Introduction

This tutorial shows you how to leverage KPIs in Financials by using out-of-the-box KPIs or adding your own. The sections build on each other and should be completed sequentially.

Background

Key Performance Indicators (KPIs) also known as metrics and measures, enable you to collect objective, quantifiable data or data that indicates progress toward a performance or strategy target. High-level KPIs may focus on the overall performance of the organization, while low-level KPIs may focus on processes within departments such as sales, marketing, HR, support and so on.

You can use KPIs to reflect the health of key areas (perspectives), in your organization. For example, a KPI that tracks the return on assets for an organization in the banking industry provides financial data and should be associated with the financial perspective.

With out-of-the-box KPIs, accounts, and drivers, Financials accelerates your planning process. You can also define custom drivers and KPIs and bring in your own chart of accounts in Financials.

Prerequisites

Cloud EPM Hands-on Tutorials may require you to import a snapshot into your Cloud EPM Enterprise Service instance. Before you can import a tutorial snapshot, you must request another Cloud EPM Enterprise Service instance or remove your current application and business process. The tutorial snapshot will not import over your existing application or business process, nor will it automatically replace or restore the application or business process you are currently working with.

Before starting this tutorial, you must:

  • Have Service Administrator access to a Cloud EPM Enterprise Service instance.
  • Upload and import the snapshot Financials_KPIs.zip into your Planning instance.
  • Save Revenue_Data FY24_FY25_FY26.csv locally. You will be importing data using this load file.

Note:

If you run into migration errors importing the snapshot, re-run the migration excluding the HSS-Shared Services component, as well as the Security and User Preferences artifacts in the Core component. For more information on uploading and importing snapshots, refer to the Administering Migration for Oracle Enterprise Performance Management Cloud documentation.

Key Performance Indicators in Financials

Here are the predefined KPIs when you enable parent key members:

Revenue KPIs

KPI Description
OFS_Total Revenue Parent key member used to depict total results for revenue
OFS_Total Cost of Sales Parent key member used to depict total results for cost of sales
OFS_Revenue Per Employee Calculates based on the total revenue divided by the current number of employees
OFS_COS to Revenue% Calculates the percentage of cost of sales to total revenue
OFS_Margin % Calculates margin % by dividing gross profit by total revenue

Expense KPIs

KPI Description
OFS_Headcount Number of current employees
OFS_Operating Expense / Headcount Calculates based on operating expenses divided by the current number of employees
OFS_Operating Expenses Parent member used to depict the total operating expenses

Income Statement

KPI Description
OFS_Net Income % Calculates net income as a % of total revenue
OFS_Other Operating Expense to Revenue Calculates the percentage of operating expense to revenue as a performance indicator

Balance Sheet

KPI Description
OFS_Cash Parent key member used to depict total cash
OFS_Return on Assets Calculates the return on asset performance metric, net Income divided by total assets
OFS_Return on Invested Capital Calculates the return on invested capital
OFS_Cash Ratio Indicates the ratio of cash compared to total current liabilities
OFS_Working Capital Calculates the working capital by subtracting total current assets minus current liabilities
OFS_Current Ratio Calculates the ratio of Total Assets to Total Liabilities
OFS_Return on Equity Calculates the return on equity
OFS_Debt To Equity Calculates the ratio of debt to equity
OFS_Working Capital Turnover Calculates the working capital ratio by dividing total current assets minus current liabilities by total revenue

Cash Flow

KPI Description
OFS_Discount Rate Discount rate
OFS_Discount Factor Calculates the discount factor to be used in the NPV calculation
OFS_PV of Cash Flow Calculates the present value of cash flow based on discount rate and cash flow
OFS_NPV Calculates the net present value of cash flow

Setting up the Foundation for Your Plans and Forecasts

In this section, you review the enabled features and time frame granularity, set values for user variables, and view data in Financials.

Reviewing Enabled Features

In Enable Features, you select which parent key members, accounts, and drivers you want to enable for your Financials business process, as well as add and map custom dimensions. Based on your selections, dimensions, drivers, forms, accounts, and KPIs are created.

