MB-920 Exam Questions and Answers

A manufacturing company is experiencing stockouts of a critical raw material despite maintaining high inventory levels. The procurement team places purchase orders based on historical usage, but demand has become erratic. Which action should the supply chain manager take to improve material availability without increasing inventory costs?

Increase safety stock percentages for all raw materials by 20%.

Set up a reorder point with dynamic safety stock calculation in Demand Planning.

This allows the system to calculate safety stock based on demand variability and automatically trigger purchase orders when stock reaches the reorder point.

Switch from purchase orders to blanket purchase agreements with the supplier.

Negotiate with the supplier to reduce lead time by 50%.

Why: Option B is correct because Dynamics 365 Supply Chain Management's Demand Planning module can calculate dynamic safety stock based on forecasted demand variability and service level targets. This allows the system to automatically adjust reorder points in response to erratic demand patterns, improving material availability without simply increasing inventory levels across the board.

A distribution company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager reports that during peak hours, order picking is slow because pickers frequently travel long distances to retrieve items. The warehouse layout is fixed. Which feature should the company use to optimize picking routes without changing the physical layout?

Enable replenishment to ensure pick locations are fully stocked.

Use location directives to direct putaway to random locations.

Configure wave processing with location-based wave filters.

Wave processing can group orders by location proximity, reducing travel time for pickers.

Implement cluster picking to group orders by customer.

Why: Wave processing with location-based wave filters allows the system to group work into waves based on criteria such as location, enabling the creation of efficient picking routes that minimize travel distance. This feature optimizes the sequence of picks within a wave without requiring any physical changes to the warehouse layout, directly addressing the manager's need to reduce travel time during peak hours.

A company uses Dynamics 365 Supply Chain Management to manage production orders. A production planner needs to schedule a rush order for a high-priority customer. The planner wants to see the impact on existing orders before committing. Which feature should the planner use?

Gantt chart scheduling on the production floor control board.

The Gantt chart provides a visual timeline of all production orders and allows rescheduling with instant feedback on conflicts.

Finite scheduling on the resource group.

Production order details form.

Capacity planning workspace.

Why: The Gantt chart on the production floor control board provides a visual, interactive timeline that allows the planner to simulate the insertion of a rush order and immediately see its effect on existing production orders, including potential delays or resource conflicts. This feature supports 'what-if' analysis before committing the order, which directly matches the requirement to assess impact on existing orders.

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. The procurement manager notices that purchase requisitions are not being converted to purchase orders automatically as expected. The workflow for purchase requisitions is set to auto-approve for amounts under $1,000. Upon investigation, the manager finds that a requisition for $950 is stuck in 'Draft' status. What is the most likely cause?

The workflow requires budget approval for all requisitions.

The purchase requisition was rejected by the workflow.

The dollar limit for auto-approval is set to $900.

The purchase requisition has not been submitted for review.

A purchase requisition must be submitted to trigger the workflow. Draft status means it hasn't been submitted.

Why: Option D is correct because in Dynamics 365 Supply Chain Management, a purchase requisition must be explicitly submitted to trigger the workflow. Even if the workflow is configured for auto-approval, the requisition remains in 'Draft' status until the user clicks 'Submit'. The $950 requisition was never submitted, so the auto-approval process never started.

A company uses Dynamics 365 Supply Chain Management for warehouse operations. The warehouse manager wants to improve inventory accuracy and reduce the time spent on physical inventory counts. Which TWO actions should the manager take?

Implement cycle counting based on ABC classification.

Cycle counting allows frequent counts of high-value items without stopping operations.

Deploy handheld scanners to record inventory movements.

Handheld scanners reduce manual entry errors and provide real-time inventory updates.

Increase safety stock levels for fast-moving items.

Schedule full inventory counts at the end of each month.

Require daily counting of all inventory items.

Why: Cycle counting based on ABC classification allows the warehouse to count high-value or fast-moving items (A items) more frequently than low-value or slow-moving items (C items). This targeted approach improves inventory accuracy without the disruption of full physical counts, and Dynamics 365 Supply Chain Management supports ABC classification directly in the cycle counting setup.

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager wants to reduce setup time on a bottleneck machine. Which THREE actions should the manager take?

Define operation properties to sequence orders by setup similarity.

Operation properties allow the system to sequence orders to minimize setup time.

Use resource groups to allow setup sharing across similar machines.

Resource groups enable grouping of similar resources so that setup can be performed across them efficiently.

Group production orders by product family to minimize changeovers.

Grouping similar products means less time changing over between different setups.

Increase the batch size for all production orders on that machine.

