Discover the ideal configuration for fixed asset books in Microsoft Dynamics 365 Finance to ace the MB-310 exam. Learn how to manage depreciation methods, ensure compliance, and optimize financial reporting with expert insights.
Table of Contents
Question
Contoso, Ltd. is implementing Microsoft Dynamics 365 Finance. It has a complex portfolio of fixed assets that need to be managed efficiently. They require a system that can handle different depreciation methods and provide accurate financial reporting. You need to evaluate the setup of fixed asset books to ensure they meet the company’s reporting requirements and comply with local legislation. What configuration should you recommend?
A. Configure all fixed asset books to post to the general ledger using a single, uniform depreciation profile to simplify the reporting process.
B. Disable the ‘Calculate depreciation’ option for all fixed asset books to manually control the depreciation process and avoid automatic postings.
C. Set up primary and alternative depreciation profiles for each book to accommodate different depreciation methods and enable the ‘Calculate depreciation’ option for automatic inclusion in depreciation runs.
D. Use only the extraordinary depreciation profile for all fixed assets to account for potential unusual circumstances that may affect asset value.
Answer
C. Set up primary and alternative depreciation profiles for each book to accommodate different depreciation methods and enable the ‘Calculate depreciation’ option for automatic inclusion in depreciation runs.
Explanation
Option C is correct because it allows for flexibility in managing depreciation methods, which is necessary for accurate financial reporting and compliance with local legislation. Option A is incorrect as it does not provide the needed flexibility for different depreciation methods. Option B is incorrect because manual control over depreciation is inefficient and prone to errors. Option D is incorrect as the extraordinary depreciation profile should only be used in specific circumstances, not as a standard for all assets.
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.