How should you configure the organization?

DRAG DROP

A professional services company is implementing Dynamics 365 Finance.

The company has the following business entities:

You need to configure the system to support this organizational structure.

How should you configure the organization? To answer, drag the appropriate configurations to the correct entities. Each configuration may be used once. more than once. or not at all You may need to drag the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point.

View Answer

Answer:

Explanation:

Box 1: Legal entity

Box 2: Legal entity for elimination

Elimination transactions are required when a parent legal entity does business with one or more subsidiary legal entities and uses consolidated financial reporting. Consolidated financial statements must include only transactions that occur between the consolidated organization and other entities outside that organizations. Therefore, transactions between legal entities that are part of the same organization must be removed, or eliminated, from the general ledger, so they don’t appear on financial reports. There are multiple ways to report about eliminations:

An elimination rule can be created and processed in a consolidation or elimination company.

Financial reporting can be used to show the eliminations accounts and dimensions on a specific row or column.

A separate legal entity can be used to post manual transaction entries to track eliminations.