Learn the best practices for managing budgets across multiple legal entities and currencies in Microsoft Dynamics 365 Finance. Discover why budget register entry workflows ensure compliance with global and regional policies.
Table of Contents
Question
A multinational corporation is using Microsoft Dynamics 365 Finance for their financial operations. They have multiple legal entities and need to manage budgeting across different currencies and regions. You need to evaluate the existing budgeting setup to ensure compliance with the company’s global financial policies and regional regulations. What should you recommend?
A. Consolidate all legal entities into a single budget model to simplify management and reporting.
B. Disable multi-currency support to avoid complexity in budgeting across different regions.
C. Implement budget register entry workflows for each legal entity to enforce compliance with both global and regional policies.
D. Use a fixed exchange rate for budgeting purposes to maintain consistency across all legal entities.
Answer
C. Implement budget register entry workflows for each legal entity to enforce compliance with both global and regional policies.
Explanation
Implementing budget register entry workflows for each legal entity allows for adherence to both global financial policies and specific regional regulations, ensuring compliance and proper governance. Consolidating all legal entities into a single budget model (B) would not address the need for compliance with regional regulations. Disabling multi-currency support (C) is not practical for a multinational corporation that operates in different regions with different currencies. Using a fixed exchange rate (D) does not account for currency fluctuations and could lead to inaccurate budgeting.
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.