Explanation:

Reference:
https://docs.microsoft.com/en-us/dynamics365/finance/accounts-payable/vendor-invoices-overview
Topic 3, Alpine Ski House
Overview
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.
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Background
Alpine Ski House has three partially owned franchises and 10 fully owned resorts throughout the United States and Canad a. Alpine Ski House's percentage ownership of the franchises is between two and 10 percent.
Alpine Ski House is undergoing an implementation of Dynamics 365 Finance and Dynamics 365 Supply Chain Management to transform their financial management and logistics capabilities across the franchises. Implementation is complete for Alpine Ski House's corporate offices, two US franchises, and one Canadian franchise. The remaining franchises are in varying stages of the implementation. Two new resort projects are in the budget planning stages and will open in the next fiscal year.
Current environment
Organization and general ledger
Each franchise is set up as a legal entity in Dynamics 365 Finance.
Alpine Ski House Corporate uses financial dimensions for their fully owned resorts.
Each resort is a financial dimension named resort.
Each fully owned resort has two divisions: marketing and operations.
Only Profit and Loss account postings require the division dimension.
Corporate handles the advertising and administration of the fully owned resorts.
Corporate uses Dynamics 365 Project Management and Accounting to manage construction of new resorts.
Budgeting
Organizational budgeting is decentralized but rolls up to one organizational corporate budget.
Each resort manager performs budgeting in Dynamics 365 Finance.
Budget preparation begins this month. All operational resorts will submit their budgets in two weeks.
Sales and tax
Sales tax is configured and used by all resorts that operate in the United States.
You configure one US sales tax vendor account and assign the vendor account to the settlement periods for reporting.
You use accounts receivable charges to track donations.
Existing purchasing contracts
Each franchise resort has an individual contract with a local supplier of their choosing to purchase at least $10,000 worth of suppliers during the calendar year.
The franchise resorts in one US state receive a two percent discount on meat and vegetable purchases in excess of $8,000 per year.
A franchise resort in Utah has agreed to purchase 1,000 units of beef at market price from a local supplier.
Alpine Ski House uses a vendor collaboration portal to track purchase orders and requests for quotes.
Intercompany setup
Requirements
Franchises
Each franchise must pay two percent of monthly sales to Alpine Ski House Corporate.
Each franchise must report their own financials to Alpine Ski House Corporate monthly.
US franchises require a three-way-match on all purchases, with a 1-percent price tolerance.
Canadian franchises require a three-way-match on all purchases except paper products, which have a 10-percent price tolerance.
Corporate
Advertising costs must be balanced across the 10 resorts monthly. These costs must be split across the 12 resorts once construction of the final two resorts is completed.
Administration costs must be split across the 10 resorts proportional to the amount of sales generated.
One percent of all pack and individual ski pass sales must be donated quarterly to an environmental protection organization.
The finance department must be able to see purchasing contracts and discounts for vendors based on volume spend.
Employees
All employee expense reports that contain the word entertainment must be reviewed for the audit purposes. If a journal is posted incorrectly, the entire journal and not just the incorrect line must be fully reversed for audit purposes.
Resorts
All resorts must use Dynamics 365 Finance for budgeting and must first be approved by the regional manager. Purchased fixed assets must automatically be acquired at product receipt.
Issues
User1 reports that irrelevant dimensions display in the drop down when entering a General journal.
User2 reports that dimension 00 is being used for all balance sheet accounts.
User3 tries to generate the quarterly sales tax liability payment for a specific state but does not see any payables available for that state's vendor.
User4 receives a call from a vendor who cannot access the vendor collaboration portal but needs immediate access.
User5 notices a large amount of entertainment expenses being posted without an audit review.
User6 needs to have visibility into the increase in budget that is necessary to staff the two new resorts opening next year.
User7 needs to use Dynamics 365 Finance for situational budgeting planning with the ability to increase and decrease the existing plans by certain percentages.
User8 made a mistake while posting a 1,000-line journal and reverses the entire journal but cannot find the lines that included errors during the reversal.
User9 made a mistake while posting a 55-line journal and reverses the entire journal.
User10 realizes that the purchase of five new computers did not acquire five new fixed assets upon receipt.

Topic 6, Tailspin Toys Tailspin Toys is a toy manufacturing
company that sells to distributors and customers through a business-
to-consumer website. Tailspm Toys has been using custom developed
software for their accounting and supply chain management needs.
Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States.
Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization.
Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes.
Current Environment
Vendors
* Tailspin Toys works with local and foreign vendors.
* The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys.
* The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts.
* For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week.
* Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year.
* Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses.
* The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account.
* The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors.
Reporting
* Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements.
Budget planning
* The finance department oversees all budget planning.
* The finance department estimates the baseline for all budgets and distributes them to the respective departments.
* Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly.
Expenses
Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown.

Asset teasing
Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments.
Requirements
Consolidation
* Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys' leadership.
* Consolidated results are needed in multiple reporting currencies.
Expenses
* Utility bills must be allocated to allow each department to expense the correct amount.
Reports
* Leadership requires financial reports to come to their inbox automatically as one at the end of every month.
Vendors
* The system must show accounts payable liability by type of vendor similar to how it works in the current system.
* The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments.
* The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined.
Budgets
* A new organizational hierarchy is required for budget planning purposes.
* Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget.
Asset leasing
* The CFO must automatically process payments and journal entries for the leased properties.
* Management must view payment forecasts based on leased assets.
Issues
Accounts payable issues
* Vendor liability information for local and foreign vendors is not separated in the system.
* The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program.
* The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing.
* The accounts payable manager must automate the current process of vendor payment proposals.
Other issues
* The differences resulting from consolidating subsidiaries with foreign currencies are not considered.
* User A confirmed they did not receive an alert before running out of their budget.
* Expense reports for the manufacturing and sales departments do not contain utility bill expenses.
* The accounting manager reported that there is no batch journal created for the monthly lease expenses.

Explanation/Reference:
References:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/consolidation- elimination-overview

Explanation
References:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/fixed-assets/tasks/create-fixed-asset