Learn how to consolidate financial data across subsidiaries in Microsoft Dynamics 365 Finance. Discover step-by-step guidance on using the General Ledger module for multi-company reporting, currency translation, and adhering to different accounting standards.
Table of Contents
Question
A multinational corporation with multiple subsidiaries is using Microsoft Dynamics 365 Finance to manage their financials. They have recently acquired a new company and need to incorporate its financial data into their existing system for consolidated reporting. You need to ensure that the financial results of the newly acquired subsidiary are combined with those of the existing organization. You must continue adhering to the subsidiary’s accounting standards and currencies. What should you do?
A. Configure the consolidation functionality in the General ledger module to combine financial results from the subsidiary into the main organization’s results.
B. Implement a third-party financial management tool to handle the consolidation outside of Microsoft Dynamics 365 Finance.
C. Manually enter the subsidiary’s financial data into the main organization’s General ledger at the end of each fiscal period.
D. Use the Budgeting module to create a new budget register entry for the subsidiary and link it to the main organization’s budget.
Answer
A. Configure the consolidation functionality in the General ledger module to combine financial results from the subsidiary into the main organization’s results.
Explanation
The correct answer is A because the consolidation functionality within the General ledger module is designed to combine financial results from multiple entities, which can be in the same database or separate databases, and supports different accounting standards and currencies. Option C is incorrect as manual entry is error-prone and not efficient for large scale data. Option D is incorrect because the Budgeting module is used for budget planning and control, not for consolidating financial results. Option B is incorrect as it suggests using a third-party tool, which is unnecessary when Dynamics 365 Finance already provides the needed functionality.
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