Discover the step-by-step process to set up accrual schemes in Microsoft Dynamics 365 Finance, a key skill for passing the MB-310 certification exam. Learn how to automate prepaid expense recognition with accurate debit and credit entries efficiently.
Table of Contents
Question
The finance team at Contoso Ltd. is working on closing the fiscal year. They have identified several prepaid expenses that need to be recognized monthly over the next fiscal year. You need to create an accrual scheme that will automatically spread the prepaid expenses over the appropriate periods with the correct debit and credit entries. What should you do?
A. Create a periodic journal for each prepaid expense and manually calculate the monthly amounts to be recognized.
B. Manually post the prepaid expenses each month to the appropriate accounts without setting up an accrual scheme.
C. Set up an accrual scheme specifying the main accounts for debit and credit, determine the voucher number creation for accrual transactions, and apply the scheme in the ledger accruals function.
D. Use the fixed assets module to manage prepaid expenses and automate the monthly recognition.
Answer
C. Set up an accrual scheme specifying the main accounts for debit and credit, determine the voucher number creation for accrual transactions, and apply the scheme in the ledger accruals function.
Explanation
Setting up an accrual scheme with specified main accounts for debit and credit, determining the voucher number creation, and applying the scheme in the ledger accruals function is the correct way to automate the recognition of prepaid expenses over the appropriate periods. Manually posting expenses or creating periodic journals would require unnecessary manual effort and do not leverage the capabilities of Dynamics 365 Finance. The fixed assets module is not designed to manage prepaid expenses and would not be appropriate for this task.
Microsoft Dynamics 365 Finance Functional Consultant MB-310 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the Microsoft Dynamics 365 Finance Functional Consultant MB-310 exam and earn Microsoft Dynamics 365 Finance Functional Consultant MB-310 certification.