The correct answer is to set up intercompany accounting rules that map the sales invoice to the purchase transaction. This is necessary because intercompany accounting rules in Dynamics 365 Finance define the offset accounts and transaction mappings—such as linking a sales invoice in one legal entity to a purchase transaction in another—enabling the system to automatically generate due-to and due-from entries across both entities. Without these rules, the system cannot determine which source document in Contoso Ltd. corresponds to which target document in Contoso Manufacturing, so no automatic posting occurs. On the MB-920 exam, this scenario tests your understanding of intercompany setup versus manual journals; a common trap is confusing intercompany accounting rules with intercompany journals, which are only for manual adjustments. Remember the memory tip: "Rules map the flow, journals are for manual show."
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.
Your organization is a medium-sized manufacturing company that has recently implemented Dynamics 365 Finance. The company has two legal entities: Contoso Ltd. (the main company) and Contoso Manufacturing (a subsidiary). The finance department needs to process intercompany transactions where Contoso Ltd. sells raw materials to Contoso Manufacturing. The transaction must automatically create accounting entries in both legal entities: a sale in Contoso Ltd. and a purchase in Contoso Manufacturing. Additionally, the intercompany transactions must be tracked using a specific financial dimension called "IntercompanyPartner". You have set up the legal entities and the chart of accounts. The intercompany accounting setup has been configured with the appropriate due-to and due-from accounts. However, when you post a sales invoice from Contoso Ltd. to Contoso Manufacturing, no accounting entries are generated in Contoso Manufacturing. What should you do to ensure the intercompany accounting entries are created automatically?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Set up intercompany accounting rules that map the sales invoice to the purchase transaction.
Option C is correct because the intercompany accounting rules define the offset accounts and must be configured for automatic posting. Option A is wrong because the intercompany journal is for manual entries, not automatic. Option B is wrong because the general journal is also manual. Option D is wrong because financial dimensions are not the cause of missing entries.
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 an intercompany journal in Contoso Ltd. to record the transaction.
Why it's wrong here
An intercompany journal would require manual entry and does not automate.
✗
Post a general journal entry in Contoso Manufacturing to record the purchase.
Why it's wrong here
Manual posting defeats the purpose of automation.
✗
Add the IntercompanyPartner dimension to the sales invoice.
Why it's wrong here
Dimensions track data but do not generate automatic entries.
✓
Set up intercompany accounting rules that map the sales invoice to the purchase transaction.
Why this is correct
Intercompany accounting rules define how documents are mirrored.
Related concept
Read the scenario before looking for a memorised answer.
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: Set up intercompany accounting rules that map the sales invoice to the purchase transaction. — Option C is correct because the intercompany accounting rules define the offset accounts and must be configured for automatic posting. Option A is wrong because the intercompany journal is for manual entries, not automatic. Option B is wrong because the general journal is also manual. Option D is wrong because financial dimensions are not the cause of missing entries.
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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