Introductory Info
Case study
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background
First Up Consultants is a global finance and accounting company.
Financial needs at organizations are constantly changing. When global companies become too large, it becomes too difficult for them to scale to meet their global operational needs. First Up Consultants provides `Finance as a Service` capabilities.
Some large corporations complement their existing finance staff by engaging select services of First Up Consultants. Other large corporations outsource their entire finance operation to First Up Consultants.
First Up Consultants has hundreds of customers at any time. One such customer, Humongous Insurance, is updating its Dynamics Finance 365 implementation.
Another customer, Trey Research, is setting up its first Dynamics 365 Finance implementation.
Current environment
Ledger
Humongous Insurance is a US-based company and operates its fiscal year from January 1 to December 31. Humongous Insurance reports across all its subsidiaries in consolidated financial reports.
Trey Research is a Canadian-based company that operates its fiscal year from April 1 to March 31.
Humongous Insurance employees receive an annual cost of living increase.
Requirements
Ledger
One of Humongous Insurance's companies provides insurance to government clients and must separate that particular company into its own subsidiary.
The Humongous subsidiary will operate in China, which requires a fiscal year from February 1 to January 31.
Transactions must be posted in the business of record.
Humongous Insurance's subsidiary requires accounting entries to be posted from the subledger to the general ledger by 5:00 PM each day.
Trey Research requires accounting entries to be posted from the subledger to the ledger immediately.
Fiscal calendars
You must create three new fiscal calendars:
A fiscal calendar named FebJan that runs from Feb 1 to Jan 31.
A fiscal calendar named AprMar that runs from April 1 to March 31.
A fiscal calendar named JanDec that runs from January 1 to December 31.
Accounts
Trey Research must track bank account balances and transactions for each province in which it operates.
The bank statement must be sent to the physical address of the home office.
Promotion
Humongous Insurance's subsidiary plans to celebrate its new subsidiary status by sending out free gifts to existing policyholders based on the tier of their policy.
Promotional items are ordered for distribution and once received must be tracked within Dynamics 365 Finance.
Taxes
As part of the spinoff to a subsidiary, Humongous Insurance's subsidiaries taxes must be changed from US government rates to Chinese government rates.
Humongous Insurance's subsidiary must track use taxes that are not claimed or reported to the Chinese tax agency.
Reporting
The CEO of Humongous Insurance needs to view the insurance products that customers plan to purchase. The report must show all transactions made over the last two years.
The corporate vice president of Humongous Insurance's subsidiary needs to view the forecasted cash impact of specific products purchased. The report must show only new transactions.
Expenses
Expenses must be paid using the following requirements:
Credit card processing
Humongous Insurance requires all credit card transactions to include line-item details.
Humongous Insurance's subsidiary requires the shipping address, merchant address, and tax information, but cannot include any order line details.
Trey Research requires all credit card transactions include transaction date, transaction amount, description, and line-item details.
Compliance and compensation
Trey Research must be able to audit any modifications to its budget.
Humongous Insurance employees must receive raises four times per budget cycle.
Question
HOTSPOT (Drag and Drop is not supported)
You need to configure credit card processing for all three companies.
Which option should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
- See Explanation section for answer.
Answer(s): A
Explanation:
Box 1: Level 3
Humongous Insurance requires all credit card transactions to include line-item details.
Level 3 ג€" Transfer all Level 2 information, plus order line information.
Note: Data support
For each credit card type that is supported, you can specify the level of data support. The level controls how much information about a transaction is transferred to the payment service. Be sure to check with your provider to determine whether it can provide this information. Here are the options for the level of data support:
Level 1 ג€" Transfer the transaction date, transaction amount, and description.
Level 2 ג€" Transfer all Level 1 information, plus the shipping and merchant addresses, and tax information.
Level 3 ג€" Transfer all Level 2 information, plus order line information.
Box 2: Level 2
Humongous Insurance's subsidiary requires the shipping address, merchant address, and tax information, but cannot include any order line details.
Box 3: Level 3
Trey Research requires all credit card transactions include transaction date, transaction amount, description, and line-item details.
Reference:
https://docs.microsoft.com/en-us/dynamics365/finance/accounts-receivable/credit-card-authorizations