Microsoft Dynamics 365 Fundamentals (ERP) — Question 3

An international services company is implementing Dynamics 365 Finance.
You need to help the implementation team set up the app.
What must be created and configured first?

Answer options

• A. Business unit
• B. Chart of accounts
• C. Project
• D. Legal entity

Correct answer: D

Explanation

The legal entity is the foundational structure in Dynamics 365 Finance that represents the organization for legal and financial reporting purposes. Without establishing a legal entity first, other components like business units, charts of accounts, and projects cannot be appropriately set up within the system.