Oracle Analytics Partner of the Year interRel Highlights and Company Overview

Focused on #1 EPM Cloud Partner Awards 170+ Cloud • 2019 Oracle Analytics Partner of Company was founded EPM & BI specializations, 60+ the Year on Essbase and has since free Cloud webcasts, • 2016 Oracle Global Partner of the the free Cloud videos, and year – Cloud EPM & BI most experienced Essbase resources. 1997 2 Cloud books! • 4-time Oracle Excellence Award • 9-time Inc. 5000 – list of fastest growing U.S. private companies • Multiple Kscope Top Speaker awards Our Industries consultants Free Education Healthcare, Financial OTN tours, regional 1,000+ EPM average 9+ roadshows, weekly years of EPM Services, Higher Ed, Retail & webcasts, Play It projects Wholesale, Tech & Telecom, Forward videos completed, 50+ in experience Consumer Goods, Energy, (YouTube), newsletters, Insurance, & Manufacturing and blog posts! EPM Cloud Introduction to Account Reconciliation Cloud (ARC)

Terrance D. Walker, PMP [email protected] epm.bi/Videos Disclaimer • These slides represent the work and opinions of the presenter and do not constitute official positions of Oracle or any other organization.

• This material has not been peer reviewed and is presented here with the permission of the presenter.

• This material should not be reproduced without the written permission of interRel Consulting. What is a Reconciliation? • Validation that the balance in an account is “accurate”

• Different types of accounts are validated or reconciled differently

̶ Cash – Compare the GL balance to the bank balance ̶ AP – Compare GL to sub-ledger ̶ AR – Compare GL to sub-ledger and analyze the aging of receivables ̶ Fixed Assets – Compare GL to sub-ledger and perform a roll-forward ̶ Pre-paids (e.g. Insurance) – Document the composition of the balance and justify ̶ Accruals (e.g. Bonuses) – Document the composition of the balance and justify ̶ Provisions and Reserves – Document the composition of the balance and justify Challenges in the Account Reconciliation Process • #1 non-data related delay in the close process

• Honest questions ̶ What percentage of close time are you spending on account recs? ̶ Is it even happening? ̶ What tools are you using? Excel? Emails back and forth? ̶ Is every account truly being reconciled? ̶ Are we reconciling at the correct level(s)? ̶ Are recs updated as balances change during close?

• The result ̶ Limited visibility into completion status ̶ Limited reporting across recs ̶ Lost reconciliations ̶ Inefficient processes and lost time ̶ High risk and non-compliance Challenges in the Account Reconciliation Process

Manual process

Incomplete Limited governance information

Security/compliance Audit issues

Limited visibility ARC Addresses these Pain Points and Challenges

Manual process

Incomplete Limited governance information Enables Provides Addresses automated governance and security and risk account real-time status concerns reconciliations reporting

Security/compliance Audit issues

Limited visibility Account Reconciliation Cloud (ARC)

• Addresses the global reconciliation process • Reduces risk, providing real-time visibility into the performance of account reconciliations • Ensures all reconciliations are properly qualified • Helps companies streamline and optimize performance by automating certain reconciliation tasks and supporting risk-based reconciliation cycles • Integrated with transaction systems • Simplified UI for Cloud • Analytics covering performance and compliance Easy To Use SUI for Completing Reconciliations Profile Properties Workflow Support for Account Rec Process Manage the Overall Process

• Real-time visibility into the progress and status • Assign resources/teams to specific items to be reconciled • Analytics to review trending and areas for improvement Report and Analyze on the Account Rec Process

• Pre-built reports • Supports creation of custom reports and report groups Fully integrate Account Reconciliation into the Close

• Integrate data from Oracle EBS, ERP Cloud and other ERP systems ̶ General Ledger ̶ A/R, A/P & Fixed Asset Sub-ledgers ̶ Cash Management

• Leverage existing on premise IT investments

• Automate with EPM Automate Routines o Import Profiles o Import Balances o Import Pre-mapped Balances o Run Auto-match Oracle Business Processes How to subscribe? Part of 4 Main Business Processes • Available with both EPM Standard and EPM Enterprise • Oracle is shifting away from Cloud Services to 1 solution that supports 4 primary business processes: ̶ This does mean that except for legacy customers, the products will not be sold separately ̶ What was a “product” is now just a “business process” inside Oracle EPM Cloud

