The ARCS Implementation Blind Spot

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

3 January 2026

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

Why "Predefined" ARCS Formats Often Fail the Audit Test

Many finance teams approach an Oracle ARCS implementation with a sense of relief. They see the predefined formats and automated workflows as a "compliance-in-a-box" solution. The logic seems sound: if the software is world-class, the process must be too.

But there is a critical blind spot here. Oracle ARCS is an enforcement engine, not a policy creator.

Simply adopting the tool doesn’t make your reconciliation process compliant. Implementing ARCS to specifically support a robust Reconciliation Policy is what actually secures your audit.

The Policy Gap

In my work with various finance functions, I’ve found that the most common point of failure isn't the software - it’s the lack of a defined policy to guide it. Without a clear internal mandate, ARCS is just a faster way to do things the way you’ve always done them.

A truly compliant implementation requires you to first define - on paper - how your company handles risk. This includes:
  • The Treatment of Open Items: Are they clearly categorized by nature (e.g., timing vs. error)?
  • The Definition of Resolution: At what point is a reconciling item considered "cleared"?
  • Aging Governance: What is the hard limit for an item to remain on the balance sheet before it is escalated?
Where Most Workflows Fail: Approval Hierarchies
A common mistake is setting up a simple "User A prepares, User B approves" workflow for every account. In the eyes of an auditor, this lacks the nuance of risk management.

A sophisticated, compliant implementation utilises Approval Hierarchies that react to the data. For example:
  • 90+ Day Escalation: If an open item exceeds a 90-day aging threshold, the reconciliation should automatically require a higher level of visibility (e.g., Director or Controller approval).
  • Materiality Triggers: A reconciliation with a variance or open item above a certain dollar threshold should be routed through an entirely different approval path than a standard monthly clearing account.
  • Systemic Enforcements: The system should be the "bad guy," preventing a sign-off if the policy-mandated documentation isn't attached or if reconciling items haven't been properly aged.
The Objective
The goal of an ARCS project shouldn't be to "get live." It should be to build a system that ensures you pass your compliance tests with flying colours. This requires a marriage between the technical configuration of the tool and the strategic rigour of your internal controls.

When the software is configured to mirror a well-thought-out policy, the audit process moves from a month of stress to a simple demonstration of system-enforced compliance.

Does your ARCS configuration actually reflect your internal controls? A system is only as strong as the policy it enforces. If you’re preparing for an audit or looking to move beyond 'predefined' templates to a truly compliant framework, I can help. Drawing on 20 years of finance leadership and deep Oracle expertise, I bridge the gap between accounting policy and technical execution.

Schedule a brief consultation to discuss your ARCS strategy | www.lodroman.com

Turning financial complexity into operational clarity. Because in Finance, Integrity is Permanent.

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.

Still have a question?

Contact me

All things Oracle EPM

Oracle EPM Consultant Nadia Lodroman based in Ireland providing global finance automation services.
by Nadia Lodroman 15 February 2026
Celebrate the Oracle EPM birthday by transforming your finance close. Learn how ARCS, FCCS, and TRCS provide a "Time-Back Egg" for your hardworking team.
Oracle EPM and Google Workspace cloud finance transformation concept.
by Nadia Lodroman 8 February 2026
With Oracle EPM updates paused until April 2026, Nadia Lodroman explores the strategic opportunity for Google Workspace parity and cloud-first Finance transformation.
Digital gap between Oracle EPM Test 25.11 and Production 25.10 platforms Essbase version mismatch
by Nadia Lodroman 24 January 2026
Oracle EPM releases are paused until April 2026. Learn why rolling back your environment could lose you 4 months of work and how to handle the Essbase 21c version gap.
Show More