A company manufactures and installs air filtering units for industrial manufacturing plants.
The air filtering units are manufactured to order. The company realized the value of the sales in the following manner:
•	25 percent at the time of the sale
•	50 percent when the unit is shipped
•	25 percent when the unit is installed
Additionally, a three-year warranty is sold with each unit. Revenue for the warranty is recognized equally in each year the warranty covers.
You need to configure revenue recognition.
What should you do?

A. Create one revenue schedule with milestones.

B. Create a new revenue schedule for each unit.

C. Create a reallocation posting for the warranty revenue.

D. Create the revenue schedule so that it uses the contract terms.








 

Suggested Answer: D



This question is in MB-310 Microsoft Dynamics 365 Finance Exam
For getting Microsoft Certified: Dynamics 365 Finance Functional Consultant Associate Certificate



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