Out-of-the-Box Features: Profitability and Cost Management Cloud Service (PCMCS)

PCMCS Out-of-the-Box (OOTB) Features:  1. Rule Balancing Reports

The other day, I was thinking about the times I used to study Finance, and specifically about a course regarding Interest and how it represents the value of Time. What is the cost, or value, of one’s time? – is it high, resulting in a higher interest rate per period, or is it low, resulting in a low interest rate per period? How much time am I willing to spend working in order to get that new car? How much time do I have before that competitor will outrun me and snatch that market share from me?

This was how I started thinking about various out-of-the-box features (OOTB). Such features are often key in deciding whether to acquire a software/service/product because the one resource that we constantly complain about not having enough of is “time.”

You are now reading the first blog post on OOTB features in PCMCS covering one of the most used Reports for data analysis as well as troubleshooting profitability calculation results. At the end of this blog post, you should know what Balancing reports are, where to find them, how to use them, and also how to further expand them with minimal time and effort invested.

What are Rule Balancing Reports?

Rule Balancing reports provide quick insight into the validity of the application results. These reports are powerful OOTB artifacts that can be further configured to cater to any custom application requirements in order to support validation of calculation results as well as contribution analysis and traceability.

The PCMCS OOTB Rule balancing report is initially based on a Default Model View with a standard selection of upper level members for each dimension. Starting from this Default Model View, the administrators or users of the PCMCS applications can perform a deep dive analysis on more granular intersections and configure detailed reports for a ruleset or a group of rulesets they choose to investigate.

The Default Rule Balancing report is available as soon as the application has been deployed, and it can be accessed via the Main Navigator menu found under the Manage section.

Alex Mlynarzek - PCM Rule Balancing - 2-7-19 - Image 1I will be using the default BikesML30 application to demonstrate the capabilities of the Rule Balancing reports. If you have loaded your sample application and cannot see any results in the Rule Balancing reports, check that you ran your end-to-end calculations for any given POV from the Manage Calculation Menu. The POV I have chosen for this demonstration is FY16, January, Actual Scenario.

As you open the Rule Balancing menu, the Default Model View is the only view available when you initially set up your application and your allocation rules. Any other Rule Validation reports that you see within the Demo application besides the Default Model View have been built and configured outside of the out-of-the-box list of features.

What are PCMCS Model Views?

A Model View represents a predefined data slice within the PCMCS application; consider the model views as a set of selections of members for each dimension that displays only the relevant data points for a required intersection.

Rule Balancing Report Example

After running the entire set of allocation rules within the Demo BksML30 application, the Rule Balancing report should look like this:

Alex Mlynarzek - PCM Rule Balancing - 2-7-19 - Image 2

The description of each rule selected will be displayed along with the rule number. The rules will be displayed in the order that they were launched following the user-defined sequencing, regardless of the actual Rule Number/Rule ID that has been assigned.

  • The “Input” column enables users to confirm that what was loaded into the application matches the expected values received from the source system.
  • The Allocation In and Allocation Out columns validate the allocations performed by the application from both a balance perspective (Allocation In should be equal and opposite to Allocation Out) and a numeric one.  The balance aspect is particularly of interest when allocations are executed with custom calculation rules.  In these cases, two separate rules are typically required, one for the “credit out” and one for the “debit in.”  As such, there is a greater risk that the formulas for the outbound and inbound values will not produce amounts equal and opposite in total, thereby causing an undesired imbalance.  In these situations, the Allocation In and Allocation Out values are shown on two separate rows, and they quickly illustrate to the user the success of their calculations.

Rule Balancing and Smart View Ad Hoc Reports

Any highlighted data point/data value in the Balancing screen will allow you to further investigate the allocation step through a Smart View ad hoc report. These hyperlinks represent pre-built/pre-defined queries that point directly to the Essbase database, allowing you to further expand the analysis of a selected data point.

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When you click on the highlighted number, a Smart View link will be downloaded to your workstation.

As an example, you can see how the detail for Net Change looks like for the Custom calculation rule R0001 – Utilities Expense Adjustment in a Linked report in Smart View.

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The column headers for the Rule Balancing report will list the relevant Balance dimension members. If there are members that are not populated, these will be automatically filtered out of the view. You can choose to display them by selecting View -> Columns and tagging the members you would like to display on your report – whether they have data or not.

