Learn the two essential steps to accurately consolidate financial reports for multi-currency subsidiaries using Dynamics 365 Finance. Boost accuracy and efficiency in financial reporting with these expert tips.
Table of Contents
Question
Adventure Works Cycles has multiple subsidiaries and uses different currencies for each subsidiary. They perform financial consolidation and elimination processes at the end of each financial period. You need to create a financial report that includes all subsidiaries and accurately reflects the financial status of the entire organization., What two actions should you perform? Each correct answer presents part of the solution. Choose two.
A. Create a separate financial report for each subsidiary and manually consolidate the data.
B. Ignore the foreign currency revaluation processes as they do not impact the financial report.
C. Implement foreign currency revaluation processes before generating the financial report.
D. Set up a row definition in the financial report to pull data from the financial dimensions system every time the report is generated.
E. Use the default financial dimensions in the Financial dimension tab without any modifications.
Answer
C. Implement foreign currency revaluation processes before generating the financial report.
D. Set up a row definition in the financial report to pull data from the financial dimensions system every time the report is generated.
Explanation
Setting up a row definition in the financial report to pull data from the financial dimensions system ensures that the most recent and accurate data is used in the report. Implementing foreign currency revaluation processes is crucial when dealing with multiple currencies to ensure accurate financial reporting. Creating separate reports for each subsidiary and manually consolidating the data is inefficient and prone to errors. Using the default financial dimensions without any modifications may not reflect the unique financial structure of the organization. Ignoring foreign currency revaluation processes can lead to inaccurate financial reporting.
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