A company is implementing Dynamics 365 Supply Chain Management. The company has a single tax reporting legal entity with three divisions. Each division requires individual financial reports. You…

Question

Options

• ACreate one company and configure operating units by business unit
• BCreate one company and configure operating units by department.
• CCreate four companies: one for each division and one for consolidation.
• DCreate one company and configure operating units by value stream.
• ECreate an organizational hierarchy and assign a team per division.

• A
  72% (41)
• C
  4% (2)
• D
  11% (6)
• E
  14% (8)

Explanation

Because there is only one legal entity (single tax reporting company), only one company needs to be created. Individual financial reports per division can be achieved by using financial dimensions tied to operating units. Both Business Units (A) and Departments (B) are types of operating units in Dynamics 365 that can be used as financial dimensions to segment and filter financial reports at a sub-entity level. Option C is incorrect because creating four companies contradicts the single-legal-entity requirement and adds unnecessary overhead. Option D (value stream) is a supply-chain-oriented operating unit type not typically used for financial reporting segmentation. Option E (teams) is not a financial reporting structure.

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