Microsoft Dynamics 365 Finance — Question 113

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.

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A company uses Dynamics 365 Finance. The company sells extended warranty services that use a project fee journal.

You need to recognize unearned revenue for the extended warranty service over time.

Solution: Configure the project ledger posting for the fee category to post to the unearned revenue account, set up an accrual scheme, and use the general journal with the accrual scheme to recognize the unearned revenue.

Does the solution meet the goal?

Answer options

Correct answer: A

Explanation

The solution is correct because it appropriately configures the project ledger to account for unearned revenue, which aligns with the requirements for recognizing revenue over time. The other option, 'No', is incorrect as the proposed steps effectively set up the accrual process needed for the extended warranty services.