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FCCS: A Strategic Approach to Cost Effective Financial Close

Ever wondered, if you don't have to pay extra to earn extra!!! Hmm, sounds yummy. Financial organizations are always on the lookout for such solutions. The basic needs and challenge in front of all of them is in managing their own close in the most cost-effective and efficient manner.

Since ages, they have been using HFM as an on-premise solution with really high cost involved in managing IT, Infrastructure and other factors.  With the introduction of Oracle's FCCS or Financial Consolidation Cloud Service, the money and time involved in managing all this can be saved and utilized towards a much more constructive financial close process. The Finance teams can concentrate on innovations towards their financial processes.  Thus, FCCS is definitely a strategic approach to cost effective financial close. It provides below benefits to the companies owning it:

Huge Savings on Infrastructure

  • There is no cost involved for purchase of servers/hardware, everything being on cloud
  • As a result, they don't have to bear the cost of hardware malfunction
  • There is no fees for version upgrades
  • No fees for hardware and software updates. Everything is free
  • No cost to be born, to get additional software applications
  • Automatic backups and deployment of patches as they are scheduled. It offers system independent backup of artifacts in the database (DB) as well as on the file system, which is created every night as part of automated maintenance window
  • Elimination and de-commission of existing servers-no maintenance cost for operating system (OS), security applications, databases and hardware

Quick Return on Investment

  • FCCS has become popular for its quick return on investment as the implementation is much quicker than the traditional methods.

Less Employment Cost

  • Less number of IT folks need to be employed for managing the on-premise applications. The entire cost for managing the infrastructure staff is brought down tremendously.
  • Save money on travel of the auditors since it is cloud based. The auditors can access though cloud and don't have to travel as compared to when auditing the on-premises HFM clients. This offers quite a remarkable monitory benefit to the clients.
  • Provides national access to the Finance or Business teams due to the availability of consolidation and reporting processes on mobile devices and Internet (being on cloud). It works with Internet Explorer, Chrome and Safari.

With all the amazing economic benefits, one needs to remember that FCCS is not HFM on cloud! It has its own features, abilities and capabilities. Based on the following points, you can make your own decision "whether you wanna move to cloud or not." I am sure that you would!

In-Build Products

  • Financial Close Manager is part of the solution. Tasks can be created in the Close-Manager and can be presented as a calendar or Gantt chart and assigned to the responsible people.
  • FDM is built in for data integration and mapping.
  • Journal templates for adjustments and top side entries are also built in.
  • Reports are built in. Filterable journal reports, intercompany (ICP) reports, close manager reports and financial reports are preloaded.

Calculations, Consolidations, Rules

  • Advanced consolidations and automated equity eliminations are available. Currently only 100% ownership consolidation is supported.
  • Currently, only main entity hierarchy supports ICP eliminations. Alternate hierarchy doesn't support ICP eliminations.
  • It offers out-of-the-box calculations and no scripting is needed, thus no need to make custom rules.
  • Preconfigured currency translations are available.
  • Also, it offers automated cash-flow feature, which didn't exist in HFM earlier.
  • As usual, Smart View interacts directly with data with slicing and dicing feature.
  • Smart View add-in is available for PowerPoint with direct refresh.
  • Option is available for ratio calculations.

Dimensionality

  • It offers eleven dimensions out of the box, which include account, period, entity, ICP, currency, scenario, movements, data source. The dimensions get auto-created when an application is created. Interestingly, data source is an actual dimension. Time period can be 12 or 13 months. Alias can be months, such as Jan and Feb, but dimension members can be P1 to P12 or P13. Also, the hierarchies are pre-built.
  • Offers two custom dimensions, namely Custom 1 and Custom2 .If Multi-GAAP feature is enabled, then Custom1 and multi-GAAP are available. In this case, Custom2 is not available. Multi-GAAP support (optional feature) is available for companies moving from local GAAP to IFRS.
  • Value dimension is now called consolidation dimension.
  • It can import data from multiple data sources.

Simple User-Interface and Fancy Dashboards

  • It has simple user interface, which provides an interactive user experience with simple navigation.
  • It offers the Quick App Creation wizard, with pre-built functions and dashboard.
  • It provides a fancy dashboard for monitoring and analyzing progress of close:
  1.         Close dashboards              :  For visually displaying tasks, supplemental data and journals
  2.         Financial dashboards        : For displaying key financial metrics
  3.         Compliance dashboards  : For identifying delays and responsibilities, which helps in shorter cycles by focusing on close procedures
  • It can be accessed over mobile for interactions on mobile devices.
  • Monitoring: Monitor up-time, utilization, top activity, health, security profile and comparison using Service Manager and Enterprise Manager.
  • One click access to  close overview , dashboards, tasks, data analysis, consolidate data, data forms, journals, reports, approvals, tasks, rules, console, settings etc.
  • ICP reports built with the Alert feature. The system is integrated with the email system, hence, sends email to users when a task is assigned to them.
  • Data source tracking is possible with built-in workflow.

Conclusion

FCCS is a positive innovation in Enterprise Performance Management (EPM), considering the needs of organizations with the changing times. It enables them to direct their energies and resources towards streamlining their close process. With the kind of automation and other features offered, FCCS is a revolution in the world of EPM.

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