PCMCS Modeling Workshop

EMEA 2020 EPM Cloud
Training
Hands-On Workshop
Modeling with Profitability and Cost Management
May 31, 2020 | Version 1.01

Copyright © 2020, Oracle and/or its affiliates
Confidential – Oracle Internal
PURPOSE STATEMENT
This document provides hands on workshop exercises in order for implementers to enhance proficiency with Oracle EPM
Cloud-related business processes.
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2 EPM Cloud Hands On Workshop | Modeling with Profitability and Cost Management | Version 1.01
Copyright © 2020, Oracle and/or its affiliates |
TABLE OF CONTENTS
Purpose Statement 1
Disclaimer 2
Overview 4
Setting up the sample application 5
Create the Sample Application 5
Getting Familiar with PCM 5

Review the Application 5
Run Calculations 10
Run Calculations for a Single POV 10
Run Calculations for Multiple POVs 11
review Calculation Results 14

Rule Balancing Screen 14
Review Results in Smart View 15
Creating Rules 19
Allocation Rules 19
Custom Calculation Rules 24
Review Program Documentation 26
Model Validation 27
Creating Dimensions 29
Dimension Management 29
Automation 32
EPM Automate 32
Conclusion 34
OVERVIEW
Financial systems organize data to enable efficient transaction processing and reporting by areas of control. Often the
needs of other processes are out of synch with the structure of the financial systems. Profitability analysis requires
realigning expenses that are organized to match the management hierarchy with revenue which is aligned with external
structures to track where the revenue was generated. Other regulatory and management reporting needs require similar
realignment of financial data. Profitability and Cost Management provides a modeling platform that merges financial and
non-financial data to support transformation of data to meet these reporting requirements.
PCM allows the user to create a dimensional model that merges financial structures with operational structures, add data
from many sources, design allocation and transformation rules, execute and track calculations and report on results and
finally integrate final results with other financial, business intelligence, and performance management systems.
There are many powerful features provided by PCM – too many to include in an introductory workshop. This workshop is
meant to provide an introduction to the features.
At a high level, the Profitability and Cost Management process includes the following capabilities:
SETTING UP THE SAMPLE APPLICATION
Create the Sample Application

Each PCM cloud system is preloaded with the migration files to setup a sample application. This application can be used for
training or testing modeling ideas. The sample application has small dimensions and simplistic data to make it easy to
understand. The allocation flow, however, is not simple. It mirrors the patterns many customers use in real world
implementations.
To create the sample application chose the ‘Create a Sample Application’ option from the initial login screen. Click the
option, click OK on the verification dialog that follows.
Take a break for 5 minutes and get a hot drink….
GETTING FAMILIAR WITH PCM
Review the Application

After the sample application is created you should see the ‘BksML30’ application’s home screen. If the screen doesn’t look
at shown below try logging out and logging back in.
The sample application includes data and rules for 12 periods. The data is at a starting point and will need to be calculated.
To begin first verify that rules and data are loaded.
Choose the Default Alias Table in Preferences
Click on the username in upper right corner and choose preferences

Check the Show Alias checkbox and select the Default alias table. Click Save. Logout and log back in to refresh the session
preferences with the option you just chose. Now alias’ will be displayed in member selectors.
Verify Rules
From the home screen click the ‘Models’ cluster, the click the ‘Designer’ panel. The Designer panel is the main
rule design and review screen.
On the Point of View bar select this POV combination .

Note that the rules displayed are linked to a POV combination. Changing the period dimension allws you to see rules as
they are defined for each period. In the BkSML30 application all rules ar ethe same for each period and scenario.actual
combination.
Expand the Rule Sets to see individual Rules in each Rule Set. Clicking on the Rule Set will display the detail pane. Click the
Edit button to see the complete definition for the Rule Set.
Repeat the same process to examine a Rule defintion.
Verify Data
Next click the Navigator icon in the upper left corner of the screen
Select the Rule Balancing link. Verify the POV is still set to: .
Click the ‘Refresh’ button.
The Rule Balancing screen displays all input and calculated data for a POV. Since the application has not been calculated yet
only the Input values are present.
Click on the Input value for the ‘NoRule’ row. Values in Blue font are hyperlinks to Smart View and will display the cell value
in the correct POV context in Smart View to allow you to investigate and drill to further detail from that value as a starting
point. Smart View will prompt you for username and password.
Smart View connection can also be created directly from Smart View. Create a new connection using this URL:
<system url>:443/aps/smartview
For example:
https://epm-test-a606062.epm.ca2.oraclecloud.com:443/aps/smartview
Initial View:
Drag Account to the rows and drill to all levels to see the detail.
RUN CALCULATIONS
Run Calculations for a Single POV

