Discover step-by-step guidance on foreign currency revaluation in Microsoft Dynamics 365 Finance. Learn how to manage fluctuating exchange rates, streamline financial operations, and ensure accurate accounts receivable balances for multinational corporations. Perfect for finance professionals and MB-310 exam candidates!
Table of Contents
Question
A multinational corporation is using Microsoft Dynamics 365 Finance to manage their accounts receivable. They have recently expanded their business to multiple countries, dealing with customers who transact in various currencies. You need to ensure that the accounts receivable balances are accurately reflected in the company’s base currency, considering the fluctuating foreign exchange rates. What should you do?
A. Convert all foreign transactions to the base currency at the time of transaction entry.
B. Disallow foreign currency transactions and require customers to pay in the company’s base currency.
C. Manually adjust the exchange rates in the system for each transaction as they occur.
D. Perform foreign currency revaluation for customer accounts on a regular basis.
Answer
D. Perform foreign currency revaluation for customer accounts on a regular basis.
Explanation
Performing foreign currency revaluation is the correct approach to ensure that the accounts receivable balances are accurate and reflect the current exchange rates. Converting transactions at the time of entry does not account for rate changes over time. Disallowing foreign currency transactions is not practical for a multinational business. Manually adjusting exchange rates for each transaction is error-prone and not efficient.
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.