MB-920 Describe Dynamics 365 Finance Practice Question
Your company is implementing Dynamics 365 Finance and needs to manage intercompany transactions. Which TWO statements about intercompany accounting are correct?
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
✓
Intercompany transactions can be eliminated during consolidation using elimination rules.
Intercompany transactions can be eliminated during consolidation using elimination rules, which is a standard feature in Dynamics 365 Finance to remove intercompany balances from consolidated financial statements. Option C is correct because intercompany journals allow users to transfer balances directly between legal entities, supporting various intercompany transactions beyond sales orders. Option A is incorrect because intercompany transactions are not limited to sales orders; they include purchases, journals, and other document types. Option D is incorrect because intercompany transactions can be automated using intercompany setup and parameters, not requiring manual entry in each legal entity. Option E is incorrect because elimination rules are specifically designed to eliminate intercompany transactions during consolidation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Intercompany transactions are only supported for sales orders.
Why it's wrong here
Incorrect: They also support purchase orders, journals, etc.
- ✓
Intercompany transactions can be eliminated during consolidation using elimination rules.
Why this is correct
Correct: Elimination rules remove intercompany balances during consolidation.
- ✓
Intercompany journals can be used to transfer balances between legal entities.
Why this is correct
Correct: Intercompany journals record transactions between entities.
- ✗
Intercompany transactions must be entered manually in each legal entity.
Why it's wrong here
Incorrect: Intercompany transactions can be automated using intercompany journals.
- ✗
Intercompany transactions cannot be eliminated during consolidation.
Why it's wrong here
Incorrect: Elimination rules exist specifically for this purpose.
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