The door to data clarity - PowerPoint Presentation

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The door to data clarity

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Reconciliations Made Easy With Account Reconciliation Cloud

Courtney R. Allen

info@interRel.com

epm.bi/Videos

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What is a Reconciliation?

Validation that the balance in an account is correct

Different types of accounts are validated or reconciled differently

Cash – Compare the GL balance to the bank balance

AP – Compare GL to sub-ledger

AR – Compare GL to sub-ledger and analyze the aging of receivables

Fixed Assets – Compare GL to sub-ledger and perform a roll-forward

Pre-

paids

(e.g. Insurance) – Document the composition of the balance and justify

Accruals (e.g. Bonuses) – Document the composition of the balance and justify

Provisions and Reserves – Document the composition of the balance and justify

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Challenges in the Account Reconciliation Process

#1 non-data related delay in the close process

Honest questions

What percentage of close time are you spending on account recs?

Is it even happening?

What tools are you using? Excel? Emails back and forth?

Is every account truly being reconciled?

Are we reconciling at the correct level(s)?

Are recs updated as balances change during close?

The result

Limited visibility into completion status

Limited reporting across recs

Lost reconciliations

Inefficient processes and lost time

High risk and non-compliant

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Challenges in the Account Reconciliation Process

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ARC Addresses these Pain Points and Challenges

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Account Reconciliation Cloud (ARC)

Addresses the global reconciliation process

Reduces risk, providing real-time visibility into the performance of account reconciliations

Ensures all reconciliations are properly qualified

Helps companies streamline and optimize performance by automating certain reconciliation tasks and supporting risk-based reconciliation cycles

Integrated with transaction systems

Simplified UI for Cloud

Analytics covering performance

and compliance

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Easy To Use SUI for Completing Reconciliations

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Profile Properties

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Workflow Support for Account Rec Process

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Manage the Overall Process

Real-time visibility into the progress and status

Assign staff to specific items to be reconciled

Analytics to review trending and areas for improvement

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Report and Analyze on the Account Rec Process

Prebuilt reports

Supports creation of custom reports and report groups

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Fully integrate Account Reconciliation into the Close

Integrate data from Oracle and other ERP systems

General Ledger

A/R, A/P, & Fixed Asset Sub-ledgers

Leverage existing on premise IT investments

Automate with EPM Automate Routines

Import Profiles

Import Balances

Import Pre-mapped Balances

Run Auto-match

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How to subscribe? Part of 4 Main Business Processes

Available with

both

EPM Standard and EPM Enterprise

Oracle is shifting away from cloud services to 1 solution that supports 4 main business processes

This does mean that except for legacy customers, the products will not be sold separately

What was a “product” is now just a “business process” inside Oracle EPM Cloud

Planning

: Planning, Profitability

Financial Close

: Financial Consolidation, Account Reconciliation, Tax Reporting

Narrative Reporting

: Narrative Reporting

Enterprise Data Management

: Enterprise Data Management

https://www.oracle.com/applications/performance-management/products.html

 

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Oracle EPM Standard

ERPs

Data Warehouses

Unstructured Data

Excel

Custom Plan Types

Workforce

Projects

CapEx

Scenario Modeling

Financials

PLANNING

Consolidation

Account Reconciliation

Task Management

Supplemental Data

FINANCIAL CLOSE

DATA

MANAGEMENT

Ad Hoc

Management Reports

Narration

Mobile

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Oracle EPM Enterprise

ERPs

Data Warehouses

Unstructured Data

Excel

Custom Plan Types

Workforce

Projects

CapEx

Scenario Modeling

Financials

Freeform (Essbase)

Groovy

PLANNING

Consolidation

Account Reconciliation

Task Management

Supplemental Data

Advanced Consolidation

Transaction Matching

Tax Reporting

FINANCIAL CLOSE

ENTERPRISE

DATA

MANAGEMENT

Ad Hoc

Management Reports

Narration

Mobile

Profitability & Cost Management

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EPM Cloud Standard vs. Enterprise

Business Processes

EPM

Cloud Standard

EPM Cloud Enterprise

Planning

Planning & Budgeting

Packaged modules: Workforce, Capital, Financial Project

Planning

Scenario Modeling

1 Custom Hybrid BSO & 1 Custom ASO

+

Advanced Customization and modeling (Groovy)

Intelligent Performance Management

Intelligent Process Automation

Free Form Planning

Financial

Consolidation & Close

Financial Consolidation

Task

Management

+

Advanced consolidation (on-demand business rules, custom calculations)

Intelligent Performance Management

Intelligent Process Automation

Narrative Reporting

Narrative Reporting

+

XBRL Reporting

Account Reconciliation

Account Reconciliation

+ Transaction Matching

Tax Reporting

Not available

Tax Reporting

Profitability

Not available

Profitability and Cost Management

Enterprise Data

Management

Not available

Enterprise Data Management with 5,000 records limit

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New Names of EPM Products (“Business Processes”)

