1. User's Guide
  2. Getting Started with Profitability and Cost Management
  3. About Profitability and Cost Management
  4. Modeling Process

Modeling Process

Before you can build a model, the dimensions and members must be defined using the Profitability Applications Console to build the database outline, or main objects within each stage of the model.

The financial and other data required for allocation are imported to an Oracle Essbase multidimensional database for Management Ledger, and from a preexisting relational database for Detailed Profitability.

After dimensions are defined, you can build a customized model in Oracle Hyperion Profitability and Cost Management that represents the network of allocations required for the 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.

Requirements analysis is an important part of designing applications and models. See Steps to Design and Create Management Ledger Models, and Steps to Create Detailed Profitability Models for more detailed overviews of the modeling process.

Security roles determine what tasks you can perform within Profitability and Cost Management. For example, not all users are able to create applications, although most can create models. For questions about security, check with a systems administrator.

See the following sections for information about getting started with Profitability and Cost Management:

If Profitability and Cost Management has just been installed, an application must be created before models can be built. For more information, see Creating Profitability and Cost Management Applications..