Operational Transfer Pricing in Oracle EPM: The OTP Journey Continues – OTP Reporting

Published September 15 2020 by Andrew Laferla
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In our last blog, we introduced our framework for creating transparency and producing accurate results in our Operational Transfer Pricing (OTP) solution through Rule Sets and Rules in PCMCS. In this blog, we are going to introduce the various reporting options available to us in our solution, when each of those reporting options is most applicable, and some external reporting options that we should consider.

In many OTP implementations, reports are often not given the attention they deserve and are often thought of as a “post-implementation” activity. While ensuring that our solution’s dimensionality, integration setup, Rule Sets, and Rules are developed correctly is critical, reports are the most visible part of our solution across an organization. As such, they deserve as much attention as any other activity in our implementations.

 

Why is OTP Reporting so Important?

As Reporting is the most visible aspect of our OTP solution, we must understand the interest of our target audience to ensure we are addressing the needs accurately. The below table lists the common report recipients and the type of reports they are expecting:

What are the Reporting Options in our OTP Solution?

In this blog, we are going to focus on the reporting solutions in PCMCS only (going into all of the reporting options available to us in the Oracle suite deserves its own blog series). In general, we think of reports in EPM applications based on their level of effort to create, their importance, and the target audience/applications. The below image illustrates the reporting options available to us in PCMCS in descending order of the amount of effort and breadth of the audience:

There have been a lot of amazing blogs released on the PCMCS Reporting capabilities, so we aren’t going to spend time going into the Out the Box Reporting, the capabilities of SmartView, or any of the other generic PCMCS Reporting capabilities. Instead, we are going to dive into some examples of key custom-built reports that we look to produce out of PCMCS in our OTP Solution.

What are some of the Key OTP Reports?

Every client has their own reporting requirements when it comes to OTP, and the list below of reports should not be seen as an exhausted or complete list of OTP reports. However, similar to our Rule Set and Rule Framework that we introduced in our previous blog, we will highlight some of the key reports that we have included in our OTP solution.

  • Invoices:
    • Invoices are one of the most important report types that are generated out of the OTP solution. The ability of a Sender Entity to generate and send Invoices to an appropriate Recipient Entity (Consumer) is a fundamental must of any OTP solution.
    • We have numerous ways to generate Invoices in our OTP solution, which include:
      • SmartView:
        • Invoices can easily be generated in Excel using the SmartView.
        • Invoices generated in SmartView have the advantage of being very quick and easy to generate and also being able to include external data sources.
      • Financial Reports:
        • Invoices generated in Financial Reports are standardized and can be quickly generated and distributed through the use of PDF books and other mechanisms.
        • Financial Report does not allow for the inclusion of data external to PCMCS and is rigid in their formatting.
      • EPBCS:
        • Clients who require an advanced dispute resolution process and/or invoicing system can leverage EPBCS to fulfill their requirements.
        • We will touch on the capabilities of EPBCS in our OTP solution in a later blog.

The following reports can be developed in SmartView or Financial Reports. How they are distributed and who they are distributed to is often the deciding factor of which reporting technology is used. If the reports are required to be quickly distributed, to numerous individuals in a Portable Document Format (pdf) book format, then Financial Reports will be the reporting technology of choice. If the following reports require flexibility in their formatting and distribution mechanism and require supporting detail to be supplied, then SmartView will be the reporting platform of choice.

  • Billing Detail Reports:
    • Billing Detail Reports list the Payment Due from and Payment Due To between the Provider and Recipients of OTP charges for a specific billing period.

  • Monthly Billing Reports
    • Monthly Billing Reports include a description of the services rendered to Recipients by Providers and an element of variance analysis between two different billing Periods.

  • Service Reports
    • The Service Report lists the total charge amounts by Service accumulated during the calculation of the OTP charges.

  • Comparative Pre and Post OTP Tax Reports:
    • Comparative Pre and Post OTP Tax Reports are utilized to show the variance and pre-tax impact of the OTP charges.
    • This Report can be represented by the Recipient (as shown below), Jurisdiction, Segment, and/or Domestic-Foreign Split.

  • Expense to Revenue and Revenue to Expense Reports:
    • These reports illustrated the variance between Pre and Post OTP charges and it’s impacts on the Net Revenue and Operating Expense of the organization’s various Entities.

Of course, no solution would be complete without mentioning the ability to produce Dashboards and other interactive type reports based on the output of the PCMCS allocations/calculations. Dashboards can be created in PCMCS Analytics or externally, such as in Oracle Analytics Cloud (OAC). Regardless of where they are created, they can be incredibly powerful in creating visibility and traceability in our OTP solution.

 

Lastly, although not a report, this blog would not be complete without at least mentioning the capabilities of the OTP Solution’s Journaling capabilities. The Alithya Oracle OTP Solution leverages Cloud Data Management (CDM) in the preparation of the Journals for downstream General Ledger applications. We will dive into the complexities of creating Journals in our solution in a separate blog.

Conclusion

Reporting is the most visual, distributed, and challenged part of our Oracle OTP solution. Ensuring we know our audience, what the reporting options are, and what are some of the key Reports we need to produce is an absolutely critical element in ensuring the success of our implementations.

Beginning in the next blog, we will start to look at some of the supporting technology that we can leverage in our OTP solution such as, Enterprise Data Management Cloud Service (EDMCS), Enterprise Budgeting and Planning Cloud Service (EBPCS), and Cloud Data Management (CDM).

For comments, questions, or suggestions for future topics, please reach out to us at infosolutions@alithya.com.  Visit our blog regularly for new posts about Cloud updates and other Oracle Cloud Services such as Planning and Budgeting, Financial Consolidation, Account Reconciliation, and Enterprise Data Management.  Follow Alithya on social media for the latest information about EPM, ERP, and Analytics solutions to meet your business needs.

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