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Describe Dynamics 365 FinancehardMultiple SelectObjective-mapped

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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