Microsoft Dynamics 365 Finance — Question 38

A company manufactures air filtering units for industrial manufacturing plants.
During the acquisition of one of the components that is used in the unit an agreement is reached that the $25,000 component will be paid for in the following schedule:
✑ The first payment will be $10,000.
✑ The remaining balance will be distributed equally and due on the 15th of the month for the next three months.
You need to configure the system for the payment schedule.
What should you do?

Answer options

• A. Use the Specified allocation method.
• B. Enter $25,000 in the Amount of Transaction Quantity field.
• C. Specify a fixed quantity payment of 5.
• D. Set the Fixed allocation method Fixed Amount field for the monthly amount.

Correct answer: A

Explanation

The correct answer is A because the Specified allocation method allows for customized payment schedules, which fits the described plan perfectly. Options B and C do not account for the specific payment distribution required, and option D does not provide the necessary flexibility to accommodate the initial larger payment followed by smaller equal payments.