Note:

You must define all custom dimensions the first time you enable features. You can’t define these later.
  1. On the Planning home page, click Application then Configure.
    2. Home Page
  2. From the Configure drop-down, select Financials.
    3. Configure Page
  3. In Configure: Financials, click Enable Features.

    4. Revenue and Expense planning is enabled. Expenses are configured so that you can plan with drivers and related accounts.

    Top Part of Enable Screen
  4. Scroll down.

    5. Income Statement, Balance Sheet and Cash Flow are configured.

    Middle part of Enable Screen
  5. Scroll down.

    6. Currently, Rolling forecast and Weekly planning are not configured. Existing and custom dimensions are displayed. Product dimension is enabled for Revenue and the Services dimension is enabled for Expense. Cost Center is enabled for Expense. Channel is enabled for both Revenue and Expense. Funding Segment is enabled for Balance Sheet and Cash Flow.

    Map Dimensions Section
  6. Click Close.

    7. Note:

    You can’t disable features later.

Reviewing Time Periods and Granularity

In Planning and Forecast Preparation, you select the current fiscal year, period (month), and plan start year to control the beginning and end duration of your scenarios. You also set the period granularity for the Plan, Forecast, and Rolling Forecast (if enabled) scenarios in your business process.

  1. In Configure: Financials, click Planning and Forecast Preparation.
    2. Configure Page

    Notice that Current Fiscal Year is FY25, the Period is January, and the Plan Start Year is set to Next Fiscal Year.

    Plan Forecast Preparation
  2. Click Forecast.

    3. The Forecast starts in February FY25 and runs through December of FY26. The two year forecast is set on a monthly basis.

    Forecast Granularity
  3. Click Plan.

    4. The four year Plan which runs from January FY26 through December of FY29, and has each year's data planned on a monthly basis.

    Plan Granularity
  4. Click Close.

Selecting Values for User Variables

User Variables were added when the business process was created. User variables act as filters in forms, enabling planners to focus only on certain members. In this section, you set values for User Variables.

  1. Click Navigator Icon (Navigator) then under Tools, click User Preferences.
    2. Navigator Menu
  2. Under Preferences, click User Variables.
    3. Preferences Page
  3. For each variable, click its MemberSelector (Member Selector) to select a member as the variable's value:
    • Currency: USD
    • Entity: 1 US
    • Reporting Currency: USD
    • Scenario: OEP_Plan
    • Version: OEP_Working
    • Years: FY26
    • Expense Account: OFS_Operating Expenses
    • Expense Drivers: OFS_Travel and Entertainment Expense Drivers
  4. Verify your selections, and click Save.
    5. Save Variables
  5. At the information message, click OK.
    6. Info Prompt

Managing KPIs

In this section, you manage KPIs in the dimension hierarchy and the Configure: Financials page.

Verifying Enabled KPIs

Out-of-the-box KPIs are enabled based on the features selected on the Enable Features page of Financials.

  1. Click Navigator Icon (Navigator) then under Application, click Configure.
    2. Navigating to the Configure page
  2. From the Configure drop-down, select Financials.

    3. Depending on the features you enabled, subcomponent accounts are listed on this page. In this example, Revenue Accounts, Expense Accounts, Balance Sheet Accounts, and Cash Flow Accounts were enabled.

    Subcomponent accounts
  3. In Configure: Financials, click Revenue Accounts.
  4. From the Category dropdown list, select Revenue KPIs.

    5. The enabled Revenue KPIs are displayed.

    Revenue KPIs

    If the KPI has a member formula, you can view it here.

  5. For OFS_COS to Revenue%, click Member Formula (Member Formula).

    6. You can view, add, edit, and validate the KPI member formula here.

    Member formula
  6. Click Cancel.
  7. From the Category dropdown list, select Income Statement KPIs.

    8. Income statement-related revenue KPIs are displayed.

    Income Statement Revenue KPIs
  8. Click Close.
  9. Repeat steps 3 to 7 to view KPIs for other subcomponents.

Reviewing KPIs in the Hierarchy

KPIs are stored as account members in the dimension hierarchy.

