Describe the core capabilities of the finance and operations apps →hardMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
You are a finance manager for a multinational corporation using Dynamics 365 Finance. The company needs to comply with the new revenue recognition standard (ASC 606). They sell products and services in bundled contracts, and revenue must be allocated to performance obligations based on standalone selling prices. The system must automatically allocate the transaction price to each obligation and recognize revenue over time. Currently, the finance team manually calculates allocations in Excel. You need to configure Dynamics 365 Finance to automate revenue recognition for these bundled contracts. The company uses the Project management and accounting module for services and the Sales module for products. What should you do?
⚠ Common exam trap
Watch out — candidates often think revenue recognition is only handled in the Project management and accounting module, overlooking the dedicated Revenue recognition module that integrates both Sales and Project modules for bundled contracts.
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
✓
Configure the Revenue recognition module to create revenue schedules from sales orders and project proposals.
Dynamics 365 Finance includes a dedicated Revenue recognition module that can automatically create revenue schedules from sales orders (for products) and project proposals (for services). This automates the allocation of transaction prices to performance obligations based on standalone selling prices, complying with ASC 606 without manual Excel calculations.
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 separate invoices for products and services and recognize revenue manually.
Why it's wrong here
Manual recognition does not automate the process.
- ✓
Configure the Revenue recognition module to create revenue schedules from sales orders and project proposals.
Why this is correct
Revenue recognition module handles both sales orders and project-based revenue.
- ✗
Use the General ledger allocation rules to distribute revenue amounts manually.
Why it's wrong here
Allocation rules are for cost allocations, not revenue recognition.
- ✗
Set up revenue recognition schedules in the Project management and accounting module only.
Why it's wrong here
This would not cover product sales from the Sales module.
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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.