1. Planning: Planning, Profitability & Cost Management 2. Financial Close: Financial Consolidation & Close, Account Reconciliation, Tax Reporting 3. Narrative Reporting: Narrative Reporting, Dashboards 4. Enterprise Data Management: Enterprise Data Management / Governance

https://www.oracle.com/applications/performance-management/products.html Oracle EPM Standard

Ad Hoc Narration Management Reports Mobile

PLANNING FINANCIAL CLOSE • Custom Plan Types • Consolidation • Workforce • Account Reconciliation • Projects • Task Management • CapEx • Supplemental Data • Scenario Modeling DATA • Financials MANAGEMENT

ERPs Data Warehouses Unstructured Data Excel Oracle EPM Enterprise

Ad Hoc Narration Management Reports Mobile

PLANNING Profitability & Cost Management FINANCIAL CLOSE • Custom Plan Types • Consolidation • Workforce • Account Reconciliation • Projects • Task Management • CapEx ENTERPRISE • Supplemental Data • Scenario Modeling DATA • Advanced Consolidations • Financials MANAGEMENT • Transaction Matching • Freeform (Essbase) • Tax Reporting • Groovy

ERPs Data Warehouses Unstructured Data Excel EPM Cloud Standard vs. Enterprise

Business Processes EPM Cloud Standard EPM Cloud Enterprise Planning Planning & Budgeting + Advanced Customization and Packaged modules: Workforce, modeling (Groovy) Capital, Financial Project Planning Intelligent Performance Management Scenario Modeling Intelligent Process Automation 1 Custom Hybrid BSO & 1 Free Form Planning Custom ASO

Financial Consolidation & Close Financial Consolidation + Advanced consolidation (on- Task Management demand business rules, custom calculations) Intelligent Performance Management Intelligent Process Automation

Narrative Reporting Narrative Reporting + XBRL Reporting Account Reconciliation Account Reconciliation + Transaction Matching Tax Reporting Not available Tax Reporting Profitability Not available Profitability and Cost Management

Enterprise Data Management Not available Enterprise Data Management with 5,000 records limit New Names of EPM Products (“Business Processes”)

• EPBCS/PBCS –> Planning • FCCS –> Financial Consolidation and Close • ARCS –> Account Reconciliation • EPRCS –> Narrative Reporting • PCMCS –> Profitability and Cost Management • TRCS –> Tax Reporting • EDMCS –> Enterprise Data Management Into the Details of ARC ARC Home Screen

• Simplified User Interface (SUI) across all EPM Cloud products • Role-based views of ARC functionality • ARC Cards: ̶ Worklist ̶ Reconciliations ̶ Matching ̶ Dashboards ̶ Reports ̶ Application ̶ Tools ̶ Academy Worklist • The Worklist Card reflects a listing & the status of reconciliations • Summary of the status by All, Late, Due Today or Due in 7 days • Leverage Filter bar to filter by attributes such as name or account type. Reconciliations

• Balance Summary o Source System & Sub-system balances o Format Details • Prior Ending Balances o Balance Trending o Imbalance review • Reconciliation Metrics o Assignee o Status o Attachments o Commentary Matching

The Matching Card notes all reconciliations created with Transaction Matching and shows a description, the name of the preparer and whether there are unmatched items.

The process for performing matching involves: ̶ Importing Transactional Data ̶ Confirming Suggested Matches ̶ Creating Manual Matches ̶ Creating the Reconciliation Balancing Report Application

• Overview displays recent reconciliation activity by different users, data loads, and the number of change requests for today, last seven days, and all • Profiles used to define reconciliation templates which are basis for which data points are reconciled • Periods allows for opening, closing or locking periods • Configuration used to set up, configure, and maintain ARC application settings, i.e. – Currencies, Formats, Organizational Units, etc. • Match Types allows for creating match types for Transaction Matching and Calendars Application (cont’d)

• Jobs displays the jobs performed in ARC – Jobs History maintains a history of the jobs run in Transaction Matching and allows for: importing transactions, deleting imported transactions, importing balances, and running Auto Match • Services allows a Service Administrator to restart or run the following: email notifications, open reconciliations or system maintenance tasks such as synchronizing users • Archive allows a Service Administrator to keep the size of the database in check and help performance by using archive, restore and purge functionality • Report Configuration allows for creating custom reports, creating report queries, and group reports Academy Into the Details of the Reconciliation Process Profiles

