Profitability & Cost Management Cloud Services

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Oracle’s PCMCS (Profitability and Cost Management Cloud Services) is a service that focuses on the allocation of resources and the drivers behind costs. It is mainly used for managing costs and analyzing profit. It focuses on discovering the drivers behind costs and ways to reduce them so as to improve profitability. The service also helps companies discover the drivers behind profits and is able to segment by profitability - thus improving financial decision making with cost and profit information.

Unlike the previous applications (PBCS/EPBCS/FCCS) that focused on budgeting and planning, PCMCS focuses more on allocation and making allocation calculations more transparent (a budget is a financial plan that assists in the allocation of resources to different places). The out of box rule functionality makes cost allocation extremely user friendly and does not require scripting. Custom calc-scripts are available for more complex allocation processes.

DIMENSIONS

Systems Dimensions

There are 2 out of the box system dimensions for PCMCS, they are the “Rule” and “Balance” dimensions.

The Rule dimension associates the business process with a system generated rule number. Data is loaded into a NoRule member of the rule dimension. Each sequence in a rule set gets stored into the application as layers, so rule results are not over-written.

The Balance dimension controls the movement of data throughout the allocation process. Data is loaded into the Input dimension; Adjustments are input in the Adjustment dimension; Allocation in and Allocation out controls source and target of the allocation process.

POV Dimensions

You can have a maximum of 4 POV dimensions (Year, Period, Scenario, Version). These controls the slice of data that you would like to run calculations on or analysis. Before creating calculations, a POV must be defined.

Business Dimensions

This includes all the user defined dimensions (Account, Cost center, Project, LOB) including source, target, and drivers.

RULES

There are 2 available rule types: allocation rules and custom rules. All rules are assigned to a rule set. Within the rule set, you can specify the sequence in which you want the rules to run. For each rule, you have option to define a: description, source, target, driver, offset location, and/or context.

IMPLEMENTATION

Data Collection

Metadata can be loaded through the Dimension manager by a flat file or imported using an import template if migrating from HPCM. Data can be loaded using a native file load (structured file) or using Data Management (if transformation is needed).

Model Views

Model views let you analyze data based on selected POVs. Rule Balancing is a very useful system generated view that lets you validate the allocation results by assigning a model view. Tracing allows users to analyze the result of a calculation and see how each rule contributes. Custom model views can be created to enable other analysis.

The Implementation Process

An entire implementation process will include: requirement gathering, project scope, design, build, and testing. The build phase can be divided in a structuring phase where we are getting data into the application whether it’s through load or input. The process phase is where we utilize the data, to create different processes, or calculations based on what the user wants to analyze.

RELATED CONTENT

Did You Know - PCMCS vs. HPCM

  • PCMCS is the cloud version of HPCM (on-premise).
  • On-premise software is often more expensive than cloud software. These costs can come from utility costs (AC to keep machines cool), building rent to store machinery, costs to upgrade and perform maintenance on machines, and so forth.
  • PCMCS offers a more modern view when compared to the on-prem HPCM workspace.
  • PCMCS is a SaaS solution (Software as a Service).

Which Option is Best?

Not sure which EPM software is the right choice for your company? No worries - our consultants at Paradigm SES can help give your company a free demo and understand the subtle differences between each EPM software. We can also help your company choose which EPM software is best suited for your individual business processes. For more information, feel free to contact us and one of our agents will get back to you as soon as possible.