Let me tell you a story. The characters? Spreadsheets, shared drives, emails, and auditors. The conflict? A process in shambles – siloed data in disagreement. The conclusion? The implementation of Account Reconciliation to save the day! But here’s the secret: this isn’t just a Fin Close narrative. It’s a common tale across all domains – but can we give them the same fairytale ending? Using Profitability & Costing as a launching pad, explore what it looks like to move other financial processes towards being trustworthy and compliant, not just Actuals data. See how Account Reconciliation goes “outside the Close”. Hosted by Nick Boronski at the OATUG Forum Collaborate 2020

2. Session ID:
Prepared by:
Remember to complete your evaluation for this session within the app!
11614
Think Outside the Close
Profitability & Costing
Reconciliations in Account
Reconciliations Cloud
April 30, 2020 12:00 – 01:00 PM EST
Nick Boronski
Product Manager – Account Reconciliations
Alithya
@PocketACE_NB
linkedin.com/in/pocketacenb/

3. > Alithya offers EPM, ERP, & Analytics
solutions
> Proven business analytics leader
with a history of successful
implementations & growth
> 20+ years of implementations
3
Advisory
Services
Implementation
Services
Technical
Services
Hosting &
Support
Training
Services
Intellectual
Property
>1,000+ clients
>4,000+ projects
>100+ Cloud implementations
>7 Oracle ACEs
>Certified Cloud resources
>EPM, ERP, & Analytics solutions

4. A Story of Reconciliation
Let me tell you a
story…
4

5. A Story of Reconciliation
5
$
Numbers need to be correct.

6. A Story of Reconciliation
6
Numbers need to be correct.
Create Excel spreadsheets.

7. A Story of Reconciliation
7
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow.

8. A Story of Reconciliation
8
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow.

9. A Story of Reconciliation
9
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow. And Grow!

10. A Story of Reconciliation
10
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow. And Grow!
Email for approval.

11. A Story of Reconciliation
11
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow. And Grow!
Email for approval.
Save to a local folder…or shared drive.

12. A Story of Reconciliation
12
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow. And Grow!
Email for approval.
Save to a local folder…or shared drive.
Auditors get their questions answered.

13. A Story of Reconciliation
13
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow. And Grow!
Email for approval.
Save to a local folder…or shared drive.
Auditors get their questions answered.
Make strategic decisions.

14. A Story of Reconciliation
14
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow. And Grow!
Email for approval.
Save to a local folder…or shared drive.
Auditors get their questions answered.
Make strategic decisions.
Rinse and repeat.

15. A Story of Reconciliation
15
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow. And Grow!
Email for approval.
Save to a local folder…or shared drive.
Auditors get their questions answered.
Make strategic decisions.
Rinse and repeat.
Live happily ever after.

16. A Story of Reconciliation
16
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow. And Grow!
Email for approval.
Save to a local folder…or shared drive.
Auditors get their questions answered.
Make strategic decisions.
Rinse and repeat.
Live happily ever after.

17. A Story of Reconciliation
17
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow. And Grow!
Email for approval.
Save to a local folder…or shared drive.
Auditors get their questions answered.
Make strategic decisions.
Rinse and repeat.
Live happily ever after.

18. A Story of Reconciliation
18
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow. And Grow!
Email for approval.
Save to a local folder…or shared drive.
Auditors get their questions answered.
Make strategic decisions.
Rinse and repeat.

19. A Story of Reconciliation
19
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow. And Grow!
Email for approval.
Save to a local folder…or shared drive.
Auditors get their questions answered.
Make strategic decisions.
Rinse and repeat…with new personnel.
Live happily ever after?

20. A Story of Reconciliation
20
Numbers need to be correct.
Create Excel spreadsheets.
Spreadsheets grow. And Grow. And Grow!
Email for approval.
Save to a local folder…or shared drive.
Auditors get their questions answered.
Make strategic decisions.
Rinse and repeat…with new personnel.
Live

21. but the
story
Not just story…
across
companies and
processes
predominate
most
A Story of Reconciliation
21
a Process
Every

22. Reconciliations in Financial Processes
22
“The auditors don’t trust us”
“The businesses don’t trust us”
Businesses must move towards becoming
trustworthy, compliant companies

