White PapersBy providing dashboards that highlight the current status for both financial consolidation and internal controls certification processes, Oracle Financial Consolidation Hub offers CFOs and controllers the visibility they need to confidently sign-off on the company’s financial results. Each entity in the consolidation hierarchy is actively monitored with the ability to drill down from financial statements to live transactional details in Oracle General Ledger and sub-ledgers, and with the ability to drill across to Oracle Internal Controls Manager for live certification results.
Finance teams can use the dashboard to quickly spot potential risks for misstatement and avoid delays in the discovery of key failed controls – improving both the production and the assurance of accurate financial statements.
ORACLE DATA SHEET ORACLE FINANCIAL CONSOLIDATION HUB KEY FEATURES Oracle Financial Consolidation Hub brings together financial data from disparate sources to create a single, global view of financial information across the entire enterprise. By providing one consistent view of your enterprise s financial position across complex organizational boundaries, it enables you to confidently comply with financial reporting requirements; adapt to changing business conditions; and establish a basis for ongoing, enterprise-wide performance management. Oracle Financial Consolidation Hub is a key component of Oracle Corporate Performance Management, a comprehensive solution for improving performance across all facets of your business. ORACLE FINANCIAL CONSOLIDATION HUB INCLUDES " Reporting capabilities embedded within Excel " Multi-dimensional reporting and analysis " Bi-Directional integration with Oracle General Ledger " Process dashboard to track progress and issues " Integration with Oracle Internal Controls Manager " Automatic calculation capabilities " Automated consolidation processing " Data Collection from disparate sources Strengthen Confidence in Financial Results and Controls By providing dashboards that highlight the current status for both financial consolidation and internal controls certification processes, Oracle Financial Consolidation Hub offers CFOs and controllers the visibility they need to confidently sign-off on the company s financial results. Each entity in the consolidation hierarchy is actively monitored with the ability to drill down from financial statements to live transactional details in Oracle General Ledger and sub-ledgers, and with the ability to drill across to Oracle Internal Controls Manager for live certification results. Finance teams can use the dashboard to quickly spot potential risks for misstatement and avoid delays in the discovery of key failed controls improving both the production and the assurance of accurate financial statements. " Flexible eliminations and calculations " Acquisition and disposal handling Figure 1. Manage the consolidation and certification process across your entire enterprise 1 Untitled DocumentORACLE DATA SHEET Merge Reporting from a Single Source of Financial Data Oracle Financial Consolidation Hub enables you to consolidate financial data from any system using spreadsheet-based loaders or open interfaces. Data transformation and validation procedures ensure that information is automatically standardized to a common set of values while providing complete audit trails from consolidated totals to original source balances. With this single source of consistent financial data, you can reduce the risk of inaccurate financial reporting. Create Financial Statements with Drilldown to Underlying Transactions Oracle Financial Consolidation Hub provides a convenient spreadsheet interface for financial statement creation and modification. Users can manipulate their consolidated results in a spreadsheet, taking advantage of familiar spreadsheet formatting and calculations, while maintaining a live link to the real-time financial results in a secure database. From the spreadsheet, users can drill down directly to operational transactions in Oracle E-Business Suite modules such as general ledger, accounts payable, accounts receivable, fixed assets, inventory, purchasing, projects, and so on. Figure 2. Create a single source of truth from disparate systems and drilldown to underlying transactions Automate the Consolidation Process With Oracle Financial Consolidation Hub, you can automate as much of the consolidation process as you choose, from initial data submission to final reporting and analysis. A simple, extensible framework allows you to tailor the steps in your consolidation cycle, whether the same process should be applied across your entire hierarchy or special procedures are necessary for different subconsolidations. This allows you to consistently codify standard and repeatable business processes, reducing manual intervention and minimizing the opportunities for error and misstatement. Stay Informed with Automated Workflow and Proactive Notifications By leveraging Oracle s sophisticated workflow technologies and notifications, 2 Untitled DocumentORACLE DATA SHEET Oracle Financial Consolidation Hub ensures that the appropriate people are kept well informed of situations that require their attention, such as an intercompany mismatch or an incremental data submission. Via proactive notifications, Oracle Financial Consolidation Hub ensures that you can close your books in an orderly fashion, rather than having to put out fires during the critical last few days of the period. Audit Entries from Every Stage of Consolidation One of the key components of corporate governance is the increased emphasis on personal liability for the effectiveness of internal controls and the quality of external reporting. This certification goes beyond period-end formal audit procedures, requiring auditable, repeatable processes and real-time visibility into results. Oracle Financial Consolidation Hub offers an unprecedented level of transparency that enables you to audit entries from every stage of the consolidation process for every subconsolidation, subsidiary, and affiliate within your enterprise. Consistent information is accessible by all authorized users involved in the consolidation, allowing a progressive certification process that drives accountability deeper into the organization. Figure 3. Audit entries from each stage of your consolidation, for every level in your consolidation hierarchy Adapt to Dynamic and Complex Business Conditions Having spent the last decade focusing on cutting costs, executive offices worldwide are now pursuing a diversified and sustainable mix of top-line growth initiatives. Strategies such as tapping into expanding markets or market segments, moving into adjacent markets, or investing in completely new markets require flexible, adaptable systems that can keep pace with a business environment unprecedented in its rate of change. Oracle Financial Consolidation Hub is built to adapt to changing business requirements, offering an open architecture that rationalizes data from disparate systems into a single, actionable source of