MB-920 Describe Dynamics 365 Finance Practice Question
You are a Dynamics 365 Finance administrator for a company that needs to generate financial reports in compliance with local GAAP. The company has multiple legal entities and wants to consolidate financial data into a single reporting entity. They also need to support multiple currencies and translation adjustments. The CFO wants to use a standard tool that integrates with Dynamics 365 Finance. Requirements: 1) Consolidate financial data from multiple legal entities. 2) Support currency translation. 3) Use a built-in tool. Which feature should you recommend?
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
✓
Use the Consolidations module with currency translation settings.
Consolidations in Dynamics 365 Finance allow consolidation of multiple legal entities with currency translation. Financial reporting is for individual reports. Budgeting is for planning. Intercompany accounting is for transactions. Option A is correct.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Use the Consolidations module with currency translation settings.
Why this is correct
Consolidations module consolidates entities and handles currency translation.
- ✗
Set up Budgeting with exchange rates.
Why it's wrong here
Budgeting is for planning, not consolidation.
- ✗
Use Financial reporting with row definitions that sum across companies.
Why it's wrong here
Financial reporting does not consolidate legal entities.
- ✗
Configure Intercompany accounting to post balancing entries.
Why it's wrong here
Intercompany accounting does not produce consolidated reports.
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