23. 23
OUTSIDE the Financial Close

24. Agenda
24
ARCS in the Financial Close
Reconciliations in PCM
Opportunity to Innovate

25. The Complete Financial Close Process
Account Reconciliation (ARCS)04
Tax Reporting (TRCS)06
Enterprise Performance Rpt (EPRCS)05
Cloud Financials01
Financial Consolidation & Close (FCCS)03
Cloud Financials02

26. Comprehensive
Centralized
Accountability
VisibilityTraceability
Communication
Focus
Key Benefits Gained from ARCS
in the Financial Close
26

27. Centralized
Key Benefits Gained from ARCS
in the Financial Close
27
Comprehensive
Centralized
Accountability
VisibilityTraceability
Communication
Focus
Comprehensive
Traceability
Communication Accountability
Focus
Visibility

28. Agenda
28
ARCS in the Financial Close
Reconciliations in PCM
Opportunity to Innovate

29. Reconciliation Similarities
29
Profitability & Costing Financial Close
Regular process
Siloed, manual, and offline
Susceptible to methodology and personnel changes
Limited functionality within tools

30. Reconciliation Differences
30
Profitability & Costing Financial Close
Subset of Income Statement
P&A Team
Less frequent (mostly
monthly; never daily)
More critical for regulated
industries (i.e. Gas, Utilities)
Balance Sheet, some Income
Statement, Consolidated
Accounting, Tax Departments
More frequent (can be daily)
Critical to all industries

31. Overview of Reconciliation Process in PCM
31

32. Profitability & Cost Management Use Case Classifications
32

33. Overview of Reconciliation Process in PCM
1) Pull a subset of
pre-allocated data as
a starting point
33
Income
Statement
Corporate
Expenses
FP&A Consolidation
General
Ledger

34. Overview of Reconciliation Process in PCM
2) Allocations happen
34
Corporate
Expenses

35. Overview of Reconciliation Process in PCM
35
Grossly
Oversimplified!!!

36. Overview of Reconciliation Process in PCM
36

37. Overview of Reconciliation Process in PCM
2) Allocations happen
37
REMEMBER!
PCM does not create
data, only moves it
Corporate
Expenses

38. Overview of Reconciliation Process in PCM
3) Push post-allocated
data back to a target
system
38
FP&A Consolidation
General
Ledger
Income
Statement
Corporate
Expenses

39. Overview of Reconciliation Process in PCM
1) Pull
39
2) Allocate 3) Push

40. Overview of Reconciliation Process in PCM
1) Pull
40
2) Allocate 3) Push

41. Types of Recons: High-Level Variance Analysis
41
January February

42. High-Level Variance Analysis
• Vast majority in SmartView
– Some clients will use Financial Reporting Studio (FRS) or PCMCS Analytics
• Precursor to putting costs back into the General Ledger
42

43. High-Level Variance Analysis : Current Process
43
Comprehensive
Centralized
Accountability
Visibility
Traceability
Communication
Focus
SmartView / Financial Reporting Studio

44. Types of Recons: “Top of the House” Validation
44
Pre-Allocated Post-Allocated

45. “Top of the House” Validation
• Rule Balancing Report
45
What is
loaded to
the app… …is the
same after
allocations
because…

46. “Top of the House” Validation
46
REMEMBER!
PCM does not create
data, only moves it

47. “Top of the House” Validation : Current Process
47
Comprehensive
Centralized
Accountability
Visibility
Traceability
Communication
Focus
Rule Balancing Report / SmartView

48. Types of Recons: Process Specific Validations
48
Total
Parts

49. Process Specific Validations
• Different per application
49
>Activity
>Product
>Channel
>Funds
>Segments
>Customer
>Entity
>Accounts

50. Process Specific Validations
• Typically a SmartView validation, similar to Variance Analysis
50

51. Process Specific Validations : Current Process
51
SmartView
Comprehensive
Centralized
Accountability
Visibility
Traceability
Communication
Focus

52. Another Choice: PCM Validations in ARCS
52

53. Accountability
Comprehensive
Centralized
Visibility
Traceability
Communication
Focus
Another Choice: PCM Validations in ARCS
53
Accountability
Comprehensive
Centralized
Visibility
Traceability
Communication
Focus

54. Another Choice: PCM Validations in ARCS
54
Accountability
Comprehensive
Centralized
Visibility
Traceability
Communication
Focus

55. Another Choice: PCM Validations in ARCS
55
Accountability
Comprehensive
Centralized
Visibility
Traceability
Communication
Focus

56. Another Choice: PCM Validations in ARCS
56
Accountability
Comprehensive
Centralized
Visibility
Traceability
Communication
Focus

