Oracle’s ARCS Patch 1812 and Patch 1811 Review: Gazing into the Crystal Ball

Peruse the Account Reconciliation Cloud Service (ARCS) forums on Oracle’s Cloud Customer Connect and you’ll notice a theme: Transaction Matching. Questions, comments, and critiques have been flooding in from across companies and industries, clients and consultants alike. Combine this with Oracle’s game-changing announcement of the EPM Cloud price simplification plan teased for 2019 – that is, the strategic move to strictly sell bundled EPM Cloud products in the near future (more on this another time – it’s a doozy) – the changes released for ARCS in Patches 1811 and 1812 could not have come at a more opportune time. Furthermore, these changes provide a sneak peek into Oracle’s crystal ball of what’s to come.

The WHAT has come: Changes for ARCS at the end of 2018

The most important change to ARCS from the 2018 season finale, Patch 1812, is the shift from having separate reconciliations between Transaction Matching and Reconciliation Compliance to one standardized use of Profiles. This is configured through the new reconciliation methods provided in Formats (Balance Comparison with Transaction Matching, Account Analysis with Transaction Matching, and Transaction Matching only).

Oracle’s ARCS Patch 1812 and Patch 1811 Review - Gazing into the Crystal Ball Image 1

The implication is that Transaction Matching reconciliations receive all the benefits that previously only Reconciliation Compliance enjoyed, including but not limited to: bulk uploads/updates to Profiles and reconciliations, access to new Workflow options such as Reviewers and Teams, and detailed filtering options including the more hidden statistical metrics (such as attributes related to count, etc.). It is important to note, though, that these new features will almost exclusively relate to new reconciliations using one of the two ‘*with Transaction Matching’ format options, as seen below. Still, the opportunity for clever design is there.

Oracle’s ARCS Patch 1812 and Patch 1811 Review - Gazing into the Crystal Ball Image 2

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Furthermore, to support this change, Period will now be shared between the two feature sets. Additionally, reconciliations that are performed in Transaction Matching will now utilize their period-end Balances loaded to Reconciliation Compliance. While historically there have been business processes put in place to ensure that the balance loaded to Transaction Matching equaled the balance loaded for the month-end reconciliation in Reconciliation Compliance, patch 1812 ensures that a system process governs the data’s integrity – certainly a more reassuring thought.

Two additional under-the-radar features introduced in Patch 1812 are (1) the ability to have Workflow that includes multiple members while not requiring an order precedence to the work and (2) the option to now have end-users approve their own re-assignments, reducing the administrative bottleneck. These changes provide value-add functionality that demonstrate Oracle’s willingness to listen to customer feedback even during these more “stuffed” patches.

The last item to mention was actually included in Patch 1811. In Transaction Matching, a text file can now be generated with the transactions or adjustments from the tool which can then be uploaded to the ERP source systems as a journal adjustment. This has been an ongoing request, and I am happy to see it finally actualized.

The WHAT does it mean: Implications and Expectations for ARCS in 2019

Transaction Matching’s relative strength to its competitors is becoming increasingly apparent, as Oracle continues to sure up areas in need of support while also providing updates that show a sensitivity to market demand. The move to unify Transaction Matching and Reconciliation Compliance is not a new idea, as Patch 1805 made apparent with the uniting of the two UIs (and much more – see Oracle Product Management’s webinar update here), but nonetheless is a bold one that I anticipate will pay dividends. The automatic conversion of Transaction Matching reconciliations to Profiles is a nice touch too, making the transition an easier pill to swallow for skeptical clients who I am sure were not eager to pay expensive consulting fees for this. Even smaller changes such as providing a space for strictly manual matching (i.e. without Auto Match rules; Patch 1811 change) demonstrate ARCS’ commitment to be an approachable and modular product that grows with your company – a benefit I have consistently touted in the past, and I expect to continue to do so in the future.  More details about the benefits of ARCS are shared in the posts A Safe Step into the Cloud: The Argument for Account Reconciliation Cloud Service (ARCS) and Modularity in Account Reconciliation Cloud Service (ARCS): No Mistakes from “Day 1” to “Day 100”

Changes continue to come to ARCS that only slowly trickle, if at all, down to Account Reconciliation Manager (ARM). This was true for the Variance Analysis reconciliation method which arrived in May 2017 for ARCS, but not until Dec 2017 for ARM, and it is a fair guess that this will be true for the aforementioned “All Preparers” and “All Reviewers” workflow options and end-user re-assignment configuration setting. Combine this with more and more dollars being invested in Transaction Matching compared to Reconciliation Compliance (from where I’m looking, anyway), and the message is clear on who the favorite is in the Oracle product family. While ARM contains strong functionality as an on-premise option, expect the functionality gap to increase compared to its Cloud counterpart.

Lastly, the inclusion of a journal adjustment export out of Transaction Matching is a combo solution: a “we can do that too” to product competitor Blackline’s existing functionality as well as a demonstration of Oracle’s willingness to think outside of the product. This highlights ARCS’ flexibility as a tool capable of being used within other processes. In fact, the Oracle EPM Cloud ecosystem is one of ARCS’ biggest strengths over its competitors.  I would love to see this journaling ability out of Reconciliation Compliance as well which would provide the functionality to most ARCS clients. Regardless, this is a step in the right direction.

Modularity in Account Reconciliation Cloud Service (ARCS): No Mistakes from “Day 1” to “Day 100”

Modularity. My initial experience with this concept was during the build of my first computer. There is a great, omnipresent dread that consumes people who share this hobby – imagine this scenario (or nightmare rather!): you have just invested significant time, energy, and finances to create the perfect machine – only to have it rendered obsolete the next month by changing technology that is incompatible with your swanky new rig! The warring decision of function today versus future proofing for tomorrow is a constant struggle for all tech lovers (or tech survivors, as the case may be). So when a product is able to overcome this dilemma, it’s got my attention.

ARCS Modularity 1a

In my post A Safe Step into the Cloud: The Argument for Account Reconciliation Cloud Service (ARCS), I discussed the modular nature of ARCS as one of the key pillars that made the product an easy recommendation as a first step into the Cloud. For new projects, this is a comforting “safety cushion.” For existing applications, it means you are not stuck with what you have. Push your product to evolve with your needs and ensure that you are eking out every drop of value from your investment.

With ever-changing requirements, it is critical to know what tools are at your disposal. Some changes are straightforward; others…not so much. In this upcoming series of blog posts, we will discuss what it means for ARCS to be a modular solution and explore the four main ways in which this manifests:

  1. New scope
  2. Modifications
  3. Redesign
  4. Automation.

Over the next few weeks, we will be tweaking, tuning, tearing down, and putting the application back together to see how there can be no mistakes with modularity.

View the next post in this series:  New Scope in Account Reconciliation Cloud Service (ARCS): Add-Ons