truth. Balance Subsidiary Autonomy with Corporate Control As front-line managers are empowered with more autonomy to identify and quickly exploit new opportunities, maintaining corporate controls over financial processes is becoming more difficult. With Oracle Financial Consolidation Hub, you can grant as much autonomy as desired to your subsidiaries and affiliates, while resting 3 Untitled DocumentORACLE DATA SHEET assured that Oracle s software will bring everything together in a consistent, rational way. Each subsidiary can submit its subconsolidation independently, and the system will ensure that all information is consolidated in accordance with corporate standards and practices. Seamlessly Integrate New Entities Companies engage in acquisitions and disposals for several reasons, from entering new markets to gaining economies of scale, to maximizing tax efficiency. Oracle Financial Consolidation Hub enables you to model the expected results of a transaction in advance through what-if hierarchies so that you understand the impact of alternative strategies. Once a deal has been struck, the system tracks your acquisitions and disposals and updates your consolidation hierarchies and intercompany relationships automatically. It generates the appropriate elimination entries to handle goodwill, investment in subsidiaries, subsidiary equity and pre-acquisition profitability, as well as any other necessary calculations. Acquisition and disposal transactions are date-effective, so you can always view your consolidation hierarchies and consolidated results as of any point in time. Manage Global Consolidation Requirements As barriers to global competition have fallen, more companies are seeking out business opportunities around the world. These strategic activities can lead to very complex multinational accounting requirements that reflect global differences in laws, business practices, and economic conditions. Oracle Financial Consolidation Hub has flexible rule capabilities that let you reflect the different standards that govern your international operations. For example, you can define an automated goodwill amortization rule that applies to your European entities but not to your North American operations. In addition, Oracle Financial Consolidation Hub provides robust packaged support for foreign currency handling procedures, in strict accordance with FAS 52 and IAS 21. Both translation and remeasurement methods are fully handled with out-of-the-box functionality no custom scripts are required. Provide a Basis for Enterprise-Wide Performance Management Today s finance organizations are being called upon to achieve both strategic and operational excellence. After all, the best plans in the world are futile without effective execution; likewise, effective execution is wasted if it s based on flawed strategy. Achieving such corporate alignment requires a single, enterprise view of the firm s financial position. Oracle Financial Consolidation Hub creates this view, integrating multiple subsidiaries and investments from a variety of countries with disparate accounting systems, ownership structures, charts of accounts, and currencies. By providing accurate, timely, and enterprise-wide information, Oracle Financial Consolidation Hub provides a foundation upon which finance organizations can establish and evaluate business strategies. Use a Single Data Model for Corporate Performance Management Oracle Financial Consolidation Hub is built on a unified enterprise data model, utilized across the entire Oracle Corporate Performance Management solution that brings together all types of financial and operational data. With this cross-enterprise data model, you can achieve consistency of information throughout your entire 4 Untitled DocumentORACLE DATA SHEET performance management cycle from scorecarding and modeling to planning, budgeting, and forecasting, to financial consolidation and reporting. Oracle s single data model reduces maintenance costs and eliminates latency between copies and extracts, ensuring that you have the best-quality information with the lowest cost of ownership. Figure 4. A single, unified analytic platform for greater visibility, decision support, and internal controls Unify Statutory and Management Results Companies often manage their business with a business-unit or product focus that does not necessarily align with the legal structure they have established for statutory and tax purposes. Oracle Financial Consolidation Hub enables you to perform both legal and management consolidation within a single system, ensuring that your management numbers will always reconcile with your legal results. The same set of consolidated financial information supports multiple perspectives, satisfying the needs of a wide range of users, such as a general manager responsible for a stable of products, a country-specific controller responsible for the finances of a geographic region, or a corporate controller responsible for fulfilling federal regulatory requirements. Compare Strategic Plans with Actual Results An agile enterprise is one that collaboratively tunes plans to set new directions or make midcourse corrections. Oracle Financial Consolidation Hub accelerates enterprise agility, by allowing managers to compare budgets against actual results and to take advantage of pre-defined alerts that track key performance indicators and flag variances and other potential problems. 5 Untitled DocumentORACLE DATA SHEET Oracle E-Business Suite The Complete Solution Oracle E-Business Suite enables companies to efficiently manage customer processes, manufacture products, ship orders, collect payments, and more all from applications that are built on a unified information architecture. This information architecture provides a single definition of your customers, suppliers, employees, products all aspects of your business. Whether you implement one module or the entire Suite, Oracle E-Business Suite enables you to share unified information across the enterprise so you can make smarter decisions with better information. Copyright 2006, Oracle. All Rights Reserved. This document is provided for information purposes only, and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor is it subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document, and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. KEY BENEFITS KEY FEATURES ENABLE YOU TO: " Confidently comply with financial reporting requirements " Adapt to changing business conditions " Establish a basis for ongoing, enterprise-wide performance management RELATED PRODUCTS Part of Oracle Corporate Performance Management solutions, which includes: " Balanced Scorecard " Business Intelligence Solution " Daily Business Intelligence " Demand Planning " Enterprise Planning and Budgeting " Financial & Sales Analyzers " Financial Consolidation Hub " Profitability Manager RELATED SERVICES The following services are available from Oracle Support Services: " Oracle E-Business Suite Accelerators " Oracle Application Solution Centers " Oracle University " Oracle Consulting 6
