Learn the best approach for managing customer credit limits during seasonal demand fluctuations in Microsoft Dynamics 365 Finance to minimize financial risk effectively.
Table of Contents
Question
Contoso, Ltd. is implementing Microsoft Dynamics 365 Finance and needs to manage customer credit effectively to minimize financial risk. You need to design a process that allows for adjustments to customer credit limits based on seasonal demand fluctuations, without permanently altering their credit profiles. What should you recommend?
A. Advise the sales team to bypass credit checks during peak seasons to expedite order processing.
B. Create temporary credit limit adjustments for customers to accommodate seasonal demands.
C. Permanently increase the credit limits for all customers to cover potential seasonal peaks.
D. Remove credit limits for customers during peak seasons and reinstate them afterward.
Answer
B. Create temporary credit limit adjustments for customers to accommodate seasonal demands.
Explanation
Creating temporary credit limit adjustments allows Contoso, Ltd. to manage seasonal demand without permanently changing customer credit profiles, which aligns with the goal of minimizing financial risk while accommodating business needs. Permanently increasing credit limits (B) would not be appropriate as it does not account for temporary fluctuations and could increase financial risk. Bypassing credit checks (C) could lead to uncontrolled credit exposure. Removing credit limits (D) would eliminate the ability to manage credit risk effectively.
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.