This MB-920 practice question tests your understanding of describe the core capabilities of the finance and operations apps. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 to manage intercompany transactions. They need to automate the elimination of intercompany sales and purchases during consolidation. What feature should they configure?
Fixed asset management
Why wrong: Fixed asset management tracks assets, not intercompany transactions.
Budget control
Why wrong: Budget control is for managing budgets, not intercompany eliminations.
Intercompany elimination rules
These rules automate elimination of intercompany transactions during consolidation.
Vendor collaboration
Why wrong: Vendor collaboration is for vendor interactions, not eliminations.
Answer choices
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
Option C is correct because intercompany elimination rules in Dynamics 365 Finance are specifically designed to automate the removal of intercompany sales and purchase transactions during the consolidation process. These rules define matching criteria (e.g., intercompany trade agreements, dimensions) and generate elimination entries that offset the intercompany revenue and expense, ensuring the consolidated financial statements reflect only external transactions.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Fixed asset management
Why it's wrong here
Fixed asset management tracks assets, not intercompany transactions.
Budget control
Why it's wrong here
Budget control is for managing budgets, not intercompany eliminations.
Intercompany elimination rules
Why this is correct
These rules automate elimination of intercompany transactions during consolidation.
Related concept
Read the scenario before looking for a memorised answer.
Vendor collaboration
Why it's wrong here
Vendor collaboration is for vendor interactions, not eliminations.
Common exam traps
The trap here is that candidates may confuse intercompany elimination rules with general ledger periodic processes like 'Consolidate' or 'Eliminate' transactions, but the specific feature for automating elimination of intercompany sales and purchases is the dedicated 'Intercompany elimination rules' setup, not the manual elimination journal.
Detailed technical explanation
Intercompany elimination rules work by mapping source and destination legal entities and using predefined elimination dimensions (e.g., intercompany partner dimension) to automatically generate offsetting journal entries during consolidation. A subtle behavior is that elimination rules can be set to run in batch mode, and they respect the 'Elimination method' (percentage or fixed amount) defined on the intercompany trade agreement. In a real-world scenario, a multinational company with multiple subsidiaries selling to each other must configure these rules to avoid double-counting revenue and cost of goods sold in the consolidated income statement.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
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FAQ
Describe the core capabilities of the finance and operations apps — This question tests Describe the core capabilities of the finance and operations apps — Read the scenario before looking for a memorised answer..
The correct answer is: Intercompany elimination rules — Option C is correct because intercompany elimination rules in Dynamics 365 Finance are specifically designed to automate the removal of intercompany sales and purchase transactions during the consolidation process. These rules define matching criteria (e.g., intercompany trade agreements, dimensions) and generate elimination entries that offset the intercompany revenue and expense, ensuring the consolidated financial statements reflect only external transactions.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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