Oracle Financials Cloud streamlines consolidation process by addressing both accounting transformation and financial reporting challenges.
Oracle Financials Cloud provides an excellent Reporting Platform for Real-time multidimensional, self-service reporting and analytics. You perform Real-time reporting on balances cube on up-to-date consolidated financial balances at any time (vs having to extract from data warehouse). It enables multi-dimensional analysis, pivoting, and drill down.
There are 3 types of consolidation methods, ‘Real Time Reporting Only Consolidation‘ method, the ‘Balance Transfer Consolidation‘ method and Financial Management Consolidations (FCCS) method.
Real Time Reporting Only Consolidation Method:
- If your subsidiaries and your corporate ledger share the same chart of accounts and calendar.
- Easy to use and maintain.
- No balance transfer is required.
- Consolidation can be done on the fly.
- Consolidated reporting of financial statements is leveraged by General Ledger balances cube (Essbase cube) on aggregated balances across companies.
Balance Transfer Method:
- If your subsidiaries and your corporate ledger have either or both different charts of accounts and different calendars.
- Balance Transfer is required from subsidiaries ledgers to parent ledger using mapping definition between chart of accounts
Financial Management Consolidations: If there are complex factors in your financial consolidation requirements such as:
- Complex company structures such as joint ventures, minority interest holdings, partially or fully owned subsidiaries.
- Multiple heterogeneous systems including non general ledger data sources that are required to support non-financial or industry specific metrics, disclosures, and footnote schedules.
- Multiple enterprise resource planning or general ledger instances.