Discover the three essential steps to streamline currency revaluation in Microsoft Dynamics 365 Finance. Learn how to automate workflows, configure centralized exchange rates, and schedule batch jobs to ensure consistent financial reporting across subsidiaries.
Table of Contents
Question
A multinational corporation, Contoso Ltd., is experiencing inconsistencies in their financial reporting due to varying currency exchange rates applied across different subsidiaries. You need to standardize the currency revaluation process to ensure accurate and consistent financial reporting. What threeactions should you perform? Each correct answer presents part of the solution. Choose three.
A. Allow each subsidiary to continue using their local banks’ exchange rates for financial transactions.
B. Configure a centralized currency exchange rate provider in Microsoft Dynamics 365 Finance to ensure uniform rates across all legal entities.
C. Implement an automated workflow for currency revaluation that includes approval steps for any manual adjustments.
D. Manually update exchange rates daily in each subsidiary to reflect market fluctuations.
E. Set up a scheduled batch job to periodically perform currency revaluation for all subsidiaries at the same time.
Answer
B. Configure a centralized currency exchange rate provider in Microsoft Dynamics 365 Finance to ensure uniform rates across all legal entities.
C. Implement an automated workflow for currency revaluation that includes approval steps for any manual adjustments.
E. Set up a scheduled batch job to periodically perform currency revaluation for all subsidiaries at the same time.
Explanation
A centralized currency exchange rate provider ensures that all legal entities within the organization use the same rates, which leads to consistency in financial reporting. An automated workflow for currency revaluation with approval steps helps maintain control over manual adjustments and ensures they are reviewed. A scheduled batch job for currency revaluation ensures that the process is carried out uniformly and timely across all subsidiaries. Allowing each subsidiary to use their local bank’s exchange rates (D) or manually updating exchange rates daily (E) would lead to inconsistencies and is not efficient.
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