• Grouping of Account IDs that are subject to reconciliation ̶ Created to meet the reconciliation requirement(s) ̶ Can contain multiple G/L segments – Entity-Account-LOB • Assigned a type, format, preparer, reviewer, balance, etc. Profiles

• Profiles can be updated as business changes Profile • Updated profiles will apply for future reconciliations ̶ Will not impact or change past reconciliations

Reconciliation is created based on Profile Formats

• Define what the reconciliation will look like

• What information will be required from preparers during reconciliation

• Formats can also be created

• Pre-built Format are delivered with ARC ̶ AP, AR, Accruals, Bank Reconciliation, Fixed Asset, Tracking Only… Standard Formats

• Prebuilt formats for you to use for reconciliations • Balance comparison, account analysis or variance analysis reconciliation methods • Prior period balance and net activity are not displayed across standard formats ̶ You can clear the hide check box to display • Simplified definitions for system and subsystem adjustments but you can update and change Format Design • Will determine the info presented in the Balance Summary • Defines the types of transactions, attributes, and rules for the rec, auto-recs and controls • Design at the account type level for accounts easily reconciled (e.g. Sub ledger to GL) • Create custom formats for accounts that require manual reconciliation / more complex ̶ Pre-paids, accruals, provisions and reserves ̶ Design formats to reduce risk for these items ̶ Add rules that validate data or require attachments ̶ Add questions to the reconciliation to ensure quality ̶ Target highest risk accounts • Snapshots of formats are taken with each period’s reconciliations Reconciliation Method – Balance Comparison

• Compare balances to a balance from another source (sub-ledger, bank balance, or other) • Calculates a difference • If difference exists, user enters adjustment on source and/or subsystem to explain/resolve the difference Reconciliation Method – Account Analysis

• Used for accounts that have no comparative balance • Preparers enter/load the Source System Balance • Preparers enter/load the items that make up that balance on the Explained Balance tab • Use Adjustments if there are any unexplained differences Account Reconciliation Process

Load Auto Rec Notify Prepare Review Monitor Data Load Data • Supports pre-mapped data loads (non-Admins)

• Supports Data Management for mapping source system data to Account IDs

• FDMEE (on-premises) direct ARC integration with EPM cloud

• Source system balances, sub-system balances, transactions Load Data - Balances

• Preparers load from Reconciliations; admins from the Console or Reconciliations • Import for period ̶ Data can be imported for periods that have pending, open or closed status • Define the file, source type, and currency bucket • Click Import Load Data - Import to Any Status

• Data can be imported for periods that have pending, open or closed statuses

• Balances ̶ If the balances change and the status was Closed or Open with Reviewer, will be changed to Open with Preparer ̶ If balance doesn’t change, the status does not change

• Transactions ̶ Changed to Open with Preparer Data Management

• Data integration tool that provides a single, systematic process for loading data from disparate systems into target analytical applications • FDMEE “Lite” (Financial Data Quality Management, Enterprise Edition) • ETL for the business user • Provides visibility, traceability, integrity and verification processes • Mapping capabilities by end users • Targets and sources • File-based • Drill-through to source data (Landing Page) • Fully automated with EPM Automate Auto Reconciliations

• Configurable for low risk accounts • Standard auto rec rules ̶ Authorized zero balance accounts ̶ Matching G/L to sub-G/L within tolerance • Customized auto rec rules with specific logic for your organization and compliance rules Notify

• Preparers and reviewers receive email notifications for status changes, upcoming due dates and delinquencies Preparers

• View balances loaded into reconciliations • Review executed auto- reconciliations • Review executed automated rules • Copy forward previous activity • Review notifications • Complete reconciling items • Provide balance explanations • Attach supporting information (doc, xls, pdf) to reconciliations • Provide commentary • Calculate amortizations Reviewers • Review notifications • Review reconciliations • Provide feedback through commentary and flagging • Approve or Reject reconciliations • Multiple reviewers are supported • Monthly, quarterly & yearly frequencies • Risk Ratings • Post reconciliation ̶ Commentary and view only ARC Dashboards Overview Dashboard

• Overview dashboard used to check the status of account reconciliations: o Open reconciliation count o Late reconciliations o On-time reconciliations Compliance Dashboard