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For further information on what each of these Balance dimension members represent, check out my blog post on Demystifying the Balance dimension in PCMCS.

You can view and edit the model view definition in the collapsed area between the POV and the Balancing report.

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The Input data on this customized Model View is pertinent only to Operating Expenses rather than the entire pool of data. This is the reason that the total USD value may be different from data displayed on the Default Model View report.

You can perform ad hoc edits to the Model View as you are using it, but none of the newly made selections will be stored. If you want to apply permanent changes to a specific Model View selection, you will have to edit the Model View in the corresponding menu.

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Your Model Views can be defined in the same order of operations as your allocations, or you can choose to create Model Views that are more detailed and dive deeper into a custom grouping of rules, regardless of the ruleset to which they might belong. The only dimensions displayed in your Model View selection are the Business dimensions. POV, Balance, Rule, and Attribute dimensions are not represented and therefore are not open for selection. The data points you define in the Model view will apply to all relevant rules IDs that generated the new cells.

Enhancing and Customizing Your Rule Balancing Reports

In the Demo BikesML30 application, there are several standard Rule Balancing reports that are split by Ruleset while others are named “Trace.” The Trace Model views are built in order to support point troubleshooting of allocation areas that are either complex or open to high variation during each run.

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If you want to use the Rule Balancing report values outside of the ad hoc capacity, you can export the report into XLS, but remember that such an export will not represent a Smart View report – it will simply be a listing of the information presented on the Rule Balancing screen, as some members displayed here do not have a direct equivalent in the application (Running Remainder, Running Balance). This export option can be found in the Actions menu, export to Excel, or by selecting the button in the below screen capture.

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A new workbook is downloaded called RuleBalance, and the entire set of data displayed on your screen will be available in XLS.

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PCMCS Rule Balancing Drawbacks

Rule Balancing does not allow filtering based on Attributes, UDAs, or Names.

Rule Balancing hyperlinks open SmartView tabs called Linked View, and any new selections of links within the Rule Balancing report will overwrite the contents of the existing tab. If you start developing a report by using Rule Balancing, remember to always rename the tab in case you want to kick off another report for a secondary data point within the same workbook.

Common Issues When Using Rule Balancing Reports

“Rule Balancing Report Links Don’t Work”

Your workstation must have Smart View installed before using the hyperlink feature within PCMCS. The latest Smart View version is available for download through the Navigator main menu under the Installations section.  For more guidance on generic EPM product patching, read the blog post Patch Today! Don’t Delay!

When selecting a hyperlink in the Rule Balancing report, you should be able to see that a download has started. As you click on the downloaded content, a new Excel tab will open, and you will be prompted to enter your Cloud credentials in order to have access to the requested data point intersections. If you do not have Excel open at the time you are accessing the downloaded content, the prompt to enter your Cloud credentials may not appear on the screen.

“I Can’t See Any Data in the PCMCS Rule Balancing Report.”

If data is not displayed on the screen, you are looking at one of the following situations:

  1. There is no data loaded and/or calculated for the POV at the intersections you have defined in the Rule Balancing report. Check your job console to see if such tasks have been triggered and completed successfully.
  2. Your security setup is restricting you from seeing any data values. Reach out to your administrator to adjust data grants or application access.
  3. (This used to happen occasionally during on-premise implementations) If your Business dimensions are tagged as Label Only, check that the first child contains values. You may be able to see data at base level intersections within your application, yet the Rule Balancing report shows no vales due to the Dimension Type, Member Storage, or Aggregation operators you have defined in the metadata.

“I Can’t Create a PCMCS Model View.”

This restriction is based on provisioning. Reach out to your PCMCS Administrator for assistance with your profile or settings.

Rule Balancing Wrap Up

Rule Balancing reports are easy to set up and use.  They retrieve data quickly, are accessible to all application users through the same menu, and they should be the first stop during a model run to quickly identify if there were any issues with data allocations.

Because Rule Balancing is a fast reporting tool with a predefined template OOTB, it is one of the commonly used troubleshooting reports for PCMCS, which can be leveraged for quick balance checks. It is also a mechanism for quick report building at detailed Rule level, a faster alternative to reading the Rule definition and manually replicating the intersections in a Smart View report.   Because these reports are system generated and their hyperlinks are based on application and rules set-up, there is no room for manual errors when building validations.

