Financial Consolidation and Close provides a set of consolidation features that includes out-of-the-box translations, consolidation, eliminations and adjustments.
When you create an application, the system creates these dimensions:
- Currency (Only if multi-currency is selected)
- Intercompany (Only if Intercompany is selected in Enable Features)
- Data Source
Depending on the functionality required for your application, you can enable additional features, dimensions, and members that you need. For example, you can enable journal adjustments or tracking of intercompany eliminations. After a feature is enabled, you cannot disable it.
You can select these features:
If you do not enable the Consolidation module, the Balance Sheet Hierarchy option and other consolidation-related features are not available. See Consolidation and Supplemental Data Features.
Select this option if you need to report your financial statements in both local GAAP and in IFRS or other GAAP. This option tracks the local GAAP data input as well as any GAAP adjustments.
You can rename members to reflect the correct GAAP adjustment if needed. You can also include additional members and hierarchies for other GAAP adjustments if needed.
If the Multi-GAAP option is enabled, you can have one additional custom dimension for your application.
If the Multi-GAAP option is not enabled, the system does not create the Multi-GAAP dimension, so you can add two custom dimensions for your application.
- Enter Adjustment—Select this option to enter GAAP adjustments manually.
- Calculate Adjustment—Select this option to allow the system to calculate the adjustment amount based on the Local GAAP and IFRS amount entered.
Cumulative Translation Adjustment (CTA) Account
This option is only available for multi-currency applications.
The CTA account is used to store the Foreign Exchange (FX) calculation values for historical accounts.
You can configure the application to include the CTA Account in the Balance Sheet or in Comprehensive Income. For more information, see the "CTA and CICTA Accounts" section in Seeded Dimension Members.
- Balance Sheet
- Comprehensive Income
After you enable either of these options, you cannot change them. You must recreate the application to change the option.
The system automatically uses the same option for Local GAAP.
For example, if you select CTA (Balance Sheet), the system selects CTA (Balance Sheet) for Local GAAP. If you select CICTA (Comprehensive Income), the system selects CICTA (Comprehensive Income) for Local GAAP.
Make Period and Movement Dense - Use this option to create an application with Period and Movement as Dense dimensions, or deselect the option to use Account as the Dense dimension.
This option applies only to applications that are running on Hybrid-enabled Essbase.
Balance Sheet Hierarchy: Select the Balance Sheet hierarchy that is most suitable for your application. You can also manually create additional hierarchies in addition to the ones created by the system.
- Traditional Balance Sheet Approach—This option provides the account hierarchy with Total Assets as a parent member and Total Liabilities and Equity as a separate parent member. The aggregation of these two parent members should be zero as Total Assets = Total Liabilities and Equity.
- Net Asset Approach—This option allows you to track your Net Assets separately within the Balance Sheet hierarchy as Net Assets = Total Assets - Total Liabilities.
- Basic—Available only for Extended Dimension applications. This option provides a simplified hierarchy of the minimum required set of Account and Movement dimension members based on the enabled features and a minimum set of seeded forms. Note that Indirect cash Flow is an optional enablement when the Basic option is selected but not when either Traditional or Net Assets are selected.
Include Ratio Calculations
Select the applicable ratio calculations that you want to include in your application. A separate Ratio hierarchy will be created in the Account dimension with the specific ratio groups that you selected. Individual ratio accounts and the corresponding calculations will be created as part of the application. You can add additional ratio calculations to each group.
- Current Ratio
- Quick Ratio
- Cash Ratio
Asset Management Ratio
- Inventory Turnover
- Asset Turnover
- Days Sales in Receivables
- Days Sales In Inventory
- Gross Profit Margin
- Return on Sales
- Return on Equity
- Debt To Equity Ratio
- Debt Ratio
Select this option if your application includes intercompany data. If enabled, the system creates an Intercompany dimension containing system members. The Entity dimension displays a property for members that specifies if the member should be included in the Intercompany dimension. If the property is selected, a member with the same name is created in the Intercompany dimension.
If you do not enable the Intercompany Data option, the Intercompany Dimension is not displayed in your application.
Track Intercompany Elimination— If you select the Intercompany Data option, you can additionally select this tracking option. This option enables you to track your intercompany elimination data separately by data source. If this option is not selected, then the total elimination value from all data sources is stored as one total in the application rather than by the data source detail.
Note:Both of these options are required to use the Ownership Management feature.
Intercompany Entities Aggregation— If you select the Intercompany Data option, select an aggregation option for aggregating Intercompany entities to the Intercompany Top member: Addition, Subtraction, or Ignore. See Aggregation Options for Intercompany Entities.
Consolidation Journal Adjustments
Select this option if your application includes Consolidation journal adjustment data. If you select this option, the Journals menu displays in the application for you to manage your journal entries. Journals can be manually entered or loaded. If Consolidation Journal Adjustments is enabled, the system adds an additional member named Journal Input in the Data Source dimension to track the adjustment amount separately from regular data input.
