We are working with our clients who uses HFM or looking to implement new consolidation and Financial Reporting System. A question that we are frequently asked is “What is the difference between HFM and FCCS?” To answer this question let’s look at the features and functionality in FCCS and comparison of both FCCS and HFM applications.
FCCS means Financial Consolidation and Close Cloud Service. FCCS is a software as a service (SAAS).
- Universal access – Cloud computing can allow remotely located employees to access applications and work via the internet on a variety of devices, i.e. laptop, tablet, smartphone. FCCS is very mobile friendly.
- Up to date software – FCCS software is always up to date. Upgrade and managed by Oracle.
- Security – This is a core competency of Cloud providers. They take more defensive measures – staff & resources – dedicated to the security of the data and applications.
- Scalability – A growing (or shrinking) company can scale their services up or down, whenever they need them without investing in additional infrastructure.
- Disaster Recovery and Backup – With your company’s data safely stored on secure data centers instead of your server room, losing power due to unforeseen disasters, you are back at work as long as you have an internet connection.
- Reduction of costs – unlike on-site hosting the price of deploying applications in the cloud can be less due to lower hardware costs from more effective use of physical resources.
FCCS Key Benefits:
- Best Practices: Best practices out-of-the-box to get up and running quickly.
- Consolidations: A configurable and upgradable consolidation and close framework to tailor the solution to specific requirements.
- Close Management: An end to end consolidation and close solution.
- Reporting: Powerful analytics, dashboards, reports, and analysis for unparalleled insight.
- Easy to use and maintain.
- Automate Data and Metadata load processes
- No infrastructure investments required
FCCS Key Features:
- Application Creation Wizard – Reduces the time needed to configure and implement the solution
- Upgradeable Framework – Configure and extend the solution as required
- Simple Upgrades – Configurations are fully upgradeable
- Intercompany Eliminations – Automatic default intercompany eliminations
- Currency Translation – Default currency translation along with automatic foreign exchange and currency translation adjustment
- Journals- Robust journals module including supported workflow
- Automated Cash Flow Reporting –Using movement hierarchies and bolting calculations with no need for additional calculations
- Close Process Management – Built in task orchestration and close management analysis
- Supplemental Details – Supporting schedules for collection of detailed information helping support statement balances
- Hybrid cloud deployments – Support with deep integration to both cloud and on-premises systems
- Pre-Seeded Account Dimension
HFM allows to customise Account hierarchy. Design account dimension as per business needs. Balance sheet and income statement could be part of same hierarchy or separate hierarchies.
FCCS comes with pre seeded Account hierarchy and limited customization at summary account hierarchies.
- Custom Dimensions
HFM has unlimited custom dimensions in version 126.96.36.199.
FCCS comes with 2 custom dimensions in regular version and If GAAP custom dimension is enabled then 1 custom dim is left to use.
- Multi GAAP – Dimension
FCCS comes with Multi GAAP Dimension is available to produce reports in multiple accounting principals.
HFM application is needed to be customised to produce reporting in multiple accounting principals.
- Cash Flow – Movement Dimension
FCCS comes with out of box cash flow functionality.
HFM application needed to be customised to produce cash flow reporting. No functionality is available as such in HFM from out to the box.
- Data Management
FCCS comes with data management which is very similar to FDMEE or data management in HFM but limited scripting is available. Data can be also be loaded using SmartView and data forms. Drill back capabilities available to Cloud ERP and to the files. On Prem FDMEE can be used to upload data as well.
HFM data is mostly loaded using FDMEE or Data management. FDMEE have scripting, drill back capabilities and integration adapters for source systems available.
FCCS comes with predesigned Financial Reports and dashboards and configurable as per client requirements.
HFM doesn’t come with preconfigured financial reports and reports needs to be designed as client requirements.
- EPM Automate:
FCCS Data and Metadata loads are automated using EPM Automate. This tool is only available with cloud products.
- Close Management:
FCCS has close management functionality which allows to create schedule for month end close process and close tasks listed and assigned. Built in dashboard provides a quick overview of the status of the period end close processes. Tool designed to attain the optimum efficiency of accounting period close.
- Multiple Applications:
FCCS don’t have feature to create multiple apps within same environment\POD. Separate pod will be required for separate applications.
HFM allows to create multiple apps within same environment.
- Backend Databases:
FCCS is designed on Essbase database. For larger databases, account changes take longer time to restructure. Account is mostly the dense dimension.
HFM is based on relational databases and dimension updates won’t have much effect on restructure time.
FCCS: Standard and Enterprise Pricing packages are available. There are other Oracle EPM cloud products available with these packages.
Other Oracle EPM products:
- Planning – EPBCS
- Account Reconciliation – ARC
- Narrative reporting – NRC
- Profitability and Cost Management – PCM
- Tax Reporting – TRC
- Enterprise Data Management – EDMC
Please feel free to reach out to Astral Solutions Group if you have any questions related to HFM or FCCS. With extensive experience in HFM and FCCS, we are helping companies for on-premises upgrades or migration to cloud.