Explanation:

References:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/accounts-receivable/tasks/review-co

Explanation

Topic 1, Munson's Pickles and Preserves Farm
Current environment. General
Munson's uses a mix of internally-developed legacy systems that handle their finance and distribution activities. The company has an isolated CRM system.
Both Canadian subsidiaries have two departments: marketing and operations.
Financial reporting is difficult due to data residing in disparate systems.
Financial reporting is currently performed by using Microsoft Excel.
Pre-orders in the current system are difficult to track because the order management system is not integrated with the finance system.
Pickle sales post to one revenue account, but this does not allow for targeted reporting by pickle cut and type.
Current environment
Organization
The following chart shows Accounting/Reporting Currencies and Tax ID, if applicable.
Typically, vendor invoices are received prior to receipt of product.
The following fixed assets are sold for a loss:
BUILD-100
CAR-1233
At the regional distribution centers, the value for physical inventory does not match the inventory in the financial system.
Munson's rents their corporate office. Rent is not paid by purchase order. Rent is due once a quarter.
Allocations are performed manually.
Barrels are inventoried by site and warehouse.
Munson's has multiple depreciation and tax books for all of their fixed asset equipment.
Budgets are posted at the department level for each legal entity.
Requirements. Sales
Customers should be able to pre-order for fall release of pickles.
Three-way matching must be enforced for all purchases.
Fixed asset sale transactions require a ledger account entered at the time of transaction.
Fixed assets purchased must be automatically created in fixed asset module. This includes inventory items and write in purchase orders/non-inventoried items.
One dollar from every sale needs must be tracked and donated at the end of each month to a charitable organization.
Purchasing budgets must be enforced at the main account level.
Requirements. Finance
Accounts payable must be able to enter vendor invoices on the day they were received to be settled against when product is received.
Accounts payable must be able to enter vendor invoices to accrue expense without specifying a purchase order at the time of entry.
Postage expenses must be split evenly across the regional distribution centers automatically.
Administrative expenses must be distributed across the regional distribution centers by percentage of fulfillment orders monthly.
Pickling machines depreciation must be uniquely recorded for visibility but not post to the ledger.
Issues
During implementation testing, User1 indicates that after packing slips are generated for purchase orders, there are no ledger postings.
User2 indicates that fixed assets purchased on a purchase order do not show up in the Fixed Assets module.
User3 reports that they are seeing inconsistent application of the one-dollar donation from all sales orders.
User4 in the Canadian subsidiary is able to purchase supplies for marketing despite exceeding the marketing department budget.
User5 reports that when purchasing a non-inventoried computer, the system is automatically assigning it to the buildings fixed asset group.

Explanation:

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.