A company plans to set up an organizational hierarchy to manage organizational relationships.
You need to identify which organizational purpose to use.
What purpose can you assign to an organizational hierarchy?
Click on the arrows to vote for the correct answer
A. B. C. D.B.
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/cash-bank-management/set-up-centralized-paymentsIn Microsoft Dynamics 365 Finance and Operations, an organizational hierarchy is used to manage and view the relationships between various departments or divisions within a company. The purpose of an organizational hierarchy can vary based on the needs of the company, but it typically serves to provide a clear view of the company's structure and enables effective management of business processes.
Out of the options provided, the most appropriate purpose to assign to an organizational hierarchy is cost accounting. Cost accounting involves tracking and analyzing costs associated with specific business processes or products. By assigning an organizational hierarchy to cost accounting, a company can better manage its cost structure and identify areas where costs can be reduced.
Financial reason codes are used to track financial transactions, such as invoices or purchase orders. Centralized payments are used to manage payments across multiple departments or entities. Price models are used to manage pricing strategies for products or services. While each of these could potentially be related to an organizational hierarchy, they are not as directly applicable as cost accounting.
In summary, when setting up an organizational hierarchy in Microsoft Dynamics 365 Finance and Operations, the most appropriate purpose to assign is cost accounting, as it enables a company to better manage its cost structure and identify areas where costs can be reduced.