MB-920 Describe Dynamics 365 Finance Practice Question
Which TWO of the following are required to set up a consolidation in Dynamics 365 Finance? (Select two.)
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
✓
A consolidation company
A consolidation company serves as the legal entity for the consolidated data. Currency conversion rates are required to translate amounts from source companies to the consolidation company's currency. Reporting trees are optional for structuring drill-down, elimination rules are optional for automating intercompany eliminations, and budget plan templates are unrelated to consolidation 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.
- ✓
A consolidation company
Why this is correct
A consolidation company is needed to combine financial data.
- ✗
Reporting tree
Why it's wrong here
Reporting tree is for financial reporting, not consolidation.
- ✗
Elimination rules
Why it's wrong here
Elimination rules are optional, not required for basic consolidation.
- ✗
Budget plan templates
Why it's wrong here
Budget plan templates are for budgeting, not consolidation.
- ✓
Currency conversion rates
Why this is correct
Conversion rates are required for currency translation.
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