Background
Adventure Works Cycles is a North American-based company that sells and fixes bicycles. The company is modernizing its business processes by implementing Dynamics 365 Finance.
The company recently expanded its business into bicycle leasing. The leasing business is expanding into Canada due to high demand.
Adventure Works Cycles has one legal entity, two cost centers, and three divisions within each cost center.
The company also has a centralized budgeting process to the lowest level.
The operating currency of the legal entity is the US dollar (USD).
Adventure Works Cycles operates on a 4-5-4 calendar, which is used to make sure that the sales are evenly distributed across all months, including weekends.
Current Environment
1. Adventure Works Cycles tracks its international vendors in a separate payable account from its domestic vendors.
2. Only bicycle frame inventory is configured with a separate item model group that requires registration.
3. A thirteenth month is required for year-end transactions.
4. Only members from the accounts payable team are able to post transactions to a prior period after the period is closed to the company.
5. Fourth Coffee is a Canadian-based coffee chain whose operating currency is the Canadian dollar (CAD). Fourth Coffee entered into a lease agreement for 150 branded bicycles totaling CAD75,000.
6. Adventure Works Cycles frequently receives invoices in foreign currencies.
Requirements
1. Three-way matching is required only on competition bicycles priced over USD3,000 that are purchased from Fabrikam, Inc., in Europe.
2. Domestic customers and international customers must be managed in the following ways:
- Domestic customer receivables must post to account 1200.
- International customer receivables must post to account 1201.
- Domestic customers must have a payment term of net 30.
- International customers must have a payment term of net 15.
- Domestic customer revenue must post to account 4000.
- International customer revenue must post to account 4001.
3. Adventure Works Cycles must be able to use the cash flow forecasting capability in Finance.
4. The system must enable tracking and charging interest for customer accounts that are not current.
5. Automatic charges must be configured on vendor invoices for bicycle tires. The cost must be added to each item on the vendor invoice.
6. Adventure Works Cycles must be able to terminate leases for bicycles at any time.
7. Adventure Works Cycles must be able to closely track its budget by enforcing the budget at the cost center level.
8. The system must run Vendor aging reports by listing the transactions that are included in the reports' balance, unsettled payments, and aging period descriptions.
Issues
1. The accounts payable clerk processes an invoice for bicycle frames and a partial invoice for helmets.
The clerk observes that the quantities on the vendor invoices are incorrect. The invoices require the correct line quantity selections so that the invoices process accurately.
2. The accounts payable clerk processes an invoice and observes that the product receipt quantity match for bicycle seat posts ordered from Fabrikam, Inc., is blank. However, the invoice passes validation.
3. The accounts payable manager observes that a sales order is posted to the prior period that is closed.
4. During foreign currency revaluation of the Accounts payable subledger, posting occurred only if the result was a loss.
5. On a vendor invoice for bicycle tires, the automatic charge is charged as an expense.
6. Due to a breach of contract, a member of the finance team needs to terminate a bicycle lease.
However, the Termination proposal button is unavailable.
7. The accounts payable clerk is unable to review payments that have not been settled on the Vendor aging report.
