EPM Buyer’s GuideWHAT IS EPM

What is Enterprise Performance Management (EPM)?

EPM sits above ERP as finance’s operating layer—planning, consolidation, close, and reporting—with governance (owners, approvals, audit) baked in.

Key takeaways
  • EPM ≠ ERP ≠ BI: ERP posts, BI visualizes, EPM governs finance processes.
  • Treat EPM as an operating model (RACI, cadence, controls), not just a tool.
  • Adopt standards first; customize only where it creates durable advantage.
  • Data lineage and drill‑through are non‑negotiable for audit and trust.
Where EPM fits
  • ERP = subledgers; BI = views; EPM = plan/close/report with workflow and ownership.
  • Connect ERP/HR/CRM/warehouse via governed pipelines and master data.
  • One financial truth for scenarios, consolidation, narratives, and tax.
Core modules & hand‑offs
  • Planning ↔ Close: forecast variance drives commentary and re‑plan.
  • Reconciliations → Close: policy gates certifications and period locks.
  • Consolidation → Reporting: statements, notes, disclosures, and evidence.
Operating model
  • RACI per process; calendars and SLAs; escalation paths.
  • Role‑based access, SSO/SCIM; segregation of duties; approval chains.
  • Effective‑dated metadata (entities, FX, charts) for restatements.
Anti‑patterns
  • Re‑creating spreadsheet chaos inside EPM models.
  • Over‑customizing logic → upgrade pain and fragile performance.
  • Skipping ownership and process enablement → poor adoption.
Checklist
  • Define target processes (planning, conso, close, recs, tax).
  • Inventory entities, currencies, calendars; agree master‑data owners.
  • Map data sources and refresh cadence; design drill‑through.
  • Publish RACI; align approval gates and evidence policy.
  • Set 3–5 success metrics (close days saved, cycle time, audit findings).
  • Select a quick‑win pilot and exit criteria.
FAQ
No. ERP posts transactions; BI visualizes data; EPM governs finance processes—planning, consolidation, close, and reporting—on top of ERP.
Was this page helpful?