Save precious time by leveraging the PCMCS OOTB functionality. In a subsequent blog post, I will talk about Intelligence screens (Analysis Views, Scatter Analysis, Profit curves, Traceability, and the setup of KPIs), so subscribe to our blog page to be kept in the loop. If you have further questions on the usage of Balancing Reports within PCMCS, please reach out to our team of PCMCS experts at infosolutions@alithya.com.

Demystify the Balance Dimension in Profitability and Cost Management

Management Ledger models, whether Hyperion Profitability and Cost Management (HPCM) or Profitability and Cost Management Cloud Service (PCMCS), have been around for a few years, but I still receive emails asking for help with figuring out where the results are coming from. This request is often related to a lack of understanding of the Balance dimension. Here are some key pieces of information regarding this system dimension, how it works, how it should be used when defining allocations and integration jobs, and how to leverage it to troubleshoot your allocations.

Before we have a look at each member within this dimension, let’s go over some basic rules that govern the creation of an HPCM or PCMCS Management Ledger (ML) application:

  1. All HPCM or PCMCS ML applications must contain just one dimension named Balance
  2. Members and their properties cannot be edited or removed.
  3. You don’t need to import a file in order to load/setup the Balance dimension; members are created automatically when deploying an application for the first time.
  4. You can choose to rename the Balance dimension (translate it into another language, for example) when you first set up the application in PCMCS.

For the most part, the Balance dimension members are quite easy to follow and understand, but familiarity with usage guidelines helps to avoid issues during development and supports troubleshooting.

Demystifying the Balance Dimension in PCM - Image 1

  • Input — Used to store data input/pre-allocated data sets, whether these are pool or driver data sets. Data is generally loaded against this member in combination with the NoRule member. Input can be populated through custom calculations, but it is generally advised to keep it dedicated to valid data loads/input rather than for storing calculated or allocated results.
  • Adjustment In —Adjustment In can be used for manual adjustments to the Input data prior to running allocations. In this case, the Adjustment In data will be loaded against the NoRule member. Any manually submitted data on the Adjustment member against a Rule ID member may be eliminated during the subsequent data loads and calculations. Adjustment In can also be used during custom calculations to store intermediary values or calculated driver data.
  • Adjustment Out —Same usage as for Adjustment In, but with a negative data value.
  • Allocation In — This member will be populated against the Destination or Target intersection for the allocation rule.
  • Allocation Out —This member will be populated against the Source intersection of the allocation rule and the corresponding Rule ID member, or against a predefined “Offset” intersection that is custom defined for a given rule.
  • Allocation Offset Amount — Displays an amount that further reduces an Allocation In member, if one was used in addition to the Allocation Out. I have provided an example of how this member is populated and used in a lower section of this post.
  • Net Change — represents the total change for a given intersection, regardless of alternate offset actions.
  • Net Balance – sum of Input (initial data loaded) and any Net Changes made to the same intersection.
  • Remainder — Displays the difference between Allocation In and Allocation Out plus Allocation Offset Amount, if any.
  • Balance — The amount resulting when adjustments, allocations, and offsets are considered.

Rules assign funds to destinations based on the way you have defined the allocation logic (member selections, sequencing, concurrency, etc.). “Allocations in” and “allocations out” are being generated upon executing the calculations of the Profitability model. Each pair of adjustments and allocations (the “in” and the “out”) should result in a zero sum in order to balance the transaction. The Input member is affected by each adjustment and allocation. The difference between what was taken from Input and what remains at the end of an allocation will be accounted for in the Remainder.

The Remainder member is the source of your allocations, not the Net Balance member, as most would think.  Remainder takes into consideration alternate offsets and ensures we do not perform a double booking or a double allocation of the same data source, regardless of where the offset was applied.

To further explain the Balance dimension usage, I have used an example from the Bikes default application BksML30, which can be deployed into PCMCS through a few clicks.

The original application had only one adjustment Rule populating the Adjustment In member. I have copied that rule and reused it to demonstrate the same usage for the Adjustment Out member. Remember the adjustment out aggregation operator is still +, so if you want to offset data sets, you must use the appropriate signage for your data; in other words, negate the result either via a multiplication with -1 or by simply adding a – to the formula.

