Oracle FCCS: A Deep Dive

Oracle Financial Consolidation and Close Cloud Service (FCCS) is the latest evolution of Oracle’s market-leading Financial Close Suite. What makes it different than Hyperion Financial Management (HFM)? A lot!

We delivered a side-by-side review of FCCS and HFM. If you’re a customer of Hyperion Enterprise, HFM, or non-Oracle financial reporting packages evaluating alternative solutions, you will gain a much deeper understanding of Oracle’s strategy in the consolidation and close domain.

Discussion included:

-Functional and technical comparison of FCCS and HFM (Dimensions, Rules, Reporting, etc.)
-Migration considerations/best practices
-Product direction from Oracle

1. Oracle FCCS: A Deep Dive

2. Santhosh Nair GM , Enterprise Performance Management s anthosh.nair @perficient.com Tony Coffman Director, Enterprise Performance Management tony.coffman@p erficient.com

3. About Perficient Perficient is the leading digital transformation consulting firm serving Global 2000 and enterprise customers throughout North America. With unparalleled information technology, management consulting, and creative capabilities, Perficient and its Perficient Digital agency deliver vision, execution, and value with outstanding digital experience, business optimization, and industry solutions.

4. Perficient Profile Founded in 1997 Public, NASDAQ: PRFT 2016 revenue $487 million Major market locations: Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chicago , Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Lafayette, Milwaukee, Minneapolis, New York City, Northern California, Oxford (UK), Southern California, St. Louis, Toronto Global delivery centers in China and India ~3,000 colleagues Dedicated solution practices ~95% repeat business rate Alliance partnerships with major technology vendors Multiple vendor/industry technology and growth awards

5. Oracle Practice Overview 3,000+ Deployments Industry Expertise Solution Expertise EPM | ERP | BI | CX Platinum 200+ Oracle Experts Partner Cloud Select Healthcare | Supply Chain/Mfg. | Energy/Oil & Gas Financial Services | Consumer Markets 15 Specializations

6. Perficient’s EPM Practice Fast Facts Practice Started: 2002 Projects Completed: 1200+ Management Team: 15+ years Oracle Authorized Education Center Hyperion Education SupportNet Managed Services Support Services Solutions Expertise Cloud readiness assessments EPM strategy and health check Financial close & consolidations Planning & forecasting Reporting & analytics Profitability & cost management Account reconciliations Data relationship management Infrastructure & high availability Oracle Specializations

7. Oracle Training and Education Live Virtual Class Training on Demand Classroom Training Learning Streams Self Study Courses Train in person at an Oracle or Perficient facility. These include in-class demonstrations and hands-on labs. Keep learning beyond the classroom with the latest and continuously updated video training though subscriptions. OU and Perficient instructors teach students in a "virtual" classroom. Attend these courses online, in real-time. Train when and where you want, at your own pace. Download the courses online and take them from your computer. Train online via an internet connection. Access streaming lectures, white boarding, and lab activities 24/7. Train in person at an Oracle or Perficient facility or your office with content tailored to match your specific needs. Private Events

8. Oracle FCCS: A Deep Dive

9. Agenda Financial Consolidation and Close Cloud Service Background Close Management Dimensions & Metadata Management Data Management Consolidation Logic Translations Roll forwards Historical Overrides Intercompany Reporting Audit Security Looking Ahead Migration Considerations Q&A

10. Financial Close Suite Account Reconciliation Manager Hyperion Financial Management Financial Consolidation and Close Cloud Account Reconciliation Cloud Close Manager Financial Data Quality Management EE Supplemental Data Manager Financial Consolidation and Close Cloud Service

11. Home Screen

12. Navigator Menus

13. Close Management

14. Close Management

15. Close Management

16. FCCS FCCS includes Close Manager: task assignments, due dates, notifications, and compliance dashboards. It does NOT include Account Reconciliation Manager. FCCS allows administrators to Lock and Publish data. Process control not GA. Group or Entity consolidations can be delegated to controllers via security groups. Close Management HFM HFM close procedures can be grouped into Task Lists by functional role. Can’t monitor the completion of steps in a Task List. HFM has basic workflow with the Process Control feature. If enabled, entities must pass controls – Not Started, Submitted, Under Review, Approved. If Process Control is not enabled, you can still Lock and Publish data when the close is complete. Group or Entity consolidations can be delegated to controllers using security classes .

