A company uses Dynamics 365 Business Central.The finance team must dispose a fixed asset.You need to recommend the process to post the fixed asset disposal.Which two actions should you recommend the company perform? Each correct answer presents a complete solution.Note: Each correct selection is worth one point.
Answer(s): A,B
[A]To post a fixed asset disposal in Business Central, create an entry in the Fixed Asset G/L Journal [A]. On the journal line, set the FA Posting Type to "Disposal," select the relevant fixed asset, and choose the Insert FA Bal. Account action to automatically create the balancing account line. Then, post the journal to record the disposal and automatically calculate any gain or loss.[B]When disposing of a fixed asset through a sales invoice, you should select the correct tax category in Business Central's Line details to ensure proper tax calculation for the disposal. Since a fixed asset does not have a default VAT Prod. Posting Group, this setup is necessary on the sales invoice line.Incorrect.:[Not D]The system automatically handles the removal of the asset and its associated accumulated depreciation by posting a journal entry that reverses these amounts. You should create a fixed asset disposal journal, select "Disposal - scrap," and then create the entry, which automatically handles the depreciation reversal based on the asset's posting profile.
https://learn.microsoft.com/en-us/dynamics365/business-central/fa-how-dispose-retire https://community.dynamics.com/forums/thread/details/?threadid=0e03e05f-91f9-4049-ac92-94a7320e68e9
DRAG DROPYou are configuring Business Central for a client.The client has the following requirements to process documents in the system:Invoice amounts in the local currency must never be rounded.Details for general ledger (G/L) entries must be displayed in Preview Posting.During data entry, users must receive an alert about issues in documents and journals to prevent users from posting.You need to configure General Ledger Setup options to complete the configuration.Which configuration options should you use for each requirement? To answer, drag the appropriate configuration options to the correct requirements. Each configuration option may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.Note: Each correct selection is worth one point.Select and Place:
Answer(s): A
Box 1: Inv. Rounding Precision (LCY)Invoice amounts in the local currency must never be rounded.General Ledger SetupTo prevent local currency invoice amounts from being rounded, you must set the Amount Rounding Precision in the Currency setup to 0. While you set the Inv. Rounding Precision (LCY) in the General Ledger Setup to define the expected rounding precision for the local currency, the Amount Rounding Precision on the currency itself takes precedence and determines the actual rounding behavior.Detailed steps1. Go to General Ledger Setup and set the Inv. Rounding Precision (LCY) to the desired precision, such as 0.01 for cents.2. Go to Currencies and find your local currency code (e.g., USD).3. Set the Amount Rounding Precision field to 0 to prevent any rounding.4. Go to Sales & Receivables Setup and Purchases & Payables Setup and make sure the Invoice Rounding check box is selected.This will ensure that local currency invoices are not rounded, while still allowing for correct foreign currency rounding if needed.Box 2: Posting Preview TypeDetails for general ledger (G/L) entries must be displayed in Preview Posting.To ensure G/L entry details are displayed in Preview Posting, set the Posting Preview Type field on the General Ledger Setup page to Extended. This option shows a more detailed and hierarchical view of G/L and VAT entries before they are posted.Box 3: Enable Data CheckDuring data entry, users must receive an alert about issues in documents and journals to prevent users from posting.The General Ledger Setup option to ensure users receive real-time alerts about posting issues is enabled via the Enable Data Check toggle on the General tab. Additionally, administrators must enable the feature in Feature Management and users may need to enable it for their own notifications in the My Notifications page, which will show a Check Document or Check Journal FactBox to list issues as they are entered.
