Create New Budgets

A.

To prepare yearly budgets using the Budget module in Dynamics 365 Finance, the following steps should be taken:

1. Navigate to the Budgeting module: From the Finance and Operations homepage, select the Budgeting module from the Modules list.

2. Create a new budget plan: Click the New button to create a new budget plan.

3. Define the budget plan details: In the budget plan form, define the name of the budget plan, fiscal year, currency, and other necessary details.

4. Define the budget scenarios: After creating the budget plan, define the budget scenarios. Budget scenarios represent different versions of the budget plan and can be used for comparison purposes. For example, a company may create a budget plan for different scenarios such as optimistic, pessimistic, and realistic.

5. Define the budget lines: After defining the budget scenarios, define the budget lines. Budget lines represent the details of the budget plan, including revenues, expenses, and other financial transactions. To define budget lines, select the budget plan, select the budget scenario, and add budget lines.

6. Review and approve the budget: After defining the budget lines, review and approve the budget. Budgets can be approved by multiple levels of approval depending on the company's hierarchy.

Therefore, based on the options provided in the question, the correct answer would be A. Create budget plans for multiple scenarios. This is because creating budget plans for multiple scenarios will allow the company to compare and analyze different versions of the budget plan, which can be used to make informed decisions. Options B and C are not correct as they do not provide sufficient details to create a comprehensive budget plan.