Oracle Financial Reporting and Analysis Cloud 2017 Implementation Essentials — Question 28

You are implementing Project Portfolio Management (PPM) for a professional services firm. The firm rents multiple buildings for its operations. At the end of each month, they review the rent expense for the month and want to allocate the rental cost to all the projects and tasks that are executed by associates in each of the buildings. The source amounts must be proportionally allocated to the tasks based on the raw costs of the tasks from the previous month.
Considering that all these costs are in General Ledger, what three allocation setups should you complete in PPM? (Choose three.)

Answer options

• A. Allocate rental costs once each accounting period by using the "full" allocation method.
• B. Allocate to all eligible tasks and prorate the allocation by the total actual raw cost accrued for each task during the previous accounting period.
• C. Define allocation basis by using Actual Amounts with a project-to-date amount class.
• D. Define allocation basis by using Actual Amounts with a period-to-date amount class.
• E. Allocate rental costs once each accounting period by using the "spread evenly" allocation method.

Correct answer: A, D, E

Explanation

The correct answers A, D, and E are appropriate because they align with the firm's requirement to allocate rental costs effectively based on accounting periods and methods. Option B is incorrect as it suggests prorating, which does not align with the 'full' or 'spread evenly' methods. Option C is irrelevant in this context as it focuses on a project-to-date basis rather than the needed period-to-date allocation.