Microsoft Dynamics 365 Finance | Purchase Order Configuration

Configure System for Purchase Order Fund Reservation

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A customer uses Dynamics 365 Finance.

The customer creates a purchase order for purchase $20,000 of office furniture.

You need to configure the system to ensure that the funds are reserved when the purchase order is confirmed.

Solution: Configure item posting groups for purchase requisitions.

Does the solution meet the goal?

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Explanations

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A. B.

B.

The proposed solution of configuring item posting groups for purchase requisitions does not directly address the requirement of reserving funds when a purchase order is confirmed. Therefore, the solution does not meet the stated goal.

Item posting groups are used to specify the ledger accounts that are affected when inventory transactions occur, such as when items are purchased, sold, or consumed. While configuring item posting groups is important for correctly accounting for financial transactions, it does not specifically address the requirement to reserve funds.

To reserve funds when a purchase order is confirmed, a more appropriate solution would be to enable purchase order pre-encumbrance. Pre-encumbrance is a financial control mechanism that allows organizations to reserve funds before a purchase order is fully approved and committed. By enabling this feature, the system will automatically create a pre-encumbrance transaction that reserves the necessary funds when the purchase order is confirmed. Once the purchase order is fully approved and committed, the pre-encumbrance transaction will be updated to reflect the actual encumbrance.

In summary, the proposed solution of configuring item posting groups for purchase requisitions does not meet the stated goal of reserving funds when a purchase order is confirmed. Enabling purchase order pre-encumbrance would be a more appropriate solution to achieve this goal. Therefore, the answer is B, No.