Cloud Data Management (CDM) and Financial Data Quality Management Enterprise Edition (FDMEE): A Case Study in Working Together

Why buy Financial Data Quality Management Enterprise Edition (FDMEE) when Cloud Data Management (CDM) is free?  As outlined in my recent white paper – FDMEE vs. Cloud Data Management – there are myriad factors that can drive the decision.  This blog post highlights how one customer gained a highly flexible and automated solution for data and master data management with an on-premise deployment of FDMEE in conjunction with Cloud Data Management.

This customer adopted a pure Cloud strategy as it relates to Enterprise Performance Management (EPM) procuring subscriptions to Planning and Budgeting Cloud Service (PBCS), Financial Close & Consolidation Cloud Service (FCCS), and Account Reconciliation Cloud Service (ARCS).  A diverse business, the customer has many unique operational systems with varying formats and charts of accounts.  So far, no reason why Cloud Data Management (CDM) can’t handle this requirement, right?  This is what CDM does – uses import formats and maps to consume and transform data – right?  Sure, but with caveats.  Notice that I used the word consume and not extract.  CDM does not provide the ability to link with on-premise systems to extract data.  Additionally, flat file data extracts that lack a consistent structure often cannot be natively consumed by CDM.

In this case, data needs to be loaded each day from numerous sources to support daily operational reporting.  The systems are a blend of on-premise, hosted, and Cloud applications.  The customer requirement dictated that any on-premise system should be connected directly to eliminate the need for a flat file extract to be generated daily.  Additionally, the hosted and Cloud applications are very industry specific and, in some cases, provided by very niche vendors.  The ability to modify extract formats was cost prohibitive or simply not supported.  As a result, several of these data feeds were not consumable by CDM without preprocessing/modification.

In light of the above requirements, the customer procured and deployed FDMEE on-premise.  The power of FDMEE allows a solution to be deployed that provides a direct connection to multiple on-premise systems as well as consume the flat file extracts from hosted and Cloud applications including Excel files (not in the required FDMEE/CDM format) and XML.  Because FDMEE on-premise supports scripting, we were able to greatly enrich the data integration cycle with full end-to-end automation including FTP downloading of hosted data, enhancement of the data integration cycle to detect data mapped to members not yet in PBCS or FCCS, dynamically setting substitution variables based on the processing day, running calculations in PBCS, and sending email status alerts to outline the success or failure of a data load cycle.

Although I am a huge FDMEE advocate, I recognize the value of Cloud Data Management and the benefits it provides in a case like this one.  This customer was one of just three participants in the Oracle Enterprise Data Management Cloud Service (EDMCS) program.  This means that they were able to use the software before it was publicly available – otherwise known as GA.  To participate in this program, one must recognize the absence of certain features and functions with the software.  The program allows the customer (and partner) to offer Oracle development and product management valuable input about the software and in some ways drive what features are prioritized within the product roadmap.

EDMCS currently lacks native connections to FCCS, but this will change over time.  So how does CDM help with loading metadata to FCCS?  In a recent update to CDM, Oracle included the ability to import a flat file into CDM and load metadata to a registered target application such as PBCS or FCCS.  John Goodwin gives a detailed overview of the technical setup.

FDMEE and CDM have come together in this case to provide a fully automated data integration process and an automated master data integration process.  Within EDMCS, a Custom application type was created.  The required properties for FCCS were built and attached to the multiple dimensions being mastered, and flat file exports were generated for FCCS.  We knew we were going to use CDM to manage the master data load process, but we had a decision to make – do we leverage EPM Automate or FDMEE as our automation hub?

We chose FDMEE.  Why?  Simply because a lot of automation assets had already been developed in FDMEE that could readily be reused for this process including execution of EPM Automate commands, a framework for leveraging the REST API (for PBCS and FCCS), and email alerting.  Additionally, we found the capabilities of EPM Automate to be somewhat limited.

