EPM Financial

Consolidation and Close

To-Be Process Workshop – Session 2
14.07.2024
Presented by
Arif Momin and Salman
Duwaik
Presenter

Photo Arif Momin

Oracle EPM FCCS Track lead

Oracle Confidential – Restricted 2

Disclosure statement

• This call will be recorded and that any participant may object or refuse such recording and that by
participating in the call without objection, he consents to the recording of the call.
• The materials presented are confidential and proprietary information of Oracle.
• This call (including any recording thereof) is intended for viewing by attendees only and solely for the
purpose of facilitating engagement, business ownership, and understanding of Oracle Cloud
implementation for your team.
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any part of the sessions. The participant must not make recordings available outside of the participant's
organization.

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 Agenda
Subject Start Time End Time

1 Introduction to Oracle’s Solution Driven Approach 01.30 PM 01.40 PM

2 Financial Consolidation and Close Business Processes 01.40 PM 02.40 PM

3 Data Migration Object 02.40 PM 02.50 PM

4 Recap of Key Decisions taken 02.50 PM 03.00 PM

Oracle Confidential – Restricted 4

 Agenda
Subject Start Time End Time

1 Introduction to Oracle’s Solution Driven Approach 01.30 PM 01.40 PM

2 Financial Consolidation and Close Business Processes 01.40 PM 02.40 PM

3 Data Migration Object 02.40 PM 02.50 PM

4 Recap of Key Decisions taken 02.50 PM 03.00 PM

Oracle Confidential – Restricted 5

Session Etiquette

Oracle Confidential – Restricted 6

 Solution First
Implementing Cloud Applications Requires a new Approach
Requirements driven
Former ERP Implementation •Software adjusted to customer process
•Many customizations to software
•Long-lasting and expensive

Future ERP Implementation

Solution driven
•Adoption of Standard & best practice process &
configuration
•Minimum of customizations to software
Pre-configuration
Tailored Configuration •Accelerated and cost-efficient
User Adoption
Post Go-Live Product Q-Updates
Go-Live

7
Oracle Confidential – Restricted
To-Be Process Workshop Objective
 Confirm / Lock down the future business process, supported by the application

 Participants gain an improved understanding of how business processes will be supported

Focusing on a Single Global Process, use cases are common across business areas, globally
 (very limited exceptions from this principle, e.g. there are multiple manufacturing solution
models)
 Visualize how future processes will be supported by standard functionality

 Identify any areas where standard functionality does not address a business need

 Document relevant design decisions as appropriate (i.e., record No gaps identified, as well as
Gaps)

 Identify any remaining business rules and reference data to be collected from SMEs.

 Empower customer to complete configuration workbook (separate detailed sessions to be

arranged).

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Oracle Confidential – Restricted
 Agenda
Subject Start Time End Time

1 Introduction to Oracle’s Solution Driven Approach 01.30 PM 01.40 PM

2 Financial Consolidation and Close Business Processes 01.40 PM 02.40 PM

3 Data Migration Object 02.40 PM 02.50 PM

4 Recap of Key Decisions taken 02.50 PM 03.00 PM

Oracle Confidential – Restricted 9

 Enterprise Performance Management – FCCS

Period Close To Financial Reports

Fusion

Pro-Forma Close Reconcile

Close Subledgers Close Ledgers
Ledgers Accounts

Consolidate Review Financial Publish Financial

Subsidiaries Results Statements

EPM FCC (Financial Consolidation and Close)

Enterprise Planning & Budgeting Cloud Services (EPBCS) Architecture

Source Systems Integration Planning Reporting

Narrative Reporting

Cloud Data Management

Oracle Fusion
Cloud GL

Financials

Dashboards
Workforce
Oracle Fusion
Cloud HCM

Capital

Smart View Reporting

Project

Data inflow Data Outflow Drill Through

Copyright © 2024, Oracle and/or its affiliates. All rights

reserved.
Consolidation scope Entities

Consolidation will cover below highlighted entities only.

