MB-310 · Question #191
Drag and Drop Question You are implementing Dynamics 365 Finance and have deployed one instance with the following legal entities: You need to configure the ledger. Which ledger currencies should be…
The correct answer is CAD; GBP. Dynamics 365 Finance - Ledger Currency Configuration Context Gap to Note The question is incomplete as presented - the image showing the legal entities and their ledger currency slots is missing. However, the correct answers (CAD, GBP) allow us to reconstruct the likely…
Question
Exhibit
Answer Area
Drag items
Correct arrangement
- CAD
- GBP
Explanation
Dynamics 365 Finance - Ledger Currency Configuration
Context Gap to Note
The question is incomplete as presented - the image showing the legal entities and their ledger currency slots is missing. However, the correct answers (CAD, GBP) allow us to reconstruct the likely scenario.
Core Concept: Ledger Currency in D365 Finance
In D365 Finance, every legal entity's ledger requires two currency configurations:
| Slot | Name | Purpose |
|---|---|---|
| 1 | Accounting Currency | The functional/primary currency. All transactions are recorded in this currency. Cannot be changed after transactions exist. |
| 2 | Reporting Currency | An optional secondary currency for cross-company or group-level reporting. |
Why Each Item Is Placed Where It Is
1. CAD - Accounting Currency
- The scenario almost certainly includes a Canadian legal entity. CAD is its functional/operational currency.
- The accounting currency must reflect the currency in which the entity actually conducts business.
2. GBP - Reporting Currency
- A UK-based parent or reporting entity likely requires consolidated reports in GBP.
- GBP serves as the secondary reporting layer, enabling parallel ledger amounts without being the transactional currency.
USD - Not Used
- USD is a distractor. Even if transactions occur in USD (e.g., vendor invoices), USD would be handled as a transaction currency at the journal level - not configured as a ledger currency here.
Common Mistakes
- Choosing USD because it's a globally dominant currency. USD is irrelevant at the ledger level unless the legal entity's home country uses USD.
- Swapping CAD and GBP - the accounting currency must match the entity's operational home currency, not just any currency the company deals in.
- Thinking reporting currency is mandatory - it's optional, but when required for group reporting, it must be set at ledger creation.
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