For example, when you execute a CDM data load rule from EPM Automate, the process ID associated with the execution is not returned.  Why is that important?  Because in the event of a failure, I’d want to download the process log and attach it to the email so the user has information to address the issue.  Could I use the ListFiles command of EPM Automate to get the process log? Possibly, but it doesn’t account for potential concurrency, and I am not doing my job as a consultant if I build a process that can’t handle concurrent operations.  For reasons such as these, we leveraged EPM Automate when possible and the REST API as needed, and we wrapped it all together with an FDMEE process that could be executed on a scheduled basis or on demand simply by using the Script Execution functionality.

Let’s review the end-to-end solution.  In EDMCS, metadata is maintained for PBCS and FCCS.  The metadata is extracted to a flat file (.csv) after maintenance is completed and saved to a network folder.  From FDMEE, the master data integration process is initiated to upload the metadata files to FCCS and PBCS.  Cloud Data Management data load rules are initialized to process the metadata extracts.  In the event of an error, the CDM process log is downloaded.  Finally, an email is generated to alert the administrator of the data integration process status.

There you have it – EDMCS, FDMEE, and CDM working in concert to provide a seamless and elegant solution to data and master data integration for a customer that adopted a Cloud EPM strategy.  If you want to learn how you can enhance your Oracle EPM integration processes, contact us and we’ll be happy to discuss your options.

Enterprise Data Management Cloud Service (EDMCS) – First Impressions

Continuing its momentum with Enterprise Performance Management (EPM) Cloud initiatives, Oracle recently released Enterprise Data Management Cloud Service (EDMCS). Here are some initial impressions of the application to provide fundamental information and spark discussion.

First, some background: these observations are based on an actual project from working with a client who was 1 of 3 selected for the EDMCS Early Adopter Program. This client is essentially going all-in on Oracle EPM Cloud, with Planning and Budgeting Cloud Service (PBCS), Financial Consolidation and Close Cloud Service (FCCS), and Account Reconciliation Cloud Service (ARCS). One on-premise component, Financial Data Quality Management Enterprise Edition (FDMEE), is also in the mix. This client quickly realized its reporting structures between the Planning/Budgeting and Financial Close/Consolidation worlds, while not identical, were similar and contained a high degree of shared structures. The idea of maintaining these reporting structures in multiple tools did not make sense, leading the client to inquire about EDMCS. After an evaluation, Oracle selected them to participate in the early adopter program for EDMCS with Edgewater Ranzal as the implementation partner.

EDMCS = DRM in the Cloud, Right?

Well, not exactly, but that’s not necessarily the right question to ask. EDMCS is NOT a lift-and-shift of Data Relationship Management (DRM) to the Cloud. Yes, there are similar concepts and constructs in EDMCS that a DRM administrator will quickly grasp (Add/Insert/Delete/Remove of members, Shared members, properties, and node types to name a few). But EDMCS utilizes a different philosophy to manage your enterprise master data along with a different data model, all geared around effective master data management for EPM Cloud products. It’s crucial to adopt a new mindset as you embrace EDMCS and not be constrained by “this is how DRM did it.”

With EDMCS, you will immediately notice new functionality such as the capability to create an Enterprise Planning and Budgeting Cloud Service (EPBCS) or PBCS application in EDMCS, which provides the built-in connectors, properties, and validations for those target applications. Simply step through the Register Application wizard, specify your dimensions and plan types, and EDMCS will automatically build the rest for you. The built-in properties and validations enforce constraints and business rules to ensure no changes can be made that could break EPBCS/PBCS.

For other use cases, EDMCS provides the ability to create a custom application along with custom properties. As EDMCS matures, the number of packaged connectors, applications, and validations will surely increase.

So, the Data Model is Different?

The EDMCS data model is quite different from DRM. Understanding the EDMCS data chain is crucial to effective administration, especially given new concepts such as Viewpoints, Hierarchy Sets, and Node Sets.

Key data objects include:

  • Node Type – a collection of nodes and associated properties for your application
  • Hierarchy Set – defines the parent-child relationships of nodes
  • Node Set – defines a group of nodes available for a viewpoint. This may include all nodes in a hierarchy set or a subset of nodes
  • Viewpoint – the other data objects come together to provide the viewpoint, which is essentially the “hierarchy” you interact with to modify nodes, parent-child relationships, and properties

The diagram below, taken from the Oracle EDMCS Administration Guide, is a useful reference as you start to build out your EDMCS applications. Future blog posts will explore these key constructs in more detail.

