Learn the essential steps to review depreciation profiles and posting setups in Microsoft Dynamics 365 Finance for fixed asset compliance with updated legislation. Optimize your financial reporting process today!
Table of Contents
Question
Contoso, Ltd. is in the process of re-evaluating their fixed asset management practices. This is due to recent changes in local legislation affecting depreciation calculations and asset disposal. The company has a diverse portfolio of fixed assets, including buildings, machinery, and vehicles. These assets are currently managed using Microsoft Dynamics 365 Finance. You need to evaluate the current fixed asset management setup in Dynamics 365 Finance to ensure compliance with the new legislative requirements and optimize the financial reporting process. What two actions should you perform?? Each correct answer presents part of the solution. Choose two.
A. Consolidate all fixed assets into a single group to streamline the management process regardless of the asset type or location.
B. Examine the fixed asset posting profiles to ensure that disposal transactions are correctly mapped to the new gain and loss accounts as per the updated legislation.
C. Increase the capitalization threshold to reduce the number of assets being depreciated and simplify the asset management process.
D. Review and adjust the depreciation profiles to align with the new legislative rules for depreciation calculation.
Answer
B. Examine the fixed asset posting profiles to ensure that disposal transactions are correctly mapped to the new gain and loss accounts as per the updated legislation.
D. Review and adjust the depreciation profiles to align with the new legislative rules for depreciation calculation.
Explanation
Reviewing and adjusting the depreciation profiles is necessary to comply with changes in legislation regarding how depreciation is calculated. Examining the fixed asset posting profiles ensures that disposal transactions are correctly reflected in financial reports according to the new legislative requirements. Increasing the capitalization threshold is not related to compliance and could lead to inaccurate financial reporting. Consolidating all fixed assets into a single group would not address compliance with specific legislative changes and could result in a loss of necessary detail in asset management.
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.