Describe the core capabilities of the finance and operations apps →mediumMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
You are the system administrator for a global retail company using Dynamics 365 Commerce. The company operates multiple stores across different countries, each with its own currency and tax rules. The finance team needs to generate a consolidated financial report that includes sales data from all stores in a single currency (USD). The current setup uses separate legal entities for each country. You need to configure a solution that automatically consolidates financial data from all legal entities into a single reporting entity without manual data entry. The consolidation must include intercompany eliminations. What should you do?
⚠ Common exam trap
Many candidates confuse reporting tools like Power BI with the actual consolidation engine, not realizing that intercompany eliminations and currency translation require the dedicated Consolidations module in Dynamics 365 Finance.
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
✓
Set up a consolidation company and run the consolidation process from the Consolidations module.
Dynamics 365 Finance provides a dedicated Consolidations module that allows you to create a consolidation company and run the consolidation process to automatically combine financial data from multiple legal entities into a single reporting entity. This process supports intercompany eliminations and currency translation to USD, eliminating manual data entry.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use Microsoft Power BI to connect to each legal entity's database and create a consolidated report.
Why it's wrong here
Power BI can report but cannot perform intercompany eliminations automatically.
- ✗
Use the Excel add-in to pull data from each legal entity and consolidate manually.
Why it's wrong here
Manual consolidation is error-prone and not automated.
- ✗
Export data from each legal entity using Data management and import into a single legal entity.
Why it's wrong here
This is manual and does not automate eliminations.
- ✓
Set up a consolidation company and run the consolidation process from the Consolidations module.
Why this is correct
The Consolidations module handles multi-currency and eliminations.
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