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Purpose and scope of Financial Consolidation
and Close
Transactions Entity Entity
A A
Financial
Trial
Statement
Balance
s

Group
Entity
Entity B
B
Fusion GL Trial
Balances Financial Consolidated
Balance Statement Financial
Application s Statements

Entity Entity
C C
Financial
Trial
Statement
Balance
s

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Key Solution component Walkthrough
The following structures will be shown:
1. Validate Data
1.1 Review financial Statements of BU
1.2 Update data for Notes & Disclosure
2 Submit, Review and Approve Data
2.1 Submit BU Financials for review
2.2 Review and Approve by Manager
3 Consolidate Data
3.1 Currency Translation
3.2 Intercompany Elimination
3.3 Consolidation
3.4 Parent level Adjustments
4 Submit, Review and Approve Consolidated Data
4.1 Submit Consolidated Financials for review
4.2 Review and Approve by Manager
5 Publish Approved Financial Statements

Copyright © 2024, Oracle and/or its affiliates. All rights

reserved.
 1. Validate Data
1
3

15
2. Submit BU Financials

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2. Submit BU Financials

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 Manager reviews the data through Reports

Income Statement
Year on Year
June 2023 vs June 2022

Balance Sheet
Year on Year
June 2023 vs June 2022

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Sample Report List
FCCS design will be based on NAPCO’s Annual, Quarterly and Monthly Financial
Reports formats

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Manager approves the Financial Statements of
BU

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3. Consolidation User launches the Consolidation
Rule

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3.1 Currency Translation – Example (System
Activity)
This example considers an Entity based in UAE which is required to be consolidated with an
Entity based in KSA.
Objective: Consolidate financial statements for the month of June 2023.
- Transaction done in EUR of 100,000 on 15th June 23.
- Exchange rate of EUR to AED on 15th June is 1 EUR = 4.0096 AED
- Translated Value of the transaction in AED will be 400963
Fusion
- There are no other transactions in this Account.
- Closing balance as of 30th June = AED 400963

- June 23 balance of the Account in AED is imported to FCCS.

- It needs to be translated in SAR for consolidation purposes.
FCCS - Exchange rate of AED to SAR on 30th June is 1 AED = 1.0212 SAR
- Translated Value of the balance will be SAR 409463

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 3.2 Elimination – Example (System Activity)

Parent

Child A Child B

Child A Child B Consolidated

Sales to X Sales to Z Sales 180
100 80 Cost of sales 70
Sales to B Cost of sales
50 from A ____
Cost of sales 50 Profit 110
70
____
____ Profit
Profit 30
80

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 3.3 Non-controlling interest calculation –
SUBSIDIARY
Example
Parent Holds 80% shares Child A

Parent
of
Child A
(System
Consolidated
Activity)
Sales Sales Sales 300
200 100 Cost of sales 220
Cost of sales Cost of Sales
150 70 ____
Profit 80

____ ____
Inv in Sub
Profit Assets
Profit Assets 780
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50 230
30
Oth Assets ____
550 ____ 780
24 Liabilities 594
____ 230 Equity 100
Reserves 80
574 Liabilities Non-controlling Interest
Liabilities 170 6
424 Equity ____
Equity 30 780
 3.3 Non-controlling interest calculation –
EQUITY
Example
Parent Holds 20% shares Child B
of
Parent Child B
(System
Consolidated
Activity)
Sales Sales Sales 200
200 100 Share of Profit from B 6
Cost of sales Cost of Sales Cost of sales 150
150 70 ____
Profit 56

____ ____
Inv in Sub
Profit Assets
Profit Assets 550
6
50 230
30 Share of Profit Receivable 6
Oth Assets ____
550 ____ 556
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____ 230 Liabilities 406
Equity 100
556 Liabilities Reserves 50
Liabilities 170 ____
406 Equity 556
Equity 30
4 Adjust Data

• Journal Approval
Workflow

• Journal Report

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 Trial Balance
Data Adjustments

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5 Submit, Review and Approve Consolidated
Financials

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Similar process as the standalone BU / Entity
Financials
Submission, Review and Approval

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 END OF USER JOURNEY

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Agenda
Subject Start Time End Time

1 Introduction to Oracle’s Solution Driven Approach 01.30 PM 01.40 PM

2 Financial Consolidation and Close Business Processes 01.40 PM 02.40 PM

3 Data Migration Object 02.40 PM 02.50 PM

4 Recap of Key Decisions taken 02.50 PM 03.00 PM

Oracle Confidential – Restricted 31

 Key Data Migration Objects

Object Description
Chart of Accounts Global Chart of accounts with full list of GL codes

Actual GL Balances Actual balances of historical periods

Currencies List of all the currencies to be configured

Ownership data Ownership percentages and nature of relationship with Holding

company
Journal Templates Templates of Journals passed in recurring manner over periods

Note: The above list is a key data migration objects which is required to configure and
populate data for Financial Consolidation and Close module

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reserved.
Thank you