Next we will execute rules against the data in a single POV.
From the home screen click the ‘Models’ cluster, the click the ‘Execution Control’ panel. The Execution Control
panel is the area where all execution of rules, clearing data, copying POVs is controlled.
Select the Data POV.
Click
By default the Run Calculation screen selects the same Rules POV of Rules as the Data POV.
Add a comment if desired
Select Processing Options: Clear Calculated Data, Execute Calculation, Optimize for Reporting
Select Processing Range: All Rules
Click
Click the Job Library panel then click on the running Job you just started.
Review the Job Properties in the right side pane.
When the Job is successful click on the Execution Statistics button
Review the calculation details in the report:
Job Details and Options, Warnings, Rule Type, Execution Times, Rule Ranges, Cells Updated
Run Calculations for Multiple POVs

Rules defined in one POV can be used across multiple data POVs. To execute a single set of rules across multiple POVs:
Return to the Execution Control panel.
Select the first 6 months of 2016 and click the Run Calculation button
When running multiple POVs you must choose a Rule POV

Add a comment if desired
Select Processing Options: Clear Calculated Data, Execute Calculation, Optimize for Reporting
Select Processing Range: By Default All Rules is selected and cannot be changed
Click
Click the Job Library panel. There are 6 jobs in the queue. Click on one of the running Jobs you just started.
Review the Job Properties in the right side pane.
When the Job is successful click on the Execution Statistics button for one of the completed Jobs.
Review the calculation details in the report:
Job Details and Options, Warnings, Rule Type, Execution Times, Rule Ranges, Cells Updated
REVIEW CALCULATION RESULTS
Rule Balancing Screen
Click the Navigator icon in the upper left corner of the screen
Click the ‘Refresh’ button.
Examining Rule Calculation Detail

The Rule Balancing Screen displays the impacts of each rule’s AllocationIn and AllocationOut values
Click on the rulename for the rule Rent and Utilities Reassignment
Note the rule description and balances
Change the POV selection to see the rule details for the other POVs that were calculated.
Using Model Views
Model Views are a slice of data in the application. They can be defined on the link on the Navigator
Screen. Model views allow you to limit the rule data displayed in the Rule Balancing screen. This allows you to view the rule
impacts for a segment/step/stage of the model as desired. In the sample application there are several logical steps in the
allocation flow.
Click on the Model Views drop down in the upper right corner of the Rule Balancing screen
select the ‘Balancing – 1 Operating Expenses’ View

Note that there are fewer rules listed. These are the rules that had an impact in the range of the Model View.
Click on the button. Review the dimension selections to see the View definition.
Review the Remainder and Running Remainder columns. These values show the remainder within the slice after each rule is
executed. The remainder values can be used to track the completeness of allocation flows at different steps of the model
flow.
Change the Model View to review the other Balancing views.
Review Results in Smart View
Click on the AllocationOut value for the rule Rent and Utilities Reassignment
Smart View will prompt you for username and password
Initial View in Smart View:
The Smart View link from the Stage Balancing screen displays the same AllocationOut value for the rule in Smart View as a
starting point for investigating.
Add AllocationIn to the columns
Pivot Entity from the POV to the rows and drill down. This will show both the sources (AllocationOut) and destinations
(AllocationIn) of the rule. Further detail can be seen by adding the Account dimension to the rows.
This illustrates the impact of a single rule.
For a more detailed look at the impact of all rules and the entire model flow:
Pivot Rules (R0002) to the POV, select the ‘Calculation Rules’ member
Pivot Product, Activity and Account to rows
Make sure the Smart View options for data suppression are turned on the suppress 0’s and #missing cells
Starting view:
Select the ‘Standard Cruiser’ Product using button
Zoom in to the bottom level on Accounts, then Entity, then Activity (working from right to left columns)
This POV shows the buildup of calculated amounts for the Standard Cruiser product as the rules cascaded account and
entity values through reassignment steps, extension to Activities and finally to products.
CREATING RULES
Allocation Rules
Key knowledge points:
 Allocation rules allocate every level 0 intersections defined in the source range to all level 0 intersections in the
destination range that have a driver value.
 If a destination does not have a driver value no allocation is made
 The location of the driver basis assumes:
o The Balance.Input and Rules.NoRule members
o The members specified in the Driver Basis tab
o Every other dimension uses the address of the Destination cell
 By default a balancing entry is made to the source intersection in the Balance.AllocationOut and
<rulenumber>.Rules members
 If the Alternate Offset location option is used the location of the balancing entry assumes:
o Balance.AllocationOut and <rulenumber>.Rules members
o The members specified in the Offset tab
o Every other dimension uses the address of the Source cell
 The system maintains the Remainder so that a given cell cannot be overallocated by multiple rules
 Remainder may be increased if a cell is a recipient of AllocationIn amounts from a rule.
Allocation Rule interactions with the Balance and Rule dimensions:
Allocation Exercise
Click the Navigator icon .
Select
Click on the Row for 2016 January Actual POV, click the Copy POV Button
Select 2016 January Budget as the destination POV
Select the Input Data option and the Default Model View
Do not select the Manage Rules option
This will copy Input data (Financial data and Driver data) to the new POV but will not copy rules
Check the new POV in Stage Balancing screen to verify the data is copied.
From the home screen click the ‘Models’ cluster, then click the ‘Designer’ panel.
Verify the POV is set to

