Year-End Setup in Dynamics 365 Finance: Configuration Requirements

Configuring Year-End Setup in Dynamics 365 Finance

Prev Question Next Question

Question

Note: This question is part of a series of questions that present the same scenario.

Each question in the series contains a unique solution that might meet the stated goals.

Some question sets might have more than one correct solution, while others might not have a correct solution.

After you answer a question in this section, you will NOT be able to return to it.

As a result, these questions will not appear in the review screen.

You are configuring the year-end setup in Dynamics 365 Finance.

You need to configure the year-end setup to meet the following requirements: -> The accounting adjustments that are received in the first quarter must be able to be posted into the previous year's Period 13

-> The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions.

-> All dimensions from profit and loss must carry over into the retained earnings.

-> All future and previous periods must have an On Hold status.

Solution: -> Configure General ledger parameters.

- Set the Delete close of year transactions option to No.

- Set the Create closing transactions during transfer option to No.

- Set the Fiscal year status to permanently closed option to No.

-> Define the Year-end close template.

- Designate a retained earnings main account for each legal entity.

- Set the Financial dimensions will be used on the Opening transactions option to No.

- Set the Transfer profit and loss dimensions to Close All.

-> Set all prior and future Ledger periods to a status of On Hold.

Does the solution meet the goal?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B.

B.

https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/general-ledger/year-end-close

Based on the stated requirements, let's evaluate each step of the proposed solution and check if it meets the goals:

-> Accounting adjustments in Q1 can be posted into the previous year's Period 13

  • Setting the "Delete close of year transactions" option to No will prevent the system from deleting Period 13 after the year-end closing.
  • Setting the "Create closing transactions during transfer" option to No will allow posting of transactions into the previous year's Period 13 without creating new year-end closing transactions.
  • Overall, these settings will enable the posting of Q1 adjustments into the previous year's Period 13.

-> The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions.

  • Setting the "Fiscal year status to permanently closed" option to No will allow rerunning the year-end closing.
  • However, since the "Delete close of year transactions" option is set to No, previous closing transactions will remain in the system. Therefore, this requirement is not fully met.

-> All dimensions from profit and loss must carry over into the retained earnings.

  • Designating a retained earnings main account for each legal entity in the year-end close template will enable the posting of profit and loss into the retained earnings account.
  • Setting the "Financial dimensions will be used on the Opening transactions" option to No will prevent the system from using financial dimensions on opening transactions.
  • Setting the "Transfer profit and loss dimensions to Close All" option will transfer all profit and loss dimensions to the retained earnings account. Therefore, this requirement is met.

-> All future and previous periods must have an On Hold status.

  • Setting all prior and future Ledger periods to a status of On Hold will meet this requirement.

Overall, based on the evaluation of each step, the proposed solution partially meets the goals. Therefore, the answer is B. No.

Prev Question Next Question