Struggling with fixed asset setup in Microsoft Dynamics 365 Finance? Learn the best practices to categorize new equipment, assign depreciation profiles, and streamline asset management effectively.
Table of Contents
Question
Fabrikam, Inc. has recently expanded its operations and acquired several new pieces of equipment. The company uses Microsoft Dynamics 365 Finance and needs to manage these assets efficiently. You need to evaluate the current fixed asset setup and determine how to optimize the management of the new equipment within the system. What should you do next?
A. Assign all new equipment to a single fixed asset group to simplify management and apply a uniform depreciation method.
B. Avoid creating new fixed asset groups to prevent complexity in the system and use existing groups even if they are not a perfect match.
C. Manually track the new equipment outside of Microsoft Dynamics 365 Finance until the next fiscal year begins.
D. Review the existing fixed asset groups and create new ones if necessary, ensuring that the new equipment is categorized correctly and associated with the right depreciation profiles.
Answer
D. Review the existing fixed asset groups and create new ones if necessary, ensuring that the new equipment is categorized correctly and associated with the right depreciation profiles.
Explanation
Reviewing and potentially creating new fixed asset groups ensures that the new equipment is managed properly within Microsoft Dynamics 365 Finance, with correct categorization and depreciation profiles. Option A is incorrect because it does not account for the possibility that different pieces of equipment may require different depreciation methods. Option C is not advisable as it bypasses the benefits of using Microsoft Dynamics 365 Finance for asset management. Option B is not a best practice because using inappropriate asset groups can lead to inaccurate financial reporting.
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.