  1. Click Navigator Icon (Navigator) then under Application, click Overview.
  2. Click Dimensions.
    3. Overview tab
  3. From the Cube dropdown list, select OEP_FS.
    4. Selecting cubes
  4. Click Account.
    5. Account dimension
  5. In Edit Member Properties: Account, click Zoom in All Levels (Zoom in All Levels) to expand all levels in the hierarchy.
  6. Scroll down and locate the following members:

    Tip:

    You can search the members by name in the search box.
    • OFS_Revenue KPIs
      • Revenue KPIs
    • OFS_Expense KPIs
      • Expense KPIs
    • OFS_Income Statement KPIs
      • Income Statement KPIs
    • OFS_Balance Sheet KPIs
      • Balance Sheet KPIs
    • OFS_Cash Flow KPIs
      • Cash Flow KPIs

Adding KPIs to the Alternate Hierarchy

You can bring in your own KPIs in the same way you load your own chart of accounts. Predefined accounts, drivers, KPIs, and the chart of accounts you bring in can coexist in Financials.

In this section, you review the chart of accounts previously loaded under parent key members. You will add imported accounts as shared members under existing KPI parent members to make sure that the added accounts are included in the Income Statement.

Learn more on how to bring in your own chart of accounts from these tutorials:

Note:

Learn how to add and edit dimensions and members by stepping through the Managing Dimensions in Cloud EPM Business Processes tutorial.
  1. In the grid, under OFS_Financials Accounts, then OFS_Revenue Planning, select OFS_Gross Profit.

    2. The following revenue accounts were previously added to the hierarchy.

    Revenue COA
  2. In the grid, under OFS_Financials Accounts, then OFS_Expense Planning, select OFS_Total Expenses.

    3. The following expense accounts were previously added to the hierarchy.

    Expense COA
  3. Add the account members as KPIs. In the grid, under OFS_Financials Accounts, then OFS_Revenue Planning, then OFS_Revenue KPIs, select OFS_Total Revenue.
  4. Click Actions and select Add Child.
    5. Add Child
  5. In the Add Child dialog box, enter 2 and click Apply.
    6. Specifying the number of children to add

    Yellow colored cells are added under OFS_Total Revenue.

    Added cells in the grid
  6. Edit the Member Name for the added yellow cells under OFS_Total Revenue to:
    • Product Income
    • Other Income
    7. Added cells in the grid
  7. For both members, set the Default Data Storage to Shared.
  8. Click Save.

    9. The members are temporarily added to the hierarchy.

    Saved to the hierarchy
  9. In the grid, under OFS_Financials Accounts, then OFS_Revenue Planning, then OFS_Revenue KPIs, select OFS_Total Cost of Sales.
  10. Click Actions and select Add Child.
  11. In the Add Child dialog box, accept the default value (1) and click Apply.
  12. Edit the Member Name for the added yellow cell under OFS_Total Cost of Sales to COGS.
  13. Set the Default Data Storage to Shared.
  14. Click Save.

    15. The member is temporarily added to the hierarchy.

    Added chart of account members

    To commit changes, you must refresh the database.

  15. Click Refresh database (Refresh Database).
  16. In the Refresh Database dialog box, accept the default selections, and click Refresh Database.
    17. Refresh database prompt

    Tip:

    It is recommended that Enable Use of the Application is set to Administrators, before and after refreshing the database, until Financials is completely configured and ready for production.
  17. At the Refresh Database prompt, click Refresh.
    Refresh the database

    The Cube Refresh/Create in Progress status is displayed.

    Cube Refresh Status
  18. When the status displays as Succeeded and the percent complete is 100%, click Finish.
    Cube Refresh Status completed
  19. Click Close.
  20. Click Cancel.

Adding KPIs in Configure: Financials

You add and edit KPIs in the same way you add or edit accounts and drivers.

Tip:

Check that your KPI member aliases and names don’t conflict with those of the provided KPIs.
  1. Click Navigator Icon (Navigator) then under Application, click Configure.
  2. From the Configure drop-down, select Financials.
  3. In Configure: Financials, click Revenue Accounts.
  4. From the Category dropdown list, select Revenue KPIs.

    5. Notice that Product Income, Other Income, and COGS are now displayed, replacing OFS_Total Revenue, and OFS_Total Cost of Sales. In the hierarchy, OFS Total Revenue and OFS_Total Cost of Sales are still under OFS_Revenue KPIs but considered as parents. Level zero (0) KPIs are listed on this page.

