Learn the best practices for managing fixed assets in Microsoft Dynamics 365 Finance, including configuring multiple depreciation books and setting up allocation keys to ensure accurate financial reporting and compliance with international standards.
Table of Contents
Question
A multinational corporation is using Microsoft Dynamics 365 Finance to manage their fixed assets. They have a complex portfolio of assets that are subject to different tax regulations and depreciation methods across various countries. You need to ensure that the fixed asset management setup allows for accurate financial reporting and compliance with international accounting standards, while also providing flexibility for country-specific requirements. What two actions should you perform? Each correct answer presents part of the solution. Choose two.
A. Configure multiple depreciation books per fixed asset to cater to different reporting requirements such as tax and internal reporting.
B. Create a single, global fixed asset group to unify the asset management process across all countries.
C. Implement a fixed asset threshold limit that applies uniformly to all assets regardless of location or type.
D. Set up allocation keys to distribute costs associated with fixed assets across various departments and projects.
E. Use a universal depreciation method for all fixed assets to simplify the depreciation process.
Answer
A. Configure multiple depreciation books per fixed asset to cater to different reporting requirements such as tax and internal reporting.
D. Set up allocation keys to distribute costs associated with fixed assets across various departments and projects.
Explanation
Configuring multiple depreciation books per fixed asset allows the company to meet different reporting requirements by maintaining separate records for tax purposes and internal management. Setting up allocation keys helps in accurately distributing costs related to fixed assets, which is essential for precise financial reporting and cost management. Creating a single, global fixed asset group would not accommodate country-specific tax regulations and depreciation methods. Using a universal depreciation method oversimplifies the process and may not comply with local regulations. Implementing a uniform threshold limit does not consider the varying economic environments and asset types across different countries.
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.