17. Dimensions and Metadata Management

18. FCCS Standard Dimensions Scenario Year Period Entity Account Intercompany Consolidation View Custom Dimensions (max 2) Multi-GAAP Custom1 Custom2 Dimensions HFM Standard Dimensions Scenario Year Period Entity Account ICP Value (includes currencies) View Custom Dimensions Custom1 (also Source Currency) Custom2 (also Target Currency) Custom3 Custom4 CustomN … Data Source Movement Currency

19. FCCS Consolidation FCCS_Contribution FCCS_Elimination FCCS_Proportion FCCS_Entity Total FCCS_Entity Input FCCS_Entity Consolidation Currency No Currency Input Currencies Reporting Currencies Entity Currency (stored) Parent Currency (stored) Consolidation HFM Value [Contribution] [Elimination] [Proportion] <Parent Currency> (pointer) <Entity Curr Total> <Entity Curr Adjs > <Entity Currency> (pointer) USD GBP CAD ...

20. FCCS Data Source (System) FCCS_Data Input FCCS_Journal Input FCCS_Supplemental Data FCCS_Intercompany Eliminations …. Movement (System) FCCS_ClosingBalance FCCS_TotalOpeningBalance FCCS_Mvmts_Total FCCS_CashFlow FCCS_CashChange Customs HFM Origin/ SourceType , etc. (Custom) GL Journal DataForm Eliminations …. Movement/Flow/RF, etc. (Custom) ENDBAL OPEBAL ACT CTA ….

21. Accounts Balance Sheet Time Balance  Flow All Balance Sheet accounts use the Flow Account type, since they all have a Movement member associated with them to show the change for the period Data Storage Parent  Dynamic Level 0  Never share

22. FCCS Import files Dimension editor Smart View Connect Add/Modify and Submit Data Refresh Database HFM Classic  HFM Client (.xml/.app) EPMA  Dimension Library (.ads) Data Relationship Management Metadata Management

23. 2 1 3 Metadata Management

24. Data Management

25. Data Management

26. FCCS Does not support custom VBScript/ Jython scripting Data Management does not support DIRECT integration with on-premise ERPs; file-based only Data Management can DRILL BACK to on-premises ERPs if they support URL queries Supports lights out processing with EPM Automate utility HFM Basic import/export data files in HFM-ready format. Financial Data Quality Management Enterprise Edition (FDMEE) for sophisticated mapping, automation FDMEE enables direct integration with Oracle ERPs (E-Business Suite, JD Edwards, PeopleSoft). Typical drill-back level is GL transaction. An open database is available for integrating non-Oracle ERPs FDMEE supports scripting for advanced file or workflow requirements Data Management

27. Supplemental Data

28. FCCS FCCS includes Supplemental Data Manager with the subscription Link Supplemental Data forms to intersections in FCCS, i.e. Inventory Design forms to extend and gather additional detail about the account Assign Preparers, Reviewers, Integrators Integrators post the Supplemental Data to FCCS From FCCS forms, drill through to Supplemental Data form for supporting detail Report on the status of supplemental data collection by entity, data set, form template, etc. HFM HFM has no out-of-box data review or input forms Used to review summary level data or collect supplemental data (such as exchange rates, operational measures, sub-account detail) which are used for automated cash flows, BS roll forwards, linked detail PPE form > Asset Purchases form, etc. Included as steps in a Task List, but they are not trackable in a “ Workflow” Supplemental Data

