In This Section:
To maximize profitability, a business must be able to accurately measure, allocate, and manage costs and revenue. Oracle Hyperion Profitability and Cost Management is an analytic application that manages the cost and revenue allocations that are necessary to compute profitability for a business segment, such as a product, customer, region, or branch. The application also enables you to use cost decomposition, consumption-based costing and scenario-playing to measure profitability, and provides a meaningful planning and decision support system.
Profitability and Cost Management is accessed through Oracle Hyperion Enterprise Performance Management Workspace. As the Web client for Profitability and Cost Management, EPM Workspace enables you to access and interact with other installed applications, such as the following examples:
Oracle Hyperion EPM Architect
Oracle Hyperion Planning
Oracle Hyperion Reporting and Analysis
Oracle Hyperion Financial Management
Third-party applications, such as Microsoft Word and Microsoft Excel
Before you can build the model, you must define the dimensions and members using Performance Management Architect to build the database outline, or main objects within each stage of the model. See the Oracle Hyperion Enterprise Performance Management Architect Administrator's Guide for instructions. The financial and other data required for allocation are imported to an Oracle Essbase multidimensional database for Standard Profitability, or from a pre-existing relational database for Detailed Profitability.
After defining the dimensions, you build a customized model in Profitability and Cost Management that represents the network of allocations required for your products or services.
Within the model, assigned drivers specify how data is calculated, using standard or customized formulas. Assignments control the flow of calculations, to accurately reflect the allocation of costs and revenues, and to determine profitability. The model is validated for structure and integrity. Using the model, you calculate imported financial data, and produce performance metrics and profitability reports.
After a valid model is created, you can use it to create different versions or scenarios of the original model, enabling you to evaluate the impact of the proposed changes on the bottom line.
See the following sections for information about getting started with Profitability and Cost Management: