Key Concepts
Bringing operational data into Profitability and Cost Management offers several benefits.
They include the following:
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You unburden the general ledger, freeing it to perform its primary purpose of statutory GAAP reporting.
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Profitability and Cost Management is optimized to do the "heavy lifting" of moving, categorizing, adjusting, aligning, aggregating, and allocating funds.
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Chart of account maintenance is minimized because you don't have to create entries in the general ledger to accommodate operational changes. You can respond quickly to business, market, and industry changes by modifying performance ledger drivers in Profitability and Cost Management.
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It's not necessary to manipulate numbers in ledgers of record. Complex transformations and allocations are made in performance ledgers that reflect your best practices. This reduces trial balance activities, reconciliations, and data source errors.
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You can close your general ledger faster since it is only performing consolidations for statutory reporting.
While the accounting burden lifts, management analysts can still report on granular levels of data, such as product SKUs, for the analysis that they need for decision-making, and for profit and loss reporting, using:
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Increased transparency and auditability
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Better allocations and alignment
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What-if planning based on different scenarios
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Easy, code-free rule design
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Built-in tracing and balancing
For additional information on this subject, see the following video:
