The primary function of 'A/C Allocation. Update' (GLS130) is to execute a previously generated allocation proposal. Upon approval and execution of the proposal in GLS130, the system's first and foremost action is to create the actual general ledger transactions, known as account entries. These entries are grouped into a journal voucher, which formally records the movement of funds from the source account(s) to the target account(s) as defined by the allocation rules.

B. The budget is updated.

This is a potential secondary effect. Budget updates occur if the account entries are posted to accounts that are connected to a budget, but it is not the initial action.

C. Budget allocations are deleted.

This program creates new transactions based on a proposal; it does not delete existing budget allocations. This describes an unrelated or incorrect function.

D. The transactions that are created on all levels are totaled.

Totaling is a calculation step that is part of the process of creating the entries, not the first discrete action that happens upon approval.

1. Infor M3 General Ledger User Guide: In the section describing the Account Allocation workflow, the guide specifies that GLS120 is used to create a proposal, and GLS130 is used to update the general ledger based on that proposal. The update process is explicitly defined as the creation of a journal voucher in the general ledger file (FGLEDG). (Reference: Infor M3 Finance Management - General Ledger User Guide, section on Account Allocations).

2. Infor M3 Core Financials Courseware (University of Applied Sciences, Würzburg-Schweinfurt): Educational materials covering the M3 financial suite detail the period-end closing process. The account allocation step is described as generating a proposal (GLS120) and then executing it (GLS130), which results in the creation of GL transactions to reallocate costs or revenues. (Reference: Module FMS301, Financial Control and Management, Chapter 4: General Ledger Processing).

Infor M3's purchase price retrieval logic for costing follows a defined hierarchy to find the most specific price. The system first searches for a valid price in a purchase agreement, which is managed in 'Purchase Agreement.Open' (PPS100). If no valid agreement price is found, the system then searches for a price defined for the specific supplier and item combination in 'Supplier.Connect Item' (PPS040). These two programs represent the primary sources for supplier-specific purchase prices used in purchase costing calculations.

A. Purchase Costing. Simulate (PPS295): This program is used to simulate purchase costs; it consumes or uses the retrieved price data but is not the source of the price itself.

B. Item. Open (MMS001): While a purchase price can be stored on the item master file, it is a general price that is overridden by more specific prices from agreements (PPS100) or supplier records (PPS040).

C. Item.Connect Warehouse (MMS002): This program manages item settings at the warehouse level, such as costing method and inventory data, not the supplier-specific purchase price.

1. Infor M3 Procurement User Guide: The documentation details the purchase price retrieval hierarchy. It specifies that the system first searches for a price from a purchase agreement (PPS100). If one is not found, it proceeds to check the supplier/item combination (PPS040), and only then does it check the item master file (MMS001). (Reference: Infor M3 Procurement User Guide for M3 BE, "Purchase Price Retrieval" section).

2. Infor M3 Costing User Guide: This guide explains how purchase costing elements are calculated. It confirms that the base for the calculation is the purchase price, which is retrieved according to the standard procurement hierarchy, prioritizing agreements and supplier-item records. (Reference: Infor M3 Costing User Guide for M3 BE, "Purchase Costing" chapter, section on "Costing Elements").

The 'Invoice approval condition 3' (IVAC3) field on the supplier master record (CRS624) is specifically designed to control the handling of supplier invoices matched to a purchase order where goods have not yet been received. This setting determines whether the invoice should be automatically blocked for payment (a common control) or if it can be processed despite the absence of a goods receipt transaction. This directly enables or disables the "Invoiced/Goods Not Received" scenario within the Supplier Invoice. Record (APS100) program.

A. Auto inv approve (Automatic invoice approval code): This field determines if a fully matched invoice can be automatically approved for payment without manual intervention, not how to handle a goods-not-received scenario.

C. Inv approv cond (Invoice approval condition 1): This condition controls invoice blocking based on price discrepancies between the purchase order and the supplier invoice.

D. Inv approv cond (Invoice approval condition 2): This condition controls invoice blocking based on quantity discrepancies between the purchase order and the supplier invoice.

