MB-920 Describe Dynamics 365 Finance Practice Question
Your organization is implementing Dynamics 365 Finance and needs to manage intercompany transactions between two legal entities. The transactions should be automatically reconciled in the general ledger. Which configuration is required?
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 accounting
Intercompany accounting setup enables automatic generation and elimination of intercompany transactions, ensuring automatic reconciliation in the general ledger. Option A (Currency revaluation) is used to adjust foreign currency balances, not for intercompany transactions. Option B (Organization hierarchy) defines reporting structures but does not handle intercompany accounting. Option D (Consolidation) combines financial data from multiple entities into a single set of statements, but does not automatically reconcile intercompany transactions.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Currency revaluation
Why it's wrong here
Currency revaluation adjusts exchange rates, not intercompany transactions.
- ✗
Organization hierarchy
Why it's wrong here
Organization hierarchy defines structure, not transaction processing.
- ✓
Intercompany accounting
Why this is correct
Intercompany accounting automates intercompany transactions and reconciliation.
- ✗
Consolidation
Why it's wrong here
Consolidation combines financial statements, not intercompany transactions.
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