MB-920 Describe Dynamics 365 Finance Practice Question
A multinational corporation uses Dynamics 365 Finance with multiple legal entities. The consolidation team needs to eliminate intercompany transactions automatically during the consolidation process. What is the best 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
✓
Define intercompany elimination rules in the consolidation process
Intercompany elimination rules in Dynamics 365 Finance allow automatic elimination of intercompany transactions during the consolidation process. Option B is wrong because consolidation companies aggregate data but do not eliminate intercompany transactions automatically. Option C is wrong because manual identification and removal is error-prone and not automatic. Option D is wrong because intercompany accounting posts transactions to both legal entities but does not eliminate them during consolidation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Define intercompany elimination rules in the consolidation process
Why this is correct
Intercompany elimination rules automate the removal of intercompany transactions during consolidation, ensuring accurate consolidated financials.
- ✗
Use consolidation companies to aggregate data without elimination
Why it's wrong here
Consolidation companies aggregate financial data but do not automatically eliminate intercompany balances.
- ✗
Manually identify and remove intercompany transactions before consolidation
Why it's wrong here
Manual elimination is time-consuming and prone to errors, not the best approach for automation.
- ✗
Set up intercompany accounting to automatically post to both legal entities
Why it's wrong here
Intercompany accounting ensures transactions are recorded in both entities, but elimination still needs to be performed.
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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.