Implement external setup procedures that run while the machine is running.

Why: Option A is correct because defining operation properties allows the system to sequence production orders on a bottleneck resource based on setup similarity, reducing changeover time. In Dynamics 365 Supply Chain Management, operation properties are attributes assigned to operations that the scheduling engine uses to group similar setups together, minimizing the number and duration of setup changes.

Want more Describe Dynamics 365 Supply Chain Management practice?

All Describe Dynamics 365 Finance questions

Domain 2: Describe Dynamics 365 Finance

A company is implementing Dynamics 365 Finance and needs to configure a chart of accounts that supports multiple legal entities with different fiscal requirements. Which structure should be used?

Use a shared chart of accounts with separate fiscal calendars per legal entity.

Allows consistent account structures while accommodating different fiscal requirements.

Use a single shared chart of accounts with one shared fiscal calendar.

Use main accounts only without dimensions.

Create a separate chart of accounts for each legal entity.

Why: A shared chart of accounts is the recommended approach in Dynamics 365 Finance when multiple legal entities must operate under different fiscal requirements. By sharing the chart of accounts but assigning separate fiscal calendars per legal entity, the organization maintains a consistent account structure across entities while allowing each entity to comply with its own fiscal year, period definitions, and closing schedules. This balances standardization with regulatory flexibility.

A company uses Dynamics 365 Finance and needs to create a vendor payment that includes a discount of $50 if paid within 10 days. The invoice is for $1,000. The payment is made on day 8. What should the payment amount be?

$1,000

$900

$950

Invoice minus discount.

$1,050

Why: Option C is correct because the vendor payment is made within the 10-day discount period, so the $50 discount applies to the $1,000 invoice. The payment amount is $1,000 - $50 = $950. In Dynamics 365 Finance, this is handled through the cash discount setup on the vendor payment terms, which automatically calculates the discounted amount when the payment date falls within the discount window.

A company is implementing Dynamics 365 Finance and needs to automate the reconciliation of bank transactions. Which feature should be used to match bank statement lines with open bank document lines based on rules?

Bank account reconciliation

Payment proposal

Automatic settlement

Advanced bank reconciliation

Uses matching rules to automate reconciliation.

Why: Advanced bank reconciliation in Dynamics 365 Finance allows you to import bank statement lines and automatically match them to open bank document lines (such as checks, deposits, and transfers) using user-defined matching rules. This feature supports rule-based matching (e.g., by amount, date, or reference) and handles complex scenarios like partial matches or tolerance thresholds, making it the correct choice for automating bank transaction reconciliation.

A company needs to ensure that purchase orders cannot be created without an approved vendor. Which configuration should be used?

Create a purchase order approval workflow

Set 'Require approval for vendor' to Yes in Procurement and sourcing parameters

Prevents use of unapproved vendors in purchase orders.

Enable 'Invoice matching validation'

Set vendor status to Active

Why: Setting 'Require approval for vendor' to Yes in Procurement and sourcing parameters ensures that a purchase order cannot be created unless the vendor is in an approved status. This configuration enforces a prerequisite check at the time of purchase order creation, preventing unapproved vendors from being used.

A company uses Dynamics 365 Finance. The CFO wants to analyze actuals vs budget across multiple departments and cost centers. Which THREE components must be set up?

Budget control configuration

Budget model

Required to define budget amounts.

Financial dimensions

Enable analysis by department and cost center.

Budget cycle

Defines the time period for budgeting.

Budget register entries

Why: The budget model is a required component because it defines the structure for how budget data is organized and calculated, such as by department or cost center. Without a budget model, the system cannot aggregate or compare actuals against budgeted amounts across different financial dimensions. It serves as the foundational framework for budget planning and analysis.

A company is configuring fixed assets in Dynamics 365 Finance. They need to ensure that asset depreciation is calculated differently for tax reporting and financial reporting. Which TWO actions must be taken?

Use a single depreciation book for both tax and financial.

Create multiple value models for the same asset.

Allows different depreciation methods for tax and financial.

Set up separate depreciation profiles for each value model.

Each value model uses its own depreciation profile.

Enable the 'Derived value models' feature.

Use a single value model with multiple depreciation profiles.

Why: In Dynamics 365 Finance, to calculate depreciation differently for tax and financial reporting, you must create multiple value models for the same asset. Each value model can then be assigned a separate depreciation profile, allowing distinct depreciation calculations for each reporting purpose.

Want more Describe Dynamics 365 Finance practice?

