MB-920 Describe Dynamics 365 Finance Practice Question
A manufacturing company uses Dynamics 365 Finance to manage its financial operations. The finance team reports that when they post a purchase invoice for raw materials, the system automatically updates the general ledger and the inventory valuation. However, the team wants to ensure that the purchase invoice posting also triggers a budget check against the remaining budget for the raw materials account. Which configuration should you enable?
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
✓
Enable budget control in General ledger parameters and define budget check rules for purchase invoices.
Enabling budget control in General ledger parameters and defining budget check rules allows the system to perform a budget check when posting purchase invoices. Option B is incorrect because commitment accounting is used to track commitments for purchase orders, not to trigger budget checks during invoice posting. Option C is incorrect because budget planning workflows are for creating and approving budgets, not for checking them at transaction time. Option D is incorrect because creating budget register entries only records budget amounts; it does not enable automatic budget checks.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Enable budget control in General ledger parameters and define budget check rules for purchase invoices.
Why this is correct
Budget control must be enabled and configured for budget check on purchase invoices.
- ✗
Activate commitment accounting for purchase orders.
Why it's wrong here
Commitment accounting is used to track commitments for purchase orders, not to trigger budget checks during invoice posting.
- ✗
Set up budget planning workflows to approve the budget.
Why it's wrong here
Budget planning is for creating budgets, not for budget checks during posting.
- ✗
Create budget register entries for the raw materials account.
Why it's wrong here
Creating budget register entries only records budget amounts; it does not enable automatic budget checks.
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