• Compliance dashboard to view more details into the reconciliation process • View completed, prepared on time, reviewed on time, rejected, and warnings • User success tracking Match Metrics Dashboard

• Match Metrics dashboard by Reconciliation Type • Transaction import date • Sorting by various status ARC Implementation Methods Consider a Phased Approach

Tracking Auto Rec Complex Only Accounts Accounts Phase 1 – Tracking Only

• Every account should be reconciled • Consider tracking only for first phase ̶ Continue to use current reconciliation processes ̶ Only use 1 – 2 formats to attach Excel reconciliations • Quickly achieve benefits into rec process Two formats – Tracking ̶ Centralized database of recs Only and Tracking with ̶ Monitoring / reporting Reconciling Items (Allows updating spreadsheet / • Leverage prebuilt tracking formats uploading a spreadsheet with the ability for preparers to document reconciling items) Phase 2 – Auto Rec Accounts

• Next implement the “easier” reconciliations ̶ Accounts supported by sub-ledger (AP, AR, FA) ̶ Those that can be auto reconciled • Automate sub-ledger and GL balance loads • Design at the account type level • Define auto reconciliations Phase 3 – Complex Recs / Manual Recs

• Accounts that require manual reconciliation / more complex ̶ Prepaids, accruals, provisions and reserves ̶ Transaction Matching ̶ Design formats to reduce risk for these items ̶ Add rules that validate data or require attachments, add questions ̶ Target highest risk accounts Training & UAT

• Training ̶ interRel Training Division ☺ ☺ ☺ ̶ Great training videos provided by Oracle on YouTube ̶ Excellent subject matter videos available in the Academy ̶ Search for the Account Reconciliation Cloud playlist • https://www.youtube.com/playlist?list=PL6gBNP-Fr8KWAW6NVVTqyFRUCKZHtJBQk

• UAT ̶ Reconciliations have the correct format and balances ̶ Preparer assignments are correct ̶ Review assignments are correct ̶ Reconciliation rules working per expectation Bringing It All Together Ready to Ascend to ARC…

• You are manually reconciling accounts / using Excel or some other sub-optimal tool for account reconciliations • You want to make your close process more efficient / spend more time on value added analysis of results • You need visibility into accounts that present the most risk • You need real time status and oversight of the reconciliation process • Current ARM customers desiring to use ARC functionality

• No brainer if: X hours per month reconciling * Y cost per hour > $120 Available with both EPM Cloud Standard vs. Enterprise

Business Processes EPM Cloud Standard EPM Cloud Enterprise Planning Planning & Budgeting + Advanced Customization and Packaged modules: modeling (Groovy) Workforce, Capital, Intelligent Performance Financial Project Planning Management Scenario Modeling Intelligent Process Automation 1 Custom Hybrid BSO & 1 Free Form Planning Custom ASO Financial Consolidation & Financial Consolidation + Advanced consolidation (on- Close Task Management demand business rules, custom calculations) Intelligent Performance Management Intelligent Process Automation

Narrative Reporting Narrative Reporting + XBRL Reporting Account Reconciliation Account Reconciliation + Transaction Matching Tax Reporting Not available Tax Reporting Profitability Not available Profitability and Cost Management Enterprise Data Management Not available Enterprise Data Management with 5,000 records limit Continuing Education

Best Selling Oracle BI & EPM Books

OAC Planning Narrative Reporting • Steps to set up your Oracle • Build an Oracle Planning & • Build a report package Analytics Cloud instance Budgeting Cloud • Execute the reporting cycle • Application from start to finish • How to build Essbase Cloud from start to finish cubes from start to finish • Administer and automate your solution • Sign off or reject the final • Maintaining dimensions and • Migrate from on-premises to the product loading data Cloud • Assign security • Creating calculations and • Best practices for setting up • Migrate objects between calculating data your Oracle EPM Cloud Instance environments • Assigning security Cloud Essbase Smart View

Admin/End Users Admin Studio Smart View Admin End User Advanced Upcoming Webcast

WHAT IS ORACLE ENTERPRISE DATA MANAGEMENT? TBD: ANALYTICS & REPORTING 3-13 10-2 10-16

3-6

10-23 9-25 10-9

TBD: ANALYTICS & WHAT IS ORACLE WHAT IS ORACLE REPORTING NARRATIVE REPORTING? DATA VISUALIZATION? Thank you!