Management Ledger Model Elements

A Management Ledger model is a representation of part or all of an organization, and contains costs and revenue categories that are similar to the organization's chart of accounts and general ledger.

Management Ledger models enable you to accurately trace the processes and activities that contribute to costs and revenue within the organization.

A Management Ledger model is made up of the following elements:

• Dimensions, which are data categories that are used to organize business data for retrieval and preservation of values.

• Drivers that determine how cost or revenue source values are calculated and allocated. Selected drivers are applied to the entire dimension, a portion of the hierarchy, a single member, or even a single intersection.

• Financial cost and revenue data, which is imported to Oracle Essbase directly through a data file, or manually entered through Oracle Hyperion Profitability and Cost Management.

See Dimensions in Management Ledger Profitability Applications for information on using these dimension types.

Together these elements organize the allocation points in the model into a logical flow. Careful modeling can capture the actual processes and activities, enabling you to realistically allocate costs and revenues.

The business, system, and POV dimensions are created in the Profitability Applications Console and deployed to the Profitability and Cost Management relational database. Rule sets and rules are created in Profitability and Cost Management.

After you create a model that reflects the current status of the organization, you can use the Copy POV feature to create alternate versions of the base model. The scenarios, or what-if scenarios, provide a risk-free method to predict the potential profitability of new opportunities and strategies, and to evaluate alternatives. or changes in the model.