Which functionality should you use?

A company is headquartered in Canada and has four regional offices in Japan, Great Britain, Germany, and Mexico.

An architect is documenting the following business requirements:

✑ Accounts payable parameters must be unique within an organization.

✑ Monthly financial results must be consolidated.

You need to design the organization to map to the requirements.

Which functionality should you use?
A . Legal entities
B . Line of business
C . Business units
D . Operating units

View Answer

Answer: A

Explanation:

In Dynamics 365 Finance, Legal entities are used to define independent companies that can enter into legal contracts and require legal reports. If the accounts payable parameters must be unique within the organization and monthly financial results need to be aggregated, then it is appropriate to establish different legal entities. Each legal entity can have its own accounting parameters, and centralized tools such as Consolidation can be used in the system to consolidate the financial results of these entities. These legal entities correspond to the company’s headquarters in Canada and regional offices in Japan, the United Kingdom, Germany, and Mexico.