Introduction 

Financial consolidation and close is a critical process for organisations that need to deliver accurate financial results within strict reporting deadlines. Finance teams must collect data from multiple entities, reconcile balances, manage intercompany transactions, and prepare consolidated financial statements. When these activities rely on spreadsheets and manual processes, errors, delays, and limited visibility can complicate the closing cycle. 

Oracle Cloud Enterprise Performance Management (EPM) Financial Consolidation and Close (FCCS) helps organisations manage financial consolidation through a cloud-based application designed to support period-end close requirements. Its capabilities include consolidation calculations, currency translation, intercompany eliminations, and financial adjustments. 

With the right implementation and processes, Oracle EPM Financial Consolidation and Close can help organisations improve consistency, strengthen financial controls, and give finance teams greater visibility into reporting activities. 

What Is Financial Consolidation and Close? 

Financial consolidation and close involves finalising financial results for a reporting period, whether monthly, quarterly, or annually. For organisations with multiple subsidiaries or legal entities, this includes combining individual financial results into a consolidated view of the business. 

The process typically involves collecting financial data, validating account balances, managing intercompany transactions, translating currencies where required, recording adjustments, and preparing consolidated financial reports. 

An effective close process helps organisations maintain reliable financial records, meet reporting requirements, and provide stakeholders with a clear view of business performance.

Common Challenges in Financial Consolidation and Close 

As organisations grow, financial close becomes more complex. Common challenges include: 

1. Tight Reporting Deadlines 

Finance teams must complete multiple activities within a limited period. Delays in data collection, reconciliations, approvals, or consolidation can affect the entire closing schedule. 

2. Inaccurate or Incomplete Data 

Data from different entities and source systems may contain missing records, inconsistent mappings, or manual entry errors. Identifying and correcting discrepancies can consume valuable time. 

3. Manual and Repetitive Tasks 

Spreadsheet-based calculations, repeated data uploads, and manual follow-ups increase workloads and leave less time for financial analysis. 

4. Limited Collaboration and Visibility 

When teams work across locations and use separate tools to track activities, monitoring task ownership, pending approvals, and unresolved issues becomes difficult. 

5. Disconnected Financial Systems 

Information spread across ERP applications and other business systems can require additional data preparation and validation, increasing the risk of errors and delays. 

How Oracle EPM Financial Consolidation and Close Helps 

Oracle FCCS provides capabilities that help organisations manage financial consolidation and establish more consistent close processes. 

1. Streamlines Financial Consolidation 

Oracle FCCS supports consolidation calculations across configured entity structures. Its capabilities help organisations bring financial results together according to defined consolidation rules and reporting requirements. 

Business benefit: A more structured approach to multi-entity financial consolidation. 

2. Supports Currency Translation and Intercompany Eliminations 

Organisations operating across countries may need to translate financial results into reporting currencies and eliminate qualifying intercompany balances during consolidation. 

Oracle FCCS supports currency translation and configured intercompany elimination processes, helping finance teams manage these requirements within the consolidation application. 

Business benefit: More consistent handling of multi-currency and intercompany consolidation activities. 

3. Improves Visibility into Close Activities 

Financial close involves multiple tasks, responsibilities, and deadlines. Oracle EPM provides task management and workflow capabilities to help teams coordinate activities and monitor progress. 

This visibility helps finance managers identify outstanding tasks and address bottlenecks before they affect reporting deadlines. 

Business benefit: Better coordination and clearer accountability across finance teams. 

4. Supports Financial Adjustments and Review 

Financial results may require adjustments before they are finalised. Oracle FCCS supports consolidation journals and related controls where configured, helping organisations establish structured processes for recording and reviewing adjustments. 

Business benefit: Improved traceability and more controlled financial close activities. 

5. Facilitates Financial Data Review and Reporting 

Finance teams must review consolidated results, investigate variances, and validate financial information before preparing reports. Oracle FCCS provides application views and reporting capabilities to support this review process. 

Business benefit: Better visibility into consolidated results and more informed financial analysis. 

6. Supports Financial System Integration 

Oracle EPM can integrate with Oracle ERP applications and other supported systems to facilitate financial data movement. The integration approach depends on the organisation’s existing systems, data structures, and reporting requirements. 

Business benefit: A more consistent flow of financial information and reduced dependence on repetitive manual data preparation. 

Key Benefits of Oracle EPM Financial Consolidation and Close 

When implemented around clearly defined business requirements, Oracle FCCS can help organisations improve several aspects of financial close. 

• More predictable close cycles: Standardised processes and improved task visibility can help identify delays and reduce avoidable manual effort. 

• Improved data consistency: Defined consolidation rules and appropriate validation help maintain reliable financial information. 

• Greater team productivity: Reducing repetitive tasks gives finance professionals more time for analysis and exception handling. 

• Stronger financial controls: Workflow, journal controls, and audit capabilities can support accountability and traceability. 

• Better reporting visibility: Consolidated financial data helps finance leaders review results and investigate variances. 

Actual outcomes depend on the organisation’s existing processes, data quality, application configuration, and adoption. 

Why Oracle EPM Testing and Update Management Matter 

Implementing Oracle FCCS is only one part of maintaining a reliable financial close process. Organisations must also validate their configurations, integrations, calculations, and reports as their EPM environment evolves. 

Oracle Cloud EPM receives regular service updates, making a structured testing approach important for protecting critical financial processes. 

Key testing considerations include: 

• Regression testing: Confirm that existing financial workflows continue to work as expected after relevant changes. 

• Integration testing: Verify that financial data transfers correctly between source systems and Oracle EPM. 

• Financial process validation: Test critical calculations, currency translation, intercompany processing, journals, and reports. 

• Risk-based testing: Prioritise processes that could affect financial statements, reporting deadlines, or financial controls. 

A planned approach to testing and update management helps organisations identify issues before they disrupt a reporting cycle. 

Optimise Oracle EPM Financial Consolidation and Close with Kovaion 

A reliable financial close process requires the right solution design, consistent financial data, appropriate testing, and ongoing support. Organisations also need their Oracle EPM environment to remain aligned with changing reporting requirements and business processes. 

Kovaion provides Oracle Cloud EPM implementation and consulting services to help organisations improve financial consolidation, close, reconciliation, planning, and reporting. 

From assessing existing processes and defining solution requirements to supporting configuration, integrations, testing, and go-live, Kovaion helps organisations align Oracle EPM capabilities with their business needs. For existing environments, optimisation and ongoing support can help address application changes and evolving financial close requirements. 

Ready to improve your financial consolidation and close process?