MB-920 Describe Dynamics 365 Finance Practice Question
A company uses Dynamics 365 Finance and needs to set up a new fiscal year. Which THREE steps are required to open the new fiscal year?
⚠ Common exam trap
Watch out — candidates often confuse optional setup steps (like budget control or financial dimension changes) with the mandatory sequence of closing the previous year, creating the new fiscal year in the ledger calendar, and running opening transactions to bring forward balances.
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
✓
Run the opening transactions process to bring forward balances.
Running the opening transactions process is required to bring forward the ending balances from the previous fiscal year into the new fiscal year as opening balances. In Dynamics 365 Finance, this step ensures that general ledger accounts, such as balance sheet accounts, carry forward their balances so the new year starts with accurate financial data.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Run the opening transactions process to bring forward balances.
Why this is correct
Opening transactions transfer balances from the previous year.
- ✗
Configure financial dimensions for the new year.
Why it's wrong here
Financial dimensions are configured once and apply to all years.
- ✗
Set up budget control for the new fiscal year.
Why it's wrong here
Budget control is not required to open the year.
- ✓
Create a new fiscal year in the ledger calendar.
Why this is correct
A new fiscal year must be created first.
- ✓
Close the previous fiscal year in General ledger.
Why this is correct
The previous year must be closed before posting to the new year.
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