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ORACLE PROFITABILITY AND COST MANAGEMENT CLOUD SERVICE

Oracle Profitability and Cost Management Cloud Service (PCMCS) provides actionable insight into allocation-based business processes by seamlessly combining data from the general ledger and other financial systems with data from operational systems. The solution provides the transparency needed to support analysis within today’s complex enterprises.

Oracle Profitability and Cost Management Cloud includes robust data management capabilities that enable business users to easily map financial and operational data together. It provides a central hub for automating all allocation-based business processes. The solution is purpose-built for the multi-tiered allocations typically required by today’s complex business environments and provides a best practice framework to make model-building easy and consistent, with excellent performance. 

Named by Oracle as the nation’s leading EPM Cloud Service Implementer and an Oracle Cloud Select Partner, Key Performance Ideas can help you quickly implement PCMCS. From requirements review and design to PCMCS training, Key Performance Ideas can help you move to the Cloud for allocation-based business process insight. For more information, visit Oracle PCMCS.


Case In Point

KaVo Kerr: Profitability and Cost Management in the Cloud- Providing Needed Reporting and Analytics of Business Performance

KaVo Kerr is a business unit operating in the dental segment of its parent company, Danaher Corporation. KaVo Kerr is a cohesive organization comprised of two leaders in the dental industry which had provided products and services for more than a century. 

KaVo has provided dental procedure and lab equipment since 1909, while Kerr has covered general dentistry and endodontics needs since 1891. The two companies merged under the Danaher umbrella in 2017 to provide a more comprehensive portfolio for dental professionals.

Challenge
As part of a comprehensive EPM solution, KaVo Kerr had invested in Oracle Hyperion Financial Management (HFM) and integrated it with their General Ledger. It had provided needed financial consolidation and reporting. However, the company was still using complicated Excel spreadsheets and a manual process to understand root causes of costs and revenue. They realized the needed a systematic solution for their complex currency conversion and allocation of business detail. Overall, they wanted a solution that would: 

  • Calculate adjustments of data held within a data warehouse based on both percentages and amounts and month to month changes
  • Reconcile variances across disparate rules within Sales and Cost of Sales elements
  • Integrate with existing technologies and replicate various business rules maintained in Excel and calculate drivers at multiple levels
  • In order to meet these objectives and spend less time on data sourcing, spreadsheets and coding, the company selected Oracle Profitability and Cost Management Cloud Service (PCMCS)


Solution 
KaVo Kerr partnered with Key Performance Ideas and designed a solution that allocates sales and cost of sales values from their GL down to country and product. The solution systematically calculates driver data and performs layered adjustments to operational business unit costs to finalize vertical margin. The solution provides a central hub for all allocations and custom calculations and integrates with HFM to adjust for differences. They defined portable and flexible rule sets to reuse and improve month to month reporting and data analysis. Additionally, the company leverages EPM Automate™ to enable Service Administrators to automate many repeatable tasks and run business rules on data and refresh the application.

Benefits Achieved 
After implementing PCMCS, KaVo Kerr now has the ability to convert local currency to USD for revenue reporting on a country-by-product line basis. The solution was built for future growth and the ability for other divisions of the parent organization to re-use the solution. Business users can now create allocations by product and country and calculate percentages to apply throughout multiple hierarchies. Critical cost and revenue data can be viewed on a periodic or year-to-date. Additionally, the company has achieved the following benefits:

  • Control cost and revenue drivers by complex requirements of the industry standard
  • Calculate data at multiple levels of the organizational structure and apply those results as adjustments to previously allocated values
  • View additional accounts and allocation rules for sales, local cost and vertical margin adjustment by amount and percentages
  • Identify new driver data for expanded business rules
  • Enhance current on premise solutions and improve other EPM product reporting and analysis capabilities and efficiencies

 

 

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