ENTERPRISE PERFORMANCE MANAGEMENT SYSTEMS
Hyperion Profitability and Cost Management
To maximise profitability, a business must be able to accurately measure, allocate, and manage costs and revenue.
Hyperion Profitability and Cost Management, Fusion Edition is an analytic application that manages the cost and revenue allocations that are necessary to compute profitability for a business segment, such as a product, customer, region, or branch. The application also enables you to use cost decomposition, consumption-based costing and scenario-playing to measure profitability, and provides a meaningful planning and decision support system.
Hyperion Profitability and Cost Management is accessed through Enterprise Performance Management Workspace, Fusion Edition. As the Web client for Hyperion Profitability and Cost Management, EPM Workspace enables you to access and interact with other installed applications, such as the following examples:
- Hyperion EPM Architect, Fusion Edition
- Hyperion Planning, Fusion Edition
- Hyperion Reporting and Analysis
- Hyperion Financial Management, Fusion Edition
- Third-party applications, such as Microsoft Word and Microsoft Excel.
Before you can build the model, you must define the dimensions and members using Performance Management Architect to build the database outline, or main objects within each stage of the model. The financial and other data required for allocation are imported to a Hyperion Essbase multi-dimensional database.
After defining the dimensions, you build a customised model in Hyperion Profitability and Cost Management that represents the network of allocations required for your products or services.
Within the model, assigned drivers specify how data is calculated, using standard or customised formulas. Assignments control the flow of calculations, to accurately reflect the allocation of costs and revenues, and to determine profitability. The model is validated for structure and integrity. Using the model, you calculate imported financial data and produce performance metrics and profitability reports.
After a valid model is created, you can use it to create different versions or scenarios of the original model, enabling you to evaluate the impact of the proposed changes on the bottom line.