Microsoft Dynamics 365 Finance — Question 6

A company provides employee life insurance to all full-time employees. Employee life insurance policies are paid twice a year to the insurance company.
Transactions for current employees must be recognized in the general ledger twice a month with an employee's pay. Transactions for new employees must be recognized in the general ledger based upon the employee's first pay date.
You need to configure accrual schemes for the new fiscal year.
Which two configurations should you use? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

Answer options

• A. For new employees, use a Credit accrual scheme. In the ledger accrual, set the offset to the first day of the fiscal year.
• B. For current employees, use a Credit accrual scheme. In the ledger accrual, set the offset to the employee's first pay date.
• C. For new employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the employee's first pay date.
• D. For current employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the first day of the fiscal year.

Correct answer: C, D

Explanation

Option C is correct because a Debit accrual scheme is necessary for new employees, and the offset must be set to their first pay date to align with their payroll. Option D is also correct as it uses a Debit accrual scheme for current employees, and the offset should be the first day of the fiscal year to ensure proper accounting. Options A and B are incorrect because they use a Credit accrual scheme, which does not align with the required configurations for new and current employees.