What settings on the Company Details window are irreversible after a posting has occurred? Note: There are 2 correct answers to this question.

Question

Options

• AUse perpetual inventory
• BItem groups valuation method
• CLocal currency
• DEnable advanced G/L account determination

• A
  83% (24)
• B
  7% (2)
• D
  10% (3)

Explanation

Two settings become permanently locked once a posting occurs because changing them would corrupt existing financial records. Use perpetual inventory (A) cannot be reversed because posted transactions are already recorded under that inventory accounting method - switching would break the continuity of stock valuation and journal entries tied to every prior posting. Local currency (C) is equally irreversible because all posted transactions are denominated in that currency; changing it mid-stream would make the entire general ledger incoherent.

Item groups valuation method (B) is wrong because this can be modified per item group even after postings, though individual item valuation methods lock once a goods receipt occurs - it's item-level, not company-level, that freezes. Enable advanced G/L account determination (D) is wrong because this is a configuration toggle that can be switched on or off at any time without invalidating historical data.

Memory tip: Think of the two locked settings as the "foundation" of the company file - Perpetual inventory and Currency are your PC (the base system you can't swap out after you've started running). Everything else is more like software you can update later.

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