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MB-700 · Question #120

A company with multiple legal entities implements Dynamics 365 Finance. You need to recommend options to ensure that you can provide customized financial reporting across the legal entities. What…

The correct answer is B. Create separate business units. C. Create separate cost centers to manage operations. Business units and cost centers are financial dimensions in Dynamics 365 Finance that can be applied across legal entities to enable customized, segmented financial reporting.

Architect solutions

Question

A company with multiple legal entities implements Dynamics 365 Finance. You need to recommend options to ensure that you can provide customized financial reporting across the legal entities. What are two possible ways to achieve the goal? Each correct answer presents a complete solution. NOTE: Each correct selection is worth one point.

Options

  • ACreate separate departments to manage functional areas.
  • BCreate separate business units.
  • CCreate separate cost centers to manage operations.
  • DCreate separate value streams for item management.

How the community answered

(24 responses)
  • A
    17% (4)
  • B
    75% (18)
  • D
    8% (2)

Why each option

Business units and cost centers are financial dimensions in Dynamics 365 Finance that can be applied across legal entities to enable customized, segmented financial reporting.

ACreate separate departments to manage functional areas.

Departments are an organizational hierarchy element used for internal workforce structure and do not function as a financial dimension for cross-entity customized financial reporting.

BCreate separate business units.Correct

Business units are a standard financial dimension representing operational segments of a company; they can be shared or mapped across legal entities to filter and compare financials in Financial Reporter or Management Reporter.

CCreate separate cost centers to manage operations.Correct

Cost centers are financial dimensions that track expenses by organizational function or department and can be configured across legal entities, enabling granular cost and profitability reporting in consolidated statements.

DCreate separate value streams for item management.

Value streams are a lean manufacturing concept used in production flow management for item and process tracking, not a financial reporting dimension in Dynamics 365 Finance.

Concept tested: Dynamics 365 Finance financial dimensions for cross-entity reporting

Source: https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/financial-dimensions

Topics

#Financial reporting#Organizational hierarchy#Financial dimensions#Dynamics 365 Finance

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