Microsoft Dynamics 365 Finance — Question 17

An organization plans to set up intercompany accounting between legal entities within the organization.
Automatic transactions between legal entities must meet the following requirements:
✑ Provide systemwide integration and streamlining to save time.
✑ Minimize errors and create an audit trail with full visibility into business activities and transaction histories within the legal entities.
You need to set up intercompany accounting and create pairs of legal entities that can transact with each other, clearly defining the originating company and the destination company.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

Answer options

• A. Select intercompany journal names.
• B. Configure intercompany accounting in both the originating entity and destination entity.
• C. Create intercompany main accounts to use for the due to and due from accounting entries.
• D. Define intercompany accounting setup by creating legal entity pairs defining originating and destination companies.
• E. Configure intercompany accounting in the destination entity only.

Correct answer: A, C, D

Explanation

The correct answers A, C, and D are essential steps in setting up intercompany accounting. Selecting intercompany journal names (A) is necessary for proper transaction recording, creating intercompany main accounts (C) ensures accurate accounting entries for intercompany transactions, and defining legal entity pairs (D) establishes the framework for transactions. Option B is incorrect because both entities must be configured, not just the originating one, and option E is also wrong as it only addresses one side of the transaction setup.