Exam MB-310 topic 1 question 4 discussion

Given Answers are correct. ===> Intercompany journals are used to record transactions between legal entities, such as due to/due from transactions. They are not used for setting up fixed or variable allocations or generating journals for allocation review. ===> Allocation terms are used to split transaction amounts in real-time during posting (e.g., for vendor invoices or journal entries). While they support fixed or dynamic allocations, they do not generate a separate journal for review before posting, as the allocation occurs automatically during the transaction posting process. ===> Ledger allocation rules are used to distribute posted ledger balances across multiple accounts or dimensions as part of a batch process, typically for cost allocation or expense distribution. They are used for period-end transactions ===> Accounts for automatic transactions are used to define default accounts for specific system-generated transactions (e.g., retained earnings for year-end close).

Automatically split the dollar amount in half between DimensionA and DimensionB when the journal is posted. Because the question only talks about the dimensions and not any specific ledger account therefore the allocation terms is a wrong answer. Because this scenario is typically handled using the allocation rules functionality.

was in June paper. Few lease accounting questions and 2 case studies

correct answers

Why the 2nd is budget allocation terms?

correct