Consolidation Journal Workflow— If Consolidation Journal Adjustments are enabled, you can additionally select a workflow for the journal process. When Consolidation Journal Workflow is enabled, all journals must first be submitted for approval before they can be posted to the system.
If you do not enable Consolidation Journals, the Consolidation Journals menu does not display in the application, and there are no journal-related metadata or reports.
Select this option to manage Ownership Management data and consolidation methods.
This option is only available if you also enable Intercompany Data and Track Intercompany Elimination.
Note:Before you enable Ownership Management for an existing application, you must review the migration considerations to avoid potential conflicts with new seeded members. See Enabling Ownership Management in Applications.
Select this option to enable the Equity Pickup method of recording the value of investments in subsidiaries.
Select this option to enable rules to write data to a partner member. The Partner Elimination rule writes data to the Elimination consolidation member of a sibling of the entity being processed. See Creating Consolidation Rules. When this option is selected, almost all entities (including parent entities) should be flagged as Intercompany Partners in the metadata (select "ICP_Entity_Yes" in the"Intercompany Entity" attribute). If these entities are not flagged as Intercompany then Partner Elimination rules might fail. The only exceptions should be the top Entity label ("Entity") and its immediate children, including "Global Assumptions" and "Total Geography".
If you select the Basic Accounts Reporting option, select this option to add the Indirect Cashflow hierarchies into the Closing Balance hierarchy, and add the Cash Flow hierarchies.
If you select the Traditional Balance Sheet Approach or Net Asset Approach for Accounts Reporting, this option is selected by default and cannot be deselected.
Track Multi-Source Data Input
A Data Source system dimension is provided as part of the application. In the Data Source dimension, the Data Input member is created by default to track data manually entered or loaded from a .csv file. If you have multiple sources of data input and adjustments that you want to track, you can use this option. For each selection, a corresponding member is added to the Data Source dimension.
Other Data—Select this option if you want to collect data from another source. An additional member named "Other Data" will be created in the Data Source dimension for tracking purposes.
Using Custom dimensions can provide a more detailed view of consolidated data. These dimensions enable you to specify additional details associated with accounts, such as products, markets, channels, and so on. For example, Custom dimensions could include Product Line, Region, Channel, or Customers.
Select this option to add Custom dimensions, then enter a name for the dimension.
You can add a maximum of four Custom dimensions to an application. If your application is enabled with the Multi-GAAP reporting option, you can create three Custom dimensions.
The ability to add four Custom dimensions (or three if you enable the Multi-GAAP reporting option) is available in all new provisioned environments.
Two Custom dimensions are available in environments provisioned before June 2019. If you want to use more than two Custom dimensions in those environments, you must request the Extended Dimensionality update from Oracle Support. After you apply the update, you must create a new application. You cannot modify the number of dimensions in an existing application.
Additional Consolidation Members
- Translated Currency Input—When you enable Translated Currency Input, the system creates an additional member in the Consolidation dimension named FCCS_Translated Currency Input. You can select the FCCS_Translated Currency Input member when you create journals, journal templates, and journal reports, export and import journals through the Journals module, and create On-Demand Rules.
- Parent Input—The Parent Input option provides for data entry to the Parent/Child combination in the currency of the parent.
Contribution Input—The Contribution Input option provides for data entry that has already been proportionalized and re-classified as required.
Parent Input and Contribution Input data can be entered through data entry forms, Oracle Smart View for Office, data load or journal entry and can be written to through Configurable Calculation rules. See Consolidation.
- Control To-Date View Storage—You can specify whether the system should automatically calculate YTD, HYTD and QTD values during the consolidation and translation processes. For example, if you select only the FCCS_Periodic View member, the system calculates only the Periodic values. This may help to reduce your application and cube size. When you enable this option, the system automatically adds new Consolidate and Translate rules by Selected View to the application. See Using the Control To-Date View Storage Option.
Supplemental Data Collection
Select this option if you want to collect additional supplemental details from Supplemental Data. When it is enabled, you can configure your data collection workflow using Supplemental Data Manager, and the approved data is stored in a separate member of the Data Source dimension named "Supplemental Data" for tracking purposes. You can drill back to the source to view all the supporting details. If you do not enable Supplemental Data Collection, some supplemental data-related features are not available. See Consolidation and Supplemental Data Features.
Select this option to enable Enterprise Journals. Enterprise Journals is an EPM Platform tool to manage journals. Enterprise Journals can directly post to any ERP. See Managing Enterprise Journals.
Make Period and Movement Dense
When you create an application, the Make Period and Movement Dense option is selected by default. If you want to create an application with Account as the Dense dimension, uncheck this option. You can also migrate an existing application to one with the Period and Movement dimensions as Dense dimensions. The migration utility is available from the Application Overview screen. See Converting Period and Movement Dimensions to Dense Dimensions.