MB-920 Describe Dynamics 365 Finance Practice Question
You are a financial analyst at Fabrikam Inc., a retail company using Dynamics 365 Finance. The company has a requirement to track expenses by department and project. Currently, the chart of accounts uses a single segment for main accounts. The CFO wants to add cost centers and projects as financial dimensions to provide more granular reporting. You need to configure financial dimensions without disrupting existing transactions. You also need to ensure that new dimensions are available for budgeting. What should you do?
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 new financial dimensions for cost center and project, activate them, and set up budget models to use these dimensions.
Creating and activating new financial dimensions, such as cost center and project, allows them to be used for future transactions without impacting existing data. By configuring budget models to use these dimensions, they become available for budgeting, meeting the requirement for granular reporting by department and project. Option B is incorrect because requiring dimension values on all journal entries would force entry on existing transactions, causing disruption. Option C is incorrect because posting restrictions would limit combinations to only existing ones, preventing the use of new dimension values. Option D is incorrect because setting dimensions as defaults on the main account does not make them available for budgeting; budget models must be configured separately.
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 new financial dimensions for cost center and project, activate them, and set up budget models to use these dimensions.
Why this is correct
Correct: This adds the dimensions and makes them available for budgeting without disrupting existing transactions.
- ✗
Create new financial dimensions, activate them, and require dimension values on all journal entries. Then deactivate old dimension values.
Why it's wrong here
Incorrect: Deactivating old values may break historical data and is not required.
- ✗
Create new financial dimensions, then configure posting restrictions so that only existing dimension combinations are allowed.
Why it's wrong here
Incorrect: This restricts new combinations, preventing the use of new dimensions.
- ✗
Create new financial dimensions for cost center and project, then set them as default dimensions on the main account.
Why it's wrong here
Incorrect: Default dimensions do not require entry, so expenses may not be tracked by department/project.
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