Describe the core capabilities of the finance and operations apps →mediumMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
A company uses Dynamics 365 Finance and Operations and has multiple legal entities. The parent company needs to monitor the cash position of all subsidiaries in real time. Currently, each subsidiary uses its own bank account and currency. You need to configure a solution that provides a consolidated view of cash balances across all entities in the parent company's currency (EUR). The solution must support drill-down to individual bank transactions. The company uses the Cash and bank management module. What should you do?
⚠ Common exam trap
Many exam-takers confuse the Cash position feature with Power BI reporting or intercompany accounting, assuming external tools or balance transfers are needed for consolidation, when the native Cash position configuration directly supports multi-entity, multi-currency drill-down.
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
✓
Configure a cash position that includes bank accounts from all legal entities with currency exchange rates.
The Cash position feature in Dynamics 365 Finance and Operations allows you to configure a consolidated view of cash balances across multiple legal entities by including bank accounts from all subsidiaries and applying currency exchange rates to convert balances to the parent company's currency (EUR). This solution supports drill-down to individual bank transactions, meeting the real-time monitoring requirement.
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 Microsoft Power BI to connect to each legal entity's Cash and bank management data.
Why it's wrong here
Power BI is an excellent tool for creating custom analytical reports and dashboards, capable of connecting to Dynamics 365 Finance and Operations data and performing currency conversions. It would be suitable for historical cash flow analysis or visualising consolidated financial data across multiple systems. However, it fails this scenario because it does not provide the native, real-time, transactional cash position consolidation and forecasting capabilities within Dynamics 365 Finance and Operations, which are required for immediate drill-down to individual bank transactions from a live consolidated view.
- ✗
Set up intercompany accounting to automatically transfer cash balances to the parent company.
Why it's wrong here
This changes actual cash positions, not just reporting.
- ✗
Use the bank reconciliation workspace to view each subsidiary's bank transactions.
Why it's wrong here
Bank reconciliation is for matching, not consolidated view.
- ✓
Configure a cash position that includes bank accounts from all legal entities with currency exchange rates.
Why this is correct
Cash position provides consolidated view with drill-down.
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