All Describe the core capabilities of the finance and operations apps questions

Domain 3: Describe the core capabilities of the finance and operations apps

A company uses Dynamics 365 Finance. The finance team needs to ensure that purchase invoices are automatically matched to purchase orders and product receipts before payment is processed. Which feature should be configured?

Fixed asset management

Workflow approval

Vendor collaboration portal

Accounts payable invoice matching

Invoice matching validates purchase invoices against purchase orders and receipts before payment.

Why: Accounts payable invoice matching (option D) is the correct feature because it automatically compares purchase invoice details (quantities, prices, charges) against the corresponding purchase order and product receipt. This three-way matching ensures that payment is only processed when the invoice matches the order and receipt, preventing overpayment and discrepancies.

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager reports that the system is not automatically reserving raw materials when a production order is released. What is the most likely cause?

The default order settings for the item are incorrect

The bom version is not approved

The explosion date on the production order is set to a future date

The reservation hierarchy is not configured for production

Reservation hierarchy defines at which stage materials are reserved; if not set, no automatic reservation occurs.

Why: The reservation hierarchy in Dynamics 365 Supply Chain Management determines whether raw materials are automatically reserved when a production order is released. If the hierarchy is not configured for production (e.g., set to 'None' or only for sales orders), the system will not perform automatic reservation, leaving materials unreserved. This is a common setup issue that directly controls the reservation behavior at order release.

A company uses Dynamics 365 Finance. The CFO wants to view financial data in real-time using dashboards. Which tool should be used to create these dashboards?

Microsoft Excel

SQL Server Reporting Services (SSRS)

Power BI

Power BI provides real-time dashboards and visual analytics for financial data.

Power Apps

Why: Power BI is the correct tool because it provides real-time, interactive dashboards that can be embedded directly into Dynamics 365 Finance, allowing the CFO to visualize financial data with live updates. Unlike static reporting tools, Power BI connects to the finance data sources via OData or DirectQuery, enabling dynamic filtering and drill-down without requiring manual data refresh.

A retail company uses Dynamics 365 Commerce. The store manager notices that inventory levels are not updated in real-time after a point-of-sale (POS) transaction. What should be checked first?

The default inventory location for the store

The assortment configuration for the store

The Commerce Data Exchange (CDX) job schedule

The POS functionality profile setting for inventory processing

The POS profile must be configured to process inventory transactions in real-time.

Why: The POS functionality profile setting for inventory processing controls how inventory updates are handled at the register. If this setting is not configured to process inventory in real-time, the system will defer updates to a batch job, causing the observed delay. This is the first place to check because it directly governs the behavior of inventory updates during POS transactions.

A company uses Dynamics 365 Project Operations. The project manager needs to track actual hours worked against budgeted hours for a fixed-price project. Which module should be used?

Resource management

Expense management

Time and attendance

Project management

Project management includes time entry, budget tracking, and variance analysis for projects.

Why: In Dynamics 365 Project Operations, the Project management module (specifically the Project Planning and Tracking area) is the correct place to monitor actual hours worked against budgeted hours for a fixed-price project. This module provides the project manager with a view of planned vs. actual effort, allowing them to track progress and ensure the project stays within the fixed budget.

A company uses Dynamics 365 Human Resources. The HR manager wants to automate the process of sending onboarding tasks to new hires. Which feature should be used?

Workflow

Performance journals

Checklists

Checklists automatically generate tasks for new hires based on templates.

Personnel actions

Why: Checklists in Dynamics 365 Human Resources allow HR managers to define a series of onboarding tasks (e.g., IT setup, benefits enrollment) that are automatically assigned to new hires upon hire date or status change. This feature directly supports automating the onboarding process without requiring custom development.

Want more Describe the core capabilities of the finance and operations apps practice?

All Describe shared features and Copilot capabilities questions

Domain 4: Describe shared features and Copilot capabilities

A company uses Dynamics 365 Sales. A sales representative wants to quickly get a summary of a customer's recent interactions without manually searching through emails, meetings, and notes. Which Copilot capability should the representative use?

Update the customer's contact details

Generate a sales forecast

Summarize conversations and activities

Copilot can summarize recent interactions across emails, meetings, and notes.

Automatically create a follow-up task

Why: The Copilot capability to summarize conversations and activities directly addresses the sales representative's need to quickly view a customer's recent interactions without manual searching. This feature uses AI to aggregate and condense emails, meetings, and notes into a concise summary, leveraging Dynamics 365 Sales' Copilot integration with Microsoft 365 data.

An organization uses Dynamics 365 Finance. The finance team notices that purchase invoices are taking too long to process manually. They want to use Copilot to streamline the invoice processing workflow. What is the most efficient way to achieve this?