The new ruleset contents will look like this:

Demystifying the Balance Dimension in PCM - Image 2

Our initial data set is loaded on the Input/No Rule combination for the two accounts – Rent and Utilities – on the intersection with Corporate Entity.

The data adjustments are stored against Adjustment In and Adjustment Out.

Demystifying the Balance Dimension in PCM - Image 3

In order to further illustrate how to correctly follow the allocation process, I split the original Reassignment rule into 2 rules, each dedicated to its own account. I also updated the metadata by adding two new Account siblings to Rent and Utilities as offsets for each account.

Alternate offsets are simply intersections of members where you would like to store the offset data point, if it should differ from the source of the allocation.

The Remainder member demonstration is connected to the usage of alternate offsets, and before we go into the details of the numerical example, I would like to list out a few rules for setting up alternate offsets:

  • Alternate offsets are available for selection only in standard allocation rules. For Custom calculations, your Offset custom calc would have to be pointed to the appropriate “alternate” target.
  • All dimensions, including the ones predefined in the rule context, are repeated in the Offset screen as soon as you select “Alternate Offset Location.” You must select a single base level member for at least one dimension.
  • There is no “Same As Source” (SAS) option for offsets. The dimensions that must be offset on the Source intersections can be left blank in the Offset screen selections.
  • If each source member selection has its own offset, you will have to split the rule up into as many granular rules as needed in order to cover the individual offset selection. For example, if you have 6 accounts, each with its own offset account equivalent, you will have to create 6 standard allocation rules to create the individual offset selection for each account.

Going back to the numerical example and the usage of the Offset tab, in the update rule I have selected the below member intersections:

Demystifying the Balance Dimension in PCM - Image 4

The Source account was Rent, target is “Same as Source” (SAS), and the alternate offset account is FACOffset_Rent.

After the rules are executed, we will see the results below; focus on the Allocation Offset Amount member and the Allocation Out Member.

Even though the offset was applied to an alternate account for both Rent and Utilities, the allocation engine correctly identifies the Remainder of these two accounts as being 0.

  1. The first step behind the scenes is for the allocation to correctly distribute the data to the target intersections.
  2. The second step is to perform the offset on the intersection specified by the user, if different from the source intersection.
  3. The third step is to copy the Allocation Out value onto the Source Intersection members, on allocation Offset Amount member. This final step is performed via a custom calculation embedded in the PCMCS generated scripts which ensures there will be no double counting of pool data.

So even though we “moved” data from the Rent account, Corporate Entity, to other Entities, on the same target Account, the offset was performed on an alternate member. This allows us to create a report with Rent (Input), Rent (Allocation In) and FACOffset_Rent (Allocation out).

This is not a typical example of how alternate offsets are used from a functional standpoint, but it helps explain the mechanics behind the scenes. This alternate offset option is mostly used in cases where a Bill Out account and a Chargeback account will differ and allows users to trace which portion of a chargeback account is coming from different source accounts.

The final goal of an allocation is to generate a Remainder member with a value of 0. This ensures the total allocation of a pool data set, whether this was loaded or received from prior allocation steps. If the Remainder member has a positive value, then it is indicating that you have not fully utilized your pool data. If the Remainder member has a negative value, then you have overutilized your pool data which may be, in some cases, intentional.

Demystifying the Balance Dimension in PCM - Image 5

In situations where you will not give access to the PCMCS ML application to users who need to understand the various components of a data point flowing through the allocation steps, due to licensing costs or other considerations, the usage of alternate offsets throughout your allocation flow might be helpful.

When talking about reporting out of PCMCS ML, our clients always emphasize simplicity, and we often get requests to remove the Rule and Balance dimensions from final reporting solutions, to cancel the noise and give finance users solely the core information. In such situations, the usage of alternate offsets has proved beneficial as these finance users can still follow the flow and components of a cost without having to deal with the rule by rule detail. If further investigation is necessary, this can be pursued within the PCMCS ML model itself rather than in the external reporting solution.

If you need further help with figuring out the purpose and usage of the Balance dimension within PCMCS, email us at infosolutions@alithya.com. Our PCM Center of Excellence team is ready to share leading practices and industry-specific solutions that accelerate your ROI and expand the capabilities of your chosen profitability software.

