An organization plans to set up intercompany accounting between legal entities within the organization.
Automatic transactions between legal entities must meet the following requirements: -> Provide systemwide integration and streamlining to save time.
-> Minimize errors and create an audit trail with full visibility into business activities and transaction histories within the legal entities.
You need to set up intercompany accounting and create pairs of legal entities that can transact with each other, clearly defining the originating company and the destination company.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
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A. B. C. D. E.ACD.
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/intercompany-accounting-setupTo set up intercompany accounting between legal entities within an organization, the following actions should be performed:
A. Select intercompany journal names: Intercompany accounting requires the use of specific journal names that are designated for intercompany transactions. These journal names will be used to record transactions between the originating and destination legal entities.
B. Configure intercompany accounting in both the originating entity and destination entity: Intercompany accounting must be configured in both the originating entity and destination entity to allow for automatic transactions between the legal entities. This configuration will ensure that transactions are recorded correctly and that the accounting entries are posted to the appropriate accounts.
C. Create intercompany main accounts to use for the due to and due from accounting entries: Intercompany transactions require the use of main accounts that will be used for the due to and due from accounting entries. These main accounts should be created in both the originating entity and destination entity to ensure consistency across the organization.
D. Define intercompany accounting setup by creating legal entity pairs defining originating and destination companies: Intercompany accounting setup requires the creation of legal entity pairs that define the originating and destination companies. This will allow for clear identification of the legal entities involved in intercompany transactions and ensure that transactions are recorded accurately.
E. Configure intercompany accounting in the destination entity only: This option is incorrect, as intercompany accounting must be configured in both the originating entity and destination entity to allow for automatic transactions between the legal entities. Configuring intercompany accounting in only the destination entity would not provide a complete solution.
In summary, the correct actions to set up intercompany accounting between legal entities within an organization are to select intercompany journal names, configure intercompany accounting in both the originating entity and destination entity, create intercompany main accounts to use for the due to and due from accounting entries, and define intercompany accounting setup by creating legal entity pairs defining originating and destination companies.