MB-920 Describe Dynamics 365 Finance Practice Question
A multinational corporation uses Dynamics 365 Finance and needs to report in both local GAAP and IFRS. What is the recommended approach?
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 multiple ledgers with different accounting frameworks.
Dynamics 365 Finance allows multiple ledgers to be attached to the same legal entity, each with a different accounting framework (e.g., local GAAP and IFRS). Option B is wrong because using two separate instances would require duplicate data entry and is not necessary. Option C is wrong because the consolidation module is used to consolidate financial results from multiple entities, not for dual reporting within one entity. Option D is wrong because financial dimensions are for segmenting financial data, not for applying different accounting standards.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Use multiple ledgers with different accounting frameworks.
Why this is correct
Multiple ledgers allow parallel reporting under different GAAPs.
- ✗
Set up two separate instances of Dynamics 365 Finance.
Why it's wrong here
Overly complex; single instance can handle multiple ledgers.
- ✗
Use the consolidation module to convert IFRS to local GAAP.
Why it's wrong here
Consolidation combines entities, not for dual reporting.
- ✗
Configure financial dimensions to differentiate GAAPs.
Why it's wrong here
Dimensions are for segmentation, not separate accounting standards.
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