Designing Organization for Unique Accounts Payable Parameters and Monthly Financial Consolidation
Question
A company is headquartered in Canada and has four regional offices in Japan, Great Britain, Germany, and Mexico.
An architect is documenting the following business requirements: -> Accounts payable parameters must be unique within an organization.
-> Monthly financial results must be consolidated.
You need to design the organization to map to the requirements.
Which functionality should you use?
Answers
Explanations
Click on the arrows to vote for the correct answer
A. B. C. D.C.
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/generating-consolidated-financial-statementsThe two business requirements mentioned in the question are:
- Accounts payable parameters must be unique within an organization.
- Monthly financial results must be consolidated.
To design an organization that maps to these requirements, we need to consider the various organizational structures available in Microsoft Dynamics 365 Finance and Operations. Let's look at each of the four options provided:
A. Legal entities: Legal entities are separate entities with their own legal, tax, and regulatory obligations. They are used to represent a company that has a distinct legal identity, such as a subsidiary or a sister company. Since the requirement is for unique accounts payable parameters within an organization, legal entities may not be the best fit, as they represent separate entities.
B. Line of business: A line of business is a business unit within an organization that focuses on a particular product or service. While this may be useful in managing specific aspects of the organization's business, it may not provide the necessary framework for consolidating financial results.
C. Business units: Business units are organizational units within a legal entity that allow you to group legal entities based on shared business processes. Business units may be useful for consolidating financial results, but they may not provide the necessary level of separation for unique accounts payable parameters.
D. Operating units: Operating units are another type of organizational unit within a legal entity that can be used to group legal entities based on shared business processes. They provide a higher level of separation than business units, which makes them more suitable for maintaining unique accounts payable parameters. Operating units can also be used to consolidate financial results.
Therefore, the correct answer to this question is D. Operating units, which will allow the company to maintain unique accounts payable parameters and consolidate monthly financial results across their regional offices.
