MB-920 Describe Dynamics 365 Finance Practice Question
A manufacturing company uses Dynamics 365 Finance to manage its financial operations. The company recently acquired a subsidiary and needs to consolidate financial statements. The subsidiary uses a different fiscal calendar and chart of accounts. What is the recommended approach to consolidate financial data?
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
✓
Use the Consolidate with elimination feature in Dynamics 365 Finance, mapping the subsidiary's accounts to the parent company's chart of accounts.
The Consolidate with elimination feature in Dynamics 365 Finance is designed to consolidate financial data from multiple legal entities, supporting different fiscal calendars and charts of accounts through account mapping and intercompany elimination. Option A is wrong because recreating the subsidiary's chart of accounts is unnecessary and time-consuming; the consolidation feature handles mapping. Option B is wrong because manually exporting and consolidating trial balance data is inefficient and error-prone compared to using the built-in consolidation functionality. Option C is wrong because data integration can import data but does not handle the mapping and elimination required for proper consolidation; the recommended approach is to use the Consolidate with elimination feature.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Recreate the subsidiary's chart of accounts to match the parent company before consolidation.
Why it's wrong here
Recreating the chart of accounts is not required; mapping is sufficient.
- ✗
Use the General ledger export process to transfer trial balance data and then manually consolidate.
Why it's wrong here
Manual consolidation is error-prone and not the recommended approach.
- ✗
Export data from the subsidiary's system and import it into the parent company's Dynamics 365 Finance using data integration.
Why it's wrong here
Data integration is for bulk data movement, not for consolidation with elimination.
- ✓
Use the Consolidate with elimination feature in Dynamics 365 Finance, mapping the subsidiary's accounts to the parent company's chart of accounts.
Why this is correct
This is the correct approach as it supports consolidation across different configurations.
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