IT Financial Management in EPM Cloud

Oracle Enterprise Performance Management Cloud supports the dual role of a CIO in today's organizations—both on the spending side to run the business, and on the investing side to grow and transform the business.

By implementing customized solutions for Profitability and Cost Management and Projects and Financials in Planning Modules, and integrating data from the General Ledger, IT Financial Management planning using EPM Cloud enables IT Finance Departments to be strategic partners with the business.

Using Profitability and Cost Management and the IT Costing and Chargeback Template, you can model financial data and analyze IT as a business services provider. After defining the services your organization provides (using the IT Service Catalog), the IT assets and resources in your organization (such as hardware, software, and people), and importing data from the General Ledger, you define rules for service costing and chargeback. This allows you to determine the cost of IT operations by linking assets to services. Modelling in this way helps you analyze current costs and plan for future costs. If required for your business, you can allocate service or overhead costs to projects or departments and determine the chargeback for IT services or resources for each project or department.

You model the flow of data in Profitability and Cost Management using Manage Rules, where you define the rules for modifying and mapping the data. Using dimensions that include Account, Entity, Projects, Resources, Service, and Consumer, modeling data allows you to:

  • Allocate overheads to projects.
  • Take General Ledger data and projects data and push it to resources or services.
  • Take resource costs and push them to services (for example, how many servers does a service use?).
  • Optionally, charge back the service costs to a consumer. (The model can either perform chargeback or showback.)

Manage Rules screen

Business users can use Rule Balancing to review the rules and their impact on the data. Click the Smart View links to see the details. The ability to perform step by step validation of rules with access to details provides transparency and auditability. It gives you access to the operational data outside of the General Ledger where you can model the data using pre-built analytics, without impacting the General Ledger.

Rule Balancing screen

After defining the rules, you can review more than ten reports provided with the IT Costing and Chargeback Template. Reports include:

  • Bill of IT Services—Shows chargeback and charge rate and drivers. You can choose whether to charge back to consuming organizations. If you chose to perform chargebacks, you can push the charges back to the General Ledger.
    Bill of IT report
  • Service Costing—Shows the cost per supported user and project and resource consumption.
    Service Cost Summary report
  • Project Costing—Lets you analyze the costs for run versus build, and capital expenditures versus operating expenditures.
    Project Cost report

After modeling the IT costs and allocating costs in Profitability and Cost Management, push the data to Planning Modules using Oracle Enterprise Data Management Cloud and perform further planning and analysis in Financials and Projects.

In Financials, you can perform high level IT spend planning, by Services and Applications.

In Projects, you can perform more detailed project planning to plan by resource, and understand project costs and benefits before submitting plans for approval. You can then compare the plan against what is actually spent and review variations and deviations using IT Costing.

Customize Projects for IT with custom forms, dashboards, drivers, and navigation flow. Add a custom dimension for Service, and share the members from the IT Service Catalog in Profitability and Cost Management.

Customize the navigation flow to suit your organization's requirements:

Custom navigation flow in Projects

For example, this custom navigation flow in Projects provides a workflow for:

  • Entering IT spends for services applications.
  • Allocating IT spends to projects.
  • Analyzing IT project costs and benefits.
  • Performing chargeback planning.
  • Reviewing IT Spends overview in a dashboard.

Enter IT spends for services applications in the data entry form:

Enter Data screen in Projects

Allocate IT spends to projects:

Allocation screen in Projects

You can also define project benefits.

Design custom dashboards for an overall view of IT spends and variance analysis:

IT Spends Overview dashboard

IT Spend Variance Analysis dashboard

By importing data from the General Ledger, modeling and allocating costs in Profitability and Cost Management, and then pushing the data to Planning Modules using Oracle Enterprise Data Management Cloud, you create an IT Financial Management system with pre-built analytics that is easy to use, gives you transparency of results and auditability, helps you optimize IT investment decisions, and promotes partnership with the business.


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