Financial Optimization at Promed: How Oracle EPM Transformed the Management of the Economic Group

Financial consolidation of an economic group made up of multiple companies can be a complex challenge. In the case of Promed, which manages the financial statements of 20 companies under its control, the need for an efficient and automated solution was key to ensuring smooth operation and accurate financial management. To this end, Oracle EPM Cloud has been instrumental in automating and optimizing processes, improving transparency and accuracy in the group's financial consolidation.

The main objective of the implementation was to create an efficient and automated process for the consolidation of the financial statements of all entities that make up the Promed economic group. This included the standardization of accounting plans, the integration of budgetary information for comparisons with real data, and the elimination of intercompany transactions, such as accounts receivable (AR), accounts payable (AP) and investments in equity.

In addition, Oracle Narrative Reporting was implemented, a tool that allowed collaborative generation of notes and disclosures to the financial statements, improving the accuracy and presentation of the reports. The formulation of indirect cash flow for the subsidiaries and the consolidated entity was also achieved, which facilitated the preparation of detailed financial statements, including the statement of financial position, the statement of comprehensive income and the statement of changes in equity.

The implementation of Oracle EPM Cloud and its various functionalities allowed Promed to optimize several critical aspects of its financial consolidation process. Among the most notable achievements are:

• Homologation of Accounting Plans : Since the different companies in the group used different accounting nomenclatures, one of the first tasks was to unify all the accounting plans under a single corporate chart of accounts. This allowed the centralization and standardization of information, which facilitated the subsequent generation of consolidated reports at group level.

  
  

• Comparison of Budget and Actual Scenarios : Uploading budget information into the system enabled comparative reports to be generated between budgeted scenarios and actual financial data. This provided Promed with a clear view of deviations and allowed them to make informed decisions to correct or adjust the course of the operation when necessary.

  
  

• Elimination of Intercompany Transactions : Automating the intercompany transaction elimination processes was crucial to ensuring the accuracy of consolidated reporting. Transactions such as accounts receivable (AR), accounts payable (AP) and equity investments were automatically eliminated, ensuring that consolidated reporting reflected a clear, unduplicated financial view.

  
  

• Non-Controlling Interest Calculation : Accurate calculation of non-controlling interest was another major achievement. This process allowed the calculation of the portion of equity attributable to minority shareholders in each of the subsidiaries, contributing to the accuracy of the consolidated reports and improving the transparency of the information presented.

  
  

• Indirect Cash Flow Formulation : With the formulation of the indirect cash flow, both for the subsidiaries and for the consolidated entity, Promed now has a clear view of its cash flows, allowing them to manage their liquidity more effectively and make strategic decisions to maintain the financial stability of the group.

  
  

• Generation of Consolidated Financial Statements : The generation of consolidated financial statements, such as the Statement of Financial Position, Statement of Comprehensive Income, Statement of Cash Flows and the Statement of Changes in Equity, was automated. This capability, applied both at the group and individual entity level, allowed Promed to obtain faster and more accurate reports, essential for strategic decision-making.

  
  

• Integration with External Sources using Oracle EPM Agent : The implemented architecture allowed the integration of external data sources through the use of Oracle EPM Agent, a software that facilitates communication between third-party systems and Oracle EPM. This optimized the loading of data into the system, transforming and consolidating the information automatically, resulting in a more agile and efficient process.

  
  

• Data Load Automation : The implementation also automated the loading of trial balances, accounts receivable, accounts payable, and fixed assets, through the use of scheduled pipelines. This eliminated repetitive manual tasks, reduced errors, and accelerated the processing of large volumes of financial data.

  
  

• Generating Notes to Financial Statements with Narrative Reporting : Integration with FCCS and the use of the Narrative Reporting tool allowed Promed to collaboratively generate detailed notes to the financial statements. The reports were segmented by entity, which facilitated greater accuracy and comprehensive control of the consolidated financial reports.

By implementing Oracle EPM Cloud and its advanced capabilities, Promed has significantly optimized the financial consolidation of its economic group. From automating accounting processes to integrating external data sources and generating detailed financial notes using Oracle Narrative Reporting, the project has provided the organization with a robust tool that not only increases operational efficiency but also improves the accuracy and transparency of financial reporting. With this solution, Promed is better equipped to meet current and future financial challenges, staying competitive in the market.