EPBCS/PBCS –> Planning

EPRCS –> Narrative Reporting

ARCS –> Account Reconciliation

FCCS –> Financial Consolidation and Close

PCMCS –> Profitability and Cost Management

TRCS –> Tax Reporting

EDMCS –> Enterprise Data Management

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Into the Details of ARC

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ARC Home Screen

Simplified user interface (SUI) across all EPM Cloud products

Role-based views of ARC functionality

ARC Cards:

Worklist

Reconciliations

Matching

Dashboards

Reports

App Settings

Tools

Academy

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Worklist

The Worklist Card reflects a listing & the status of reconciliations

Summary of the status by All, Late, Due Today, or Due in 7 days

Leverage Filter bar to filter by attributes such as name or account type.

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Reconciliations

Balance Summary

Source & Sub-system balance

Format Details

Prior Ending Balances

Balance Trending

Imbalance review

Reconciliation Metrics

Assignee

Status

Attachments

Commentary

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Matching

The Matching Card notes all reconciliations created with Transaction Matching and shows a description, the name of the preparer, and whether there are unmatched items.

The process for performing matching involves:

Importing Transactional Data

Confirming Suggested Matches

Creating Manual Matches

Creating the Reconciliation Balancing Report

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Application

Overview

 displays recent reconciliation activity by different users, data loads, and the number of change requests for today, last seven days, and all

Profiles

 used to define reconciliation templates which are basis for which data points are reconciled

Periods

 allows for opening, closing, or locking (Don’t Do It!!!) periods

Configuration

 used to set up, configure, and maintain ARC application settings, i.e. – Currencies, Formats, Organizational Units, etc.

Match Types

 allows you to create match types for Transaction Matching and Calendars

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Application (cont’d)

Jobs

 displays the jobs performed in ARC –

Jobs History maintains a history of the jobs run in Transaction Matching and allows for: importing transactions, deleting imported transactions, importing balances, and running Auto Match

Services

 allows a Service Administrator to restart or run the following: email notifications, open reconciliations or system maintenance tasks such as synchronizing users

Archive

 allows a Service Administrator to keep the size of the database in check and help performance by using archive, restore, and purge functionality

Report Configuration

 allows for creating custom reports, creating report queries, and group reports

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Academy

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Into the Details of ARC

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Account Reconciliation Process

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Load Data

Supports pre-mapped data loads (non-Admins)

Supports Data Management for mapping source system data to Account IDs

FDMEE (on-premises) direct ARC integration with EPM cloud

Source system balances, sub-system balances, transactions

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Load Data - Balances

CSV supported; specific column headings are required

Balance import requires these columns/column headings:

Reconciliation Account IDAmount

Currency Code

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Load Data - Balances

Preparers load from Reconciliations; admins from the Periods or Reconciliations

Import for period

Data can be imported for periods that have pending, open or closed status

Define the file, source type, and currency bucket

Click Import

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Load Data - Transactions

CSV supported; specific column headings are required

Transaction import requires these columns/column headings:

Transaction Date (can have columns for additional attributes

Reconciliation Account ID

Amount1

Amount Currency1

Or by Currency Bucket…

Amount1, Amount Currency1 = Entered Currency

Amount2, Amount Currency2 = Functional currency

Amount3, Amount Currency3 = Reporting currency

If you have entered exchange rates, you only have to enter lowest level currency and the rest is calculated

Previously imported pre-mapped transactions are replaced

Transactions imported in the Reconciliations dialog box and manually entered transactions are not impacted

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Data Load Configuration

Balances or transactions can be loaded (FDMEE or natively)

Data loads for “Import Pre-Mapped” functionality must be pre-mapped and contain the reconciliation account ID (that matches the Profile)

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Load Data - Import to Any Status

Data can be imported for periods that have pending, open or closed statuses

Balances

If the balances change and the status was Closed or Open with Reviewer, will be changed to Open with Preparer

If balance doesn’t change, the status does not change

Transactions

Changed to Open with Preparer

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Data Management

Data integration tool that provides a single, systematic process for loading data from disparate systems into target analytical applications

FDMEE “Lite” (Financial Data Quality Management, Enterprise Edition)

ETL for the business user

Provides visibility, traceability, integrity and

verification processes

Mapping capabilities by end users

Targets and sources

File-based

Drill-through to source data (Landing Page)

Fully automated with EPM Automate

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Auto Reconciliations

Configurable for low risk accounts

Standard auto rec rules

Authorized zero balance accounts

Matching G/L to sub-G/L within tolerance

Customized auto rec rules with specific logic for your organization and compliance rules

