Updated: Jan 15
FCCS stands for Financial Consolidation and Close Cloud Service. In each companies which have various subsidiaries, they need to combine all the financial data at the end of the year. So, FCCS is a process of integrating the financial data of all the business entities running under that organization and presenting it to the parent company for further reporting purpose.
Companies consolidate data by gathering data from their subsidiaries and aggregating it to the parent entity on a base level. Then you can adjust data accordingly and run the consolidation for a selected entity such as year, period to collect and integrate the data throughout the organization. Suppose the subsidiary is using different currency than parent organization than a translation process is run, if the currency is same for both then it does not run. Rest of the process runs automatically.
Data Flows as follows while running the consolidation method in any organization:--
Base entity data entry -> Translation -> Proportionalization -> Elimination -> Contribution to parent -> Parent Entity data entry
At each level of processing various system calculations are executed. Custom rules can also be added in pre-defined insertion points.
Now a days companies are using Oracle FCCS. There are some ways through which a company can assign the consolidation method. These are as follows:--
You can manually assign the method through data entry by creating a data grid with the information
You can automatically assign the method in the Calculate ownership process
There are various methods which are provided by oracle Financial Consolidation and close
cloud process. These are defined as follows:--
Holding—In this method immediate parent represents the consolidate result in a legal entity. There can be individual holding method for each parent entity.
Subsidiary method--- This method is applied for the legal entity of holding company which exercises control.
Proportional method—this method is applied for legal entity of holding company but doesn’t exercise control but it has the proportional consolidation.
Equity method--- This method applied to legal entities for holding company which have significance influence but not control.
Not Consolidate method---This method is applied to legal entities for the holding company which neither exercise significant influence nor any control.
Inactive method--- It is reserved for the future use.
Discontinued method—This method is also for future use.
There is an ownership range assigned to each method. The system method comprising range as follows:
Not Consolidated from 0% to 20%
Equity from 20% to 50%
Subsidiary from 50% to 100%
All other system have no range assigned.
With the help of FCCS companies which have so many subsidiaries do not have to individually collect all the data and then consolidate it manually which takes a lot of efforts but they can easily run a code by making various entries and the run it and get the output in the form of excel sheets, PowerPoint presentation or in a PDF files.