Topic 3: Alpine Ski House
Case study
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Background
Alpine Ski House has three partially owned franchises and 10 fully owned resorts
throughout the United States and Canada. 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.
Vendors request access to the vendor collaboration portal by using a workflow
which runs on a nightly schedule.
Intercompany setup
Vendor123 resides in US franchise Company1 and is set up for intercompany transactions.
Customer345 resides in Canada franchise Company1 and is set up for intercompany
transactions.
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.
A company is implementing Microsoft Dynamics 355 -Finance. The company plans to
Implement the fixed asset module. You have the full awing requirements:
• Post transactions to the tax depreciation hook at the same interval as the primary book.
• Tax transactions must be journalized without being recorded in the general ledger.
You need to configure the 'wet! asset books. Which conjuration option should you use? To , drag the appropriate urn figurations to the correct requirement. Each configuration may be used once, more than once, more 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.
Requirement 1: Post transactions to the tax depreciation book at the same interval as the primary book.
Correct Configuration:
Derived
Explanation:
The "Derived" configuration in fixed asset books allows you to automatically generate transactions in one book based on transactions entered in another book. By setting up the tax depreciation book as derived from the primary book, any transaction posted to the primary book (such as acquisitions or depreciation runs) will automatically create corresponding transactions in the tax book at the same interval. This ensures synchronization between books without requiring duplicate data entry, meeting the requirement that tax depreciation posts at the same interval as the primary book.
Incorrect Options:
Posting layer: This determines which ledger layer (Current, Operations, Tax, etc.) transactions are posted to, not the timing synchronization between books.
Depreciation convention: This defines when depreciation starts and ends (e.g., Full month, Mid-quarter), not how books are linked.
Value model: This is a legacy concept largely replaced by books; it doesn't specifically address derived transaction creation.
Requirement 2: Tax transactions must be journalized without being recorded in the general ledger.
Correct Configuration:
Posting layer
Explanation:
The "Posting layer" configuration allows you to specify which accounting layer transactions from a fixed asset book are posted to. By setting the tax depreciation book to use the "Tax" posting layer (or a layer that is not transferred to the general ledger), transactions from this book will be journalized for tax reporting purposes but will not create actual general ledger entries. This satisfies the requirement that tax transactions be tracked separately without affecting the financial statements in the general ledger.
Incorrect Options:
Derived: This creates linked transactions between books but doesn't control whether those transactions post to the general ledger.
Depreciation convention: This affects calculation timing only, not ledger posting.
Value model: While older versions used value models for different reporting requirements, the posting layer concept in books provides more precise control over general ledger integration.
Reference
Microsoft Learn: Fixed asset books setup
Microsoft Learn: Derived books in fixed assets
Microsoft Learn: Posting layers in fixed assets
You need to configure the budgeting module to meet Fourth Coffee’s requirements. Which configuration should you use for each task? To answer select the appropriate options in the answer m
NOTE: Each correct selection is worth one point.
Task: Set the dimension level of the organization budget.
Correct Configuration:
Main account
Explanation:
When setting up the dimension level for organization budgeting, you typically define the lowest level at which budget amounts can be entered and tracked. The main account is almost always included as a dimension in budgeting because it represents the specific expense or revenue type. Without main account as a dimension level, you would not be able to distinguish between different types of expenditures within the same department, making budget tracking impractical. The organization budget dimension level defines which financial dimensions are required when creating budget entries.
Task: Set the dimension level of the budget control.
Correct Configuration:
Department
Explanation:
Budget control dimension levels determine which dimensions are used to enforce budget checking when transactions are posted. Setting this to "Department" means that budget control will verify available funds at the department level. This allows the organization to manage spending by department while still allowing flexibility within the department across different main accounts. Department-level budget control is common when managers are responsible for their department's total spending but have discretion over which specific accounts are used within that department.
Task: Solve User4's issue.
Note: Since User4's specific issue is not described in the provided content, I cannot definitively determine the configuration. However, based on typical user issues in budgeting, common solutions might involve adjusting dimension levels or budget control settings to allow or restrict certain actions.
Reference
Microsoft Learn: Set up budget control dimensions
Microsoft Learn: Budget control dimension hierarchies
Microsoft Learn: Organization budgeting setup
You are processing checks in Dynamics 365 Finance for a client. You need to identify the outcome of the processed checks. What is the check status for each scenario? To answer, drag the appropriate check statuses to the scenarios. Each check status 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.
Scenario: Lost in the mail to vendor and AP manager reversed the payment transaction
Correct Check Status:
Void
Explanation:
When a check is lost in the mail and the AP manager reverses the payment transaction, the original check must be voided. Voiding a check cancels it as a valid payment instrument, ensuring it cannot be cashed if found. The reversal process in Dynamics 365 Finance typically involves voiding the check to update its status and create reversing accounting entries. This removes the liability from the vendor account and makes the check invalid for payment.
Scenario: Rejected from the payment transfer form
Correct Check Status:
Cancelled
Explanation:
When a payment is rejected during the payment transfer process (such as during the generation of the payment file or check run), the payment status becomes "Cancelled." This indicates that the payment was not successfully generated or transferred. The system cancels the payment journal line, and funds are not disbursed. This status allows the payment to be reprocessed or corrected in a future payment run.
Scenario: Either generated or generated and posted
Correct Check Status:
Created
Explanation:
When a check has been generated (printed) or generated and posted in the system, its status becomes "Created." This indicates that the payment has been successfully generated and exists as a payment instrument. Even after posting, the status remains "Created" until the check is later marked as "Paid" when it clears the bank or "Void" if cancelled. "Created" is the intermediate status between initiation and final settlement.
Scenario: Fixed check number method and unused checks are available in the system
Correct Check Status:
Created
Explanation:
When using the fixed check number method, checks are pre-numbered and must be accounted for in the system. Unused checks that are available in the system (meaning they have been generated but not yet issued or printed) typically have a status of "Created." This status indicates the check number has been reserved and the payment record exists, but the physical check has not been finalized or sent. The system tracks these as available for use in future payment runs.
Reference
Microsoft Learn: Check payment statuses in Dynamics 365 Finance
Microsoft Learn: Void checks and reverse payments
Microsoft Learn: Payment transfer and check generation
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