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Oracle FCCS: Where did my Income Statement hierarchy go?

Posted by Deborah Jelley

Jun 14, 2017 11:29:37 AM

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Who wants “Best Practice Consolidation Out of the Box”? You do (along with a large bowl of sea salt caramel ice cream; but I digress). Am I right? Wouldn’t it be just peachy to have best practice for the consolidation cycle preconfigured for you? Yes, yes it would. It’s a good thing. Don’t get all snarky about “Best practice is just another hackneyed marketing term.” Give this post a serious eyeball before you swipe left, or click away; then if you must go out for ice cream, I won’t stop you.   

When your company is thinking about automating the consolidation process, you might consider HFM (Oracle’s Hyperion Financial Management system for consolidation). But robust as it is, it is still an on-premises application. You must allocate money for building out servers, and concern yourself with on-going backups, patches and upgrades. Do you have the manpower to throw at this? You might. But if you don’t have that kind of human resource available, or can’t fund additional support positions, why not look at doing consolidation in the cloud?

You’re in luck. Oracle Hyperion has been building up their cloud offering, FCCS (Financial Close & Consolidation Cloud Services) for the past few years. It was all new and sparkly in 2015, but it was missing a few features that were only available in the on-premises application. *Sigh*. 

Fast forward to this year, and Oracle has been gaining on building in these missing features. For example, FCCS now contains the additional dimensions (both custom and more robust for general use). Currency is set up to be its own dimension (used to live in the “Value” dimension), and offer pre-seeded dimension members (prefixed with FCCS_ which cannot be changed or deleted) and best of all standard calc scripts that use the “FCCS_” prefixed members. You can finally get a standard cash flow statement without having to ask your happy-to-oblige consulting group to build it for you! We think about it as wanting a fence built around your house, and the local construction company shows up not with slats and posts, but with pre-fabricated, painted fencing which saves you oodles of time and cash during the build project. 

FCCS comes with 11 pre-defined dimensions and up to two custom dimensions, (or during application creation, you can select “Multi-GAAP” which will give you the option to create one custom dimension rather than two).  These dimensions are, in preferred order:

·                     Account

Represents the hierarchy of natural accounts.  Accounts store financial data for entities and scenarios in the application.

·                     Period

Represents time periods, such as quarters or months, and displays time periods in a hierarchy.

·                     Data Source

Is used to track the source of the data loaded to determine whether the data is manually entered or loaded from a GL, journal posting or from supplemental detail.

·                     Consolidation

This dimension is like the HFM “Value” dimension and it shows the consolidation path for an entity reporting to its parent, from Entity Input to Contribution.

·                     Currency

Stores translated values for entity currencies that roll up to the reporting currency parent.

·                     Entity

Represents the organization of the company, such as management or legal structures.

·                     Intercompany

Represents all intercompany balances that exist for an account and is used in combination with the account dimension.

·                     Custom1&2

Custom dimensions are associated with the Account dimension and provide additional detail for accounts.

·                     Movement

The Movement dimension captures the movement details of an account such as Opening Balance, Closing Balance, changes, and FX calculations.

·                     Scenario

Represents a set of data, such as Budget, Actual or Forecast.

·                     Year

Represents the fiscal or calendar year for data.

·                     View

Represents the periodicity of the data. Valid views are Year to Date “YTD”, or Period to Date “PTD”. 

·                     Multi-GAAP

This is optional, but if you select it, you can report your financial statements in both local GAAP and in IFRS or other GAAP. This dimension tracks the local GAAP data input as well as any GAAP adjustments.

So:  where did my Income Statement hierarchy (in the Account dimension) go?  It’s been moved over to the Retained Earnings hierarchy, whereas initially it used to be a separate hierarchy and RE had to be copied from Net Income.  Think about it:  at last, you don’t have to build a copy script to move Net Income over to Retained Earnings.  It’s automatic – if you make use of the “FCCS_” pre-fixed members in the ACCOUNT dimension – and you can use your consulting hours for other custom work you need.  

This nifty item is another characteristic of best practice consolidation features that are now being included in FCCS.  Your company may not need every aspect FCCS has on offer, but consultants have been adding them in as custom builds for years in the HFM on-premises application, so Oracle’s Hyperion team decided to build them into the system.  This, my friend, is a good thing. 

At Strafford, we have deep experience with Hyperion Financial Management, both on-premises and in the Cloud. Our consultants have all held Finance positions, so we know your pain, and we understand how HFM can make things better. We are ready to help you with roadmaps, implementation, training, and knowledge transfer.

Topics: consolidations, financial reporting, Hyperion, oracle, Hyperion Financial Management