A company uses Dynamics 365 Finance to manage budgets.
You need to reallocate funds during the year.
Which budget code should you use?
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A. B. C. D.D.
https://docs.microsoft.com/en-us/dynamics365/finance/budgeting/basic-budgeting-overview-configurationIn Dynamics 365 Finance, there are different types of budget codes that can be used for different purposes. To reallocate funds during the year, the most appropriate budget code would depend on the specific circumstances and requirements of the company.
Here's a brief overview of the four budget codes mentioned in the question:
A. Carry-forward: This budget code allows for unused budget amounts from the current fiscal year to be carried forward to the next fiscal year. It can be useful for ensuring that budgeted amounts are not lost if they are not fully utilized during the current year.
B. Zero-based: This budget code requires that all budget amounts be justified and approved each year, regardless of whether they were included in previous budgets. It can be useful for ensuring that budgeted amounts are based on current needs and priorities, rather than simply carrying over amounts from previous years.
C. Pre-encumbrance: This budget code is used to reserve funds for a specific purchase or project before the purchase or project is actually approved or initiated. It can be useful for ensuring that funds are available when needed and for avoiding overspending on unplanned purchases or projects.
D. Transfer: This budget code allows for funds to be transferred from one budget category to another within the same fiscal year. It can be useful for reallocating funds from categories that are underutilized to categories that require additional funds.
Based on the information provided in the question, the Transfer budget code would be the most appropriate option for reallocating funds during the year. This would allow funds to be moved from one budget category to another within the same fiscal year, as needed.