Financial planning with Oracle PBCS or EPBCS?

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Financial planning with Oracle PBCS or EPBCS?

In our current, rapidly changing environment, there is less confidence in spreadsheets for financial modelling, planning and impact analysis, which puts considerable pressure on the finance department. Solutions like Planning & Budgeting enable financial professionals to remain flexible and anticipate changes.

We recently held a webinar about agile financial planning, and how you can implement this by using Oracle Planning Budgeting Cloud Services (PBCS)*. By default, PBCS provides various options that support the speed and agility of the financial planning process. If you’re looking for a planning solution with more out-of-the-box functionality, there is also the Enterprise version: EPBCS. This solution, with its built-in modules and additional functionality, provides a highly suitable solution that can be implemented in a relatively short time frame.

In this blog post, we will take a closer look at comparing of the Cloud planning solutions from Oracle.

Applicable to both PBCS and EPBCS

Whether you choose PBCS or EPBCS, the general benefits of an Oracle Cloud application are the same: no upfront expenses for hardware or software, less involvement of your IT department, and no annual maintenance costs.

PBCS is based on Hyperion Planning, an on-premise solution. Its strengths have already been proven in actual practice and then developed from there.

Both applications have the following functionalities:

  • 3 BSO planning cubes
  • 3 ASO reporting cubes
  • 1 consolidated reporting cube

Both applications use the SmartView Excel Add-In for ad-hoc reporting, Financial Reports for structured reports and Data Management (FDMEE) for uploading data.

And both applications have a minimum of 10 users and contain 2 environments: one for development and one for production.

PBCS and EPBCS: the differences

Oracle PBCS offers the flexibility to make changes in the calculations and templates behind these calculations. This is where EPBCS and PBCS differ. EPBCS has ready-made modules that allow more minor, customised modifications.

There are five modules in EPBCS: Financials, Workforce, Projects, Capital and Strategic Modeling.

Financials provides tools that can be used to quickly develop plans and prognoses and generate financial base overviews, such as balance sheets, cash flow overviews and profit and loss accounts for internal analysis. Financials provides components that you can use on a step-by-step basis: turnover / gross margin, expenses, balance sheets, cash flow, income statements and analysis. Financials can be integrated with Workforce, Projects and Capital, ensuring that planners can generate highly detailed plans, prognoses and financial reports with various types of data.

Workforce makes it possible for planners to attune critical company assets – people and money – to the strategies that make the best use of their competitive advantages. Using Workforce, departments work together to plan staffing and related expenses such as salaries, healthcare, bonuses and taxes. Planners can look at up-to-date charts of expenses and trends. Depending on the activated functions, planners can manage and keep track of employee expenses by:

  • analysing, calculating and reporting about staffing, salaries, bonuses, taxes and healthcare expenses;
  • planning for hiring, transfers, promotions, terminations, etc.
  • determining the taxes and benefits in effect for the country

You can use Workforce as an independent business process or integrate it with Financials and Projects.

Projects is intended for organisations with many internal projects, such as IT, marketing, R&D and training. This module provides the option for driver-based planning for both short and long-term projects. With this module, individual employees can manage their project-related planning while tracking asset-related expenses and project revenues. In addition, you also get out-of-the-box analyses to assess the project results, revenues, expenses and cash flows.

Capital is used to manage, prioritise and plan asset expenditures. Capital helps decision-makers and first-line managers during the request, justification, assessment and approval process. Use Capital for actions such as:

  • Carrying out driver-based calculations to assess the impact of changes on profit, cash flow and funding;
  • Requesting and approving asset expenditure plans;
  • Anticipating the impact on financial overviews, assigned transfers, extraordinary depreciations, pension schemes and replacements;

Capital provides these components that you can use on a step-by-step basis to optimally fulfil your needs in the field of asset planning: investments, existing assets, intangible assets and analysis.

Strategic Modelling is a module that you can use to optimise your financial modelling. Frequently, financial modelling is still based on manual methods that are less than reliable (mainly spreadsheets). This module can be used for long-term planning, what-if modelling, business or group finance, and treasury initiatives.

This is supported in this module by a built-in hierarchical list of accounts for a quick-start approach for standard consolidations, forecast modelling and target positions.

You can run simulations using scenarios and stress-test various financial models.

Conclusion

Are you curious to see what a successful implementation of a financial planning solution could mean for your organisation? Or are you unsure which product to choose? Then we can take a look at it together, based on your own requirements for the planning process and the application. Feel free to contact us!

If you would like to view the Agile financial planning webinar, or watch it again, please complete the following form and we will send the webinar link to you.

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