    Revenue KPIs
  5. Click Actions and select Add.
    Adding KPIs

    Tip:

    To add a small number of KPIs, select Add from the Actions menu. To add a group of KPIs, export the set of predefined KPIs, and then modify the export file in Excel. Then, import the modified file.
  6. Enter details in the new row:
    • Name: Repurchased
    • Time Balance: Flow
    • Data Storage: Store
    • Data Type: Non Currency
    7. Adding KPIs
  7. Click Save.
  8. Click OK.
  9. Click Close.
  10. Refresh the database. In Configure: Financials, click Actions and select Refresh Database.
    11. Click Create
  11. In Refresh Database, click Create.
    12. Click Create
  12. For both Before Refresh Database and After Refresh Database—Enable Use of the Application for, select Administrators and click Refresh Database.
    13. Click Create
  13. At the prompt, click Refresh.
    14. Click Create
  14. When the status displays as Succeeded and the percent complete is 100%, click Finish.
    15. Click Create
  15. Click Close.
  16. In Refresh Database, click Close.

Viewing KPIs in Dashboards and Forms

In this section, you load revenue data, plan using trends, run calculations, and view revenue data and KPIs.

Loading Revenue Data

At the beginning of your planning cycle, you might load data for a given scenario, version, and period. To stay up to date with changes or current data, you can plan for an incremental data load process.

  1. Click Navigator Icon (Navigator) then under Application, click Overview.
  2. Click Actions then select Import Data.
    3. Importing data
  3. In Import Data, click Create.
    4. Create Import
  4. Keep all the default selections and select Include Metadata.
  5. Click Browse to select a file.
    6. Browse to select file

    Note:

    Depending on your browser, the button label may display Choose File or Browse.
  6. Locate and select Revenue_Data FY24_FY25_FY26.csv, and click Open.

    Note:

    The data file is also available in Prerequisites section for the download.
    Select File
  7. Click Import.
  8. At the information dialog, click OK.
    Click OK
  9. Click Close twice.
  10. Click Jobs.
    Select Jobs Card
  11. Verify that the job completed successfully.
    Verify Job

Calculating Actuals and Preparing Plans

In this section, you run calculation rules to make sure your data is up to date and aggregated.

  1. From the Planning home page, click Rules.
    2. Rules card

    The Rules page lists predefined calculations in Financials.

    Rules page
  2. In Rules, for Calculate Actuals, click Launch.
    3. Rule launch

    This Rule calculates drivers and aggregates data in Actuals.

  3. For each item in the dialog box, select or type the values:
    • Entity: 1 US
    • Periods: ILvl0Descendants(YearTotal)
    • Select Years: FY24,FY25,FY26
    Calculate Actuals prompt
  4. Click Launch.
  5. At the prompt, click OK.
    6. Rule prompt
  6. In Rules, for Rollup, click Launch.
    7. Roll up rule

    This Rule aggregates data to update reports or analyze data at various levels of the business hierarchy.

  7. For each item in the dialog box, select or type the values:

    Tip:

    Change the value of the Scenario dimension first.
    • Scenario: OEP_Actual
    • Select Years: FY24,FY25,FY26
    • Currency: USD
    Rollup prompt
  8. Click Launch.
  9. Click OK.
  10. In Rules, for Prepare Plan, click Launch.

    11. This Rule calculates plans based on the trends and drivers set up in Financials.

  11. For each item in the dialog box, select or type the values:
    • Entity: 1 US
    • Currency: USD
    • Years: FY24,FY25,FY26
    Prepare plan prompt
  12. Click Launch.
  13. Click OK.

Entering and Viewing Plan Data

After loading data, you can start preparing plans that can be executed on a calendar based on your organization requirements.

  1. From the Planning home page, click Financials, then Revenue.
  2. From the left vertical tabs, click Income Statement tab (Income Statement).

    The Income Statement tab includes data from the Actual and Plan scenarios. The accounts displayed are from the chart of accounts that was previously loaded.

    Income Statement
  3. From the left vertical tabs, click Driver and trend based tab (Driver and Trend Based).

