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MB-920 Contoso Ltd Practice Question

Contoso Ltd. is a manufacturing company with 1,200 employees across three legal entities: USMF (United States), FRRT (France), and GBSI (United Kingdom). They are implementing Dynamics 365 Human Resources. The HR director wants to set up a unified absence management system that complies with local regulations. In the US, employees accrue vacation based on years of service (0-5 years: 10 days; 5+ years: 15 days). In France, all employees receive 25 days annually, plus additional RTT days for managers. In the UK, statutory leave is 28 days, but the company offers 25 days base with 3 bank holidays. The system must automatically calculate accruals on the first day of each month for US and UK, and at the start of the leave year (January 1) for France. Additionally, employees in France must be able to request RTT days separately, and managers must approve them. The HR team is unsure how to configure this. Which approach should be recommended?

⚠ Common exam trap

The trap here is that candidates might think a single plan with manual adjustments or approval workflows can handle multi-country compliance, but Dynamics 365 requires separate plans per legal entity to enforce distinct accrual rules and frequencies automatically.

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

Create separate leave and absence plans for each legal entity, configuring accrual rules, frequencies, and leave types per country.

Dynamics 365 Human Resources allows you to create separate leave and absence plans per legal entity, each with its own accrual rules, frequencies, and leave types. This enables you to configure US vacation accruals based on years of service with monthly accrual, French annual leave with RTT days and yearly accrual, and UK statutory leave with bank holidays, all while complying with local regulations.

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 a single global leave plan with the maximum accrual (28 days) and then manually adjust balances for each employee based on their country.

    Why it's wrong here

    This approach is error-prone and does not automate accrual per local rules.

  • Create separate leave and absence plans for each legal entity, configuring accrual rules, frequencies, and leave types per country.

    Why this is correct

    Each legal entity can have its own plan, accommodating different accrual rules, frequencies, and leave types like RTT.

  • Use compensation plans to handle leave entitlements because they are based on employee classification.

    Why it's wrong here

    Compensation plans are for salary and bonuses, not leave accrual.

  • Use the same leave plan for all entities and rely on approval workflows to validate leave requests according to local rules.

    Why it's wrong here

    Workflows validate requests, but accrual is still calculated from the plan; different rules need separate plans.

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