Why should a company use EPM Automate instead of custom scripting

EPM Automate allows for robust, bi-directional data orchestration between Oracle EPM and source ERPs (like NetSuite or Fusion) using native capabilities. It is highly scalable, easier to maintain during Oracle's monthly updates, and avoids the fragility of heavy custom coding.

Can Oracle Cloud EPM integrate with multiple different ERPs simultaneously?

Yes. Through strategic data pipeline architecture, Oracle EPM can ingest, consolidate, and even write-back finalized data to multiple disparate ERPs concurrently, acting as the single source of truth for the enterprise.

How does Oracle FCCS handle Minority Interest (NCI) and CTA?

While standard FCCS provides out-of-the-box functionality, complex global enterprises often require advanced configuration to isolate and calculate Minority Interest (NCI) and Cumulative Translation Adjustments (CTA) accurately at the top consolidated hierarchy without relying on manual journals.

Can you bypass the out-of-the-box Goodwill calculation in Oracle FCCS?

Yes. By utilizing advanced native configuration and custom consolidation rules, you can bypass standard Goodwill Input/Offset functionality to meet highly specific, non-standard acquisition accounting requirements.

How many daily transactions can Oracle ARCS process?

Oracle ARCS is built for enterprise scale. With proper architecture in the Transaction Matching engine, ARCS can easily process and auto-match hundreds of thousands of daily banking transactions, representing billions of dollars in value.

What is the difference between Transaction Matching and Reconciliation Compliance in ARCS?

Transaction Matching automates the high-volume, line-by-line matching of data (like daily bank feeds or ACH). Reconciliation Compliance is used to govern the period-end justification of broader balance sheet account balances.

Does Oracle TRC handle Country-by-Country Reporting (CbCR)?

Yes. Oracle Tax Reporting Cloud (TRC) provides built-in frameworks to automate Country-by-Country Reporting, ensuring multinational organizations remain compliant with global BEPS (Base Erosion and Profit Shifting) regulations.

How does Oracle TRC integrate with FCCS?

TRC and FCCS share the same platform architecture, allowing for seamless data flow. Finalized pre-tax consolidated data from FCCS feeds directly into TRC for tax provisioning, ensuring perfect alignment between the finance and tax departments.

Mastering Minority Interest

Nadia Lodroman | Oracle EPM Consultant | Integrity in Every Insight.

22 November 2025

Listen to Tresora and Ledgeron's chatting about this blog post:

Handling Complex Ownership in Oracle FCCS

Consolidating wholly-owned subsidiaries is straightforward. But what happens when you control a subsidiary, yet you don't own 100% of it?

In complex partnership structures, accurate financial reporting requires a delicate balance: you must consolidate 100% of the subsidiary's activity to reflect control, while simultaneously carving out the portion that belongs to minority partners.

Let’s break down a specific real-world scenario—a 78% / 22% split—and look at how Oracle Financial Consolidation and Close (FCCS) automates the heavy lifting using its powerful, out-of-the-box rulesets.

The Scenario

Imagine a public entity, Company A, has a subsidiary, Company B.

Company B holds an investment in Company C, but it’s not a full ownership:

Company B Ownership (Parent): 78%
Minority Partner Ownership (NCI): 22%
Consolidation Method: Subsidiary (Voting interest > 50%)

The Financials:

Company B’s Investment in C: $100 USD
Company C’s Equity (Paid-in Capital): $120 USD

Because Company C is the operating engine where the activity is, Company A wants to consolidate it fully. However, reporting to corporate requires strict adherence to the ownership percentages. Here is how FCCS handles the math for you.

1. The P&L: Automating the Non-Controlling Interest (NCI)

When you assign the Subsidiary method to Company C, FCCS performs a "Full Consolidation." This means 100% of Company C’s Revenue and Expenses roll up to the parent.

However, you cannot claim 100% of the Net Income; 22% belongs to the minority partner. FCCS solves this via the Net Income (Subsidiary) Ruleset.

The Logic:

The system automatically looks at the Net Income of Company C and applies the Minority Interest percentage (22%) defined in the Ownership Management console.

The Result:

FCCS posts a calculated entry to the member FCCS_Minority Interest Income.
On your Consolidated Income Statement, this appears as a deduction.
Bottom Line: You see the full operational picture (Revenue/Expenses), but the final Net Income Attributable to Owners correctly reflects only your 78% share.

