About Standard Profitability and Cost Management Applications

A Standard Oracle Hyperion Profitability and Cost Management model enables you to monitor and control direct contribution data for the entire model.

The input amounts, the flow of cost and revenue and final destination of the funds can be tracked for both cost and revenue to ensure that resources are used to best advantage and profitability can be easily demonstrated. Calculation results are posted to individual cost centers or accounts.

Data for the Standard Profitability and Cost Management model is housed in both Oracle Essbase multidimensional databases and relational databases. You create the model in the Profitability Applications Console, and define the hierarchy of accounts, activities, and operations within the organization using dimensions and dimension members. An AllocationType dimension is imported from the Profitability Applications Console. This dimension is used to correctly allocate costs and revenue, and store direct allocations and allocation genealogy.

After the application is deployed to Standard Profitability and Cost Management, you build the model, creating the drivers and assignments that generate the flow of funds to specific cost and revenue allocations. The models are constructed using up to nine stages, with up to three dimensions per stage. The allocations for each stage are passed to the next stage based on calculations and formulas that you specify in the drivers and assignments. To mirror the reality of the flow in the organization, the allocations may pass between stages (interstage), skip stages, or include allocations that are iterative within the same stage (intrastage).

Points of View (POVs) represent a specific instance of the model, and can be used to view or calculate different versions of a model; for example, to view values for different months or quarters, to compare budget versus actual figures, or to play scenarios to measure the impact of various changes on the bottom line.

The model is validated after creation to ensure that all allocations are have been accounted for, and calculations are balanced for each stage.

You deploy the Calculation and Reporting databases, and then calculate the model, and analyze the results.

For information about creating and working with Standard Profitability applications, see Overview of Standard Profitability Models.