MB-920 Describe Dynamics 365 Finance Practice Question
A company is implementing Dynamics 365 Finance and needs to configure a chart of accounts that supports multiple legal entities with different fiscal requirements. Which structure should be used?
⚠ Common exam trap
A common mix-up: candidates assume separate legal entities require separate charts of accounts, but Dynamics 365 Finance is designed to share the chart of accounts across entities while allowing fiscal calendar differences to handle varying fiscal requirements.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use a shared chart of accounts with separate fiscal calendars per legal entity.
A shared chart of accounts is the recommended approach in Dynamics 365 Finance when multiple legal entities must operate under different fiscal requirements. By sharing the chart of accounts but assigning separate fiscal calendars per legal entity, the organization maintains a consistent account structure across entities while allowing each entity to comply with its own fiscal year, period definitions, and closing schedules. This balances standardization with regulatory flexibility.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Use a shared chart of accounts with separate fiscal calendars per legal entity.
Why this is correct
Allows consistent account structures while accommodating different fiscal requirements.
- ✗
Use a single shared chart of accounts with one shared fiscal calendar.
Why it's wrong here
A single fiscal calendar cannot handle different fiscal years.
- ✗
Use main accounts only without dimensions.
Why it's wrong here
Dimensions are necessary for reporting and analysis.
- ✗
Create a separate chart of accounts for each legal entity.
Why it's wrong here
This increases maintenance and does not leverage shared functionality.
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