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Notify

Preparers and reviewers receive email notifications for status changes, upcoming due dates and delinquencies

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Preparers

View balances loaded into reconciliations

Review executed auto-reconciliations

Review executed automated rules

Copy forward previous activity

Review notifications

Complete reconciling items

Provide balance explanations

Attach supporting information (doc,

xls

, pdf) to reconciliations

Provide commentary

Calculate amortizations

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Reviewers

Review notifications

Review reconciliations

Provide feedback through commentary and flagging

Approve or Reject reconciliations

Multiple reviewers are supported

Monthly, quarterly & yearly frequencies

Risk Ratings

Post reconciliation

Commentary and view only

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Overview Dashboard

Overview dashboard used to check the status of account reconciliations:

Open reconciliation count

Late reconciliations

On-time reconciliations

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Compliance Dashboard

Compliance dashboard to view more details into the reconciliation process

View completed, prepared on time, reviewed on time, rejected, and warnings

User success tracking

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Match Metrics Dashboard

Match Metrics

 

dashboard allows matching typeTransaction import dateSorting by various status 

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Profiles

Grouping of Account IDs that are subject to reconciliation

Created to meet the reconciliation requirement(s)

Can contain multiple G/L segments – Entity-Account-LOB

Assigned a type, format, preparer, reviewer, balance, etc.

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Profiles

Profiles can be updated as business changes

Updated profiles will apply for future reconciliations

Will not impact or change past reconciliations

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Formats

Define what the reconciliation will look like

What information will be required from preparers during reconciliation

Formats can also be created

Pre-built Formats are delivered with ARC

AP, AR, Accruals, Bank Reconciliation, Fixed Asset, Tracking Only…

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Standard Formats

Prebuilt formats for you to use for reconciliations

Balance comparison, account analysis or variance analysis reconciliation methods

Prior period balance and net activity are not displayed across standard formats

You can clear the hide check box to display

Simplified definitions for system and subsystem adjustments but you can update and change

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Format Design

Will determine the info presented in the Balance Summary

Defines the types of transactions, attributes, and rules for the rec, auto-recs and controls

Design at the account type level for accounts easily reconciled (e.g. Sub ledger to GL)

Create custom formats for accounts that require manual reconciliation / more complex

Pre-

paids

, accruals, provisions and reserves

Design formats to reduce risk for these items

Add rules that validate data or require attachments

Add questions to the reconciliation to ensure quality

Target highest risk accounts

Snapshots of formats are taken with each period’s reconciliations

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Reconciliation Method – Balance Comparison

Compare balances to balance from another source (sub-ledger, bank balance, or other)

Calculates a difference

If difference exists, user enters adjustment on source and/or subsystem to explain/resolve the difference

Balance Comparison with Transaction Matching can scan large transaction volumes and leverage matching rules to assist in reconciliation process

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Reconciliation Method – Account Analysis

Used for accounts that have no comparative balance

Preparer enter/load the Source System Balance

Preparers enter/load the items that make up that balance on the Explained Balance tab

Use the Adjustments if there are any unexplained differences

Account Analysis with Transaction Matching can scan large transaction volumes and leverage matching rules to assist in reconciliation process

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Reconciliation Method – Variance Analysis

Used for accounts that you want to compare over time

Flux Analysis

Current Month/

Qtr

vs Prior Month/

Qtr

Preparer enter/load the Source System Balance for current period

System references prior period for comparison (e.g. prior month)

Use the Variance Explanations if there are any unexplained differences

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Consider a Phased Approach

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Phase 1 – Tracking Only

Every account should be reconciled

Consider tracking only for first phase

Continue to use current reconciliation

processes

Only use 1-2 formats to attach Excel reconciliations

Quickly achieve benefits into rec process

Centralized database of recs

Monitoring / reporting

Leverage prebuilt tracking formats

Two formats –

Tracking Only

and

Tracking with Reconciling Items

(Allows updating spreadsheet / uploading a spreadsheet with the ability for preparers to document reconciling items)

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Phase 2 – Auto Rec Accounts

Next implement the “easier” reconciliations

Accounts supported by sub-ledger (AP, AR, FA)

Those that can be auto reconciledAutomate sub-ledger and GL balance loads

Design at the account type level

Define auto reconciliations

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Phase 3 – Complex Recs / Manual Recs

Accounts that require manual reconciliation / more complex

Prepaids

, accruals, provisions and reservesDesign formats to reduce risk for these items

Add rules that validate data or require attachments, add questions

Target highest risk accounts

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Continuing Education

AKA

“I have so, so many questions…”

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Play it Forward

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#PlayItForward

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Best Selling Hyperion Technical Book Series

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Thank you.