MB-920 Describe Dynamics 365 Finance Practice Question
A company uses Dynamics 365 Finance for intercompany transactions. Which THREE components are required to enable intercompany accounting?
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 agreements
Options A, C, and D are correct. Intercompany accounting requires defining intercompany relationships, setting up intercompany parameters, and creating intercompany agreements. Option B is wrong because intercompany journals are a result, not a prerequisite. Option E is wrong because consolidation is a separate process.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Intercompany agreements
Why this is correct
Agreements define the terms of transactions between entities.
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Intercompany journals for posting
Why it's wrong here
Journals are used to post transactions but are not a prerequisite; they are created after setup.
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Intercompany relationships between legal entities
Why this is correct
Relationships define which legal entities transact with each other.
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Intercompany parameters in each legal entity
Why this is correct
Parameters control settings like currency and number sequences.
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Consolidation setup
Why it's wrong here
Consolidation is separate and used after intercompany transactions are eliminated.
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