SIMULATION You are a functional consultant for a company named Contoso Entertainment System USA (USMF). You plan to trade a product named Professional Speaker Cable in the color gray. You need to…

Question

Options

• AOn the item group setup form, enter account information in the Purchase, accrual and Purchase expenditure, un invoiced account fields.
• BOn the item model group group setup form, select Include physical value.
• COn the item group setup form, enter account information in the Purchase, accrual and Purchase expenditure for product fields.
• DOn the item model group setup form, select Accrue liability on product receipt.

• A
  88% (23)
• B
  4% (1)
• C
  8% (2)

Explanation

Options A and D are correct because setting up purchase accruals in Dynamics 365 requires configuration in two places: the item group must have the correct GL accounts entered - specifically the Purchase accrual and Purchase expenditure, un-invoiced fields (A) - and the item model group must have Accrue liability on product receipt enabled (D) so the system actually triggers the accrual posting when goods arrive.

B is wrong because "Include physical value" on the item model group controls whether physical inventory transactions are factored into average cost calculations - it has nothing to do with accrual accounting.

C is wrong because it names the incorrect account field: "Purchase expenditure for product" is a different account used for standard cost variances, not the un-invoiced accrual entry required here.

Memory tip: Think of it as a two-key lock - the item Group holds the GL accounts (A), and the item model Group flips the switch to use them (D). Both keys must turn or the accrual door stays shut.

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