Learn how to set up Microsoft Dynamics 365 Finance to manage fixed assets across multiple countries, ensuring compliance with local depreciation regulations and reporting requirements.
Table of Contents
Question
A multinational corporation is using Microsoft Dynamics 365 Finance to manage their fixed assets across different countries. Each country has unique depreciation methods and regulations. You need to ensure that the fixed asset management system is compliant with local regulations and can handle multiple depreciation books for tax and internal reporting purposes. How should you configure the system?
A. Configure a single depreciation book to manage all fixed assets globally, applying the most common depreciation method.
B. Implement third-party software specialized in managing fixed assets for multinational corporations.
C. Set up multiple depreciation books per fixed asset, each with configurations that comply with local regulations and reporting requirements.
D. Use the default depreciation book and manually adjust the depreciation amounts at the end of each reporting period.
Answer
C. Set up multiple depreciation books per fixed asset, each with configurations that comply with local regulations and reporting requirements.
Explanation
Setting up multiple depreciation books per fixed asset allows for compliance with various local regulations and supports different reporting requirements. Option A is incorrect because a single depreciation book cannot accommodate the diverse regulations of different countries. Option D is not efficient and prone to errors, as manual adjustments are not sustainable for a multinational corporation. Option B is not viable as it suggests using third-party software instead of leveraging the capabilities of Microsoft Dynamics 365 Finance.
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