In which three scenarios should you use a bridging account? Each correct answer presents a complete solution.

Question

Options

• ATo settle prepayments for a vendor
• BAs a method of payment for customers
• CTo settle prepayments for a customer
• DAs a method of payment for vendors
• ETo settle postdated checks for a vendor

• A
  15% (6)
• B
  79% (31)
• C
  5% (2)

Explanation

B: * For a business that still receive checks from customer (and we are glad that we do), it is important to differentiate the two elements of receiving a customer payment. 1. Applying the payment to an invoice. 2. Depositing the check. Dynamics AX has a nice way of handling this through bridging accounts. * In Methods of payment - customers (form) Field: Bridging account Select the account for bridging transactions. This account is used if you selected the Bridging posting check box. D: In Methods of payment - vendors (form) Field: Bridging account Select the account for bridging transactions. This account is used if you selected the Bridging posting check box. E: Set up a method of payment for postdated checks 1. Click Accounts payable > Setup > Payment > Methods of payment. Click Accounts receivable > Setup > Payment > Methods of payment. 2. In the Method of payment field, enter the method of payment for a customer or a vendor. For more information 3. In the Account type field, select Bank. 4. In the Payment account field, select the bank account that is used to deduct the invoice 5. Select the Postdated check clearing posting check box to indicate that the check amount is posted to a clearing account. (Select the clearing account in the Clearing account for issued checks or Clearing account for received checks field in the Cash and bank management parameters form.) The Bridging posting check box is selected. Note: A bridging account or a clearing account is a temporary account that is used to post a transaction until the transaction is reconciled.

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