Learn the top three steps to configure Microsoft Dynamics 365 Finance for managing intercompany expenses and multi-currency transactions. Ensure compliance with policies and regulations while streamlining your global expense management system.
Table of Contents
Question
Your organization uses Microsoft Dynamics 365 Finance for expense management. It has recently expanded its operations internationally, involving frequent intercompany expenses and complex multi-currency transactions. You need to ensure that the expense management system is configured to handle the new complexities efficiently while adhering to the company’s policies and regulatory requirements. What three actions should you perform? Each correct answer presents part of the solution. Choose three.
A. Configure expense management policies to include multi-currency and intercompany expense processing rules.
B. Consolidate all intercompany expenses into a single legal entity to avoid the complexity of intercompany transactions.
C. Disable multi-currency support to simplify expense reporting and reduce the risk of errors.
D. Implement workflows for intercompany expense approvals to ensure compliance with both internal and external audit requirements.
E. Set up currency exchange rates and exchange rate types to manage and adjust for currency fluctuations.
Answer
A. Configure expense management policies to include multi-currency and intercompany expense processing rules.
D. Implement workflows for intercompany expense approvals to ensure compliance with both internal and external audit requirements.
E. Set up currency exchange rates and exchange rate types to manage and adjust for currency fluctuations.
Explanation
Configuring expense management policies to handle multi-currency and intercompany expenses (A) is essential for an international operation. Setting up currency exchange rates (B) allows for accurate financial reporting and expense reimbursement in different currencies. Implementing approval workflows for intercompany expenses (C) ensures that expenses are reviewed and approved according to company policy and regulatory standards. Disabling multi-currency support (D) would not be advisable as it would not accommodate international operations. Consolidating expenses into a single legal entity (E) would not address the complexities of intercompany transactions and could lead to regulatory non-compliance.
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