MB-920 Describe Dynamics 365 Finance Practice Question
Your organization is a medium-sized manufacturing company that has recently implemented Dynamics 365 Finance. The company has two legal entities: Contoso Ltd. (the main company) and Contoso Manufacturing (a subsidiary). The finance department needs to process intercompany transactions where Contoso Ltd. sells raw materials to Contoso Manufacturing. The transaction must automatically create accounting entries in both legal entities: a sale in Contoso Ltd. and a purchase in Contoso Manufacturing. Additionally, the intercompany transactions must be tracked using a specific financial dimension called "IntercompanyPartner". You have set up the legal entities and the chart of accounts. The intercompany accounting setup has been configured with the appropriate due-to and due-from accounts. However, when you post a sales invoice from Contoso Ltd. to Contoso Manufacturing, no accounting entries are generated in Contoso Manufacturing. What should you do to ensure the intercompany accounting entries are created automatically?
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 intercompany accounting rules that map the sales invoice to the purchase transaction.
Intercompany accounting rules must be set up to automatically map a sales invoice in one legal entity to a purchase transaction in another legal entity. These rules define the offset accounts and ensure that posting a sales invoice in Contoso Ltd. generates corresponding accounting entries in Contoso Manufacturing. Option A is incorrect because an intercompany journal is a manual process and would not trigger automatic postings. Option B is incorrect because a general journal entry in Contoso Manufacturing is also manual. Option C is incorrect because adding the IntercompanyPartner dimension to the sales invoice ensures the dimension is tracked, but without intercompany accounting rules, the automatic creation of entries in the subsidiary will not occur.
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 an intercompany journal in Contoso Ltd. to record the transaction.
Why it's wrong here
An intercompany journal would require manual entry and does not automate.
- ✗
Post a general journal entry in Contoso Manufacturing to record the purchase.
Why it's wrong here
Manual posting defeats the purpose of automation.
- ✗
Add the IntercompanyPartner dimension to the sales invoice.
Why it's wrong here
Dimensions track data but do not generate automatic entries.
- ✓
Set up intercompany accounting rules that map the sales invoice to the purchase transaction.
Why this is correct
Intercompany accounting rules define how documents are mirrored.
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