Learn the best methods for financial consolidation in Microsoft Dynamics 365 Finance, including managing multiple charts of accounts, currencies, and partial ownership. Discover expert techniques for seamless global financial reporting.
Table of Contents
Question
Your organization has subsidiaries across the globe with multiple charts of accounts. Theyuse Microsoft Dynamics 365 Finance for financial consolidation. The subsidiaries operate in different currencies and are not fully owned by the parent company. You need to evaluate the best method for consolidating financial data that allows for handling multiple charts of accounts, partial ownership, and multi-currency transactions. WhatWhat two methods should you recommend? Each correct answer presents part of the solution. Choose two.
A. Configure a single consolidated company for all subsidiaries regardless of the currency or chart of accounts differences.
B. Implement the Consolidate online option, choosing to use either the consolidation account defined on the main account or a consolidation account group.
C. Manually enter consolidation entries in the general ledger at the end of each period without using any consolidation features.
D. Use the Financial reporting option to define a reporting tree definition and the ownership percentage for partially owned subsidiaries.
Answer
B. Implement the Consolidate online option, choosing to use either the consolidation account defined on the main account or a consolidation account group.
D. Use the Financial reporting option to define a reporting tree definition and the ownership percentage for partially owned subsidiaries.
Explanation
The Financial reporting option allows for defining reporting tree definitions and ownership percentages, which is useful for partially owned subsidiaries and handling multiple charts of accounts. The Consolidate online option can handle multiple charts of accounts by using consolidation accounts or groups. Option A is incorrect because having a single consolidated company does not address the issues of multiple currencies and charts of accounts. Option C is incorrect as it does not leverage the consolidation features available in Microsoft Dynamics 365 Finance and would be inefficient.
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