- A
Create separate purchase orders in each legal entity and use manual journal entries to transfer costs to Contoso US.
Why wrong: Incorrect: This does not centralize purchasing and requires manual effort.
- B
Configure intercompany purchase orders with direct delivery from Contoso US to the other entities, and set up intercompany elimination rules for consolidation.
Correct: This allows centralized purchasing while goods are received directly at each entity, and elimination is automated.
- C
Configure intercompany inventory transfers and use inventory journals to record movements between warehouses.
Why wrong: Incorrect: Inventory transfers are for stock movement, not purchase orders.
- D
Set up intercompany journals to record transactions between legal entities and create elimination rules for consolidation.
Why wrong: Incorrect: This does not address centralized purchasing with direct receipt.
Quick Answer
The correct answer is to configure intercompany purchase orders with direct delivery from Contoso US to the other entities, and set up intercompany elimination rules for consolidation. This works because intercompany purchase orders with direct delivery allow Contoso US to centrally manage all raw material procurement while goods ship straight to the warehouses in Germany and Japan, bypassing the US warehouse. The intercompany elimination rules then automatically post and remove the internal transactions during month-end consolidation, ensuring the CFO’s requirement for seamless elimination is met without manual effort. On the MB-920 exam, this scenario tests your understanding of centralized purchasing versus decentralized purchasing, and the common trap is confusing direct delivery with inventory transfers or separate purchase orders—both of which break centralization or automation. Remember the memory tip: “Centralize the buy, direct the delivery, eliminate the double count.”
MB-920 Describe Dynamics 365 Finance Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 finance. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 the system administrator for Contoso Ltd., a multinational manufacturing company implementing Dynamics 365 Finance. The company has three legal entities: Contoso US (functional currency USD), Contoso Germany (EUR), and Contoso Japan (JPY). The CFO requires that all purchase orders for raw materials be centrally managed from Contoso US, but the goods must be received directly at each legal entity's warehouse. Additionally, the CFO wants to ensure that intercompany transactions are automatically posted and eliminated during month-end consolidation. You need to configure the system to meet these requirements. 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
Configure intercompany purchase orders with direct delivery from Contoso US to the other entities, and set up intercompany elimination rules for consolidation.
Option C is correct because using intercompany journals and setting up intercompany purchase orders with direct delivery and intercompany elimination rules meets the requirements: centralized purchasing, direct receipt, and automatic elimination. Option A is wrong because it relies on manual journals and does not automate elimination. Option B is wrong because inventory transfers do not handle purchase order centralization. Option D is wrong because creating separate purchase orders in each entity defeats the centralization requirement.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
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 purchase orders in each legal entity and use manual journal entries to transfer costs to Contoso US.
Why it's wrong here
Incorrect: This does not centralize purchasing and requires manual effort.
- ✓
Configure intercompany purchase orders with direct delivery from Contoso US to the other entities, and set up intercompany elimination rules for consolidation.
Why this is correct
Correct: This allows centralized purchasing while goods are received directly at each entity, and elimination is automated.
Related concept
Static NAT maps one inside address to one outside address.
- ✗
Configure intercompany inventory transfers and use inventory journals to record movements between warehouses.
Why it's wrong here
Incorrect: Inventory transfers are for stock movement, not purchase orders.
- ✗
Set up intercompany journals to record transactions between legal entities and create elimination rules for consolidation.
Why it's wrong here
Incorrect: This does not address centralized purchasing with direct receipt.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
- Static NAT maps one inside address to one outside address.
- PAT allows many inside hosts to share one public address using ports.
- Inside local and inside global describe the private and translated addresses.
- NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
- Identify inside and outside interfaces first.
- Check whether the scenario needs static NAT, dynamic NAT or PAT.
- Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
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.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related MB-920 NAT questions on configuration and troubleshooting.
- →
Describe Dynamics 365 Finance — study guide chapter
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Describe Dynamics 365 Finance practice questions
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FAQ
Questions learners often ask
What does this MB-920 question test?
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Configure intercompany purchase orders with direct delivery from Contoso US to the other entities, and set up intercompany elimination rules for consolidation. — Option C is correct because using intercompany journals and setting up intercompany purchase orders with direct delivery and intercompany elimination rules meets the requirements: centralized purchasing, direct receipt, and automatic elimination. Option A is wrong because it relies on manual journals and does not automate elimination. Option B is wrong because inventory transfers do not handle purchase order centralization. Option D is wrong because creating separate purchase orders in each entity defeats the centralization requirement.
What should I do if I get this MB-920 question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related MB-920 NAT questions on configuration and troubleshooting.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
About these practice questions
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Last reviewed: Jun 21, 2026
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.
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