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Describe Dynamics 365 FinanceeasyMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Finance Practice Question

A company needs to track the purchase order commitment against the budget in Dynamics 365 Finance. Which feature should they use?

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

Budget control

Budget control is the feature in Dynamics 365 Finance that tracks commitments (such as purchase orders) and actual expenditures against the budget. Option B is correct. Option A is incorrect because a recurring journal is used for recurring transactions, not for tracking budget commitments. Option C is incorrect because transaction posting definitions define posting rules but are not related to budget tracking. Option D is incorrect because encumbrance accounting is a part of budget control that specifically tracks commitments; however, the general feature that encompasses this tracking is budget control.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Recurring journal

    Why it's wrong here

    Recurring journals are for periodic transactions, not budget tracking.

  • Budget control

    Why this is correct

    Budget control enables tracking of purchase order commitments against available budget.

  • Transaction posting definitions

    Why it's wrong here

    Posting definitions are for accounting rules, not for budget tracking.

  • Encumbrance accounting

    Why it's wrong here

    Encumbrance accounting is a public sector feature; budget control is used for purchase order commitments.

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