Learn how to set up penny difference posting types in Microsoft Dynamics 365 Finance to handle multi-currency transactions seamlessly. Step-by-step guide for configuring reporting and accounting currency adjustments.
Table of Contents
Question
A multinational corporation is using Microsoft Dynamics 365 Finance to manage their financial operations across different regions. They have recently expanded their business and added a new legal entity. The finance team needs to configure the system to handle transactions in multiple currencies and ensure that penny differences in foreign currency transactions are accounted for correctly. You need to set up the default main accounts for automatic transactions to handle penny differences in both the reporting and accounting currencies with minimal manual intervention. You know you should do this on the Accounts for automatic transactions page. What two posting types should you configure ?
A. Balance account for consolidation difference and Profit and loss account for consolidation differences
B. Customer cash discount and Vendor cash discount
C. Error account and Year-end result
D. Penny difference in reporting currency and Penny difference in accounting currency
Answer
D. Penny difference in reporting currency and Penny difference in accounting currency
Explanation
The correct answer is A because the ‘Penny difference in reporting currency’ and ‘Penny difference in accounting currency’ posting types are used to automatically handle penny differences that occur when translating transaction amounts in foreign currencies to the reporting and accounting currencies, respectively. Option C is incorrect because the ‘Error account’ is used for system errors and ‘Year-end result’ is for the year-end close process. Option B is incorrect as cash discounts are not related to penny differences and require specific main accounts in Accounts receivable and Accounts payable. Option A is incorrect because these posting types are used for consolidation processes involving currency revaluation, not for daily transaction penny differences.
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