Is your company seeking to enhance the management and analysis of your finances using driver or trend based financial statements? If so, the Oracle’s Enterprise Planning and Budgeting Cloud Service (EPBCS) Financials module provides built-in dashboards, forms, calculations and key performance indicators to help your company excel. Optimize your planning processes and configure the built-in features within the Financials module to match your businesses needs.

EPBCS provides many out of the box capabilities when setting up for financial statement planning. The Financials module has a great mix of out of the box features and high configurability for specific business needs. This allows for a seamless integration that still has a focus on getting the perfect fit for your organization. There are best practices and flexible feature options based on an organization’s needs that should be considered when building out the EPBCS Financials module. Following these best practices will quickly grant you an upgraded planning framework with low maintenance and ease of use.

Setting the Optimal Drivers

  • Driver-based Accounts
    • Out of the box and configured drivers can be used to calculate trial-based accounts such as pattern trending of drivers, percent increase/decrease, and manually adjusted accounts
  • Trend-based Accounts
    • Accounts that are difficult to be based on drivers can be setup as ‘trend-based’ accounts like pattern trending on expense, percent increase/decrease, and manually adjusted accounts
  • Manual Accounts
    • Some accounts are required to be simply entered or imported manually. For example, tax expenses.

The Financials Planning Process             

Financials grants the tools to help companies generate forecasts, plan, as well as core financial statements. The following components are included in the Financials module to provide comprehensive insight and analysis.

  • Revenue:
    • Configurable framework for revenue/gross margin planning
    • Contains ‘Flex Dimensions’ like Product, Market, Customer, etc.
  • Expense:
    • Can use framework for driver-based and trends-based planning
    • Best practice expense drivers come prebuilt
    • Optional prebuilt integration with Workforce & Capital processes
  • Balance Sheet
    • Comes fully integrated with the Income Statement and Cash Flow
    • Can be configured based on industry and customer needs
  • Cash Flow
    • Fully integrated with a focus on Cash from Operations
    • Indirect and direct cash flow methods are supported in EPBCS

Choosing the Best Options Based on Customer Needs

Enabling the necessary features under the Financials Module achieves a perfect fit for the customer. The process of setting drivers is a quick and easy way to ensure that the module is personalized based on the needs of the business.

  • Set the proper expense categories for driver-based planning
  • Select one of the revenue categories provided – this will also allow you to define additional dimensions
  • Selecting your desired income statement reporting option
  • Balance Sheet planning selection based on type of cash flow
  • Choosing direct or indirect cash flow method

Dimensions

The EPBCS Financials module comes with all the standard planning dimensions: Account, Currency, Entity, Period, Scenario, Version and Years. All dimensions come with predefined members necessary to obtain proper use of the Financials module. Integrated mapping is used to utilize members across dimensions. If necessary, child members can be added to any dimension, aliases can be changed on out of the box members, and member formulas can be modified as well.

One of the considerations and design that allows more flexibility is the plan element dimension. If an organization seeks to use their own chart of accounts, then the plan element dimension is to be utilized. The plan element dimension delineates different types and sources of data used in the application. This can be thought of as a “data type” dimension.

Income Statement Configuration

Changing the layout of the income statement is another feature that expresses the flexibility of the Financials module.

  • Simple
    • Total Revenue – Total Expenses = Net Income
  • Earnings Before Interest Tax, Depreciation, and Amortization
    • Reporting of EBITDA to arrive at Net Income
  • Separate Standard and non-Standard Expenses
    • Operating Income – Non-Operating Income = Net Income
  • Custom layouts can be created as well

The EPBCS Financials module is a powerful and intuitive tool that promotes comprehensive plans, forecasts, reports, and projects. The configurable dashboards, analytics, and predictive capabilities provides an organization exceptional insight all the while preserving ease of maintenance. The Financials module recognizes the need for customer flexibility while maintaining granular level of detail and insight. Financial planning upgrades have never been more accessible with the Financials module. Spend less time on data management and miniatous and more time on analyzing the data with the EPBCS Financials Module.  For any questions and desired further insight, don’t hesitate to reach out to KPI for any of your consulting needs.

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