MB-920 Describe Dynamics 365 Finance Practice Question
A multinational corporation using Dynamics 365 Finance needs to revalue foreign currency bank accounts at month-end. The finance manager wants to automate this process and ensure that exchange rate differences are posted to the correct accounts. 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
✓
Use the Foreign currency revaluation feature in General ledger.
The Foreign currency revaluation feature in Dynamics 365 Finance automates the process and posts differences to the specified accounts. Option A is wrong because manual journal entries are error-prone and not automated. Option B is wrong because the General journal does not automatically revalue accounts. Option C is wrong because exchange rate types define rates, not automate revaluation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create manual journal entries for each bank account using the month-end exchange rate.
Why it's wrong here
Manual entries are time-consuming and prone to errors.
- ✗
Use the General journal to post exchange rate adjustments.
Why it's wrong here
General journal does not automate revaluation.
- ✗
Configure exchange rate types for each currency pair.
Why it's wrong here
Exchange rate types define rates but do not automate revaluation.
- ✓
Use the Foreign currency revaluation feature in General ledger.
Why this is correct
This feature automates revaluation and posts to specified accounts.
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