Revolutionizing Ownership Management in Oracle FCCS with the New "Organization by Period" Engine
Nadia Lodroman • 30 March 2025
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Oracle FCCS’s New “Organization by Period” Ownership Engine: A Game-Changer for Customers
Oracle Financial Consolidation and Close Cloud Service (FCCS) has introduced a significant enhancement to ownership management with its new "organization by period"
engine. This feature represents a game-changer for customers by providing greater flexibility and accuracy
in financial reporting, particularly when dealing with ownership structure changes that occur mid-period. Traditionally, FCCS only accommodated ownership changes at the beginning of a period, which could lead to inaccuracies. The new engine addresses this limitation, offering a more precise and efficient way to manage complex ownership scenarios.
Understanding the Innovation
The "organization by period" engine allows users to specify the effective date of an ownership change. This period-specific granularity ensures that financial reports accurately reflect the ownership structure at any point in time. Unlike the previous static approach where ownership percentages were applied across the entire year, this new engine can capture the nuances of real-world business scenarios where ownership fluctuates due to various events.
Key Benefits for FCCS Customers
The new "org by period" ownership engine offers several crucial benefits:
- Increased Accuracy: By capturing period-specific ownership, FCCS ensures that consolidation results are more accurate and reflective of the actual financial picture. This is especially important for businesses with frequent mergers, acquisitions, and divestitures.
- Improved Flexibility: The engine allows for changes in ownership structure that occur mid-period. This adaptability is vital for handling complex scenarios such as partial acquisitions, phased divestitures, and dynamic ownership adjustments.
- Greater Transparency: The new engine provides a clear audit trail of ownership changes over time. All changes are tracked within the FCCS audit logs, enhancing transparency and facilitating compliance with regulatory requirements.
- Simplified Management of Complex Ownership Structures: The engine reduces the need for manual adjustments and workarounds. Users can define ownership changes directly within FCCS, eliminating the reliance on external calculations and spreadsheets, thereby reducing manual work and the risk of human error.
- Streamlined Reporting and Analysis: With accurate period-specific ownership data, reporting and analysis become more reliable. Users can generate reports that accurately reflect the impact of ownership changes on financial results, increasing the value of the reports generated within FCCS.
- Increased Efficiency: Automating the ownership calculation based on the period reduces the time spent by financial professionals on manual calculations, allowing them to focus on higher-value tasks.
Practical Use Cases
The "org by period" ownership engine is applicable in a variety of situations:
- Mergers and Acquisitions: Accurately reflects ownership changes that occur mid-period when companies merge or acquire other businesses.
- Divestitures: Ensures financial reports accurately reflect the changes when companies sell off business units mid-period.
- Internal Reorganisations: Can be used to reflect changes in a company's ownership structure even without external transactions.
- Joint Ventures: Enables the precise management of fluctuating ownership in joint ventures.
- Restructuring: Helps handle the complexities of organisational restructuring that lead to changes in ownership.
Getting Started
The "organization by period" ownership engine is available to all FCCS customers. To begin using this feature, you will need to enable it in your application. For detailed instructions, refer to “Enabling Enhanced Organization by Period” in the FCCS documentation.
Conclusion
Oracle FCCS’s new "organization by period" ownership engine is a valuable and significant advancement for financial consolidation. It empowers customers with increased accuracy, improved flexibility, and greater transparency
in managing complex ownership structures. If your organisation frequently experiences ownership changes, enabling this new engine is highly recommended to streamline your consolidation process and enhance the reliability of your financial reporting.
For further insights into how the "organization by period" ownership engine can offer advantages to your organization, please arrange a consultation. In addition, refer to the official Oracle documentation
for comprehensive information regarding the configuration of this advanced feature.
Unlock the power of Oracle FCCS with our deep dive into financial consolidation. This guide demystifies how ownership percentages and consolidation methods (Subsidiary, Proportional, Equity) drive the entire process. Learn the critical roles of Proportion, Elimination, and Contribution, and finally understand the key difference between the Equity Method and the Equity Pickup. Perfect for finance professionals and FCCS users looking to master their financial close.
Dedicated ETR form within comprehensive tax reporting software, such as Oracle's EPM Cloud, can greatly simplify this process. Utilising an ETR form enhances transparency, auditability, and allows for scenario analysis, making tax calculations more accurate and efficient compared to manual methods.
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