Microsoft Dynamics 365 Finance — Question 120

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 a deferral template, configure the deferral default for the general journal, and use the general journal with the deferral process to create a deferral schedule and recognize the unearned revenue from it.

Does the solution meet the goal?

Answer options

Correct answer: A

Explanation

The solution is correct because it effectively sets up the necessary configurations in Dynamics 365 Finance to manage unearned revenue for the extended warranty services. By posting to the unearned revenue account and utilizing a deferral template, the company can properly recognize revenue over the service period. The alternative answer, 'No', is incorrect as it fails to acknowledge the adequacy of the proposed solution in meeting the stated goals.