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Exam MB-310 topic 23 question 2 discussion

Actual exam question from Microsoft's MB-310
Question #: 2
Topic #: 23
[All MB-310 Questions]

You need to identify the posting issue with sales order 1234.
What should you do?

  • A. Correct the recognition basis.
  • B. Correct the recognition convention.
  • C. Validate that the revenue recognition schedule is populated on the sales order line.
  • D. Validate that the revenue recognition schedule is populated on the sales order header.
  • E. Update the revenue price allocation.
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Suggested Answer: C 🗳️
The finance team observed that for sales order invoice 1234, the price incorrectly posts to a revenue account when it should be deferring.
Revenue recognition on sales orders.
Determine when revenue recognition should occur. A revenue schedule is used to determine when revenue should be recognized.
Determine the revenue price. The revenue price is calculated based on the setup of the released products. The revenue price is never shown to the customer but is used only for the accounting of the sales order invoice. The sales order lines and the documents that are printed as part of the sale continue to show the unit/list price.
Reference:
https://docs.microsoft.com/en-us/dynamics365/finance/accounts-receivable/revenue-recognition-so-basics

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globeearth
1 week ago
Selected Answer: C
C. Validate that the revenue recognition schedule is populated on the sales order line: The revenue recognition schedule on the sales order line defines how and when revenue is deferred and recognized over time. If this schedule is missing or not properly configured, the system may post the revenue directly to a revenue account instead of deferring it, which aligns with the described issue.
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