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Describe Dynamics 365 FinancehardMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Finance Practice Question

Your organization needs to track inventory costs using a perpetual inventory system with weighted average costing method. The finance team wants to ensure that inventory transactions are posted to the general ledger automatically. Which parameter must be configured 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

Post inventory in ledger parameter

The 'Post inventory in ledger' parameter in Dynamics 365 Finance enables automatic posting of inventory transactions to the general ledger when using a perpetual inventory system. Option A (Warehouse management parameters) controls warehouse processes, not general ledger posting. Option B (Inventory model group) defines the costing method and inventory model but does not control automatic posting. Option C (Item model group) is synonymous with inventory model group and thus also not for posting. Only Option D correctly enables the required automatic ledger posting.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Warehouse management parameters

    Why it's wrong here

    Warehouse parameters affect warehouse processes, not inventory posting.

  • Inventory model group

    Why it's wrong here

    Inventory model group defines costing method, not automatic posting.

  • Item model group

    Why it's wrong here

    Item model group is part of inventory setup but not the posting parameter.

  • Post inventory in ledger parameter

    Why this is correct

    This parameter enables automatic inventory posting to the general ledger.

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