- A
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 wrong: This approach is error-prone and does not automate accrual per local rules.
- B
Create separate leave and absence plans for each legal entity, configuring accrual rules, frequencies, and leave types per country.
Each legal entity can have its own plan, accommodating different accrual rules, frequencies, and leave types like RTT.
- C
Use compensation plans to handle leave entitlements because they are based on employee classification.
Why wrong: Compensation plans are for salary and bonuses, not leave accrual.
- D
Use the same leave plan for all entities and rely on approval workflows to validate leave requests according to local rules.
Why wrong: Workflows validate requests, but accrual is still calculated from the plan; different rules need separate plans.
MB-920 Describe Dynamics 365 Human Resources Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 human resources. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
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?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"first"Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
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.
Option B is correct because 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.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
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.
Common exam traps
Common exam trap: answer the scenario, not the keyword
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.
Detailed technical explanation
How to think about this question
In Dynamics 365 Human Resources, leave and absence plans are configured at the legal entity level, allowing distinct accrual schedules (e.g., monthly for US/UK, yearly for France) and leave types (e.g., RTT days for France). The system uses accrual date basis and frequency settings to automatically calculate balances, and you can define tiered accruals based on years of service using the 'Accrual based on seniority' option. This ensures compliance with local labor laws without manual intervention.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this MB-920 question test?
Describe Dynamics 365 Human Resources — This question tests Describe Dynamics 365 Human Resources — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create separate leave and absence plans for each legal entity, configuring accrual rules, frequencies, and leave types per country. — Option B is correct because 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.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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