Learn the best practices for configuring a consistent chart of accounts across multiple legal entities in Microsoft Dynamics 365 Business Central. Discover how to manage exceptions and set up legal entity overrides for effective financial management.
Table of Contents
Question
Your company has multiple legal entities. They have a requirement to maintain a consistent chart of accounts and account structures across all entities. They also need the flexibility to handle exceptions specific to each entity.
You need to configure the ledger to use the same chart of accounts and account structures for multiple legal entities while managing exceptions through legal entity overrides.
What should you do? Each correct answer presents part of the solution. Choose 2.
A. Configure the Ledger page in each legal entity to use the same chart of accounts and manage exceptions using the legal entity override feature.
B. Create separate charts of accounts for each legal entity and manually synchronize them periodically.
C. Use a single legal entity to manage the chart of accounts and replicate the setup to other entities without overrides.
D. Configure each legal entity with different account structures and manually reconcile the differences.
E. Select the same chart of accounts on the Ledger page for each legal entity and ensure that no overlapping combinations of main accounts and financial dimensions exist.
Answer
A. Configure the Ledger page in each legal entity to use the same chart of accounts and manage exceptions using the legal entity override feature.
E. Select the same chart of accounts on the Ledger page for each legal entity and ensure that no overlapping combinations of main accounts and financial dimensions exist.
Explanation
Correct Answer Option A is correct because it allows the use of the same chart of accounts across multiple legal entities while managing exceptions with legal entity overrides, which aligns with the goal statement. Correct Answer Option E is also correct as it ensures that there are no overlapping combinations of main accounts and financial dimensions when sharing account structures. Distractor Option B is incorrect because it suggests manual synchronization, which is not efficient or recommended. Distractor Option C is incorrect because it does not allow for legal entity-specific configurations. Distractor Option D is incorrect because it suggests using different account structures without any synchronization or reconciliation mechanism.
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