Learn the 3 essential steps to manage foreign currency revaluation in Microsoft Dynamics 365 Finance. Discover how to update exchange rates, use simulation features, and ensure accurate financial reporting.
Table of Contents
Question
A multinational corporation is using Microsoft Dynamics 365 Finance to manage their financial operations across different countries. They are experiencing fluctuations in exchange rates. This is affecting the book value of their open transactions in foreign currencies. You need to ensure that the company can update the value of open transactions in Accounts payable and Accounts receivable to reflect the current exchange rates, while also considering the impact of any prior foreign currency revaluation. What three actions should you perform? Each correct answer presents part of the solution. Choose three.
A. Ignore previous revaluations and use the original exchange rate of the transactions for the revaluation.
B. Run the foreign currency revaluation process for Accounts payable and Accounts receivable using the most recent exchange rates.
C. Select the ‘Standard’ method for the foreign currency revaluation job to ensure all revaluations are posted regardless of the result.
D. Set the ‘Considered date’ parameter to a future date to predict and post potential exchange rate changes.
E. Use the ‘None’ option for financial dimensions to avoid posting any financial dimensions on the revaluation transactions.
F. Use the ‘Simulation’ feature to preview the potential unrealized gain or loss before posting the revaluation.
Answer
B. Run the foreign currency revaluation process for Accounts payable and Accounts receivable using the most recent exchange rates.
C. Select the ‘Standard’ method for the foreign currency revaluation job to ensure all revaluations are posted regardless of the result.
F. Use the ‘Simulation’ feature to preview the potential unrealized gain or loss before posting the revaluation.
Explanation
Running the foreign currency revaluation process updates the book value of open transactions to reflect current exchange rates. Using the ‘Simulation’ feature allows for a preview of the impact without affecting the ledger, which is crucial for evaluating the potential outcome. Selecting the ‘Standard’ method ensures all revaluations are considered, providing a complete update. Option A is incorrect because ignoring previous revaluations could lead to inaccurate financial reporting. Option D is incorrect as the ‘Considered date’ should be the date when transactions are open, not a future prediction. Option E is incorrect because financial dimensions should be included for accurate tracking and reporting.
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.