MB-920 Describe Dynamics 365 Finance Practice Question
Which THREE of the following are valid configurations for intercompany accounting in Dynamics 365 Finance?
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
✓
Elimination rules can be defined to automatically remove intercompany transactions during consolidation.
Options A, C, and E are correct. A: Elimination rules can be defined to automatically remove intercompany transactions during consolidation, which is a standard feature in Dynamics 365 Finance. C: Intercompany journals can be set up to post automatically to both legal entities involved, streamlining the accounting process. E: Intercompany sales orders and purchase orders can be automatically generated through intercompany workflows, reducing manual effort. Options B and D are incorrect. B: Intercompany transactions do not require the same currency; they can be in different currencies with exchange rate adjustments. D: While intercompany transactions involve multiple legal entities, they are not posted separately to a distinct legal entity for each transaction; they are posted within the same legal entity 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.
- ✓
Elimination rules can be defined to automatically remove intercompany transactions during consolidation.
Why this is correct
Elimination rules are used to avoid double counting.
- ✗
Intercompany transactions must use the same currency.
Why it's wrong here
Intercompany transactions can use different currencies with exchange rates.
- ✓
Intercompany journals can be automatically posted to both legal entities.
Why this is correct
Intercompany journals can be set to post automatically.
- ✗
Each intercompany transaction must be posted to a separate legal entity.
Why it's wrong here
Transactions can be between existing legal entities; no new entity required.
- ✓
Intercompany sales orders and purchase orders can be automatically generated.
Why this is correct
Intercompany orders can be generated automatically between legal entities.
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