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

Steps to Design and Create Management Ledger Models

The creation of a Management Ledger Profitability model requires several steps.

  1. Identify the general requirements and required allocation methods before creating the model.

    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 dimension outline, carefully define the reporting objectives and requirements. The effort expended in designing the outline is rewarded when generating reports.

  2. Define dimensions (such as Rule, Balance, business dimensions, POV dimensions, and so on) using the Profitability Applications Console to build the main objects within the model.

  3. Identify drivers to specify how to calculate cost and revenue data. These will be added as you define rules (Working with Management Ledger Allocations).

  4. Create calculation rule sets and rules as described in Working with Management Ledger Allocations..

  5. Validate the Management Ledger model structure to ensure that the model structure conforms to validation rules (Validating Management Ledger Models).

  6. Create the underlying Oracle Essbase database and populate it with cost and revenue data, through Oracle Hyperion Profitability and Cost Management or directly into the Essbase database. See the Oracle Hyperion Profitability and Cost Management Administrator's Guide for details.

  7. Deploy the Management Ledger database. See Managing Management Ledger Databases.

  8. Calculate the model (Managing and Calculating Management Ledger Models).

  9. Report on the calculated results, using reporting tools such as Financial Reporting, Smart View, or reports within Profitability and Cost Management.You can use the trace allocation feature to visually follow the flow of funds throughout the entire model, either forward or backward.