2. The Balance Sheet: The Goodwill vs. Equity Challenge

The Balance Sheet is where the magic happens. You have an Investment of $100 on the Parent's books, but Equity of $120 on the Subsidiary's books. The difference ($20) isn't just a plug; it represents value that must be split between the Minority Interest and Goodwill.

FCCS handles this through the Investment Ruleset and Owner's Equity rulesets.

Step 1: Eliminating the Basics

First, the consolidation process eliminates the book values to prevent double counting.

The $100 Investment in Company C is eliminated (Credit).
The $120 Paid-in Capital from Company C is eliminated (Debit).

Step 2: Calculating the Minority Liability

The system identifies that 22% of that eliminated Equity belongs to the external partner.

Calculation: $120 (Equity) * 22% = $26.4
Result: FCCS creates a liability entry to FCCS_Minority Interest. This sits on the Consolidated Balance Sheet to show what the group "owes" the minority partner.

Step 3: Determining Goodwill

Finally, FCCS calculates the true premium paid by the Parent. It compares the Investment price against the Parent's specific share of the Equity acquired.

Parent's Share: $120 (Equity) * 78% = $93.6$
The Gap: The Parent paid $100 for a share worth $93.6.
Result: The difference of $6.4 is automatically booked to Goodwill.

The "Cheat Sheet" Entry

When you run the consolidation, FCCS effectively generates the following balanced entry in the background (booked to FCCS_Elimination):

Account Debit Credit The "Why"

Paid-in Capital 120.0 Removes 100% of Sub's Equity from the BS.

Goodwill 6.4 Recognises the premium paid ($100 - $93.6).

Investment in C 100.0 Removes the Parent's Investment asset.

Minority Interest 26.4 Creates the liability for the 22% partner.

Why This Matters

By leveraging the native Ownership Management and Consolidation Rulesets within Oracle FCCS, you eliminate the risk of manual Excel errors in NCI calculations. You get a fully auditable, automated trace from local books to the final consolidated NCI and Goodwill figures, regardless of how complex your partnership percentages become.

Need help navigating complex ownership structures or optimising your Oracle FCCS environment? Contact Nadia Lodroman at nadia@lodroman.com for expert guidance.

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General EPM Strategy FAQs

Why should a company use EPM Automate instead of custom scripting
EPM Automate allows for robust, bi-directional data orchestration between Oracle EPM and source ERPs (like NetSuite or Fusion) using native capabilities. It is highly scalable, easier to maintain during Oracle's monthly updates, and avoids the fragility of heavy custom coding.
Can Oracle Cloud EPM integrate with multiple different ERPs simultaneously?
Yes. Through strategic data pipeline architecture, Oracle EPM can ingest, consolidate, and even write-back finalized data to multiple disparate ERPs concurrently, acting as the single source of truth for the enterprise.
How does Oracle FCCS handle Minority Interest (NCI) and CTA?
While standard FCCS provides out-of-the-box functionality, complex global enterprises often require advanced configuration to isolate and calculate Minority Interest (NCI) and Cumulative Translation Adjustments (CTA) accurately at the top consolidated hierarchy without relying on manual journals.
Can you bypass the out-of-the-box Goodwill calculation in Oracle FCCS?
Yes. By utilizing advanced native configuration and custom consolidation rules, you can bypass standard Goodwill Input/Offset functionality to meet highly specific, non-standard acquisition accounting requirements.
How many daily transactions can Oracle ARCS process?
Oracle ARCS is built for enterprise scale. With proper architecture in the Transaction Matching engine, ARCS can easily process and auto-match hundreds of thousands of daily banking transactions, representing billions of dollars in value.
What is the difference between Transaction Matching and Reconciliation Compliance in ARCS?
Transaction Matching automates the high-volume, line-by-line matching of data (like daily bank feeds or ACH). Reconciliation Compliance is used to govern the period-end justification of broader balance sheet account balances.
Does Oracle TRC handle Country-by-Country Reporting (CbCR)?
Yes. Oracle Tax Reporting Cloud (TRC) provides built-in frameworks to automate Country-by-Country Reporting, ensuring multinational organizations remain compliant with global BEPS (Base Erosion and Profit Shifting) regulations.
How does Oracle TRC integrate with FCCS?
TRC and FCCS share the same platform architecture, allowing for seamless data flow. Finalized pre-tax consolidated data from FCCS feeds directly into TRC for tax provisioning, ensuring perfect alignment between the finance and tax departments.

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Oracle EPM Consultant Nadia Lodroman based in Ireland providing global finance automation services.

I’m Nadia Lodroman