https://learn.microsoft.com/en-us/dynamics365/business-central/finance-set-up-invoice-rounding https://learn.microsoft.com/en-us/dynamics365-release-plan/2021wave2/smb/dynamics365-business-central/ group-gl-vat-entries-posting-preview-easily-extend-posting-preview https://learn.microsoft.com/en-us/dynamics365-release-plan/2022wave1/smb/dynamics365-business-central/ check-documents-journals-background
DRAG DROPA manufacturing company uses Dynamics 365 Business Central. The company implemented fixed assets by using a straight-line depreciation method for its financials.The company plans to use a different method to track tax depreciation in Business Central. The company already created and configured the tax depreciation book with the code Tax.You need to configure existing fixed assets to use multiple depreciation books.Which four actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.Select and Place:
To configure an existing fixed asset in Dynamics 365 Business Central to use multiple depreciation books, select the asset on the Fixed Assets page, go to the "Depreciation Book" FastTab, and use the "Add More Depreciation Books" action or the "Depreciation Books" action to assign additional books. You can also use the "Create FA Depreciation Books" action to set up depreciation books in a batch job, allowing you to copy from an existing asset's depreciation information.Step 1: Open the fixed asset cardMethod 1: Manually add depreciation books to an existing asset1. Navigate to Fixed Assets by searching for it in the search bar (Alt + Q).2. Select the fixed asset you want to configure and click the Edit action. [Step 1]Step 2: Open the Depreciation Book cardStep 3: Select the Add more Depreciation Books link3. Locate the "Depreciation Book" FastTab and fill in the required fields for the first depreciation book.4. Click the Add More Depreciation Books action on the "Depreciation Book" FastTab. [Step 2] Alternatively, click the Depreciation Books action to open a new page where you can specify one or more additional depreciation books for the asset.Step 4: Add a depreciation method of declining balancing 1 and fill in the remaining fields Use a different method other than the straight-line depreciation method.
https://learn.microsoft.com/en-us/dynamics365/business-central/fa-how-setup-depreciation
A production company is implementing Dynamics 365 Business Central.The company must be able to analyze the total acquisition and maintenance cost of each production line.The production lines must be set up as main assets with all the machines on the line set up as components. Only the machines on the production line should have a book value and be depreciated.You need to configure the system to post correctly for the production line assets.Which two actions should you perform? Each correct answer presents part of the solution.Note: Each correct selection is worth one point.
Answer(s): B,C
To correctly post production line assets, you must set up the production line as the main fixed asset and each machine as a component asset. Acquire and depreciate only the component machines individually, while all maintenance and acquisition costs for the production line are posted to the main asset. You can then analyze total costs by viewing the Main Asset Statistics for the production line, which aggregates the costs from all its component machines.Setup and acquisition[C, not D] 1. Create individual fixed asset cards: Set up a separate fixed asset card for each machine (components) and for the production line (main asset).2. Link components to the main asset: On the main asset's fixed asset card, use the "Main Asset Components" action to add each machine as a component.[B] 3. Acquire component assets: Post the acquisition costs for each machine asset individually. Do not post acquisitions directly to the main production line asset.4. Post acquisitions to the main asset: Purchase the entire production line but post the acquisition cost to the main asset. This is how you would account for the total cost of the production line, but the individual machines will be depreciated later.
https://learn.microsoft.com/en-us/dynamics365/business-central/production-configure-production-processes
A repair company is implementing Dynamics 365 Business Central. The company tracks its repair vehicles as fixed assets. Each vehicle has a salvage value that varies depending on the make and model.The company requires the acquisition cost to be posted to the general ledger and the salvage value be included in the fixed asset ledger entries.You need to post the salvage value.What should you do?
Answer(s): D
In Dynamics 365 Business Central, depreciation books are a way to define and track how fixed assets are depreciated using different methods and rules. Most companies use at least two books: one for accounting purposes and another for tax purposes, allowing for different depreciation schedules and calculations. Each book has its own settings for depreciation methods, calendars, and journals.Key features of depreciation booksMultiple books: You can set up multiple depreciation books for a single fixed asset to accommodate different accounting and tax requirements.Custom depreciation rules: Each book can have its own depreciation method (e.g., straight-line, declining- balance), useful life, and other rules.*-> Journal setup: Each book can be configured to use a specific journal template and setup for posting depreciation entries.Reporting: Depreciation books are used to generate reports that show the changes in fixed asset value over time, sorted by item class.Calendar association: A book can be linked to a specific calendar, which is used for calculations, especially if a fiscal depreciation year is used.*-> Flexibility: Settings can be adjusted for specific scenarios, such as whether corrections to disposal entries are allowed or if VAT is applied to net disposal values
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