There should not be any rules or rule sets
Create a new Rule Set by clicking on the Create button and selecting the Rule Set option
You can create several Rule Sets at once if desired
Result
Select the first Rule Set, click the edit button

A more robust description can be entered here.
Check the enabled checkbox and choose serial execution
Click on the Member Selections tab to set the Rule Set Context
Click on the button, Add Customer, Product, and Driver

For the dimensions select NoCustomer, NoProduct, NoDriver
Use the member lookup button
Or simply type the membername desired in the entry box

These members will be used as defaults in Source and Destination for rules in the RuleSet which are set to ‘Use Rule Set
Context’
Click
Select the first Rule Set and click the Add button and select the Rules option
Note that you can add several rules at once, create your first rule, choose allocation type, enter a sequence ad check the Use
Rule Set Context checkbox:
Click
Select the rule you just created and click the edit button
On the Definition Tab select

On the Source/Destination tab:
 For Source choose Operating Expenses, NoActivity, and All_Entities
 This will select all level 0 intersections of the descendants of these 3 dimensions
 For the Destination
o Account click on the options icon and select

o Activity select AllActivities
o Entity click on the options icon and select
Click the Driver tab

Select Balance.Input, Rules.NoRule
For the Activity dimension use the member selector to navigate to, and select Activity Time Split.
Click
Click ont eh Offset Tab
Select then
Notice the rule definition did not require entering members for Customer, Product, or Driver dimensions. These were set by
using the Rule Set context you defined earlier.
Run and Review the Rule:
Goto Execution Control and run all rules for 2016 January Budget POV using the rules from the same POV
Goto Job Library to monitor the Job. Once complete review the performance and cells updated in the Execution
Statistics Report
Goto the Rule Balancing screen then Rule Balancing to review the rule results.
Click on the AllocationIn or AllocationOut values in the table to review the detail of source and destination impacts.
Custom Calculation Rules

Custom Calculation Rules are for transforming the data in your application for other purposes. The most common uses are
for creating driver data derived from multiple existing statistics, current conversion, markups prior to or after an allocation,
and staging a new scenario with data modified from and existing period.
Custom Calculation Rules are not allocations. They allow a user to specify a range of cells and execute a mathematical
formula against them. The following exercise creates a very simple rule that increases the personnel costs by 10% to stage a
new scenario.
From the home screen click the ‘Models’ cluster, then click the ‘Designer’ panel.
Verify the POV is set to
Click on Add and select Custom Rule
In the rule editor give the rule a name, description, click enabled.
Click on the Target Tab
In the Result dimension select Balance in the Result member use the member selector to find the ‘Adjustment In’
member. This defines the member where the result of the Formula will be written.
In the Target Dimensions Select Account.Personnel Expenses. Activity.NoActivity, and Entity.All_Entities

The target range defines the level 0 intersections that the formula will be applied to
In the Formula entry box enter the text below:
Click the button
If validation is successful click
Run and Review the Rule:
Goto Execution Control and run all rules for 2016 January Budget POV using the rules from the same POV
Goto Job Library to monitor the Job. Once complete review the performance and cells updated in the Execution
Statistics Report
Goto the Rule Balancing screen then Rule Balancing to review the rule results.
Key Knowledge Points

 Custom Calculation Rules can do much more than this simple example, some of the MDX specification is
supported, most useful are CASE and IIF statements.
 Custom Calculation Rules that cover a large range can have performance challenges – review the Admin guide for
details on use of the NONEMPTYTUPLE clause in the formula. This can dramatically improve performance.
 Avoid overuse of Custom Calculation Rules in your application designs. The resulting applications can become too
complex for customers to manage after the designed has left the project. Allocation rules are very business user
friendly, complex formulas in Custom Calculation Rules are not.
Review Program Documentation

