1. User's Guide
  2. Working with Standard Profitability and Cost Management Applications
  3. About Standard Profitability Models and Scenarios
  4. Steps to Create Standard Profitability Models

Steps to Create Standard Profitability Models

The creation of a Oracle Hyperion Profitability and Cost Management standard model requires several steps.

  1. Define the requirements, the allocation methods, and the number and type of stages required, before creating the model in Profitability and Cost Management.

    You should establish the business requirements for the model and the reporting expectations. Using pencil and paper, discussion among stakeholders, flowcharting, diagramming software and other tools, draft the conception of what the model needs to contain in order to accomplish the goals. In some instances, it may be useful to identify the results you want to achieve first, and then work backwards to formulate the best strategy to meet these goals.

    When designing the Oracle Essbase outline, carefully define the reporting objectives and requirements. The effort expended in designing the outline is rewarded when generating reports. For information on creating the database outline, see Oracle Essbase Database Administrator's Guide.

  2. Define dimensions (such as business, Measures, AllocationType, and POV dimensions) using the Profitability Applications Console to build the database outline, or main objects within each stage of the model. See Dimension Types. For instructions on selecting dimensions, see the Oracle Hyperion Profitability and Cost Management Administrator's Guide.

  3. Create model stages to define the calculation order from the beginning of the process to the delivery of the final product or service. Within a Stage, you assign the dimensions that apply to that the primary activity of the stage. The dimensions are sequenced within stages, and stages are sequenced in the order in which they are to be calculated. You can specify up to three dimensions in each stage. See Setting Standard Profitability Model Stages.

  4. Create drivers to specify how to calculate cost and revenue data. One dimension must be selected as the driver dimension for each stage. See Defining Drivers and Formulas for Standard Profitability Models.

  5. Assign drivers to selected driver dimension members or members of intersections in all stage dimensions. You can assign a driver to the entire hierarchy, or to a portion of the hierarchy, a single member or a single intersection. See Creating Driver Selections.

  6. Create assignments for stage intersections using assignment rules or explicit assignments to select dimensions. The destination intersections can be in a downstream stage or within the same stage. See Working with Standard Profitability Assignments.

  7. Validate model structure for each stage to ensure the model structure conforms to validation rules, such as completed assignments and no unused drivers. See Validating Model Structure.

  8. Create the Essbase database, and populate the database with cost, revenue and driver data, through Profitability and Cost Management or directly into the Essbase database, before generating calculation scripts. See Importing Standard Profitability Data and Artifacts.

  9. Load data into the model, either through Profitability and Cost Management or directly into the Essbase database. See the Oracle Hyperion Profitability and Cost Management Administrator's Guide.

  10. Deploy the Calculation databases. See Deploying the Calculation Database.

  11. Deploy the Reporting Database. See Deploying Reporting Databases.

  12. Run the calculation scripts required to calculate each stage. Monitor the progress of long-running jobs, such as the generation of calculation scripts, and calculation. See Monitoring Standard Profitability Job Status.

  13. Calculate the Calculation Database to obtain the results of direct assignments for source and destination intersections. See Calculating Standard Profitability Models.

  14. Transfer data from the Calculation database which uses Block Storage Option (BSO) to the Reporting database which uses the Aggregate Storage Option (ASO). Transferring Data.

  15. Calculate the genealogy data. See Calculating Multistage Contribution Paths in Genealogy.

  16. Run the Stage Balancing, Driver Data and Trace Allocation reports. Make any edits or corrections to the model or data, and then rerun the calculations, as required. See these sections:

  17. Report on the calculated results, using reporting tools, such as Oracle Hyperion Financial Reporting or Oracle Smart View for Office. You can use the trace allocation feature to visually follow the flow of funds from one stage intersection throughout the entire model, either forwards or backwards.