A Cloud vs. On-Premise Comparison for Profitability: All You Need to Know

In a previous blog post, the history of Hyperion Profitability and Cost Management (HPCM) was discussed along with which modules made it to the Cloud. If you are after a more clear-cut comparison between Cloud and on-premise, the below table should fit the bill. Tables generally cannot provide all the needed context, yet they are, at times, the best starting point to understand the benefits and capabilities of one solution compared to another.  The below PCMCS vs. HPCM table is not exhaustive, and if you have questions on any of the items covered, email us and we will provide further details.

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Choosing between on-premise and Cloud depends on which factors are the most significant barring the overall licensing cost.

Allocations and data assignments cannot have “If” statements attached to them in the on-premise version of the software – a feature fundamental to supporting Tax transfer pricing capabilities.

The cross-dimension mapping is a functionality that is not available in HPCM. This mapping ensures the assignment of data sets to the same ID/name across multiple dimensions by using the “Same as Source but Different Dimension” option within PCMCS to support intercompany activities. This feature alone, or the lack of it, may significantly impact the design of an application and the overall complexity of allocation flows.

Features available in the Cloud but not yet released in on-premise solutions could tip the scale to favor the Cloud option when all other aspects surrounding a Cloud implementation no longer appear to be as pressing. Out-of-the-box content such as overnight backups, full application, and data restores that are at the business users’ fingertips – not to mention the reporting and dashboarding included in the Cloud version – are all differentiators of a product that enables business users to control their allocation process and methodology from its inception.

While there may be exceptions to the trend where on-premise solutions can have advantages (modules not available in the Cloud, for example) and, therefore, represent the best option at a given moment in time, the reality is that the future is being developed in the Cloud and for the Cloud, and at some point the shift will most likely no longer be an option, but a necessity.

If you need help making a decision with an existing implementation or you would like more details about HPCM vs. PCMCS to make a better informed decision, email us at infosolutions@alithya.com. Our PCM Center of Excellence team is ready to share leading practices and industry-specific solutions that accelerate the ROI and expand the capabilities of your chosen software.

Worry No More! Say Goodbye to Pain and Frustration when Submitting Service or Enhancement Requests with Oracle for PCMCS

While nobody likes submitting Service Requests (SR) on the Oracle support site, this is a necessary task that we must get comfortable with, whether our applications are on-premise or in the Cloud.  After 12 years of consulting, I can say that I have seen or pursued many wrong ways of submitting an SR which, in turn, yields results along similar lines – a lot of back-and-forth emailing with Oracle’s support staff, personal frustration, misinformation, and most importantly – time wasted on all sides.

Worry no more!  Here is a list of things you can do to avoid further pain and frustration when submitting Service Requests or Enhancement Requests with Oracle for Profitability and Cost Management Cloud Service (PCMCS).

  1. Where do I start when submitting SRs and ERs for PCMCS?

You can still use the generic Oracle Support website to open either an SR or an Enhancement Request (ER) with Oracle for Cloud applications, but the right way to do this is to first gain access to the Oracle Cloud Support website which looks slightly different and has a couple of new fields to complete. The email associated with the Oracle account should be the same email that has access to specific Cloud subscriptions.

Standard Oracle Support website

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Cloud Support website

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  1. Provide feedback

Login in to the Cloud application for which you want to create the SR or ER, and once you are logged in to PCMCS, navigate to your user name (top right) and select “Provide Feedback.” A new screen will appear enabling you to highlight the area of concern to provide context for the reason you are submitting the SR or ER.

Provide details around the area of concern. This gives context to the issue at hand and creates a reference for future troubleshooting. For example, if the issue is related to one specific Rule, ensure that the last screen open before you click on Provide Feedback is on the rule itself, or open to the job library listing the execution of the rule. You will only be able to highlight areas on the last screen open before launching the “Provide Feedback” screen.  The details you provide here will not automatically be copied into your SR. If you want to describe the issue in detail within this section, you can copy the same text within the SR itself – save it locally before submitting the feedback.

