MB-920 Describe Dynamics 365 Finance Practice Question
You are a Dynamics 365 Finance consultant for a medium-sized manufacturing company that recently implemented Dynamics 365 Finance. The company uses the perpetual inventory system with standard cost. They have encountered an issue where the inventory value in the general ledger does not match the inventory value in the inventory module. After investigation, you discover that some purchase order receipts were posted directly to the general ledger without updating inventory quantities. The CFO wants to ensure that inventory financial postings are always synchronized with inventory transactions. The company uses batch processing for inventory closing. They need a solution that prevents discrepancies in the future. Requirements: 1) Ensure that all inventory transactions update both inventory quantities and financial postings. 2) Minimize manual intervention. 3) Use existing Dynamics 365 Finance features. Which course of action 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
✓
Enable the 'Post inventory to General ledger' parameter in Inventory and warehouse management parameters, and ensure that the 'Inventory closing' batch job runs regularly.
Enabling the 'Post inventory to general ledger' parameter in Inventory and warehouse management parameters ensures that all inventory transactions automatically update both inventory quantities and financial postings. Running the 'Inventory closing' batch job regularly recalculates inventory costs and corrects discrepancies, minimizing manual intervention. This uses existing Dynamics 365 Finance features and prevents future discrepancies. Option A requires manual comparison and adjusting entries, which introduces manual intervention and does not prevent discrepancies proactively. Option C changes the costing method but does not address the synchronization issue; standard cost can work with proper posting. Option D also relies on manual correction and does not prevent future discrepancies.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create a recurring batch job that compares inventory value in the inventory module to GL and posts adjusting entries.
Why it's wrong here
This is reactive and does not prevent discrepancies.
- ✓
Enable the 'Post inventory to General ledger' parameter in Inventory and warehouse management parameters, and ensure that the 'Inventory closing' batch job runs regularly.
Why this is correct
This ensures all inventory transactions post to GL and inventory closing corrects costs.
- ✗
Set the 'Inventory model' to 'FIFO' instead of 'Standard cost'.
Why it's wrong here
Changing inventory model does not address synchronization.
- ✗
Use the 'Inventory recalculation' report monthly and manually correct discrepancies.
Why it's wrong here
Manual correction is not recommended.
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