Quick Answer
The answer is intercompany partner definition and intercompany accounting sequences. These two configurations are required to enable intercompany accounting in Dynamics 365 Finance because the system needs a formal relationship between legal entities—defined through intercompany partners—and a dedicated number sequence to track transactions between those entities. Without both, the intercompany module cannot process or record cross-entity trade. On the MB-920 exam, this question tests your understanding of foundational setup steps versus optional enhancements; a common trap is confusing a shared chart of accounts (beneficial but not mandatory) or budget control (unrelated) as requirements. Remember the memory tip: "Partners and sequences—the pair that opens intercompany sequences."
This MB-920 practice question tests your understanding of describe dynamics 365 finance. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which TWO configurations are required to enable intercompany accounting in Dynamics 365 Finance?
Intercompany accounting sequences
Required for transaction processing.
Intercompany partner definition
Defines the relationships between entities.
Shared chart of accounts across legal entities
Why wrong: Helpful but not required for intercompany accounting.
Currency revaluation rules
Why wrong: Separate process for foreign currency.
Budget control configuration
Why wrong: Not related to intercompany accounting.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Intercompany accounting sequences
Options B and D are correct. Intercompany partners must be defined, and intercompany accounting sequences must be set up. Option A is incorrect because a shared chart of accounts is beneficial but not required for intercompany accounting. Option C is incorrect because budget control is unrelated. Option E is incorrect because currency revaluation is a separate process.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Intercompany accounting sequences
Why this is correct
Required for transaction processing.
Related concept
Read the scenario before looking for a memorised answer.
Intercompany partner definition
Why this is correct
Defines the relationships between entities.
Related concept
Read the scenario before looking for a memorised answer.
Shared chart of accounts across legal entities
Why it's wrong here
Helpful but not required for intercompany accounting.
Currency revaluation rules
Why it's wrong here
Separate process for foreign currency.
Budget control configuration
Why it's wrong here
Not related to intercompany accounting.
Common exam traps
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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FAQ
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
The correct answer is: Intercompany accounting sequences — Options B and D are correct. Intercompany partners must be defined, and intercompany accounting sequences must be set up. Option A is incorrect because a shared chart of accounts is beneficial but not required for intercompany accounting. Option C is incorrect because budget control is unrelated. Option E is incorrect because currency revaluation is a separate process.
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Read the scenario before looking for a memorised answer.
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Same concept, more angles
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Variation 1. Which THREE of the following are valid configurations for intercompany accounting in Dynamics 365 Finance?
hardWhy A: Options B, C, and D are correct. B: Intercompany transactions can include sales orders and purchase orders. C: Elimination rules are used to remove intercompany transactions from consolidated financials. D: Intercompany journals can be posted automatically. Options A and E are incorrect: A is not valid because intercompany accounting does not require separate legal entities for each transaction; E is wrong because intercompany accounting supports multiple currencies.
Variation 2. Which THREE of the following are requirements for setting up 'Intercompany accounting' in Dynamics 365 Finance?
hardWhy A: Options A, B, and D are correct. Intercompany accounting requires trading partner relationships, intercompany journals, and elimination rules. Option C is wrong because a shared chart of accounts is not required; each legal entity can have its own. Option E is wrong because a single currency is not required; different currencies are allowed.
Last reviewed: Jun 21, 2026
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