  1. Options for your feedback.

After you submit your feedback, a new panel will come up and will contain the following 3 sections:

  1. Environment: a listing of your Browser, Platform, Version, Locale, Resolution, Time zone, Cookies enabled (Y/N), URL of the instance, and the User Agent. You do not have to fill in anything in this section. All information is filled in for you.
  2. Plugins: a listing of enabled plugins, if any. You do not have to fill in anything in this section. All information is filled in for you.
  3. Confirm Application snapshot submission: this is the only section where you must provide input.

PCMCS Image 5You have a choice of Yes / No – depending on how comfortable you feel about Oracle using your daily maintenance snapshot for regression testing in upcoming releases. Giving Oracle access to your maintenance snapshots means you are agreeing to them using the model and any related data for their testing going forward. If your hierarchy structures and data are not sensitive, then you may choose to select “Yes.”  My personal preference is to select “No” and provide the static/current moment in time archived snapshot within the SR . When the SR is closed, the contents of said snapshot will be archived and not used for further regression testing.

  1. Generate a Diagnostic Report (UDR) ID

When clicking the “Submit” button on this screen, a unique alphanumeric reference is generated. This reference will be required when submitting an SR or ER on the Oracle Cloud Support website. Write down or, preferably, copy and save this UDR string of characters on your workstation in a txt file.

  1. Log in to the Oracle Cloud Support website and proceed with opening a new Cloud SR/ER.

Select the “Create Service Request” button on the lower left-hand side of your screen.

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Select “Service Type” from the drop-down list of available Cloud services to which your user has access.

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Once you have selected “Oracle Hyperion Profitability and Cost Management Cloud Service,” a listing of all available instances will be displayed in the new “Service Name” section:

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Make sure you select the appropriate “Service Name” with the instance where you generated the related UDR (see previous steps).

Add “Problem Type” and select based on the type closest to your issue:

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The above choices will not trigger related content or a list of options – this is merely to ensure that the ticket goes to the appropriate team during the investigation process.

In the “Problem Summary” section, reference the Cloud product for which you are creating the SR or ER. This will be the subject of your ticket, and it will help administer and keep track of multiple tickets at the same time.

  1. Attach all System Reports available for your PCMCS app.

To avoid multiple back and forth email exchanges with the Oracle Support staff, provide them with all the available information. Here is a current list of all available reports for troubleshooting PCMCS applications.

  1. Execution statistics for the last model / allocation execution connected to the SR – if SR is related to calc performance, calc troubleshooting or rule setup. (PDF or XLS format preferable)
  2. Program Documentation (with details; not with aliases) (XLS or PDF format preferable)
  3. Dimension Statistics (PDF format preferable)
  4. POV Statistics (PDF or XLS format preferable)

All these reports can be generated from PCMCS – Navigator menu – System reports.

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  1. Attach the Diagnostic report

From the “Navigator” Menu, select “Application,” click on the drop-down in “Actions” and select “Export Supplemental Diagnostics.” This report is very useful to the development team troubleshooting your issue.

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When selecting this report, a new job will be launched that can take anywhere between a couple of minutes to 20+ minutes, depending on the size of your application and the amount of logging involved.

An archive of the diagnostics reports will be generated in the File Explorer within the Application menu.  Some of the reports in this archive will be a repeat of the other reports mentioned in the previous step, but if you provide all this information simultaneously, the redundancy should not cause any issues. If you are not open to launching such process in your environment during business hours, and yet you still want to submit the SR in a timely fashion, you can skip this step and provide this report only upon request from Oracle Support staff.

  1. Error description

If you can replicate the error, capture each step via screenshots and save them in a Word doc. The earlier the support staff understands what you are dealing with, the faster the entire troubleshooting process will be completed.

Refer to menu options precisely as what they are called within PCMCS.

For example, to submit an SR or ER related to the Calculation Rules menu, refer to it as Calculation Rules – Rules Express Editing, as both names appear in the PCMCS menu.

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  1. Establish the SR level appropriately.

There are 4 options to choose from, and you should choose based on urgency as well as level of importance.

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Choose severity 1 and 2 only when applicable. You may be inclined to select such severity options so that your issue is resolved quickly, but use your own criteria to distinguish between something that is really a show stopper and something that is not. Time is of the essence for both you and the Oracle Development team.

When choosing severity 1, you will open your calendar for potential phone calls that can occur at any time, regardless of your time zone.

