which two steps are recommended to track travel expenses by department (choose 2)

To effectively track travel expenses by department, the recommended Oracle Chart of Accounts (COA) design is to use a single, shared general ledger account for the expense type (e.g., "Travel Expense"). The specific department incurring the expense is captured in a separate COA segment, such as the "Department" or "Cost Center" segment. This approach (D) creates a flexible and scalable COA. To ensure data integrity and complete tracking, the department segment should be configured as a mandatory field (C) for all relevant transactions. This control prevents expenses from being posted without departmental attribution, ensuring accurate reporting.

A. make department options: This is ambiguous. If it means making the department field optional, it would lead to incomplete tracking. If it means creating department values, it's a prerequisite, not a core tracking strategy.

B. use separate general ledger accounts for each internal department expenses: This is poor COA design. It creates an unnecessarily large and rigid chart of accounts that is difficult to maintain and report on, a practice Oracle's flexible segment structure is designed to avoid.

1. Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Release 23D (Doc ID: F82034-01)

Chapter 5: Chart of Accounts

Section: "Designing Your Chart of Accounts: Critical Choices." This section details the best practice of using a segmented COA where the natural account segment identifies the type of expense (e.g.

travel)

while other segments

like a cost center or department segment

track where the cost was incurred. This supports sharing a single natural account across many departments (Option D) and contradicts creating separate accounts for each (Option B).

2. Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Release 23D (Doc ID: F82034-01)

Chapter 6: Chart of Accounts Structures

Section: "Manage Key Flexfield Structures." This documentation describes the configuration of COA segments. A key attribute for each segment is the "Required" property

which can be set to 'Yes' to enforce user input. This directly supports making the department segment mandatory to ensure complete data capture for tracking purposes (Option C).

3. Kieso

D. E.

Weygandt

J. J.

& Warfield

T. D. (2019). Intermediate Accounting (17th ed.). Wiley. Chapter 4

"The Accounting Information System." While not specific to Oracle

standard accounting information system design principles outlined in university-level texts emphasize a well-structured chart of accounts. A key principle is to avoid redundancy by using separate fields or segments for different dimensions of a transaction (e.g.

account

department

location) rather than creating unique concatenated accounts

which supports the logic behind Option D and against Option B.