MB-920 Describe Dynamics 365 Finance Practice Question
A multinational corporation uses Dynamics 365 Finance to manage its financial consolidation across multiple subsidiaries with different currencies. The consolidation must adhere to local GAAP and IFRS. The finance team needs to perform consolidation with elimination of intercompany transactions automatically. What is the most efficient way to achieve this?
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
✓
Set up a consolidation company and use elimination rules
The most efficient way to achieve automated consolidation with intercompany elimination in Dynamics 365 Finance is to set up a consolidation company and define elimination rules. This automates the elimination of intercompany transactions during the consolidation process. Option A (manual elimination) is inefficient and error-prone. Option C (Budget control) is unrelated to consolidation. Option D (Financial reporting with a reporting tree) handles currency translation and reporting, not the actual consolidation process.
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 the General ledger consolidation process and manually eliminate intercompany transactions
Why it's wrong here
Manual elimination is inefficient and error-prone.
- ✓
Set up a consolidation company and use elimination rules
Why this is correct
Consolidation companies with elimination rules automate the process.
- ✗
Use the Budget control module to track intercompany balances
Why it's wrong here
Budget control is for budget management, not consolidation.
- ✗
Configure financial reporting with a reporting tree and currency translation
Why it's wrong here
Financial reporting shows data but does not perform elimination.
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