EDMCS Figure 1

Does EDMCS include Data Relationship Governance (DRG)?

Not yet, but workflows, approvals, separation of duties, and other data governance goodness is on the roadmap for EDMCS. But fear not! EDMCS already provides a “request” mechanism. Modifications to master data can only be performed within the context of a request. Requests can include interactive changes through the UI or batch loading of changes through an Excel request file (think of request files like automator or action scripts, but easier to use and yes, in Excel!). Comments can be included with a request and, continuing with one of the strongest features of DRM, requests provide auditability by capturing the who/what/when/where of every change performed in EDMCS.

How is the User Interface?

One of my favorite features is the visual feedback EDMCS provides as you make changes within a request. As you add, insert, remove, delete, reorder, or modify a member, visual icons and highlights are displayed for that member in real-time to capture the action being performed on that member. You basically get a preview of the change before it’s committed. Changes to properties are visually highlighted and easy to spot. Validations are performed as the request is in Draft status and instantly flag any violations with error messages highlighting the problem node and issue.


Overall, EDMCS is an exciting entry into the EPM Cloud market and a foundational tool critical to maximizing your EPM Cloud investment. While DRM administrators will experience an adjustment period as they learn EDMCS due to the data chain and new terminology, they will be pleasantly surprised with the available functionality such as pre-packaged connectors and properties for PBCS/EPBCS, the use of requests (and did I mention you can load Excel files?!), and the real-time visual feedback as you modify and validate your master data.

Oracle Data Visualization for Strategic Analytics

The world of analytics and data visualization continues to change at a rapid pace. New tools, processes, buzz words (Cloud anyone?) have penetrated our industry and can become overwhelming.  Most of these changes, though, are for the better – one of them being self-service data visualization. Solutions like Tableau, PowerBI, and Qlik have been around for several years, earning reputations as leaders in the self-service, easy, and sexy exploration of data.

Oracle Business Intelligence Enterprise Edition (OBIEE), although a great tool and long-time market leader, lacks ease of deployment, maintenance, and connectivity, and the freedom from “IT tyranny” access to data craved by business users – attributes already addressed by Tableau and others. For many years, I’ve listened to IT describe OBIEE as its enterprise Business Intelligence (BI) solution while business users use Tableau to connect to their own databases and spreadsheets because Tableau doesn’t require them to enter a ticket and potentially wait weeks for that new column to be added to their report.

Today, there is an Oracle tool – Oracle Data Visualization (DV), an Oracle Analytics Cloud (OAC) component,  that exceptionally meets the needs of business users.  Because it is part of a suite of products, Data Visualization also provides enterprise and financial reporting capabilities, advanced analytics and big data, mobile access, what-if scenario modeling, ingestion, preparation and transformation of data, and yes – you guessed it – Cloud.  Some highlights include:

  • Dynamic visualizations that can be organized into stories to be shared across the organization
  • Consumer (drag and drop) style with easy uploads, mashups, and exploration
  • Mobile authoring and consumption, device agnostic, and with dynamic design optimization
  • Connections to dozens of different sources, including SaaS, relational databases, big data tools, NoSQL, and others through JDBC/ODBC
  • Cloud and desktop versions with identical features

The full Oracle Analytics Cloud suite is a comprehensive solution that offers analytics and reporting tools to effectively address business requirements as well as accommodate different users within an organization (analysts, consumers, admins, etc.). Also included with OAC is Business Intelligence Cloud Service (BICS), a tool that is essentially “OBIEE in the Cloud.”  Data Visualization and BICS complement each other and address different needs, summarized in the following:


With continued rapid changes inevitable in technology, the future of Oracle Analytics Cloud will likely be promising as additional components are added. After seeing and supporting clients as they “take the plunge” into Cloud analytics, it becomes clearer that Data Visualization is Oracle’s strategic future of analytics.

