MB-920 Describe Dynamics 365 Finance Practice Question
A multinational company uses Dynamics 365 Finance with multiple legal entities. They want to streamline intercompany invoicing by automatically creating invoices for intercompany purchases when a purchase order is confirmed. What configuration is required?
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
✓
Configure intercompany parameters to automatically post invoices on purchase order confirmation.
Dynamics 365 Finance allows you to configure intercompany parameters to automatically generate intercompany invoices when purchase orders are confirmed. Option B is incorrect because using vendor invoices manually is not automatic and does not streamline the process. Option C is incorrect because purchase agreements define terms between legal entities but do not automatically create invoices upon purchase order confirmation. Option D is incorrect because recurring invoices are for repetitive invoicing to customers, not for intercompany transactions triggered by purchase orders.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Configure intercompany parameters to automatically post invoices on purchase order confirmation.
Why this is correct
This setting enables automatic generation of intercompany invoices upon PO confirmation.
- ✗
Use vendor invoices to manually record intercompany transactions.
Why it's wrong here
Manual entry defeats the automation goal.
- ✗
Create a purchase agreement between legal entities.
Why it's wrong here
Purchase agreements define terms but do not automate invoice creation.
- ✗
Set up recurring invoices for each intercompany relationship.
Why it's wrong here
Recurring invoices are not the correct method for intercompany invoicing.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.