Overview: Tour of Financial Consolidation and Close in EPM Cloud


In this overview, we’ll take a tour of Financial Consolidation and Close. When you first start, use the application
wizard to create your application. Then, as new functionality is added, you can enable features to extend your application to meet changes, priorities, and customer requirements. As an administrator, you can see all the tasks that are open for a period. You can track who is loading data, creating journals, approving journals, viewing reports, and entering data via web form. If you are a user, you will only see your
own tasks. Go to dashboards to see Task Overview, Compliance, and Financials. For example, in Financials you can see a graphical depiction of the results for the company and you can drill into the entities to see different levels of detail. You can load data using the Data Management link on Navigator. This allows you to bring data through various general ledger sources, map the data, validate the mappings, and export the data into the system. There are 11 pre-built system dimensions in the application and you can leverage custom dimensions to extend the analytics of your application. Some system or seeded members for the system dimensions are provided. For example within the account dimension, FCCS_Net Income is a seeded member representing Net Income. You can then augment these dimensions with members specific to your business. Financial intelligence is built in with account types of revenue, expense, asset, liability, and equity. Pre-seeded members include income statement, Balance sheet, and KPI’s. You can have different scenarios or buckets of data such as Actual, Plan, and Forecast. You can go to Entity where you can view your organizational structure. You can assign a default currency and a specific alias to each entity. You can also select entities as intercompany partners. Through the use of the movement dimension, you’ll be able to bridge the changes in balance sheet accounts. You will also have a complete cash flow statement without the need for any calculations. The cash flow report is generated through
the use of hierarchy properties and system calculations including opening balance and currency translation adjustments. You can build your period structure however you want. You can import or track data with the use
of supplemental data. This is the perfect way to track lease changes based on IFRS 16 so you can capture all the necessary changes for your financial reports. In Data, you can open a form and view or enter data manually. You can also create an ad hoc query to do
deeper analysis. You can execute a consolidation and/or a translation to reporting currency using a seeded form called Data Status or any appropriate form
and you can consolidate from any period or range. This is the central point to access all reports including: Financial, Journal, Intercompany, Task Management, Consolidation, and Supplemental Data. Once you run the report, you can see any out of balances between the two entities for the different sets of matching accounts. You can view financial reports and you can use Smart View to view a form. The report displays for a selected parent
entity, the original reported closing balances and all the adjustments, including manual
journal entries, Multi-GAAP adjustments and automatic eliminations generated by Intercompany elimination and consolidation rules, detailing the net contribution of each immediate child entity, and any variance. You can create and manage Journals to keep an audit trail of changes to data. You can take action on journals, including
supporting attachments, and you can have a full work flow where it’s created, submitted
for approval, and approved before it is posted. You also have full audit ability of journals
through Tools and Audit. Administrators can manage the approvals process
by creating an approval unit hierarchy or modifying the default approval unit hierarchy, setting up the promotional path, and reviewing status. Users can start, promote, reject, approve,
and submit data through the promotional path set up for the approval unit hierarchy. Through Application Consolidation you have the ability to have custom translations, custom calculations, and calculations of complex
legal entity structures for consolidation purposes. In consolidation, you can display the hierarchy
with ownership percentages, control, and the consolidation method. As you manage consolidation rules, you can handle complex consolidations. Any specific translation needs, including
managing translation overrides, can be done in the Translated section. Calculations, whether it’s unique business
metrics or custom calculations specific to the business or industry can be done in this section. Any legal structure can be handled, whether it’s 100 percent owned or any level below, it automatically calculates the appropriate
minority interests based on the appropriate ownership percentage. This includes organization by period functionality. In this overview, we took a tour of Financial Consolidation and Close. To learn more, visit docs.oracle.com.

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