1. Infor M3 Accounts Payable User Guide: In the section describing the supplier master file settings, specifically for 'Supplier. Open Financial' (CRS624), the field 'Invoice approval condition 3' (IVAC3) is defined. The documentation states its purpose is to manage invoices where goods have not been received.

Reference: Infor M3 Finance Management, Accounts Payable User Guide for 13.4, Document ID: M3APUGE13.4, Section: "Supplier Master File", Subsection: "Financial Settings (CRS624)".

2. Infor M3 Field Help Documentation: The embedded help text for the IVAC3 field in program 'Supplier. Open Financial' (CRS624) explicitly states: "Specifies how to handle an invoice that is matched to a purchase order for which the goods have not yet been received."

Reference: Infor M3 Application, Program: CRS624, Panel: E, Field: 'Inv approv cond 3' (IVAC3).

In Infor M3, account groups are a fundamental component for structuring financial reports. The levels assigned to account groups (from 1 to 5) create a hierarchy that dictates the summarization and presentation order of accounts on financial statements like the income statement and balance sheet. This hierarchical structure is essential for creating readable and logically organized reports. Furthermore, each account group must be explicitly classified by a 'Report code' to indicate whether it belongs to the income statement or the balance sheet. This classification is mandatory for the system to correctly generate these two primary financial statements.

B. Account groups are defined at the company level in 'Accounting Rule. Open' (CRS630) to ensure financial consistency across all divisions within that company.

D. Infor M3 provides five levels for account groups, not six. This is a fixed system parameter for creating the reporting hierarchy.

1. Infor M3 Finance Management User Guide (for CRS630):

Reference for A & D: In the documentation for the program 'Accounting Rule. Open' (CRS630), the field 'Account group level' (ACDLLV) is described. It specifies that "five levels are available" and these levels are used to structure the chart of accounts for reporting purposes, which directly influences the order on statements. This confirms that five levels exist (making D incorrect) and that these levels determine the structure (making A correct).

Reference for C: The field 'Report code' (ACDLRC) in CRS630 is a mandatory field that "indicates whether the account group is included in the balance sheet (1) or the income statement (2)." This directly supports the statement in option C.

2. Infor M3 Core Foundation and Company Structure Documentation:

Reference for B: Official documentation on the M3 organizational structure clarifies that financial master data, including the chart of accounts and associated accounting rules like account groups (CRS630), are defined at the company level. This ensures a single, consistent financial structure can be utilized by multiple divisions linked to that company, refuting the claim that they are defined at the division level.

In Infor M3, the VAT code is the central component used to manage value-added tax. It is defined in the program 'VAT Code. Open' (CRS030) and directly contains the essential parameters for a business transaction, including the specific VAT rate and the VAT method (e.g., normal VAT, reverse charge). This code is then linked to customers, suppliers, items, or countries, and retrieved during transaction entry to ensure the correct tax is calculated and applied according to the defined rules.

B. VAT exceptions: These are rules designed to override the default VAT code in specific, non-standard scenarios (e.g., for a particular item sold to a specific customer), not to determine the primary method and rate.

C. VAT report from date: This is a selection parameter used to filter transactions by date when generating a VAT report. It has no role in determining the tax calculation for an individual transaction.

D. VAT values for FAM functions: Financial Application Management (FAM) functions define the accounting logic (i.e., which general ledger accounts to post to) for transactions, including VAT. The VAT code is an input to this process; the FAM function does not determine the rate or method.

1. Infor M3 Financial Management User Guide: In the section covering Tax Management, the setup for 'VAT Code. Open' (CRS030) is detailed. It specifies that the VAT code record contains fields for 'VAT rate' and 'VAT method', establishing it as the primary determinant for tax calculation. (Refer to documentation on CRS030 functionality).

2. Infor M3 Financials Implementation Guide: The chapter on Tax Configuration explains the hierarchy and logic for tax determination. It clarifies that the system's primary goal is to find the appropriate VAT code for a transaction line, which then dictates the rate and calculation rules. The guide distinguishes this primary function from VAT exceptions (CRS031), which serve as overrides.