hardMultiple ChoiceObjective-mapped

MB-920 Shared chart of accounts Practice Question

Exhibit

Refer to the exhibit.

```json
{
  "Company": "USMF",
  "LegalEntity": "Contoso Entertainment USA",
  "SharedData": {
    "ChartOfAccounts": "Shared",
    "Currencies": ["USD", "EUR"],
    "FiscalCalendar": "Standard",
    "ExchangeRateType": "Monthly average"
  }
}
```

The exhibit shows a configuration for a new legal entity in Dynamics 365 Finance. The chart of accounts is shared, but the fiscal calendar is set to 'Standard'. What is a potential issue?

⚠ Common exam trap

Candidates often mistakenly assume that when a chart of accounts is shared, the fiscal calendar must also be shared across legal entities. However, in Dynamics 365 Finance, fiscal calendars can be set independently per legal entity, regardless of whether the chart of accounts is shared.

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

✓

The currency list must include all currencies used

When a chart of accounts is shared across multiple legal entities in Dynamics 365 Finance, the currency list for each legal entity must include all currencies used by that entity for transactions and reporting. If the currency list does not include a currency used by any entity sharing the chart of accounts, it can cause posting errors or prevent transactions in that currency. Option B is incorrect because fiscal calendars can be specific to each legal entity even with a shared chart of accounts; they do not need to be the same across entities. Options C and D are not specifically related to the shared chart of accounts scenario.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

✓
The currency list must include all currencies used
Why this is correct
Correct. The currency list per legal entity must include all currencies used by that entity, especially when the chart of accounts is shared, to avoid posting errors.
✗
The fiscal calendar must be the same across all entities using the shared chart of accounts
Why it's wrong here
Incorrect. Fiscal calendars can be entity-specific; they do not have to be identical across entities using a shared chart of accounts.
✗
The exchange rate type must be set to 'Daily'
Why it's wrong here
Incorrect. The exchange rate type is not mandated to be 'Daily' and is unrelated to the shared chart of accounts issue.
✗
The legal entity name must be unique
Why it's wrong here
Incorrect. While legal entity names must be unique across the system, this is not a specific issue arising from a shared chart of accounts and a set fiscal calendar.

Go deeper

MB-920 Shared chart of accounts Practice Question

Exhibit

Why each option matters

Option-by-option breakdown

Related to this question