Uses for Fiscal Calendars in Dynamics 365 Finance
Question
An organization is setting up a cost accounting.
You need to set up fiscal calendars for Dynamics 365 Finance.
What are three uses for fiscal calendars? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
Answers
Explanations
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A. B. C. D. E.BCD.
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/fiscal-calendars-fiscal-years-periodsFiscal calendars are used to define the financial periods of an organization. These periods are used to record financial transactions and generate financial statements. The fiscal calendar setup in Dynamics 365 Finance is a critical part of cost accounting because it controls how financial transactions are recorded, allocated, and summarized.
Here are three uses for fiscal calendars in Dynamics 365 Finance:
Financial transactions: The fiscal calendar determines the periods in which financial transactions are recorded. This includes transactions such as sales, purchases, and payments. Fiscal calendars allow for accurate tracking of financial data by period, which is important for budgeting, forecasting, and financial analysis.
Fixed asset depreciation: Fiscal calendars are used to set up depreciation periods for fixed assets. This allows for accurate tracking of fixed asset costs and depreciation expenses. Fixed asset depreciation is typically calculated on a monthly or quarterly basis, so it is important to have a fiscal calendar that aligns with these periods.
Budget cycles: Fiscal calendars are used to set up budget cycles for an organization. Budget cycles typically align with the fiscal year and are used to track budgeted amounts and actual expenditures. Fiscal calendars allow for accurate tracking of budget data by period, which is important for budgeting, forecasting, and financial analysis.
While options A and E (standard work hours and shift work hours) may be important for tracking employee time and attendance, they are not directly related to the use of fiscal calendars in Dynamics 365 Finance for cost accounting purposes. Therefore, options B, C, and D (financial transactions, fixed asset depreciation, and budget cycles) are the correct answers.
