Learn the best practices for enhancing cash flow forecasting in Microsoft Dynamics 365 Finance. Discover how automation and integration with General Ledger, Accounts Payable, and Accounts Receivable improve accuracy and efficiency.
Table of Contents
Question
A multinational corporation is using Microsoft Dynamics 365 Finance to manage their financial operations across different regions. They have recently expanded their business and require a comprehensive cash flow forecasting solution that integrates with General ledger, Accounts payable, and Accounts receivable. You need to evaluate the existing cash flow forecasting setup and determine how to enhance it for better integration and accuracy in predictions. Which of the following actions should you recommend?
A. Disable the integration with General ledger to simplify the cash flow forecasting process.
B. Exclude Accounts payable and Accounts receivable transactions from the cash flow forecast to focus on liquidity accounts only.
C. Implement an automated process to include budget register entries in the cash flow forecast for more accurate future cash impact projection.
D. Manually update the cash flow forecast periodically to ensure the inclusion of all recent transactions.
Answer
C. Implement an automated process to include budget register entries in the cash flow forecast for more accurate future cash impact projection.
Explanation
Automating the inclusion of budget register entries in the cash flow forecast will provide a more comprehensive view of the company’s future cash impact, enhancing the accuracy of the forecast. Disabling the integration with General ledger would reduce the effectiveness of the cash flow forecast. Excluding Accounts payable and Accounts receivable transactions would omit significant cash flow data. Manually updating the forecast is less efficient and prone to errors compared to an automated process.
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.