29. Journals

30. FCCS FCCS includes the Journal module with workflow – Submit, Approve, Post, Unpost FCCS does not support recurring, reversing, or automatic journal types. This is on the roadmap. FCCS includes journal reporting, with ability to filter by journal group, date, and so on Can report on Journal history HFM HFM has a full journal module with workflow – Submit, Approve, Post, Unpost HFM journal types are balanced/un-balanced, single/multi-entity, recurring, auto-reversing, etc. You can create journal templates for common entries . HFM has journal reporting, with ability to filter by journal group, date, and so on. Journals

31. Consolidation Logic

32. Net Income To RE Roll Forwards Translations IC Eliminations Equity Overrides FX Impact Consolidation Logic

33. Net Income to Retained Earnings

34. Translations Must create all rate accounts EOMRate  Balance Sheet AverageRate  Income Statement Ability to create spot, historical, weighted average rates Custom translations Sub Calculate Sub Translate Default rate accounts Three forms for Exchange Rate entry Single period Multi-period Computed rates Opening Balance Closing Balance prior period FX Impact FX_Opening FX_Movement Mvmts_FX_to_CTA HFM FCCS

35. FCCS Out of the box Periodic, QTD, and YTD views are available Works for both functional and translated values HFM Not out of the box Rules need to be created Custom dimension is used to support it Roll Forwards

36. Roll Forwards

37. FCCS Out of the box Available for all reporting currencies Data form available for data entry for rate/amount override Alternatively you can create your own SV or data form HFM Not out of the box Custom dimension is used to support it Rules need to be created Depending on the implementation method the amounts may need to be entered each month Historical Overrides

38. Currency Dimension Consolidation Dimension Historical Overrides

39. FCCS Out of the box for first common parent Additional elimination options are in the road map Will mainly be managed through the user interface HFM Out of the box for first common parent Additional rules need to be created for non standard eliminations Sub Consolidate Intercompany

40. Intercompany accounts: Intercompany Account IC_Acc_Yes Plug Account NOTERECPAYELIM Is Plug Account Plug_Acc_Yes Intercompany

41. Is ICP = Y Plug Account = NOTERECPAYELIM 17210 = IC Note Receivable 24210 = IC Note Payable Intercompany Account = IC_Acc_Yes Plug Account = NOTERECPAYELIM 17210 = IC Note Receivable 24210 = IC Note Payable FCCS HFM Intercompany Eliminations

42. Intercompany Matching Report

43. FCCS Predefined report format with Entity and Partner transaction side-by-side. Easier to read. Supports matching tolerance – amount and % specification Supports multiple Intercompany Plug (“Balancing”) accounts. Report is generated based on Plug Account selection. Does not have a Transaction Matching module. (See Account Reconciliation Cloud Service ) Flexible output format – HTML, PDF, XLS HFM Predefined report with Entity and Partner transaction row-by-row. Difficult to read. Supports matching tolerance – amount and % specification Supports multiple Intercompany Plug (“Balancing”) accounts. Report is generated based on Plug Account selection. ICP Transaction Matching module to load/match sub-ledger trans. ( Rarely used.) Flexible output format – HTML, PDF, XLS Intercompany

44. FCCS Uses Essbase consolidation operators (+ - * /) to control account consolidation Consolidation logic is pre-configured Does not support proportional consolidations or automated equity pickup and eliminations. This is on the roadmap. Includes pre-built metrics and KPIs out of the box Includes calculation “proof” forms for Consolidation Path, Opening Balances, Retained Earnings, and Overrides Offers limited custom calculations. This is expected to expand in Summer 2017. HFM HFM uses Account Types (Asset, Liability, Revenue, Expense) to control account consolidation HFM has default consolidation logic, but 100% of applications have additional VB code for common requirements, such as Net Income to Retained Earnings roll HFM supports proportional consolidations, automated equity pickup, and equity eliminations (with VB code) HFM has no pre-built metrics or KPIs, but these can be added Consolidation Logic

