MB-310 Exam - Question 12

Question

A company provides employee life insurance to all full-time employees. Employee life insurance policies are paid twice a year to the insurance company.

Transactions for current employees must be recognized in the general ledger twice a month with an employee's pay. Transactions for new employees must be recognized in the general ledger based upon the employee's first pay date.

You need to configure accrual schemes for the new fiscal year.

Which two configurations should you use? Each correct answer presents part of the solution.

NOTE: Each correct selection is worth one point.

Examice · Accepted Answer

For new employees, a Debit accrual scheme should be used with the ledger accrual set to the employee's first pay date to ensure the transaction is recorded when the employee first receives payment. For current employees, a Debit accrual scheme should be used with the ledger accrual set to the first day of the fiscal year to ensure ongoing transactions are recorded consistently throughout the fiscal year. This configuration ensures both new and current employees' transactions are appropriately recognized in alignment with their respective pay dates.

H_Incandenza · Answer

I will be charitable in assuming this question was written prior to the interface being completely overhauled. Because my god is this a poorly written question.

In D365 as of today (7/8/22) there is no "offset:" there is a ledger accrual start date. There is no "debit" or "credit" accrual scheme: there is an "accrual account" option with either "account" or "offset account."

Further, it doesn't even explain what our journal entry is. There doesn't seem to be many accountants in the comments, but typically you would be debiting an expense account while crediting a liability account. (Then when paid, debit the liability against cash.)

So that being said, the setup makes no sense because none of the terms actually align with D365. The answers make no sense for the same reason, but also additionally there is no specifying of what is being accrued, the liability the expense, both or neither.

Ramanya · Answer

For both current and new employees, it has to be Debit accrual scheme. The financial impact has to be same and only the date has to be different.

Cumo · Answer

This Answer makes no sense, I think it is C and D.  It cannot be both B and D.

Elsa · Answer

In my opionin,C,D are correct.

d47447 · Answer

The correct answer is B and C

Niqs · Answer

B and D are correct.
Inclusion of new employees is used to make the question quite tricky.
It is correct that the configuration of accrual schemes for the new fiscal year should only be done for current employees.

Pir · Answer

B and D are definitely wrong answers as both of them are for current employees only where as question also asks for new employee.

Calender, Fiscal and Allocation key are available as accrual basis. Also Posting options available are Beginning, Middle or End on Week, Month or Quarter basis. The only options mentioning about Fiscal year are A and D while also mentioning both new and current employees, so to me correct options look A and D.

sadiq_d365 · Answer

C, D are correct

finance_BNE · Answer

Correct answer is BD
this is buried within the QUESTION: - "You need to configure accrual schemes for the new fiscal year."
There are only current employees in the new year

LoriHafner · Answer

I think I understand the wording in the question. By the time the 'new Fiscal Year' starts, and the 1st payment is paid to the life insurance, any new employees will become current employees. So, to prepare employees for the 1st insurance payment, any money collected at the start of the new Fiscal Year is a credit since the 1st payment has not yet posted. That is why B is correct.
Configuring the calendar for Debit accrual to begin at the 1st day of the new Fiscal Year ensures that the 2nd insurance payment is prepared and recorded properly. 
The 1st day of the new fiscal year has not yet begun so credit to employee's 1st pay date until the Fiscal year does begin, and then once the Fiscal year begins, start the Debit accrual to properly record.

This is why I agree with the answer B&D.

vospr · Answer

Logically, accrual is a Debit of PL

Ramanya · Answer

C, D are correct

BenLearn · Answer

CD is correct
Current employees must be twice a month (scheme starts at first date of fiscal year) (= D)
New employees must be on their first paydate (= C)
This automatically implies that it must be Debit

Elsa · Answer

B,C seems correct.

Freesia · Answer

C and D
Debit – The main account that you define will replace the debit main account on the journal voucher line. This account will also be used for the reversal of the deferral, based on the ledger accrual transactions.

angie97 · Answer

A and D are not correct because for current employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the first day of the fiscal year, are not valid configurations for the accrual schemes. Option A will not recognize the expense based on the employee's first pay date, but on the first day of the fiscal year, which is not the requirement. Option D will not reverse the accrual transactions on the employee's first pay date of the next period, but on the first day of the fiscal year, which is not the

jazpar · Answer

Question makes no sense or a poorly formulated. I would go for CD

globeearth · Answer

✅ Credit Accrual Scheme - Used for deferring revenue. Typically applied when you receive revenue upfront but need to recognize it over multiple periods. Example Use Case: You invoice a customer $12,000 for a 12-month software subscription. Using a credit accrual scheme, you defer the revenue and recognize $1,000/month over a year.
✅ Debit Accrual Scheme - Used for deferring expenses. Typically applied when you pay an expense upfront but need to recognize it over several periods. Example Use Case: You prepay $6,000 for insurance covering 6 months. Using a debit accrual scheme, you recognize $1,000/month as an expense.
Clearly, this example is a debit accrual scheme, so the answer must be D and D

MB-310 Exam - Question 12

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