    The Revenue Trends chart is displayed.

    Revenue trends
  4. From the bottom tabs, click Trend Based Revenue Planning.

    5. The form displays no valid rows of data.

  5. Modify the POV selections based on the following, and click Go (Go):
    6. Trend Based Revenue Planning
  6. For Product Income Existing Products Key Customers, in Trend Assumptions, select Current Year Actual Average, and in %Increase/(Decrease) Assumptions, enter 8%.
  7. For Product Income Existing Products Other Customers, in Trend Assumptions, select Current Year Actual Average, and in %Increase/(Decrease) Assumptions, enter 10%.
  8. For Material Cost, in Trend Assumptions, select Current Year Actual Average, and in %Increase/(Decrease) Assumptions, enter 8%.
  9. For Stock Adjustments Net, in Trend Assumptions, select Current Year Actual Average, and for Stock Adjustments Net, and in %Increase/(Decrease) Assumptions, enter 4%.
    10. Selecting trends and then saving
  10. Click Save.
  11. At the Information message, click OK.
    12. Information prompt

    Data is calculated and updated on the form. Note that COGS and Product Income were added as KPIs.

    Calculated data
  12. From the bottom tabs, click Total Revenue - Plan.
  13. In the POV, change the selection for Product to All Product, and click Go (Go).
    14. Selecting All Product in the POV

    The form displays no valid rows of data.

    The form displays no valid rows of data
  14. In Total Revenue - Plan, click Actions and select Business Rules.
  15. In the Business Rules prompt, click Rollup.
    16. Business Rules prompt
  16. In the Rollup prompt, verify the default selections for Entity, Scenario, and Version:
    • Entity Variable: OEP_Total Entity
    • Scenario: OEP_Plan
    • Version: OEP_Working
  17. For Years and Currency, click its MemberSelector (Member Selector) to select a member as its value:
    • Select Years: FY24,FY25,FY26
    • Currency: USD
    Rollup prompt
  18. Click Launch.
  19. Click OK.
    20. Rollup prompt

    Data was rolled up in the hierarchy and is now displayed on the form.

    Plan rollup results
  20. In the left, click Overview tab (Overview).

    21. The Revenue Overview dashboard displays Actual and Plan data. To include updated data, including KPIs, you must run calculations for Forecast.

    Revenue Overview dashboard

Rolling up Forecast Data and Viewing the Updated Dashboard

With forecasting, you can budget using past and present data, and analyze trends using assumptions. Forecasts can help your management teams anticipate results based on past information, while allowing to be adjusted when new information is available. You can also prepare forecasts that mimic real, flexible business cycles.

Tip:

Forecast data was imported when you loaded revenue data. To learn how to prepare forecast data, refer to the Calculating Actuals and Preparing Plans and Forecasts in Financials tutorial.

After running calculation rules for the forecast scenario, you view KPIs in the Revenue dashboard.

  1. In the left, click the Driver and Trend Based (Driver and Trend Based) tab.
  2. From the bottom tabs, click Total Revenue - Forecast.

    3. Total Revenue - Forecast displays data for Actual and Plan scenarios. To include updated Forecast scenario data, run the Rollup business rule.

    Total Revenue - Forecast tab
  3. Click Actions and select Business Rules.
    4. Run business rules
  4. In Business Rules, click Rollup.
    Business Rules prompt
  5. For each item in the dialog box, click its MemberSelector (Member Selector) to select a member as its value:

    6. Tip:

    Change the value of the Scenario dimension first.
    • Scenario: OEP_Forecast
    • Select Years: FY24,FY25,FY26
    • Currency: USD
    Rollup prompt
  6. Click Launch.
  7. Click OK.

    8. Data for Actuals, Plan, and Forecast are now displayed.

    Forecast rolled-up data
  8. In the left, click Overview tab (Overview).

    9. The Revenue Overview dashboard now displays Actual, Plan, and Forecast data. The dashboard also displays key performance indicators for revenue.

    Revenue Overview dashboard

More Learning Resources

Explore other labs on docs.oracle.com/learn or access more free learning content on the Oracle Learning YouTube channel. Additionally, visit Oracle University to view training resources available.

For product documentation, visit Oracle Help Center.