Often, companies spend too much time trying to understand key profitability drivers and manually modifying spreadsheets or won’t spend any time at all trying to understand because of perceived complexities. Accurate cost and revenue measurement, allocation, and management are critical for companies seeking greater insight into profitability and cost.
Oracle Profitability and Cost Management Cloud Services (PCMCS) is an analytical software solution that manages specific cost and revenue allocations needed to determine overall organizational profitability. Oracle PCMCS allows users to use consumption-based costing, cost allocation, and scenario comparisons to measure profitability and ensure effective planning.
This article discusses the key capabilities and benefits of Oracle PCMCS and how our senior-level Oracle consultants can help your organization maximize your investment.
What is Oracle PCMCS?
Oracle Profitability and Cost Management Cloud Services (PCMCS) is a critical component of Oracle Fusion Cloud EPM that easily facilitates complex calculations and multistep allocations. The PCMCS platform empowers users to take ownership of allocation-based business processes, such as:
- Management allocations
- Shared service costing
- Cost transparency initiatives
- Products/customer profitability
- Legal entity allocations
PCMCS is designed to help organizations consolidate critical financial and operational data, profitability metrics, and performance reporting in one unified solution. With improved transparency and flexibility, PCMCS allows all stakeholders to view the approach behind each allocation, track data for management reporting across systems, and conduct side-by-side evaluations of new and existing allocation calculations.
Main Features of Oracle PCMCS
Let’s take a look at the key features of Oracle PCMCS for enterprise users:
Adaptable Modeling
Model profitability and costs
Determine which customers, products, and other business areas drive the most profit and invest resources accordingly.
Better decision-making
Improve IT investment decisions and optimize profitability through greater transparency and insight into shared services and costs.
Model shared services costs
Say goodbye to disputes over resource allocation decisions by leveraging simplified insight into the costs of shared services and communicating directly with the groups that use them.
Model regulatory expenses
Automate documentation and calculation of costs for regulatory reporting, including overhead rate rationale, rate/price negotiations, and jurisdiction profitability reporting for companies in industries like utilities, insurance, and telecommunications.
Model tax transfer pricing
Leverage comprehensive audit trails to improve compliance and automate tax transfer pricing associated with legal entities and requirements.
Adjustable Allocations
Merge financial data with other data
Combine financial data with other business drivers and operational metrics from any system without limiting calculations to only data in their existing ERP system.
Complete validation reports
Ensure complete profit, cost allocation, and validation using intuitive, step-by-step reports.
Easily view allocation information
Access profit traceability maps and cost management tools within model allocations, simplifying complex programmed allocations associated with ERP and custom solutions.
Change and expand models
Upgrade models to add new segments or dimensions as business requirements evolve or modifications are required to keep up with increasing data volumes.
Determine complex resource allocations
Model shared resources based on requirements across each team, department, or location to maintain strong relationships and dissolve disputes for critical allocations.
Improve cloud-based security
Ensure the right people have the right access to the right data through intelligent, cloud-based security roles and predefined user permissions.
Owned By the Business
Easily modify models
Modify allocation methods, assumptions, and timelines without relying on IT to make changes or rebuild the entire model.
Access point-and-click technology
Leverage point-and-click capabilities to create and maintain profitability and cost models without complex coding or scripts.
‘What-if’ profitability and expense scenarios
Experiment with potential business changes
Eliminate risks associated with updating systems of record by proactively modeling changes, such as adding/removing products, adding new customers, changing delivery methods, and more.
Evaluate potential regulatory changes
Replicate the effect of potential tariff or tax modifications to justify consequent cost increases or rate changes.
Modify allocation methods, drivers, and more
Determine which elements, such as shared resource allocation methods, cost drivers, and relationships between cost objects, have the greatest impact on cost and profitability.
Analysis
Utilize ready-made KPIs and graphs
Analyze key business processes impacting profitability with pre-built graphs and KPIs.
Asses reports and dashboards
Access and review data in real-time with configurable dashboards.
Ad hoc analysis
Utilize Oracle Smart View for Microsoft Office to drill down to implicit data and view specific periods and dimensions with multidimensional analysis features.
Support mobile workforce
Use tablets or other mobile devices to easily access models in the office or on the go.
Perform variance analysis
Build comprehensive variance reports from past periods to view changes in cost and profitability and determine root causes.
Key Benefits of Oracle PCMCS
- Encourage users to take ownership of allocation-based business processes
- Obtain insight into unseen cost and profit data across critical sales channels, products, customers, and more
- Leverage ‘what-if’ analysis to optimize resource allocation processes
- Minimize manual initiatives by automatically collecting business data
- Build a high-accountability culture that utilizes end-to-end transparency for all allocations
- Utilize point-and-click model building to eliminate reliance on IT teams
How We Can Help
From evaluating complex resource allocations relationships to implementing new cost transparency initiatives for optimized allocations, Surety Systems has you covered!
Our senior-level Oracle consultants have the technical knowledge and functional expertise to handle your most complex projects and help you achieve long-term success, no matter what.
Contact Us
Interested in learning more about Oracle PCMCS or where our senior-level Oracle consultants can fit in your organization?
Contact us today!
