The correct answer is to enable budget control in General ledger parameters and define budget check rules for purchase invoices. This configuration works because budget control is the core framework that enforces spending limits; when a purchase invoice is posted, the system compares the transaction amount against the remaining budget for the raw materials account, preventing overruns. The budget check is a prerequisite for budget control, meaning you must activate the feature in General ledger parameters and then specify which documents—like purchase invoices—trigger the check. On the MB-920 exam, this question tests your understanding of budget control versus other budget features; a common trap is confusing budget control with budget planning (a separate forecasting process) or commitment accounting (which tracks encumbrances, not real-time checks). Remember the memory tip: "Check before you post—budget control is the host." This highlights that enabling the check is the first step, and it must be configured at the parameter level to apply to purchase invoice posting.
MB-920 Describe Dynamics 365 Finance Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 finance. 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.
A manufacturing company uses Dynamics 365 Finance to manage its financial operations. The finance team reports that when they post a purchase invoice for raw materials, the system automatically updates the general ledger and the inventory valuation. However, the team wants to ensure that the purchase invoice posting also triggers a budget check against the remaining budget for the raw materials account. Which configuration should you enable?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Enable budget control in General ledger parameters and define budget check rules for purchase invoices.
Option A is correct because the budget check is a prerequisite for budget control. Option B is wrong because budget register entries are used to record budget amounts, not to enable checks. Option C is wrong because budget planning is a separate process. Option D is wrong because commitment accounting is for encumbrances, not budget checks.
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.
✓
Enable budget control in General ledger parameters and define budget check rules for purchase invoices.
Why this is correct
Budget control must be enabled and configured for budget check on purchase invoices.
Related concept
Read the scenario before looking for a memorised answer.
✗
Activate commitment accounting for purchase orders.
Why it's wrong here
Commitment accounting tracks commitments but does not perform budget checks.
✗
Set up budget planning workflows to approve the budget.
Why it's wrong here
Budget planning is for creating budgets, not for budget checks during posting.
✗
Create budget register entries for the raw materials account.
Why it's wrong here
Budget register entries record budgets but do not enable budget checks.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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 MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Enable budget control in General ledger parameters and define budget check rules for purchase invoices. — Option A is correct because the budget check is a prerequisite for budget control. Option B is wrong because budget register entries are used to record budget amounts, not to enable checks. Option C is wrong because budget planning is a separate process. Option D is wrong because commitment accounting is for encumbrances, not budget checks.
What should I do if I get this MB-920 question wrong?
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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