Quick Answer
The answer is Advanced bank reconciliation. This feature in Dynamics 365 Finance is specifically designed to automate bank reconciliation rules matching by allowing you to define user-configured rules that automatically match imported bank statement lines with open bank document lines, such as checks or deposits, based on criteria like amount, date, or reference number. It handles complex scenarios including partial matches and tolerance thresholds, which is why it is the correct choice for automating this process. On the MB-920 exam, this topic tests your understanding of how rule-based matching reduces manual effort in financial operations; a common trap is confusing it with basic bank reconciliation, which lacks automated rule support. Remember the memory tip: "Rules run reconciliation" — if the question involves automated matching logic, think Advanced bank reconciliation.
This MB-920 practice question tests your understanding of describe dynamics 365 finance. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company is implementing Dynamics 365 Finance and needs to automate the reconciliation of bank transactions. Which feature should be used to match bank statement lines with open bank document lines based on rules?
Bank account reconciliation
Why wrong: Manual process without rules.
Payment proposal
Why wrong: Used for generating payments.
Automatic settlement
Why wrong: Not a valid feature for bank reconciliation.
Advanced bank reconciliation
Uses matching rules to automate reconciliation.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Advanced bank reconciliation
Advanced bank reconciliation in Dynamics 365 Finance allows you to import bank statement lines and automatically match them to open bank document lines (such as checks, deposits, and transfers) using user-defined matching rules. This feature supports rule-based matching (e.g., by amount, date, or reference) and handles complex scenarios like partial matches or tolerance thresholds, making it the correct choice for automating bank transaction reconciliation.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Bank account reconciliation
Why it's wrong here
Manual process without rules.
Payment proposal
Why it's wrong here
Used for generating payments.
Automatic settlement
Why it's wrong here
Not a valid feature for bank reconciliation.
Advanced bank reconciliation
Why this is correct
Uses matching rules to automate reconciliation.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates confuse the general 'Bank account reconciliation' process (which is manual) with the specific 'Advanced bank reconciliation' feature that provides rule-based automation, leading them to select option A.
Detailed technical explanation
Advanced bank reconciliation leverages a matching rule set that can include criteria like exact amount, date range, and document number, and supports auto-matching with tolerance percentages or fixed amounts. Under the hood, it uses the BankReconciliationMatchingRule table and runs a batch job to process statement lines against open bank transactions, flagging unmatched items for manual review. In a real-world scenario, a company with high transaction volumes can set up rules to automatically match 95% of transactions, leaving only exceptions for manual handling.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
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Describe Dynamics 365 Finance — study guide chapter
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FAQ
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
The correct answer is: Advanced bank reconciliation — Advanced bank reconciliation in Dynamics 365 Finance allows you to import bank statement lines and automatically match them to open bank document lines (such as checks, deposits, and transfers) using user-defined matching rules. This feature supports rule-based matching (e.g., by amount, date, or reference) and handles complex scenarios like partial matches or tolerance thresholds, making it the correct choice for automating bank transaction reconciliation.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A company wants to automate the reconciliation of bank transactions with general ledger entries in Dynamics 365 Finance. Which feature should they use?
easyWhy D: Option B is correct because the 'Advanced bank reconciliation' feature automatically matches bank statements with ledger entries. Option A is wrong because the payment proposal generates payments, not reconciliations. Option C is wrong because the cash flow forecast predicts cash flow. Option D is wrong because the budget control process manages budgets.
Variation 2. A retail company wants to automate the reconciliation of bank statements with ledger entries in Dynamics 365 Finance. Which feature should they use?
easyWhy B: Option B is correct because advanced bank reconciliation allows automatic matching of bank statement lines with bank transactions in the system. Option A is wrong because the general journal is used for manual journal entries. Option C is wrong because the payment journal is used to record payments. Option D is wrong because cash flow forecasting predicts future cash flows, not reconciliation.
Variation 3. An organization wants to automate the process of reconciling bank transactions with entries in Dynamics 365 Finance. Which feature should be used?
easyWhy D: Option D is correct because the Bank reconciliation module in Dynamics 365 Finance automates matching bank statement lines to ledger entries. Option A is wrong because Cash and bank management is a module that includes bank reconciliation, but not the specific feature. Option B is wrong because Advanced bank reconciliation is an optional add-on that provides more automation, but the standard bank reconciliation feature is available in Cash and bank management. Option C is wrong because Payment journal is for recording payments, not reconciliation.
Last reviewed: Jun 11, 2026
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