NetSuite EPM

What is NetSuite ?

NetSuite, also refferred as Oracle NetSuite, OracleNetSuite, NetSuite by Oracle, Net Suite by Oracle, NetSuite Accounting or just simply NetSuite is a native cloud Enterprise Resource Planning (ERP) system that provides Small and Medium Businesses a software framework for managing its full business processes (accounting, inventories, sales, customers, etc.). NetSuite was originally founded in 1998, but in 2016 it was acquired by Oracle under a 9.3 billion USD transaction, and since then it has been operated as an Independent Business Unit inside Oracle.

What is Oracle EPM ?

Oracle EPM, is a set of complementary cloud tools originally known as Hyperion acquired by Oracle in 2007 in a 3.3 billion USD deal, that are known as Oracle Hyperion or Oracle EPM. Since then, Oracle has improving substantially Hyperion solutions and migrated them to a cloud framework called Oracle EPM that makes it to be the leader provider in the market according to Gartner and several other analysts since several years ago.

What is NetSuite EPM ?

EPM (Enterprie Performance Management), also known as Corporate Performance Management (CPM), is a management approach which encompasses a set of processes and analytical tools to ensure that an organization’s activities and output are aligned with its goals. NetSuite EPM, based on the Oracle EPM framework , inherits its capabilities and strengths at a much affordable price, and in April 17th 2024, Oracle announced the availability of NetSuite EPM availability for EMEA.

In summary, NetSuite EPM together with NetSuite ERP encompasses a more than 12 billion USD cloud solution for managing the key processes and alignment of those processes to compliance and reporting regulations

This means that, while your NetSuite ERP (Enterprise Resource Planning) is focused in managing and optimizing the resources of your company (personnel, facilities, assets, suppliers, customers, liabilities, etc) by registering all the “transactions” related to them (cash in/out, warehouse in/out, payments/collections, etc.), it is focused in supporting your operations daily, and records that data, so you align Execution to your company’s Strategy.

NetSuite EPM uses your NetSuite ERP information in order to link your company strategy to specific projects and initiatives by planning, budgeting and following-up on company-wide agreed plans related to sales, expenses, opex/capex projects, current/future human capital, and so on.

What is included in NetSuite EPM ?

Since April 17th 2024, NetSuite has already made available 2 components of its EPM, while 3 more will come shortly. Let’s review them in detail:

1. NetSuite Planning & Budgeting (also known as NSPB or NetSuite PBCS)

Based in the Oracle Enterprise Planning and Budgeting Cloud Service (EPBCS) is a great module for performing Demand Planning, Sales Planning, Workforce Planning, Projects Planning, Production Planning, etc. It allows too the implementation of ESG (Environmental Social and Governance) reporting. It is provided under two versions (Standard and Premium).

2. NetSuite Account Reconciliation (NSAR)

Complements NSPB and your current ERP, as it allows a faster consolidation process for those companies operating in several countries and different currencies under one unique holding.

3. NetSuite Profitability and Cost Management (NSPCM)

Knowing how much is your real profitability by product/service/line, etc. is key when making your annual Plans and supervising them, so you can make informed decisions.

4. NetSuite Narrative Reporting (NR)

This component will allow your team to create much faster the quarterly and annual reports, as it name suggests, it aligns the narrative writing with financial statements and data in a single report.

5. NetSuite Corporate Tax Reporting

A must-have if your company has multinational operations, as it helps you to comply efficiently with new OECD country-by-country reporting obligations.

One key process of NetSuite EPM: Cash Flow Planning

Controlling your cash is key in these high-interest rates times, and NetSuite EPM not only provides the common EPM functionality related to income/expenses planning and forecasting, but it includes a pre-configured Framework that, among several functions, that provides you a Cash Flow Dashboard with graphs and other aids to help you analyze your discounted cashflow from operations, populating this data from your NetSuite Accounting Software.

Why NetSuite EPM is different to other EPM systems?

Among the capabilities that are relevant once you are a medium/advanced EPM user, NetSuite EPM is the only fully integrated to NetSuite ERP, and that means that you can import “metadata” and data from your ERP. This means that you will be able to update “metadata” data in your ERP (accounts structure, for example) and have that new account structure updated for your use in your EPM without the need of a consultant, saving costs in the long-term.

What is the NetSuite pricing for this new EPM component?

NetSuite is very price conscious of their users (specially NetSuite at small business pricing), so even NetSuite refrains to publicly share their prices, according to our epm4ns experiences in the past, its price/value ratio will continue being as attractive as the current NetSuite Planning and Budgeting (NSPB), and much better as any other EPM SaaS solution integrated to NetSuite ERP.

From our experience, an initial NetSuite EPM project for the FP&A process, could go for a little bit more than 30K€ investment for the 1st year, plus an approximate recurrent of 15K€/year after that (a little bit more than 1000€ per month).

How big you have to be to implement NetSuite EPM?

According to Gary Cokins (expert in FP&A processes), “any company with more than 25 employees will heavely benefit of an EPM”, and this is aligned to our own experience too.

EPM for NetSuite Nordics