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Describe Dynamics 365 FinancehardMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Finance Practice Question

A company uses Dynamics 365 Finance with multiple legal entities. The accounting manager notices that when intercompany transactions are posted, the due-to and due-from accounts are not automatically created. The intercompany setup appears correct, but the transactions fail to generate the intercompany accounting entries. What should you verify first?

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

Check the intercompany accounting setup for the due-to and due-from account mappings.

The intercompany accounting setup defines the specific due-to and due-from account mappings for each intercompany relationship. Without these mappings, the system cannot generate the offset entries, even if other settings are correct. Option B is wrong because currency configuration affects exchange rate calculations but not the creation of due-to/due-from accounts. Option C is wrong because while the chart of accounts must include intercompany accounts, the first verification step should be the mapping setup that tells the system which accounts to use. Option D is wrong because default financial dimensions do not control intercompany accounting entries.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Check the intercompany accounting setup for the due-to and due-from account mappings.

    Why this is correct

    Correct. The intercompany accounting setup includes the mapping of due-to and due-from accounts for each intercompany relationship. If these are missing or incorrect, the transactions will post without generating the required offset entries.

  • Confirm that the intercompany currency is properly configured.

    Why it's wrong here

    Incorrect. Intercompany currency configuration is used for exchange rate calculations in cross-currency transactions, not for generating the due-to/due-from accounts.

  • Verify that the chart of accounts includes intercompany accounts.

    Why it's wrong here

    Incorrect. While the chart of accounts must contain the intercompany accounts, the first thing to verify is the mapping in the intercompany accounting setup that defines which accounts to use.

  • Ensure each legal entity has a default financial dimension set.

    Why it's wrong here

    Incorrect. Default financial dimensions are used for reporting and dimension balances, not for intercompany accounting entries.

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