45. Auditing

46. Consolidation Proof

47. FCCS Smart View for MS Office integration FCCS includes pre-built summary financial statements (IS, BS, CF). Additional reports can be defined using the Financial Reporting Web Studio. FR reports can be grouped into “books” for distribution Pre-built dashboards for Financials, Close Overview, Close Compliance. Additional dashboards can be made FCCS reports are interactive and viewable via web browser or mobile device Static reports can be distributed in PDF/Excel format HFM Smart View for MS Office integration Does not include any pre-built financial statements. These must be created to specifications. FR reports can be grouped into “books” for distribution Reports are interactive and viewable via web browser. Static reports can be distributed in PDF/Excel format. No pre-built dashboards Reporting

48. Reporting

49. Reporting

50. FCCS FCCS requires no investments in hardware infrastructure. Two desktop clients: EPM Automate Smart View add-in FCCS patches are applied by Oracle on the 1st Friday (DEV) and 3rd Friday (PROD) each month FCCS includes automated snapshots to the cloud. These must be moved to permanent storage for disaster recovery FCCS security can be integrated with Active Directory HFM HFM requires significant investments in hardware infrastructure and maintenance Up to three clients: HFM Client Smart View add-in Financial Reporting Studio HFM patches are applied by the customer Application backups using Lifecycle Manager Operating System/Database backups must be managed by the customer HFM security can be integrated with Active Directory Infrastructure

51. Security

52. Looking Ahead

53. The following is intended to outline Oracle’s 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, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. Oracle Safe Harbor Statement

54. Alternate hierarchy support (full accounting treatment) Ability to use Close Manager and Supplemental Data Manager Standalone Tight integration with Financials Cloud including drill back Configurable translations Config calculations and consolidations Extend custom dimensions Adv. Consolidations (similar to Manage Ownership in HFM) Manage ownership Proportional consolidations Equity eliminations Org by period Ownership register Integrated EPM Business Processes Process Control Close Manager Monitoring tasks Cloud integrations Supplemental Data Manager Integrations to on p remises Journal Entry Module Integration with any ERP Recurring and auto-reversing Single click create Adv. Consolidation Automatic journaling Data lineage Automatic consolidations Event based alerts Integrated XBRL from EPRCS HFM Migration Toolkit Oracle EPM Cloud: FCCS

55. Calculation Manager will be opened up to allow users to create business r ules that can be executed at predefined points within the default consolidation process. The library of predefined rules will be expanded to support common operations like Copy, Clear etc. POV specific translation mechanism will be supported. Custom Calculations

56. Migration Considerations

57. Migration Considerations Proof of Concept Reqs /Design Build/Data Testing Parallel Configure FCCS instance Create Entities and Accounts Map historical data Repeat with new settings, as needed Solution design Task-level project plan Finalize integration settings and file specifications Convert all history Build new interfaces Develop reports/forms Create supplemental data forms Create Close Manager schedules, task, assignments Deliver training event(s) Perform all data validation Perform system integration testing/ user acceptance Track and resolve issues Test scripts Migrate FCCS app to Production instance Parallel month, quarter Cutover Administration guide Issue log Reqs inventory Map/gap business process to FCCS Create design document and review with business and IT Finalize work plan Phase Tasks Artifacts Readiness assessment

58. Opening Balances: Dec FY11  FCCS_Retained Earnings Prior Year Data Loads

59. Opening Balances: Jan FY12  FCCS_OpeningBalanceAdjustment Data Loads

60. Historical Data: Smart View Capture activity between periods in HFM at <Entity Curr Total> for each base entity Data Loads

61. Current-year Data : Data Management File-based loads with periodic activity Create load locations Create import formats Create data load mappings Account/Movement Type Source Value Target Value Like ??.10195 FCCS_Mvmts_Cash Like ??.11010 FCCS_Mvmts_AccountsReceivable Like ??.11110 FCCS_Mvmts_OtherCurrentAssets Like ??.11200 Mvmts_Intercompany Data Loads

62. Questions Type your question into the chat box

63. Next up: [Webinar] Improve Your Business Processes with Oracle Order Management Cloud Wednesday, August 16th [Event] Oracle OpenWorld October 2-5, 2017 Follow Us Online Perficient.com / SocialMedia Facebook.com /Perficient Twitter.com / PRFT_Oracle Blogs.perficient.com/ Oracle

64. Thank You