MB-920 Describe Dynamics 365 Finance Practice Question
Which TWO actions should a Dynamics 365 Finance administrator take to ensure that intercompany transactions are automatically reconciled and eliminated during consolidation?
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
✓
Set up an elimination rule for intercompany transactions.
Options A and C are correct. Setting up intercompany accounting (option C) ensures that transactions are automatically matched between legal entities, and an elimination rule (option A) automates the elimination of intercompany balances during consolidation. Option B is wrong because the consolidation online feature is for transferring balances, not for elimination. Option D is wrong because consolidation groups are for grouping legal entities, not for eliminating intercompany transactions. Option E is wrong because intercompany workflows are for approval, not for reconciliation or elimination.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Set up an elimination rule for intercompany transactions.
Why this is correct
Elimination rules remove intercompany balances during consolidation.
- ✗
Use the Consolidation online feature to transfer balances.
Why it's wrong here
Consolidation online transfers data but does not eliminate.
- ✓
Configure intercompany accounting to automatically generate matching transactions in both legal entities.
Why this is correct
Intercompany accounting ensures mirror entries.
- ✗
Define consolidation groups to group legal entities.
Why it's wrong here
Groups are for organizing entities, not eliminating.
- ✗
Create an intercompany workflow to approve transactions.
Why it's wrong here
Workflows are for approval, not reconciliation.
Go deeper
Related to this question
About these practice questions
Courseiva writes every MB-920 question from scratch — 930 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.