Overview: Streamlining Your General Ledger With Profitability and Cost Management Cloud


Overview: Streamlining Your General Ledger With Profitability and Cost Management Cloud In this overview for chief financial officers
and chief accounting officers, we’ll show you the highlights of how you can simplify
an overburdened general ledger and streamline your financial close with Profitability and
Cost Management Cloud. Does your business change so quickly that
you and your accounting team struggle to give management executives the answers and information
that they need for agile, fact-based strategic decision making? To answer constantly changing questions from
management, do you use offline spreadsheets and shadow systems? Is your general ledger expanding, straining
to contain increasing amounts of chart of account segments and dimensions to meet performance
analysis requests for shifting business models? In trying to provide the data that executives
need, accountants swell the general ledger with entries and chart of account segments
and dimensions such as customer, product, channel, activity, and service;, adding operational
and management detail to statutory GAAP detail until the general ledger is so complex it
slows the financial close, and limits your ability to react to market and industry changes. There’s a solution. Separate statutory GAAP and management reporting
by moving operational and management details to Profitability and Cost Management, and
use performance ledgers to easily perform complex calculations, transformations, allocations,
and to generate the reports that you need. This unburdens the general ledger, freeing
it to perform its primary purpose of statutory GAAP reporting and letting you manage transformations
and performance based analysis by moving, re-categorizing, adjusting, aligning, aggregating,
and allocating funds. Your statutory GAAP process is simplified
because there’s less chart of account maintenance because you don’t have to create entries,
cost centers, accounts, and dimensions in the general ledger to adapt to business or
organizational changes. You can quickly respond to changes by changing
performance ledgers drivers. There’s no need to manipulate your numbers. Complex transformations and allocations are
made in performance ledgers that reflect your best practices; reducing trial balance activities,
reconciliations, allocations, and data source errors. You can close your general ledger faster because
it is only performing consolidations for statutory reporting. At the same time, management can report on
granular levels of data, such as product SKUs, for the analysis that they need for decision
making and profit and loss reporting using: increased transparency and auditability, better
allocations and alignment, what if planning based on different scenarios, an easy rule
designer and built-in trace and balancing. Let’s explore some of the provided capabilities
that let you easily extend, transform, and manipulate your data. You can import the additional dimensions that
you need to support your transformations and reporting. For example, you can add operational dimensions
to financial data such as product, customer, activity, channel and service. You can also manage a complex waterfall of
transformations. The allocation rule designer makes it easy
to define and distribute funds between sources and destinations using a simple, guided point
and click interface. For any allocation rule, specify a description
, source , destination, driver basis, and the offset. You can view and validate transformation results
to identify the impact of individual rules. This gives you a step by step trace of every
rule and its impact on your data. You can track and evaluate allocations for
complete transparency in several ways, such as using the trace allocations report, Smart
View – an easily accessed spreadsheet-based analysis tool – and the financial reporting
studio. With the Trace report you can visually navigate
allocations and view details such as adjustments, allocation in, allocation out, contribution
percent, and rules. You can open many forms in Smart View to drill
down on different data slices, and perform what if and ad-hoc analysis on different scenarios. In this overview we showed you the highlights
of maintaining a lean general ledger. To learn more visit cloud.oracle.com. Copyright � 2013, Oracle and/or its affiliates. All rights reserved
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