Click on the Navigator icon and select System Reports
Select the Program Documentation report for the 2016 January Actual POV:
Review the report in PDF format to use the hyperlinks from rule listing the rule detail.
Model Validation
Click on the Navigator icon and select Model Validation
Review the tabs and options.
The Model Validation screen is useful for detecting definition errors in rules caused by incomplete creation or the impacts of
dimension updates that have invalidated the artifact. Try testing this after the Dimension load exercise. If you delete a lot of
members you can create validation issues. Just don’t do this until you are finished with the rest of the exercises.
CREATING DIMENSIONS
It is recommended that you do the PCMCS Data Management Workshop before proceeding. Changes to dimensions
may disrupt the Data Management exercises.
Dimension Management
Dimension Screen
From the home screen click the ‘Application’ cluster, then click the ‘Dimension Management’ panel.
Click on the Account dimension
Review the Net Income hierarchy and the Statistics hierarchy. These are the two areas where the Data Management exercise
will load data.
Click
One the Dimension Management screen click the Download button for the Account dimension.
Open the from your downloads folder
This is the file format for loading dimensions. Instructions can also be found in the PCM Administrators guide for the
required and options properties.
Note that the indentation of the download file is optional – it enhances readability but is not required. The “”’s are also
optional. Certain membernames may require being enclosed in quotes but the download file adds them to all members.
Loading Dimension Files
>>>>>>>>Important<<<<<<<<
Making changes to the application dimensions can impact data and rules. Do not make any dimension updates until
you have completed all other workshop exercises.
Before attempting this exercise you must change the filetype extension of the downloaded dimension file from .csv to .txt.
There is a defect in the update dimension screen that prevents a .csv file from being selected to upload.
Click on the Application pane then the button, select
Click the Add File button and select the Account.txt dimension file
The Preupdate Analysis option will evaluate the file you are working with for any impacts on artifacts or dimension
validation rule issues before loading it to the application.
To upload a dimension file choose the Update Dimensions option.
Key Knowledge Points
 In PCM all dimension loads are complete. The file you are loading will REPLACE the existing dimension.
 Deploy to Essbase is asynchronous – there is an addition step to deploy dimension changes to Esbase after the
dimension is loaded to the application.
 Deleting members will cause the corresponding data to be deleted on the next Database deploy
 Deleting members can also invalidate rules, rule sets, model views, and queries and analysis artifacts
 It is a best practice to run model validation after every dimension update or at least before calculations are
attempted

AUTOMATION
EPM Automate
Visis the PCM Cloud Help Center
https://docs.oracle.com/en/cloud/saas/profit-cost-cloud/index.html
Click on Books in the TOC
Scroll down to
Find the Profitability and Cost Management Commands Chapter
Review the commands. Every major processing step can be automated using EPMautomate or the REST api:
CONCLUSION
This workshop is a basic example of modeling data and designing allocation rules in Profitability and Cost Management.
There are many more complex features of rules and techniques for rule and model design that support the complexity of
real world implementations. Rules using filters, alternate hierarchies, custom calculations for deriving driver data, parallel
processing and specialized sequencing are all supported by PCM. For more detail see the PCM Administration Guide, Users
Guide, and Automation with EPM Automate guides in the Profitability and Cost Management documentation library:
https://docs.oracle.com/en/cloud/saas/profit-cost-cloud/books.html
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EMEA 2020 EPM Cloud

Modeling with Profitability and Cost Management

May 31, 2020 | Version 1.01

Getting Familiar with PCM 5

review Calculation Results 14

Create the Sample Application

GETTING FAMILIAR WITH PCM

Review the Application

Click on the username in upper right corner and choose preferences

On the Point of View bar select this POV combination .

Run Calculations for a Single POV

Select the Data POV.

Run Calculations for Multiple POVs

Return to the Execution Control panel.

When running multiple POVs you must choose a Rule POV

Rule Balancing Screen

Examining Rule Calculation Detail

select the ‘Balancing – 1 Operating Expenses’ View

Change the Model View to review the other Balancing views.

Review Results in Smart View

Select the ‘Standard Cruiser’ Product using button

Click the Navigator icon .

Verify the POV is set to

You can create several Rule Sets at once if desired

Select the first Rule Set, click the edit button

Click on the button, Add Customer, Product, and Driver

Use the member lookup button

Or simply type the membername desired in the entry box

On the Definition Tab select

o Account click on the options icon and select

o Entity click on the options icon and select

Click the Driver tab

Run and Review the Rule:

Custom Calculation Rules

Click on Add and select Custom Rule

Click on the Target Tab

In the Target Dimensions Select Account.Personnel Expenses. Activity.NoActivity, and Entity.All_Entities

In the Formula entry box enter the text below:

If validation is successful click

Run and Review the Rule:

Key Knowledge Points

Review Program Documentation

Click on the Account dimension

Open the from your downloads folder

Click on the Application pane then the button, select

Find the Profitability and Cost Management Commands Chapter

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EMEA 2020 EPM Cloud Training

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