See an overview of the history of Oracle DV and OAC as well as a demonstration of the products’ main features and wide array of possible sources in this webinar: The Strategic Future of Analytics…Starring Oracle Data Visualization

Automating Enterprise Planning with EPBCS: A Case Study Featuring Sims Metal Management

Enterprise Planning and Budgeting Cloud ServiceIn using Enterprise Planning & Budgeting Cloud Service (EPBCS) to support annual budgeting and forecasting processes, organizations are choosing solutions that allow them to leverage the financials, projects, capital and workforce business processes necessary to provide a driver-based solution that links expected intake to revenues and costs. In turn, they are able to more efficiently produce integrated income statements, balance sheets and cash flow statements.

Featuring Jim Clark of Sims Metal Management, Our Special Guest

 Our August 16, 2017 webinar, featuring Jim Clark, Group Manager of FP&A at Sims Metal Management, takes a detailed look at how one organization automated enterprise planning to streamline processes and produce better results.

Within a real-world scenario, this means that whether using EPBCS out of the box or as a “hybrid” of OOTB with customized extensions, companies like Sims are able to adjust sales forecasts—throughout the year and through sales cycles—to better match the actual costs and needs in areas such as raw materials and labor.

A Better Approach To Performance Management

Using this integrated approach to Performance Management, companies are, in effect, bringing actual performance numbers, on a monthly basis, into their models.

As a result, changes and adjustments can be fine-tuned and incorporated into the mix.  Forecasts can be based more on actual numbers and less on assumptions, thus leading to a balance sheet that matches projections. From a planning perspective, companies can be more nimble and, ultimately, create their models with greater accuracy.

Whether you are participating live or via a recording, this webinar will illustrate how organizations like Sims are leveraging EPBCS in ways that allow them to: 

  • Gain insight to increase efficiency and improve outcomes
  • Better understand how organizations like yours can make standardization and centralization a top priority
  • See how an integrated solution works not just in theory, but actually in practice
  • Follow the processes to results that include improved accuracy and increased efficiency across the enterprise

For More Information

No matter where your team or your organization is along your EPBCS journey, this webinar is certain to provide you with valuable insight and context that can help you to implement changes that lead to greater efficiency and a more streamlined forecasting process overall.

Register for our “Automating Enterprise Planning with EPBCS: A Case Study Featuring Sims Metal Management ” webinar:

Missed the webinar? View Recording Here.


Accelerate Your Ride to the Cloud: Extending ERP with Oracle Profitability & Cost Management Cloud Service (PCMCS) for Standard Cost Rate Development

A common need among manufacturing organizations is improvement in the process of developing annual labor and overhead standards to use as input into standard cost rates for product cost and inventory valuation. In spite of the investments that have been made in ERP solutions, it is typically an offline Excel-based exercise that is required to take historical data from the ERP to determine the updated direct labor rate & overhead rate components of a product standard cost for an upcoming fiscal year.  The release of Oracle Profitability and Cost Management-Cloud Service (PCMCS) in October 2016 provides a unique opportunity for manufacturers to ease, streamline and document the process of generating the cost-per-direct labor hour or cost-per-machine-hour rates that are requisite in standard costing.


Generally accepted accounting principles (GAAP) allow for one of multiple methods for the valuation of inventory to a manufacturer: Last-In, First-Out (LIFO); First-In, First-Out (FIFO); or a Weighted Average.

Because prices for labor and materials fluctuate throughout a year and inventory is built or drawn, it is difficult to track inventory on an on-going basis using these methods. Further, from a management perspective, it is more meaningful to separate the effects of price changes and inventory builds/draws from values associated with normal business.  Pricing decisions, incentive compensation and matching expenses to the physical flow of goods would all be adversely impacted by trying to constantly manage to these methods.

A common approach to achieve meaningful inventory and cost of goods sold values is to establish a “standard cost” for every product and then adjust the value of inventory on a separate line at year-end, to bring it to the GAAP basis.

This standard cost requires direct labor, direct material and an inclusion of an amount representing the “absorption” of certain of plant-related overhead costs into the inventory value.

There are two forms of overhead that must be included in the inventory value from a GAAP perspective: 1) Labor overhead and 2) Manufacturing overhead, sometimes called Indirect Overhead.

