The correct answer is to enable the ‘Post inventory to General ledger’ parameter in Inventory and warehouse management parameters and ensure the ‘Inventory closing’ batch job runs regularly. This works because enabling that parameter forces every inventory transaction—such as purchase order receipts—to automatically update both inventory quantities and financial postings in the general ledger, directly addressing the root cause of the inventory value mismatch. The inventory closing process then recalculates standard costs and corrects any residual discrepancies, minimizing manual intervention. On the MB-920 exam, this scenario tests your understanding of perpetual inventory synchronization under standard costing, a common trap being that users might try to manually adjust ledger entries instead of using automated parameters. A useful memory tip: think of the parameter as the “gatekeeper” that ensures no inventory transaction slips through without hitting the general ledger, while the closing batch job acts as the “reconciler” that cleans up any cost variances.
MB-920 Describe Dynamics 365 Finance Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 finance. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 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?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "always"
Why it matters: Absolute qualifier. An answer using 'always' is only correct if there are genuinely no exceptions — absolute statements are often wrong in networking.
Clue: "minimum / minimize"
Why it matters: Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
Create a recurring batch job that compares inventory value in the inventory module to GL and posts adjusting entries.
Why wrong: This is reactive and does not prevent discrepancies.
B
Enable the 'Post inventory to General ledger' parameter in Inventory and warehouse management parameters, and ensure that the 'Inventory closing' batch job runs regularly.
This ensures all inventory transactions post to GL and inventory closing corrects costs.
C
Set the 'Inventory model' to 'FIFO' instead of 'Standard cost'.
Why wrong: Changing inventory model does not address synchronization.
D
Use the 'Inventory recalculation' report monthly and manually correct discrepancies.
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 ensures that inventory transactions automatically post to the general ledger. The 'Inventory closing process' recalculates inventory costs and corrects discrepancies. Other options do not address synchronization. Option A is correct.
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.
✗
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.
Clue confirmation
The clue words "always", "minimum / minimize" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
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.
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: 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 ensures that inventory transactions automatically post to the general ledger. The 'Inventory closing process' recalculates inventory costs and corrects discrepancies. Other options do not address synchronization. Option A is correct.
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.
Are there clue words in this question I should notice?
Yes — watch for: "always", "minimum / minimize". Absolute qualifier. An answer using 'always' is only correct if there are genuinely no exceptions — absolute statements are often wrong in networking.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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