  1. My request is really an ER, not an SR.

If your SR is an Enhancement Request, provide a lot of supporting detail in the “Business Justification” section. Not doing so will delay the Enhancement Request submission by up to 2 weeks. If further business justification is requested, respond promptly to make things move along and ensure that your request makes it to the next patch release sooner rather than later.

Once an Enhancement Request is recorded, your SR will be updated with the ER ID (which will differ from the SR ID originally assigned the moment you submitted the ticket).  The original SR will be closed, and you can open a new SR quoting the ER ID 48 hours after the moment your request was accepted. The Support staff will confirm whether the ER will make it in the next monthly patch release.

  1. Bedside manners for SR/ER submitters.

Try to reduce the number of communications within the SR. Taking the above steps will get you closer to achieving a near-perfect SR submission. Be mindful about how to communicate efficiently. The higher the amount of back-and-forth communication, the more difficult it will be for the development team to follow the conversation trail and ensure efficient troubleshooting.

Whether you are a service provider or a PCMCS administrator who inherited an application at the end of a project implementation, we all tap the same Oracle Support resources which are, as are most things, finite. The more efficient your SR/ER submission is, the faster these resources provide a response with accurate and detailed troubleshooting steps. For any time-sensitive issues or further escalation, leverage your Oracle representative and your implementation partner. Their existing relationship with Oracle Product Management will help direct your query to the right resources and ensure your SR is not stuck because of lack of clarity regarding which team should own it. This will ensure that your SR/ER is fast-tracked to the appropriate team and given the right level of attention. For any critical issues you encounter with PCMCS or other Cloud subscriptions where there is no solution in sight, reach out to Alithya at infosolutions@alithya.com so that our team can provide a fast end effective assessment.

The Oracle Profitability and Cost Management Solution: An Introduction and Differentiators

What is Oracle Profitability and Cost Management?

Organizations with world class finance operations generally can close in a minimal number of days (2-3 in an ideal organization) and have frequent and efficient budget and forecast cycles while also visiting different ‘what if’ scenario analysis along the way. These organizations often deliver in-depth profitability and cost management analysis reports at fund, project, product, and/or customer level, completing the picture of an accurate close cycle.

Oracle offers packaged options in support of all these finance processes, but the focus of this post will be Profitability and Cost Management (PCM).

One of the most painful and time-consuming processes for any business entity is PCM analysis. The reasons why cost allocations processes are time consuming are too many to count – from model complexity to data granularity, driver metric availability, rigidity of allocation rules, delays with implementing allocation changes, and almost impossible-to-justify results. Instead of focusing on the negative aspect, let’s focus on what can be done to alleviate such pain and energize the cost accounting department by giving it access to meaningful and accurate data and empowering users through flexibility to perform virtually unlimited “what if” analysis.

The PCM Journey

The initial Profitability and Cost Management product, like almost all Oracle EPM offerings, was released on-premise in July 2008 and is known as Oracle Hyperion Profitability and Cost Management (HPCM). 10 years later, HPCM continues to deliver an easier way to design, maintain, and enhance allocation processes with little to no IT involvement as it has since it was initially launched, but with a greater focus on flexibility and transparency. The intent for HPCM was to be a user-driven application where finance teams would be involved beginning with the definition of the methodology all the way to the steps needed to execute day-to-day processing. Any cost or revenue allocation methodology is supported via HPCM while graphical traceability and allocation balancing reports support any query from top-level analysis all the way down to the most granular detail available in the application.

There are 3 HPCM modules available on-premise today. Each was designed and developed for a different type of allocation methodology or complexity need:

  1. Simple allocations – Detailed Profitability (a.k.a. single-step allocations. Example: From Accounts and Departments, allocate data to same Accounts, new target Departments, and to granular Products/SKU based on driver metric data. This module allows for a very high degree of granularity with dimensions >100k members, but it does not cater to complex driver calculations or to allocations requiring more than 1 stage).
  2. Average to high complexity allocations – Standard Profitability (a.k.a. multi-step allocations of up to 9 iterations/stages, allowing for reciprocal allocations. Example: Allocations from accounts and departments to channels, funds, and other departments. Allocation of results from previous steps are redistributed onto Products, Customers etc. Driver metric complexity is achievable with this module; custom generated drivers are available as well, but there are limitations regarding driver data granularity, granularity of allocated data, and overall hierarchy sizing).
  3. High complexity allocations – Management Ledger (unlimited number of steps, high number of complex drivers, custom driver calculations, custom allocations, more granularity, and increased flexibility in terms of defining and expanding allocation methodology). This is the last module added to the HPCM family and the only one available as SaaS Cloud Offering.

