Question
Your company uses Dynamics 365 Supply Chain Management.
You are configuring a royalty agreement and are identifying the royalty agreement ledger accounts.
Which two ledger accounts should you identify? Each correct answer presents part of the solution.
- A. Accounts receivable
- B. Accrual Correct
- C. Inventory
- D. Expense Correct
Explanation
On the General tab of a royalty agreement, the Accrual account and Expense account fields specify the accounts that receive accrued amounts between claim approval and processing: the Cumulate action credits the royalty accrual account and debits the interim accrued royalty expense account. Accounts receivable is not used because royalties are payables to the licensor, and inventory accounts are not part of royalty posting.
