Q:
A company uses Dynamics 365 Finance to manage its operations. The company has multiple business units across several regions, each operating semi-independently.

You need to enable financial reporting across departments and cost centers.

Which configuration should you use?

A general ledger
B cost calculation
C organizational hierarchy
D fixed assets

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Answer: C

Explanation:

This item tests the candidate’s knowledge of organizational and legal entity concepts in Dynamics 365 Finance and ensures the organizational structure is set up correctly. By defining an organizational hierarchy to align with the company’s structure and financial reporting needs, this will help resolve the financial reporting issue between the organizations (legal entities and operating units) that drive the business operations. The use of a general ledger will not help with the multi-business unit financial reporting challenges. Similarly, the use of teams will not help as this is an organization in which the members share a common responsibility, interest, or objective. Fixed assets are unrelated and are instead items of value owned by the organization, such as buildings, vehicles, or land.

Describe organization and legal entities - Training | Microsoft Learn

Exam MB-920: Microsoft Dynamics 365 Fundamentals (ERP) MCQ

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Q: A company uses Dynamics 365 Finance to manage its operations. The company has multiple business units across several regions, each operating semi-independently. You need to enable financial reporting across departments and cost centers. Which configuration should you use?

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Q:
A company uses Dynamics 365 Finance to manage its operations. The company has multiple business units across several regions, each operating semi-independently.

You need to enable financial reporting across departments and cost centers.

Which configuration should you use?