The Cloud is Your Oyster

In 2016, Oracle introduced the Cloud version of HPCM: Profitability and Cost Management Cloud Service (PCMCS).  PCMCS is a Software as a Service (SaaS) offering, and as with many of Oracle’s Cloud offerings, PCMCS includes key improvements that are not available in the on-premise version, and enhancements are made at a much faster pace.

There is currently no indication that the two HPCM modules – Detailed and Standard Profitability – will make their way to the Cloud, since increased allocation complexity as well as increased hierarchy sizing supported by the Management Ledger module caters to most, if not all, potential requirements.

The Management Ledger module included with the PCMCS SaaS subscription has a core strength in the ease of use and flexibility to change, enabling finance users to define and update allocation rules and methodologies via a point-and-click interface. While the initial setup is advisable to be performed with support from an experienced service provider, the maintenance and expansion of PCMCS (Management Ledger) models can be achieved by leveraging solely functional resources, in most cases. “What-if” scenario creation and analysis has never been easier. Users not only can copy data and allocation methodologies between scenarios, but they can also update the data sets and allocation steps independently from a standard scenario, generating as many simulation models as they need, gaining increased insight into decision making.

Standard Profitability models perform allocations in Block Storage Databases (BSO). While BSO applications are great for complex calculations and reciprocal allocation methodologies, they have the disadvantage of being limited in terms of structure or hierarchy sizing. This hierarchy restriction is not as pressing in Aggregate Storage Option (ASO) type applications, which is the technology used by Management Ledger. The design considerations for a Standard Profitability model are also significantly more rigid when compared with the Management Ledger module, which has no limitations regarding allocation stages, allocation sequencing, or a maximum number of dimensions per each allocation step.

Detailed Profitability models heavily leverage a database repository while any connected Essbase applications are used solely for reporting purposes. Initial setup and future changes, outside of the realm of simply adding new hierarchy members, will require specialized database management skills, and the usage of a single step allocation model is not as pervasive. Complex allocation methodologies may require the usage of Detailed Profitability models in conjunction with Management Ledger, but these situations represent the exception rather than the rule.

Why Should You Choose Oracle Profitability and Cost Management?

One of the key strengths for HPCM, available since it was released, and now included in PCMCS, is transparency – the ability to identify and explain any value resulting from the allocation process, with minimal effort. Each allocation rule or allocation step is uniquely identified, enabling users to easily navigate via the embedded/out-of-the-box balancing report to the desired member intersection opened through a point and click action in Excel (using Smart View) for further analysis and investigation. The out-of-the-box-program documentation reports identify the setup of each rule and can be leveraged for quick search by account, department, segment code, or any other dimension available in the application. The execution statistics reports delivered as part of the PCMCS offering enable users to quickly understand which allocation process is taking longer than expected and identify opportunities for overall process improvement or to simply monitor performance over time. These two out-of-the-box reports – execution statistics and program documentation – are the most heavily used reports during application development, troubleshooting, and particularly when new methodologies are developed. Users can quickly search through these documents, leverage them to keep track of methodology changes, and use them as documentation for training new team members.

Performing mass updates to existing allocation rules has never been faster. PCMCS contains a menu that allows end users to find and replace specific member name references in their allocations for each individual data slice, allocation step, or an entire scenario. A quick turnaround of such maintenance tasks results in an increased number of iterations through different data sets, giving the cost accounting team more time to perform in-depth analysis rather than waiting for system updates.

PCMCS-embedded analytics and dashboarding functionality is also a significant differentiator, enabling end users to create and share dashboards with the rest of the application users through the common web interface and without the need for IT support. Reports created in PCMCS are available immediately and without time consuming initial setup or migrations between environments followed by further security setup tasks.

A comparison of On-Prem vs Cloud will be available in a future post, so please subscribe below to receive notifications for PCMCS-related blog updates.