Fiscal Calendar Configuration
Question
You are in the process of configuring fiscal calendars in financial accounting.
Which two of the following options are TRUE with regards to fiscal calendars?
Answers
Explanations
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A. B. C. D.AC.
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/fiscal-calendars-fiscal-years-periodsIn Microsoft Dynamics 365 for Finance and Operations, a fiscal calendar is a setup used to define the financial periods and fiscal years for accounting purposes. It helps to organize financial transactions and reporting activities in a systematic way, as per the company's financial needs.
Regarding the given options, the correct answers are:
B. It is a compulsory setup. Fiscal calendar setup is mandatory in Microsoft Dynamics 365 for Finance and Operations. It is a prerequisite for creating legal entity and setting up financial accounting features like chart of accounts, financial dimensions, and posting profiles. Without a fiscal calendar, you cannot create financial transactions or generate financial reports.
C. It can be used for a fixed asset calendar. A fiscal calendar can be used to create a fixed asset calendar that defines the periods and methods for calculating depreciation for a fixed asset. This enables you to depreciate fixed assets in a consistent and accurate manner and meet the legal and accounting requirements.
D. It can be used for a procurement asset calendar. A fiscal calendar cannot be used for a procurement asset calendar as procurement activities, such as purchasing and inventory management, are not related to financial accounting periods. A procurement calendar is a separate setup used to define procurement periods, which can be linked to the fiscal calendar for reporting purposes.
