MB-920 Describe Dynamics 365 Finance Practice Question
A multinational company uses Dynamics 365 Finance with multiple legal entities. They want to process intercompany transactions automatically. What should they configure?
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
✓
Intercompany accounting
Intercompany accounting is the feature that automates intercompany transactions, making Option D correct. Option A (Elimination rules) is used to remove intercompany balances during consolidation, not for day-to-day transactions. Option B (Consolidations) combines financial statements of multiple entities, not for processing individual transactions. Option C (Transfer orders) are for inventory transfers between locations, not for general intercompany transactions.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Elimination rules
Why it's wrong here
Elimination rules are used in consolidation to remove intercompany balances.
- ✗
Consolidations
Why it's wrong here
Consolidations combine financial statements at period end, not for daily transactions.
- ✗
Transfer orders
Why it's wrong here
Transfer orders are for inventory movement, not for financial intercompany transactions.
- ✓
Intercompany accounting
Why this is correct
Intercompany accounting automates transactions between legal entities, including generating matching entries.
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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.