MB-920 Describe Dynamics 365 Finance Practice Question
Which THREE components are essential for setting up intercompany accounting in Dynamics 365 Finance? (Choose three.)
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
✓
Intercompany relationships.
Options B, D, and E are correct. Intercompany relationships define the legal entities involved, intercompany journals handle transactions between those entities, and intercompany settlement ensures that balances are settled properly. Option A (budget control rules) is not essential for intercompany accounting; it is an optional feature for budget management. Option C (vendor groups) is used for vendor categorization but is not specific to intercompany setup.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Budget control rules.
Why it's wrong here
Budget control is not required for intercompany accounting.
- ✓
Intercompany relationships.
Why this is correct
Defines which legal entities are part of intercompany transactions.
- ✗
Vendor groups.
Why it's wrong here
Vendor groups are not specific to intercompany.
- ✓
Intercompany settlement.
Why this is correct
Settlement ensures intercompany balances are cleared.
- ✓
Intercompany journals.
Why this is correct
Intercompany journals record transactions between entities.
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