Exam MB-920 topic 1 question 20 discussion

The correct answer is Legal Entity

The given answer is correct.

D. Legal entity. Creating a legal entity is the foundational step, as it represents the company's organizational structure and is necessary before setting up other components like business units, chart of accounts, and projects.

The correct answer is Legal Entity

D. Correct answer. Legal entity is correct. Don't even wish to set up CoA before the Legal Entity.

D. Legal entity is correct. Don't wish to set up CoA before the Legal Entity

I did all practice questions from MS learning path, it is one question about this, the answer is Legal Entity.

In Dynamics 365 Finance, the first step in the implementation process is typically to create and configure the legal entity. The legal entity represents the legal and organizational structure of the company within the system. It serves as the foundation for various financial and operational setups, including the chart of accounts, business units, and projects. Once the legal entity is established, you can proceed with configuring other components of the system, such as the chart of accounts, business units, and projects, to align with the company's requirements.

I believe B to be the correct answer: "To configure the chart of accounts for a legal entity, go to General ledger > Ledger setup > Ledger. On the Ledger page, select Chart of accounts, and then, in the list, select the chart of accounts to use." https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/configure-ledger#selecting-the-chart-of-accounts In order words, CoA must already exist to be selected from the list at the moment of the Legal Entity creation.

I believe that this question is related to Finance D365, so it is assumed here that legal entity is already created and now when you want to setup Finance you first setup Chart of Accounts

Yep, super tricky question here; I answered D Legal Entity because the learning path Explore Microsoft Dynamics 365 Finance Core Capabilities' had a Check Your Knowledge question "Contoso USA recently acquired a new manufacturing company in Canada. What should they do first to accommodate this acquisition?" and the answer was "Create a new Legal Entity in Dynamics 365 Finance." Perhaps that answer was because the Contoso company was already formed with their Chart Of Accounts created.

In any Dynamics 365 Finance implementation project, the first step is to configure the General ledger module. All other modules post their related financial transactions into the general ledger. As part of implementing the general ledger, configuring the chart of accounts is the first required step to identify accounts, dimensions, and structures.

I went for D, that seemed the logical answer, or maybe the question is wrong as MS has said in one section of their study notes that the first thing to do is setup legal entity 'Explore use cases for legal entities Creating a legal entity and preparing it for financial management is the first phase of implementation. https://learn.microsoft.com/en-us/training/modules/explore-microsoft-dynamics-365-finance-core-capabilities/3-explore-use-cases-for-legal-entities

Once the legal entity is created, the other components such as business units, chart of accounts, and projects can be set up and configured within the legal entity as needed.

According to documentation, the first step is configuring the chart of account. Assuming legal entity has already been created. Tricky question.

Surprisingly it is 'B' (Chart of accounts). The following infers that the Chart of account has been created first: "For each legal entity in Microsoft Dynamics 365 Finance, details about the ledger must be configured. The Ledger page lets you select the chart of accounts and the account structures that will be used for the selected legal entity." https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/configure-ledger#selecting-the-chart-of-accounts

B In any Dynamics 365 Finance implementation project, the first step is to configure the General ledger module. All other modules post their related financial transactions into the general ledger. As part of implementing the general ledger, configuring the chart of accounts is the first required step to identify accounts, dimensions, and structures.