Budget Control Actions When Turning Off Mid-Year
Question
A company configures budget controls at the beginning of the year.
Which three budget control transaction actions occur when the budget control is turned off mid-year.
Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
Answers
Explanations
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A. B. C. D. E.ABC.
https://docs.microsoft.com/en-us/dynamics365/finance/budgeting/budget-control-overview-configurationSure, I'd be happy to provide a detailed explanation for this question.
When budget control is configured in Microsoft Dynamics 365 Finance, it allows the organization to track and manage its financial activities against a set budget. This ensures that expenses and revenues are within the approved budget, helping the organization to meet its financial goals.
Now, if the budget control is turned off mid-year, the following three budget control transaction actions occur:
A. Activities are unrecorded for budget control purposes: This means that any financial activities that occur after budget control is turned off will not be recorded or tracked for budget control purposes. For example, if a purchase order is created after budget control is turned off, it will not be checked against the budget before it is approved.
B. Budget register entries that have been posted after budget control is turned off will not be considered for budget control: This means that any budget register entries that are created and posted after budget control is turned off will not be checked against the budget. This can result in overspending or underspending, as the organization will not be able to track the financial activities against the budget.
C. Posted documents might incorrectly reflect any relieving amounts or balances in inquiries and reports that are related to budget control: This means that any posted documents (such as invoices, purchase orders, or expense reports) that were created before budget control was turned off might not reflect the correct budget balances or relieving amounts in inquiries and reports related to budget control. This can result in incorrect financial reporting, making it difficult to track the organization's financial activities accurately.
D. Budget checks are performed: This statement is incorrect as budget checks are not performed once the budget control is turned off. Budget checks are only performed if budget control is turned on.
E. You can view the budget reporting through financial reports: This statement is partially correct. Financial reports can show the budget reporting for the periods when budget control was turned on. However, any financial activities that occurred after budget control was turned off will not be reflected in the reports.
Therefore, the correct answers for this question are A, B, and C.
