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Microsoft

MB-700 · Question #3

Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might…

The correct answer is B. No. Cost centers are used to track and manage operational expenses within departments or divisions - they are a financial dimension for internal reporting, not a mechanism for cross-legal-entity financial reporting. To provide customized financial reporting across legal entities in…

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Question

Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution. After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen. 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. Solution: Create separate cost centers to manage operations. Does the solution meet the goal?

Options

  • AYes
  • BNo

How the community answered

(44 responses)
  • A
    25% (11)
  • B
    75% (33)

Explanation

Cost centers are used to track and manage operational expenses within departments or divisions - they are a financial dimension for internal reporting, not a mechanism for cross-legal-entity financial reporting. To provide customized financial reporting across legal entities in Dynamics 365 Finance, you would use tools like Financial Reporter (Management Reporter) with consolidation features, or configure financial reporting structures that span legal entities. Creating separate cost centers does not solve the cross-legal-entity reporting requirement, so this solution does not meet the goal.

Topics

#Financial Reporting#Legal Entities#Cost Centers#Dynamics 365 Finance

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