Profitability and Cost Management (PCMCS)
Profitability and Cost Management with Oracle PCMCS
To maximize profitability, a company must be able to accurately measure, allocate and manage costs and revenues. Oracle Profitability and Cost Management Solution: Oracle Profitability and Cost Management (PCMCS) is an analytical software tool that manages the cost and revenue allocations required to calculate profitability for a business unit such as a product, customer, region, or subsidiary.
With Oracle PCMCS, you can use cost allocation, consumption-based costing, and scenario comparisons to measure profitability for effective planning and decision support.
Depending on your needs, this Oracle solution for profitability and cost management can be licensed separately or as part of the Oracle EPM Cloud (All-In-One Platform).
We at BLUBEIRD Consulting will be happy to show you the possibilities offered by this software and advise you in deciding which license combination is the right one for your company and your use case.
The key Features
- No hardware or IT investments
- Best-practice, business-owned framework for complex distribution rules
- Automated data acquisition and allocation
- Significant reduction in manual effort
- Unparalleled transparency for each step of the allocation calculation
- Elimination of the “black box” effect with user-defined distribution rules
- Part of the Oracle EPM Cloud platform (depending on license) and integrated with other source finance systems
- Predefined analyses (profit curve, scatter diagram, etc.)
- Configurable dashboards and reports
- Microsoft Office add-in, Smart View for ad-hoc analysis and Excel-based interactions
- Supports hybrid cloud deployments with integration to on-prem using REST API connector
Flexible modeling with PCMCS
Model costs and profitability
Discover which customers, products and other segments of your business are profitable and which are not so you can focus on where to invest resources.
Model Shared Services Costs
Easily allocate shared services costs to the departments and groups that use them. No more discussions about why costs were allocated, thanks to a full insight.
Run IT like a business
Gain visibility and transparency into IT costs and shared services to support better IT investment decisions.
Model for tax transfer pricing
Automate the pricing of tax transfers between legal entities and provide an audit trail for compliance.
Regulatory cost model
Automatically calculate and document regulatory reporting costs. This includes price/rate negotiations, overhead justification, and jurisdictional profitability reporting in industries such as insurance, utilities, telecommunications, and others.
Managed by the department
Create models with point-and-click technology
Business owners can create and maintain profitability and cost models with point-and-click actions, without scripting or programming skills.
Change models easily without recreating them
Business owners and experts can easily change assumptions, allocation methods and more. You don’t have to recreate the model every time or rely on IT to do it for you.
Combine financial with other data
Combine financial data from anywhere with operational metrics and business drivers. It is not necessary to limit calculations to data that exists only in your ERP system.
Calculate complex resource allocations
Relationships between departments and the use of shared resources can be complicated. Easily model resources used by different parts of the organization.
Show assignment details easily
ERP and custom solutions often have programmed mappings that you can’t see or are difficult to understand. Our model allocations have easy-to-read cost and profit traceability cards.
Run validation reports
View step-by-step validation reports to ensure costs and profits have been fully allocated and are going where you want them to go.
Expand and change models as your business grows
As you acquire businesses or expand products and services, you can easily update your models with new segments or dimensions to represent the changes.
Experience cloud-based security
Use a secure, cloud-based application with role and data access rights to ensure the appropriate employees have the right access.
What-if profitability and cost scenarios with PCMCS
Test possible business changes
Model changes such as adding products, deleting products, changing delivery options, adding new customers, and other ways to optimize profitability at any time. There is no risk that your systems of record will be altered.
Assessment of potential regulatory changes
Model the impact of potential tax or rate changes and justify any resulting rate changes or cost increases.
Change drivers, allocation methods and more with PCMCS
Understand which cost drivers, shared resource allocation methods, and relationships between cost objects can most impact total cost and profitability.
Overview: Tour of Narrative Reporting (EPRCS) in EPM Cloud
Other Oracle EPM Cloud components:
- Financial Consolidation and Close (formerly FCCS)
- Planning (formerly EPBCS)
- Account Reconciliation (formerly ARCS)
- Profitability and Cost Management (formerly PCMCS)
- Tax Reporting (formerly TRCS)
- Enterprise Data Management (formerly EDMCS)
- Narrative Reporting (formerly EPRCS)
- The BLUEBIRD EPMViewer for Cloud applications