The answer is to close the previous fiscal year in General ledger, run the opening transactions process, and confirm the new fiscal year is open. Closing the prior year is required to prevent further postings, while the opening transactions process is the critical technical step that carries forward ending balances from balance sheet accounts into the new fiscal year as opening balances, ensuring continuity of financial data. On the MB-920 exam, this scenario tests your understanding of the fiscal year lifecycle in Dynamics 365 Finance, often appearing as a “select three” question where a common trap is confusing the opening transactions process with simply creating a new year. Remember that closing the old year and running the transfer are two separate, sequential actions. A helpful memory tip is “Close, Carry, Confirm”—close the old year, carry forward balances, then confirm the new year is active.
MB-920 Describe Dynamics 365 Finance Practice Question
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 uses Dynamics 365 Finance and needs to set up a new fiscal year. Which THREE steps are required to open the new fiscal year?
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.
Option A is correct because 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.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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.
Related concept
Read the scenario before looking for a memorised answer.
✗
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.
Related concept
Read the scenario before looking for a memorised answer.
✓
Close the previous fiscal year in General ledger.
Why this is correct
The previous year must be closed before posting to the new year.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that 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.
Detailed technical explanation
How to think about this question
The opening transactions process in Dynamics 365 Finance uses the 'Opening transactions' batch job to transfer balances from the previous year's closing period to the new year's opening period. This process respects the ledger calendar setup and automatically creates journal entries for balance sheet accounts, while income statement accounts are closed to retained earnings. A real-world scenario where this matters is when a company has multiple legal entities; each entity must run its own opening transactions after the previous year is closed.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Run the opening transactions process to bring forward balances. — Option A is correct because 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.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.