Learn how to configure intercompany accounting in Microsoft Dynamics 365 Finance to automate transactions between legal entities, ensure compliance with internal controls, and reduce manual intervention.
Table of Contents
Question
A multinational corporation with multiple legal entities is implementing Microsoft Dynamics 365 Finance. They require a robust intercompany accounting system to manage complex intercompany transactions efficiently. You need to ensure that the intercompany accounting setup supports automatic transactions between legal entities with minimal manual intervention, adhering to the company’s strict internal control policies. What should you do?
A. Configure intercompany accounting with direct posting to the destination legal entity’s ledger and set up intercompany journal names with necessary workflow approvals.
B. Manually record intercompany transactions in each legal entity’s ledger at the end of each financial period.
C. Set up a centralized payment system outside of Microsoft Dynamics 365 Finance to handle all intercompany transactions.
D. Use a third-party intercompany integration tool to manage intercompany transactions and bypass the built-in Dynamics 365 Finance capabilities.
Answer
A. Configure intercompany accounting with direct posting to the destination legal entity’s ledger and set up intercompany journal names with necessary workflow approvals.
Explanation
Option A is correct because it leverages Dynamics 365 Finance’s built-in intercompany accounting features to automate transactions and maintain control with workflow approvals. Option C is incorrect as it suggests using an external system, which is not leveraging Dynamics 365 Finance capabilities. Option B is incorrect because manual recording is error-prone and inefficient. Option D is incorrect as it suggests using a third-party tool instead of the native functionalities of Dynamics 365 Finance.
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