The correct answer is to set the 'Fixed asset acquisition' type on the purchase order line and enable automatic fixed asset creation in Fixed assets parameters. This configuration works because when a purchase order for a fixed asset is invoiced, the system uses the acquisition type to identify the line as a capital asset, and the enabled parameter triggers the automatic creation of a fixed asset record and posts the acquisition cost without manual intervention. On the MB-920 exam, this tests your understanding of the Fixed assets module’s integration with Accounts payable, often appearing as a scenario where a company needs to automate fixed asset creation from purchase orders to streamline procurement. A common trap is confusing this with Asset management, which handles maintenance, not financial acquisition. Remember the memory tip: “Line type and parameter flip the switch” — the line type flags the asset, and the parameter automates the creation.
MB-920 Describe Dynamics 365 Finance Practice Question
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.
You are a Dynamics 365 Finance administrator for a company that needs to manage fixed assets. The company purchases assets frequently and wants to automate the creation of fixed assets from purchase orders. When a purchase order for a fixed asset is invoiced, the system should automatically create a fixed asset record and post the acquisition cost. What should you configure?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
On the purchase order line, set the 'Fixed asset acquisition' type, and enable automatic fixed asset creation in Fixed assets parameters.
Option B is correct because setting the 'Fixed asset acquisition' type on purchase lines and enabling automatic creation in Fixed assets parameters automates asset creation from purchase orders. Option A is wrong because integration with asset management is not for financial acquisition. Option C is wrong because manual creation is not automated. Option D is wrong because the asset inventory module is for tracking, not financial acquisition.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
On the purchase order line, set the 'Fixed asset acquisition' type, and enable automatic fixed asset creation in Fixed assets parameters.
Why this is correct
Correct: This automates asset creation from purchase orders.
Related concept
Read the scenario before looking for a memorised answer.
✗
Use the asset inventory module to track assets and post acquisition costs to a general ledger account.
Why it's wrong here
Incorrect: Asset inventory is for tracking, not acquisition.
✗
Create fixed assets manually from the Fixed assets module and post the acquisition using a fixed asset journal.
Why it's wrong here
Incorrect: This is manual.
✗
Set up integration between Dynamics 365 Finance and Dynamics 365 Asset Management to automatically create assets.
Why it's wrong here
Incorrect: Asset Management is for maintenance, not financial acquisition.
Common exam traps
Common exam trap: answer the scenario, not the keyword
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
How to think about this question
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.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
Got this wrong? Here's your next step.
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.
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: On the purchase order line, set the 'Fixed asset acquisition' type, and enable automatic fixed asset creation in Fixed assets parameters. — Option B is correct because setting the 'Fixed asset acquisition' type on purchase lines and enabling automatic creation in Fixed assets parameters automates asset creation from purchase orders. Option A is wrong because integration with asset management is not for financial acquisition. Option C is wrong because manual creation is not automated. Option D is wrong because the asset inventory module is for tracking, not financial acquisition.
What should I do if I get this MB-920 question wrong?
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.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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