Reconciliations Made Easy With Account Reconciliation Cloud Courtney R Allen infointerRelcom epmbiVideos What is a Reconciliation Validation that the balance in an account is correct Different types of accounts are validated or reconciled differently ID: 932877
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Slide1
The door to data clarity
Slide2Slide3Slide4Slide5Slide6Reconciliations Made Easy With Account Reconciliation Cloud
Courtney R. Allen
info@interRel.com
epm.bi/Videos
Slide7What 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
Slide8Challenges 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
Slide9Challenges in the Account Reconciliation Process
Slide10ARC Addresses these Pain Points and Challenges
Slide11Account 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
Slide12Easy To Use SUI for Completing Reconciliations
Slide13Profile Properties
Slide14Workflow Support for Account Rec Process
Slide15Manage 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
Slide16Report and Analyze on the Account Rec Process
Prebuilt reports
Supports creation of custom reports and report groups
Slide17Fully 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
Slide18How 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
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
Slide20Oracle 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
Slide21EPM 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
Slide22New 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
Slide23Into the Details of ARC
Slide24ARC 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
Slide25Worklist
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.
Slide26Reconciliations
Balance Summary
Source & Sub-system balance
Format Details
Prior Ending Balances
Balance Trending
Imbalance review
Reconciliation Metrics
Assignee
Status
Attachments
Commentary
Slide27Matching
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
Slide28Application
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
Slide29Application (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
Slide30Academy
Slide31Into the Details of ARC
Slide32Account Reconciliation Process
Slide33Load 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
Slide34Load Data - Balances
CSV supported; specific column headings are required
Balance import requires these columns/column headings:
Reconciliation Account IDAmount
Currency Code
Slide35Load 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
Slide36Load 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
Slide37Data 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)
Slide38Load 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
Slide39Data 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
Slide40Auto 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
Slide41Notify
Preparers and reviewers receive email notifications for status changes, upcoming due dates and delinquencies
Slide42Preparers
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
Slide43Reviewers
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
Slide44Overview Dashboard
Overview dashboard used to check the status of account reconciliations:
Open reconciliation count
Late reconciliations
On-time reconciliations
Slide45Compliance 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
Slide46Match Metrics Dashboard
Match Metrics
dashboard allows matching typeTransaction import dateSorting by various status
Slide47Profiles
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.
Slide48Profiles
Profiles can be updated as business changes
Updated profiles will apply for future reconciliations
Will not impact or change past reconciliations
Slide49Formats
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…
Slide50Standard 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
Slide51Format 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
Slide52Reconciliation 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
Slide53Reconciliation 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
Slide54Reconciliation 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
Slide55Consider a Phased Approach
Slide56Phase 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)
Slide57Phase 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
Slide58Phase 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
Slide59Continuing Education
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