Learn how to enable the Automatic Cost Adjustment feature in Microsoft Dynamics 365 Business Central to ensure accurate inventory valuation. Avoid manual adjustments and optimize your financial reporting for better efficiency.
Table of Contents
Question
Your company requires accurate financial reporting for their inventory.
You need to configure the system to automatically adjust item value entries for correct inventory valuation.
What should you do?
A. Manually adjust item value entries at the end of each fiscal period.
B. Disable the Automatic Cost Posting feature to prevent automatic adjustments.
C. Set the Default Costing Method to FIFO without enabling automatic adjustment.
D. Enable the Automatic Cost Adjustment feature on the Inventory Setup page.
Answer
D. Enable the Automatic Cost Adjustment feature on the Inventory Setup page.
Explanation
Enabling the Automatic Cost Adjustment feature ensures that item value entries are automatically adjusted for accurate inventory valuation. Manually adjusting entries, disabling automatic cost posting, or setting a costing method without enabling automatic adjustment would not provide the same level of accuracy or efficiency.
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