Learn the best practices for disposing of fixed assets in Microsoft Dynamics 365 Finance. Follow this detailed guide to ensure accurate financial records, compliance with tax regulations, and efficient asset management.
Table of Contents
Question
The finance team at Contoso, Ltd. is tasked with disposing of a fleet of company vehicles that are no longer in use. They want to use Microsoft Dynamics 365 Finance to process the disposals efficiently. You need to you set up the disposal process in Microsoft Dynamics 365 Finance to create a strategy that allows for the disposal of these fixed assets while ensuring accurate financial records and compliance with tax regulations. How should do this?
A. Configure the fixed asset posting profiles to reflect the correct gain or loss accounts for vehicle disposals and use free text invoices for the sales transactions.
B. Dispose of the vehicles using inventory journals, bypassing the fixed asset module entirely.
C. Manually adjust the general ledger for each vehicle disposal without recording the transaction in the fixed asset module.
D. Use the fixed asset journal to directly credit the original acquisition cost accounts without considering accumulated depreciation.
Answer
A. Configure the fixed asset posting profiles to reflect the correct gain or loss accounts for vehicle disposals and use free text invoices for the sales transactions.
Explanation
Configuring the fixed asset posting profiles for correct gain or loss accounts and using free text invoices for sales transactions is the correct approach to dispose of fixed assets in Microsoft Dynamics 365 Finance. Option B is incorrect because inventory journals are not used for fixed asset disposals. Option C is incorrect as it does not provide an audit trail or ensure compliance. Option D is incorrect because it does not account for accumulated depreciation, which is necessary for accurate financial records.
Microsoft Dynamics 365 Finance Functional Consultant MB-310 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the Microsoft Dynamics 365 Finance Functional Consultant MB-310 exam and earn Microsoft Dynamics 365 Finance Functional Consultant MB-310 certification.