Additional Grouping & Bucketing

Options

Oracle EPM Cloud: Account Reconciliation



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Enterprise Performance Reportingwith EPM Cloud

• Complete & integrated reporting platform

• Narrative-based management and external reporting in one solution

• Unified EPM Cloud Reporting Hub

• Supports full reporting lifecycle: Reporting, Analysis, Authoring, Collaboration, Commentary & Delivery

• Regulatory Reporting framework

• Seamlessly leverage existing documents, data sources and reporting content



➢ System• REST API for artifacts• Shared Library• Integration with ERP Cloud FRC

➢ Report Package (General)• PDF Report Package• Secure Report Distribution• Create/Edit Report structure via Smart

View➢ Management Reporting

• ERP Cloud Support• Zoom on Parent (Expansions)• Drill to Content (Related Content)• Linked Reports

➢ Disclosure Management (XBRL & iXBRL)• iXBRL Support• 20F/40F Support• AI Auto Tag

➢ Smart View• Office 365 Web web/Mac• MR import to Excel

➢ System• Performance and Automation

➢ Report Package• Expanded Shared Content• PDF Excel Doclet Commenting• Smart View Refresh• Layered Styles and Style Lock

➢ Management Reporting• Platform Integration• Notes• Report Books • Report Batches

➢ Disclosure Management• Auto Tag Phase 2

➢ Report Package• Embedded content as images• Cascading• Page Break• Enhanced Publishing• Notification Enhancements

➢ Management Reporting• Relational Reporting for EPM SaaS• Collaboration• Report and chart enhancements

➢ Disclosure Management• Report Package Integration

Oracle EPM Cloud: Enterprise Performance Reporting


Collaborate 2019 Oracle EPM Cloud

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