Introduction

Oracle EPM Planning Financials (formerly EPBCS) is a comprehensive, cloud-based planning and budgeting solution that is a core component of the Oracle EPM suite. It provides a unified platform for organizations to streamline their financial and operational planning processes, moving beyond traditional spreadsheet-based methods to a more robust, scalable, and collaborative environment. This document provides a detailed look into the features, modules, integration, and implementation of EPM Planning Financials.

Core Concepts

Driver-Based Planning

Driver-based planning is a key feature of EPM Planning Financials that links financial outcomes to key operational metrics or “drivers.” This approach allows for more accurate and agile planning by creating mathematical models that automatically calculate financial line items based on changes in these drivers.

• Mechanics:
  • Identify Drivers: Key business drivers are identified (e.g., sales volume, headcount, production costs).
  • Define Logic: Mathematical relationships between the drivers and financial outcomes are defined.
  • Automated Calculations: The system automatically calculates financial line items based on the driver values and the defined logic.
• Benefits:
  • Increased Accuracy: Plans are more accurate as they are based on the underlying drivers of the business.
  • Agility: The impact of changes in operational drivers on financial outcomes can be quickly assessed.
  • Improved Collaboration: Encourages collaboration between finance and operational departments.

Scenario Modeling and “What-If” Analysis

The Strategic Modeling module provides powerful scenario modeling and “what-if” analysis capabilities. This allows organizations to create and analyze different business scenarios to understand the potential impact of various internal and external factors on financial performance.

• Mechanics:
  • Create Scenarios: Multiple scenarios can be created (e.g., best case, worst case, most likely).
  • Adjust Assumptions: Key assumptions and drivers can be adjusted for each scenario.
  • Analyze Impact: The system automatically calculates the financial impact of each scenario, providing a clear view of the potential outcomes.
• Benefits:
  • Proactive Planning: Helps organizations prepare for uncertainty and make more informed decisions.
  • Strategic Alignment: Aligns strategic goals with financial plans.
  • Risk Management: Identifies potential risks and opportunities.

Rolling Forecasts

EPM Planning Financials supports rolling forecasts, which allow organizations to continuously update their plans based on the latest actuals and changing market conditions. This provides a more dynamic and up-to-date view of future performance compared to traditional static annual budgets.

Modules in Detail

1. Financials Module

The core of the EPM Planning suite, the Financials module provides a fully integrated solution for planning the income statement, balance sheet, and cash flow. It includes pre-built content such as forms, calculations, dashboards, and KPIs to accelerate the planning process.

2. Workforce Module

This module is designed for detailed workforce and compensation planning. It allows for planning of headcount, salaries, benefits, and taxes, and it can be integrated with HCM systems to ensure data consistency.

3. Projects Module

The Projects module bridges the gap between project management systems and financial planning. It allows organizations to assess the financial impact of projects and initiatives on overall corporate resources.

4. Capital Module

This module helps in managing, prioritizing, and planning for capital expenses. It allows for the analysis of the long-term financial impact of capital assets, including depreciation and maintenance costs.

5. Strategic Modeling Module

As mentioned earlier, this module provides sophisticated scenario modeling and “what-if” analysis capabilities for long-range financial forecasting and strategic planning.

Technical Integration with Oracle Cloud ERP

EPM Planning Financials integrates seamlessly with Oracle Cloud ERP through the Data Integration feature within the EPM Cloud.

• Data Extraction: Data can be extracted from Oracle Cloud ERP using prepackaged extracts, custom BI Publisher reports, or custom queries.
• Data Flow: The integration process involves registering the ERP as a source system, defining mappings for periods, categories, dimensions, and members, and then running the integration to transfer the data.
• Key Components:
  • Data Integration (EPM Cloud): The central tool for managing data movement.
  • BI Publisher: Used for creating and customizing reports to extract data from the ERP.
  • Security and Roles: Specific user roles and privileges are required in both the ERP and EPM to manage the integration.

Implementation Best Practices

• Thorough Planning: Define clear business objectives and assess organizational readiness before starting the implementation.
• Data Management: Prioritize data quality and governance to ensure the accuracy and integrity of the data.
• System Design: Adhere to technical best practices for system design and configuration to ensure scalability and performance.
• Testing and Validation: Conduct comprehensive testing to ensure system functionality, data accuracy, and user acceptance.
• User Training and Change Management: Provide comprehensive training and support to end-users to ensure adoption and proficiency.
• Continuous Optimization: Continuously monitor performance, test updates, and integrate new features to get the most out of the system.

User Interface and Experience

EPM Planning Financials provides a user-friendly interface that can be accessed through a web browser or through Microsoft Office products using Smart View. The interface is designed to be intuitive and easy to use, with dashboards, reports, and forms that can be customized to meet the specific needs of different users.

Conclusion

Oracle EPM Planning Financials is a powerful and comprehensive solution for financial planning, budgeting, and forecasting. Its modular design, advanced features, and seamless integration with Oracle Cloud ERP make it a valuable tool for organizations looking to improve their financial planning processes and make more informed business decisions.

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