Oracle EPCMS

 Oracle EPM Profitability and Cost Management

Oracle EPM Profitability and Cost Management manages the cost and revenue allocations to compute profitability for your business.

In Oracle Profitability and Cost Management Cloud, rules control how costs and revenues are distributed throughout the application to specified accounts or elements. In this learning path, you will create an allocation rule to reassign occupancy expenses from corporate, where the expenses are paid, to the cost centers that use the facilities.

Essential Concepts

To model cost and revenue flows with Profitability and Cost Management, you must understand the following essential concepts:

• Dimensions—Data categories in an underlying database used to organize data for retrieval and preservation of values. Dimensions usually contain hierarchies of related members grouped within them. For example, a Period dimension often includes members for each time period, such as Quarter or Month.

• Application—A related set of dimensions and dimension members that is used to meet a specific set of analytical or reporting requirements.

• Modeling elements—Application parts used in a Profitability and Cost Management application that apply allocation logic to dimensions and members. Modeling elements include cost allocation rules and analysis definitions that reflect existing or proposed business cases.

  Together these elements organize the allocation points in the application into a logical flow. Careful modeling can capture the actual processes and activities, enabling you to realistically allocate costs and revenues.

A Profitability and Cost Management application is a representation of part or all of an organization, and contains costs and revenue categories that are similar to the organization's chart of accounts and general ledger. Profitability and Cost Management applications enable you to accurately trace the processes and activities that contribute to costs and revenue within the organization.

About Profitability and Cost Management

To maximize profitability, a business must be able to accurately measure, allocate, and manage costs and revenue.

Profitability and Cost Management is an analytic software tool that manages the cost and revenue allocations that are necessary to compute profitability for a business segment, such as a product, customer, region, or branch. Profitability and Cost Management enables you to use cost decomposition, consumption-based costing and scenario-playing to measure profitability for effective planning and decision support.

https://docs.oracle.com/en/cloud/saas/profit-cost-cloud/pcmad/overview.html

https://docs.oracle.com/en/cloud/saas/profit-cost-cloud/training.html

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