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MB-920 Practice Question: A Dynamics 365 Human Resources administrator for…
You are a Dynamics 365 Human Resources administrator for a multinational corporation with 5,000 employees across three regions: North America, Europe, and Asia Pacific. The company uses Dynamics 365 Human Resources to manage employee records, benefits, leave, and compensation. Recently, the HR team has been receiving complaints from employees in the Asia Pacific region that their leave balances are not updating correctly after they submit leave requests. Additionally, managers in that region report that they cannot see their direct reports' leave balances when trying to approve leave. You investigate and find that employees in Asia Pacific have a different leave policy than other regions, and this policy is configured using a custom leave type called "Regional Leave." The system is set up with a single legal entity. You need to resolve the issue so that leave balances update correctly and managers can view leave balances. What should you do?
⚠ Common exam trap
Candidates often assume creating a new leave type or modifying calendar parameters can fix region-specific policy issues, but they overlook that leave policies in Dynamics 365 Human Resources are inherently tied to legal entities, not to leave types or calendars alone.
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 a separate legal entity for the Asia Pacific region and configure a dedicated leave policy for that entity.
In Dynamics 365 Human Resources, leave policies are tied to legal entities. Since the company uses a single legal entity, all employees share the same leave policy configuration, which causes the Asia Pacific region's custom 'Regional Leave' type to behave incorrectly. Creating a separate legal entity for Asia Pacific allows you to configure a dedicated leave policy with its own leave types, accrual rules, and balance calculations, ensuring that leave balances update correctly and managers can view them.
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 separate legal entity for the Asia Pacific region and configure a dedicated leave policy for that entity.
Why this is correct
A separate legal entity allows independent leave policy configuration, ensuring correct balances and manager visibility.
- ✗
Create a new leave type called 'Regional Leave - Asia Pacific' and assign it to employees in that region.
Why it's wrong here
A new leave type does not solve the policy calculation issue; the underlying leave policy configuration is still shared.
- ✗
Disable the leave functionality for Asia Pacific employees and process leave manually.
Why it's wrong here
Manual processing is inefficient and does not leverage the system's capabilities.
- ✗
Modify the calendar parameters to exclude Asia Pacific holidays from leave balance calculations.
Why it's wrong here
Calendar parameters are global and not suitable for region-specific adjustments.
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