For existing users of on-premises Hyperion Financial Management (HFM), the Financial Consolidation and Close capability in Oracle EPM Cloud represents a great opportunity to transition to the cloud. This capability builds on the over 30-year history of Hyperion (and now Oracle) of delivering market-leading consolidation and close solutions. Many existing features and conventions (intercompany matching and reporting, translation and consolidations, calculation status, and locking) have been carried over from the on-premises version, with some new additions designed to help solve today's problems. New items like automatic cash flow reporting at every level, data source tracking, and fully integrated intelligent process automation all replace custom solutions in HFM applications. In fact, the Financial Consolidation and Close capability delivers many out-of-the-box best practices that simply need to be enabled in your application with no customization. All of these factors, plus a modern and simplified user experience, will help make your users more productive.
Prior to embarking on a migration to the Financial Consolidation and Close capability in Oracle EPM Cloud, there are a number of high-level considerations that you should evaluate:
Many existing HFM applications have gone through extensive growth and change over the years. This growth often leads to unnecessary complexity in both application design and usability. Moving to the cloud is a perfect time to reassess application design and desired reporting outcomes. The cloud also brings new navigation flows that can make end-user workflows significantly easier and allow everyone to be more productive.
Change is common in business today; from acquisitions and divestitures to new business models, everyone is faced with supporting a constantly evolving business. The cloud allows for more flexible support of these changes and can help the business be much more responsive to the changing environment. An acquisition can either force a potential redesign and rollout of the HFM application, or you can simply deploy a financial consolidation and close cloud application to the newly acquired company and integrate the two via standard data-integration techniques.
Today’s reporting requirements continue to expand to include more explanatory details. The latest changes in IFRS 16 and 17 put an extra data burden on the finance department in order to comply with reporting changes. Financial Consolidation and Close Cloud includes capabilities to store high volumes of supplementary data, including transaction-type data that supports trial balance statement details. This data can be used for analysis, management reporting, statutory disclosures, and any other type of detailed analysis.
The monthly close process continues to grow in complexity and shrink in time to complete. These two factors present a challenge for any organization, but also an opportunity for software to assist. Financial Consolidation and Close Cloud can manage your entire close process from start (closing out subledgers) to finish (publishing reports) by leveraging intelligent process automation (IPA). IPA automatically handles the manual processes of waiting on tasks to complete, loading and mapping data, and running consolidations, and helps streamline your close. End users are automatically notified when their involvement is required and a full array of signoff options are available for each task. Importantly, the IPA capability can be used across the whole Oracle EPM Cloud—not just financial close (so it could also manage planning and forecasting processes).
Hyperion/Oracle has provided the market-leading consolidation and close solutions since the 1990s. Over this time, many customers and consultants have defined best practices for leveraging our solutions for their own internal needs. Financial Consolidation and Close Cloud incorporates many of those best practices directly into the solution as out-of-the-box functionality. Instead of customizing a solution, you simply enable and configure our functionality to suit your business needs. This can reduce implementation and maintenance times from months to weeks or even days. Moreover, with the rapid pace of innovation in the cloud, as your business changes we will have a library of best practices waiting for you to implement when the time comes.