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MB-920 Practice Question: Describe the core capabilities of the finance and operations apps

You are a Dynamics 365 Finance consultant for a company that is implementing Dynamics 365 Finance. The company has a requirement to track expenses by project and by department. They plan to use financial dimensions. However, the finance team is unsure how to set up the dimensions to meet both reporting needs. They want to ensure that all transactions can be analyzed by both project and department. The company has 50 departments and 200 active projects. Which configuration should you recommend?

⚠ Common exam trap

Candidates often confuse financial dimensions with account structures, thinking that embedding dimensions into the main account is simpler, but they fail to realize that this creates an explosion of main accounts and loses the ability to analyze dimensions independently.

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

Create separate financial dimensions for Project and Department. Assign both dimensions to all transactions.

Financial dimensions in Dynamics 365 Finance are designed to track multiple analytical categories independently. By creating separate dimensions for Project and Department and assigning both to all transactions, the company can report on expenses by either dimension or a combination of both, meeting the requirement without forcing a hierarchical or concatenated structure.

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 default dimensions on legal entity and override on each transaction.

    Why it's wrong here

    Default dimensions can be overridden but that adds complexity and is error-prone.

  • Use account structures to embed department and project in the main account.

    Why it's wrong here

    Account structures are for chart of accounts, not for separate dimensions.

  • Create separate financial dimensions for Project and Department. Assign both dimensions to all transactions.

    Why this is correct

    Two separate dimensions allow independent reporting on both project and department.

  • Create one financial dimension that combines project and department as a single value.

    Why it's wrong here

    A single dimension would not allow separate analysis by project and department.

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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.