Microsoft Dynamics 365 Finance — Question 71

You create a parent budget for the next fiscal year of a parent company. The parent company is configured as its own legal entity.

Franchises are configured as separate legal entities. The parent company sets the budget for each franchise based on the past year’s performance.

Ledger allocation rules, periods allocation keys, and budget allocation terms have not been created. Budget line items must be allocated to the budget for each franchise.

You need to ensure the franchise budgets are allocated.

What should you do?

Answer options

• A. Create ledger allocation rules. Set the allocation method to use ledger allocation rules.
• B. Create period allocation keys. Set the allocation method to allocate across periods.
• C. Set the allocation method to distribute.
• D. Set the allocation method to aggregate.
• E. Create budget allocation terms. Set the allocation method to allocate to dimensions.

Correct answer: C

Explanation

The correct answer is C because setting the allocation method to distribute ensures that budget line items are allocated appropriately across the franchises. Options A and E involve creating additional allocation rules or terms that are not necessary for the immediate allocation task. Option B focuses on period allocation, which is not relevant in this scenario, while option D suggests aggregation, which would not facilitate the needed distribution of budgets.