57. Another Choice: PCM Validations in ARCS
57
Accountability
Comprehensive
Centralized
Visibility
Traceability
Communication
Focus

58. Another Choice: PCM Validations in ARCS
58
Accountability
Comprehensive
Centralized
Visibility
Traceability
Communication
Focus

59. Another Choice: PCM Validations in ARCS
59
Example: “Close”
recon if =< 10%
change between
months
Accountability
Comprehensive
Centralized
Visibility
Traceability
Communication
Focus

60. Another Choice: PCM Validations in ARCS
60
Accountability
Comprehensive
Centralized
Visibility
Traceability
Communication
Focus

61. Another Choice: Side by side
61
High Level Variance
Analysis Example
“Top of the House”
Example

62. Another Choice: “Top of the House” Example
62

63. Another Choice: Entity-to-Entity Example
63

64. Comparisons and Complements
64
But which
do I
choose?

65. Comparisons and Complements
65
Current Reconciliation
Process in PCM
Comprehensive
Centralized
Accountability
Visibility
Traceability
Communication
Focus
ARCS Reconciliation
Process of PCM

66. Comparisons and Complements
66
Current Recon
Process in PCM
ARCS Recon
Process of PCM
Select situations where data
points do not exist in PCM
Can house multiple data
sources (manual/integrated)
Most calculations performed
outside the application
Flexibility in formatting
Live data within application
Dependent on timing and
data integrations
Captures custom attributes
Comprehensive

67. Centralized
Comparisons and Complements
67
Current Recon
Process in PCM
ARCS Recon
Process of PCM
One-stop-shop solution for all
reconciliation types
SmartView template from
shared drive
Certain recons are supported
with multiple OOTB reports

68. Accountability
Comparisons and Complements
68
Current Recon
Process in PCM
ARCS Recon
Process of PCM
OOTB Workflow tool;
dynamic; customizable
Segregation of duties
Access to data controlled
through role provisioning
Generate offline “snapshot”
for external consumption

69. Visibility
Comparisons and Complements
69
Current Recon
Process in PCM
ARCS Recon
Process of PCM
Live status of reconciliation
cycle (per recon)
Difficult to find the live status
of the reconciliation
Dashboarding

70. Comparisons and Complements
70
Traceability
PROCESS
DATA

71. Comparisons and Complements
71
Current Recon
Process in PCM
ARCS Recon
Process of PCM
Traceability
Full list of changes to
reconciliation profile
Link to completed
reconciliation in prior period
Drill-through limited to
integration / sources
Can follow the exact path of
the data through rules

72. Comparisons and Complements
72
Current Recon
Process in PCM
ARCS Recon
Process of PCM
Communication
All communication
documented within recon
Commentators can access
without changing recon
Request/Provide information
through custom attributes
Siloed conversations in email,
IM, phone, meetings, etc.
Annotations / Batching on
Financial Reporting Studio

73. Comparisons and Complements
73
Current Recon
Process in PCM
ARCS Recon
Process of PCM
Focus
Auto-reconcile low risk
reconciliations
Reconciliations are assigned
per user/team
Customize reports/queries for
specific data subsets
Data access is controlled
through security setup

74. Comparisons and Complements
74
Comprehensive
Centralized
Accountability
Visibility
Traceability
Communication
Focus
ARCS Recon
Process of PCM
Current Recon
Process in PCM
Process Data Process Data

75. Comparisons and Complements
75
But which
do I
choose?

76. Comparisons and Complements
76
You have
CHOICES

77. Agenda
77
ARCS in the Financial Close
Reconciliations in PCM
Opportunity to Innovate

78. Opportunity to innovate
78
Understand your product’s benefits

79. Opportunity to Innovate
79
Question the normal course of business

80. Opportunity to Innovate
80
Think outside

81. Simplified Cloud EPM pricing released in 2019
81
Reduces the barrier to entry

82. Think Outside
82
Unprecedented opportunity to innovate

83. A Bit More On the Speaker
Nick Boronski
• Twitter: @PocketACE_NB
• LinkedIn: linkedin.com/in/pocketacenb/
• Oracle ACE Directory:
https://apex.oracle.com/pls/apex/f?p=ACES
:DIRECTORY:::::SEARCH:Nick+Boronski
•
https://www.alithya.com/en/insights/author/
nick-boronski
83

84. Session ID:
Please remember to complete the session evaluation that you
will receive via email from the webinar service provider.
11614
Nick.Boronski@Alithya.com