You work as a Financial Consultant.You have been hired by a company to manage the Microsoft Dynamics Finance 365 system.
You need to configure the Microsoft Dynamics Finance system to spread costs from one cost object to one or more other cost objects by applying a relevant allocation base.
Which of the following should you configure?
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A. B. C. D.D.
https://docs.microsoft.com/en-us/dynamics365/finance/cost-accounting/terms-cost-accountingTo spread costs from one cost object to one or more other cost objects by applying a relevant allocation base, you should configure the Cost allocation policy in the Microsoft Dynamics 365 Finance system.
Cost allocation policy enables you to distribute indirect costs across different cost objects based on an allocation base. The allocation base could be quantity, weight, volume, or any other basis that is relevant to the organization. The cost allocation policy defines the rules for the allocation of costs, and it can be configured to allocate costs based on various parameters such as percentage or fixed amounts.
To configure the cost allocation policy in Microsoft Dynamics 365 Finance system, follow the steps below:
Open the Cost allocation policy form by navigating to General Ledger > Periodic tasks > Cost allocation.
Create a new allocation rule or select an existing one to modify.
Define the allocation basis, such as units produced, labor hours, or square footage.
Choose the cost objects to allocate the costs to. This can be a single cost object or multiple cost objects.
Define the percentage or fixed amount to allocate to each cost object.
Define any exclusions or filters to exclude certain cost objects or cost elements from the allocation.
Save the allocation rule.
Once the cost allocation policy is configured, the system will automatically allocate costs based on the defined allocation rule. This helps in accurately tracking the costs associated with each cost object and enables better cost analysis and decision-making.