Configure Account Structures for Multiple Legal Entities in Microsoft Dynamics 365 Finance
Question
You work as a Financial Consultant.You have been hired by a company to manage the Microsoft Dynamics Finance 365 system.The company consists of two legal entities.
You need to configure account structures.
Which two of the following statements are true?
Answers
Explanations
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A. B. C. D.AC.
As a financial consultant responsible for configuring account structures in Microsoft Dynamics 365 Finance, you should be aware of the following two statements that are true:
A. You can create multiple account structures per legal entity: In Microsoft Dynamics 365 Finance, you can create multiple account structures per legal entity. An account structure is a set of rules that defines the various segments of the financial accounts used to record business transactions. By creating multiple account structures per legal entity, you can have different account structures for different purposes or scenarios, such as tracking expenses by department or project, or tracking revenue by customer or region.
B. Account structures cannot be reused across multiple legal entities: In Microsoft Dynamics 365 Finance, account structures cannot be reused across multiple legal entities. Each legal entity has its own set of accounts, and the account structure defines the segments of those accounts. Since legal entities have different requirements and operations, their accounts must be separated, and different account structures are needed for each legal entity.
The other two statements are not true:
C. If you change an account structure, posted transactions are not affected: If you change an account structure, it can impact previously posted transactions. This is because posted transactions are linked to the specific account structure used when the transactions were posted. Changing the account structure can affect how those transactions are reported or displayed. Therefore, it is important to carefully plan any changes to the account structure and to perform the necessary testing before implementing the changes.
D. There is no limit to the number of segments in an account structure: There is a limit to the number of segments in an account structure in Microsoft Dynamics 365 Finance. The maximum number of segments allowed is 10, and this includes the main account segment. This means that you can have up to 9 additional segments for each account structure. The number of segments and the length of each segment should be carefully planned to meet the needs of the organization and to ensure efficient and accurate financial reporting.
