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Describe Dynamics 365 FinancehardMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Finance Practice Question

A company uses Dynamics 365 Finance and needs to ensure that intercompany transactions are eliminated during consolidation. What must be set up?

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

Intercompany elimination rules

Intercompany elimination rules in Dynamics 365 Finance are specifically designed to automatically eliminate intercompany transactions during consolidation. Option A is incorrect because financial dimensions are used for reporting and analysis, not for eliminating transactions. Option B is incorrect because consolidation groups are used to group legal entities for consolidation, not to eliminate intercompany transactions. Option D is incorrect because intercompany accounting processes intercompany transactions but does not automatically eliminate them during consolidation.

Answer analysis

Option-by-option breakdown

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

  • Financial dimensions for intercompany

    Why it's wrong here

    Useful for reporting, not automatic elimination.

  • Consolidation groups

    Why it's wrong here

    Groups entities for consolidation, not elimination.

  • Intercompany elimination rules

    Why this is correct

    Elimination rules remove intercompany balances during consolidation.

  • Intercompany accounting

    Why it's wrong here

    Processes intercompany transactions but doesn't eliminate them.

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Written by Johnson Ajibi, MSc IT Security

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