  1. Labor overhead represents the costs of direct labor resources above and beyond their direct hourly wage rate. This amount includes payroll taxes, retirement and health care benefits, workers’ compensation, life insurance and other fringe benefits.
  2. Manufacturing overhead includes a grouping of costs that are related to the sustainment of the manufacturing process, but are not directly consumed or incurred with each unit of production. Examples of these costs include:
  • Materials handling
  • Equipment Set-up
  • Inspection and Quality Assurance
  • Production Equipment Maintenance and Repair
  • Depreciation on manufacturing equipment and facilities
  • Insurance and property taxes on manufacturing facilities
  • Utilities such as electricity, natural gas, water, and sewer required for operating the manufacturing facilities
  • The factory management team

The most common first step for determining the value of overheads in inventory is to use a predetermined rate that represents a cost charge per direct labor hour or cost per machine hour. From product bills of material and routings, the total number of hours or labor or machine usage for a unit volume of production is known. The value of the overhead cost rate per direct labor hour (or machine hour) x the number of hours required per unit of production, yields the overhead cost rate per unit. In the example below, the ERP will calculate the cost per work center, but it is reliant on the Direct Labor and Overhead Rates to complete this process.


The challenge comes when calculating the applicable pre-determined rate for overhead per direct labor hour or machine hour by the applicable cost or work center. PCMCS can assist with automating and updating this process.

A Better Solution: The Ranzal PCMCS Standard Cost Solution

PCMCS provides the ability to quickly and flexibly put the creation of multi-step allocation processes into the hands of business users. It also provides for the management of hierarchies without the need for external dimension management applications as well as standard file templates for data upload.  Further, a series of standard dashboard and report visuals augment the viewing and monitoring of results.  These capabilities allow organizations to quickly load and allocate expenses to applicable overhead cost pools and then merge those cost pools with applicable labor or machine hour values to obtain the relevant overhead rates.

PCMCS allows users to quickly select the cost centers or work centers that are applicable as sources to be included in the overhead rate:


Users then can easily select the targets for collecting these costs into relevant pools,


as well as the operational metric to use to assign these overhead costs to their applicable pools.


Users then can easily select the targets for collecting these costs into relevant pools,


Edgewater Ranzal is the leading implementation services provider of Oracle and Hyperion EPM solutions and has extensive experience with Hyperion Profitability and Cost Management (HPCM). Following the release of PCMCS, Ranzal will be announcing a Cloud servicing offering that will leverage the power of the Cloud to provide an accelerated method of producing the required inputs for overhead allocation in standard costing.

More than just Standard Costing

Additionally, while PCMS provides an excellent way to develop overhead rates for standard costing, it can simultaneously be utilized to determine allocations and costing valuations that leverage other methodologies for product and customer costing and profitability. Much has been written about the potential for inaccuracies if the standard cost basis of overhead allocation in product costing were to be used universally or exclusively for management analysis.  Overhead has become such a large portion of the total cost, that in many cases, overhead rates can be three or four times higher than their respective direct labor rates.  This suggests a general lack of causality between overhead and direct labor hours in many cases, and this has led to the evolution of other methods for costing.  Activity Based Costing is one such example, while simply allocating manufacturing variances to product lines is another.

PCMCS can be used to meet the requirements for both the externally reported methods and the management methods of product costing.

All of the Results in One Place

Determining the method by which overhead should be captured in the cost of different products of inventory is an important process because it represents a step by which a large number of dollars is moved from an expense to an asset, usually temporarily but sometimes permanently, and this can impact profitability and stock share price.

For the purpose of valuing inventory for statutory reporting, the overhead rate method is considered acceptable and it is widely used. It is therefore important that organizations find a way to develop and manage these cost valuations in a manner that is well-documented, has transparent methodology and is one that reduces the amount of time spent on the process.  However, it is not the only method that should be used for considering overhead in product and customer costing and profitability analysis.  Further, selling, general and administrative expenses (SG&A) represents another layer of cost that while not part of standard inventory cost, should be considered in overall product costs from a management perspective.

To this end, the Edgewater Ranzal PCMCS Standard Cost solution will provide an opportunity to fulfill multiple needs in costing and profitability and will do so in a manner that will be faster and more user-friendly than what has previously been experienced.