Use Copilot to detect duplicate invoices only

Set up Copilot to fully automate invoice approval without human review

Configure Copilot to automatically create a new workflow for each invoice

Use Copilot to extract invoice data and suggest matching to purchase orders

This leverages Copilot's AI to reduce manual effort in invoice processing.

Why: Option D is correct because Copilot in Dynamics 365 Finance can intelligently extract key data from purchase invoices (such as vendor, amounts, and line items) and then suggest matching to existing purchase orders. This significantly reduces manual data entry and speeds up the invoice processing workflow while still allowing human review for exceptions.

A company is implementing Dynamics 365 Business Central and wants to use Copilot for generating marketing text for product descriptions. However, the generated text often contains inaccuracies about product specifications. What should the administrator do to improve the accuracy of Copilot-generated content?

Disable Copilot for marketing text and rely on manual descriptions

Change the Copilot language model to a more specialized one

Provide high-quality, well-structured product data in the system

Copilot uses the product data to generate text; accurate data leads to accurate output.

Regularly review and edit the generated text so Copilot learns from corrections

Why: Copilot in Dynamics 365 Business Central generates marketing text by leveraging existing product data stored in the system. If the product specifications are inaccurate or incomplete, the generated content will reflect those flaws. Providing high-quality, well-structured product data ensures Copilot has accurate source information to work with, directly improving the reliability of its output.

A Dynamics 365 administrator is configuring Copilot features for the sales team. Which TWO actions should the administrator take to ensure responsible AI usage?

Enable the feedback mechanism to allow users to report inaccurate responses

Feedback helps Microsoft improve the AI and address issues.

Disable access to all customer data to prevent Copilot from using it

Restrict Copilot to only respond in English

Review and test Copilot responses in a sandbox environment before enabling for all users

This ensures the AI behaves as expected in the organization's context.

Encrypt all data at rest and in transit

Why: Option A is correct because enabling the feedback mechanism allows users to report inaccurate or inappropriate Copilot responses, which is a core requirement for responsible AI usage. This feedback loop helps administrators identify and correct issues, ensuring the AI system remains trustworthy and compliant with Microsoft's responsible AI principles. Without this mechanism, the organization would lack visibility into potential harms or inaccuracies generated by the AI.

A company uses Dynamics 365 Supply Chain Management. The warehouse manager wants to use Copilot to improve inventory management. Which THREE tasks can Copilot assist with?

Directly perform physical inventory counts using sensors

Automatically reorder stock from suppliers without human intervention

Suggest optimal inventory levels based on lead times and demand variability

Copilot can provide recommendations for inventory parameters.

Provide insights on slow-moving inventory and potential write-offs

Copilot can analyze inventory data to identify slow-moving items.

Analyze historical demand patterns to forecast future inventory needs

Copilot can use AI to analyze data and provide forecasts.

Why: Option C is correct because Copilot in Dynamics 365 Supply Chain Management can analyze lead times and demand variability to suggest optimal inventory levels, helping the warehouse manager maintain appropriate stock without manual calculation. This leverages AI-driven insights within the system's inventory optimization capabilities.

A Dynamics 365 Finance administrator configures an AI Builder model for invoice processing with the above JSON. After deployment, the system correctly extracts data from 90% of invoices but sends 10% to manual review. What is the most likely reason for the manual review?

The invoice images are too blurry for the model to read

The confidence score for extracted fields is below the threshold of 0.8 for those invoices

Exactly: the model's confidence is below 0.8, triggering the fallback action.

The model extracts all fields but with confidence below 0.9

The invoice contains multiple pages that need to be split

Why: The JSON configuration sets a confidence threshold of 0.8 for extracted fields. When the model's confidence in the extracted data falls below this threshold, the system automatically routes the invoice to manual review. This is the standard behavior for AI Builder invoice processing models to ensure accuracy and reduce errors from low-confidence predictions.

Want more Describe shared features and Copilot capabilities practice?

All Describe Dynamics 365 Human Resources questions

Domain 5: Describe Dynamics 365 Human Resources

A multinational company is implementing Dynamics 365 Human Resources. They need to ensure that employees in different countries can accrue leave based on local statutory requirements. The HR manager wants to automate the calculation of leave entitlements at the beginning of each fiscal year. Which feature should they configure?

Position-based hierarchies

Leave and absence plans

Leave and absence plans are used to define accrual rules, tiers, and carry-forward.

Approval workflows for leave requests

Compensation plans

Why: Leave and absence plans in Dynamics 365 Human Resources allow organizations to define accrual rules, including rates, caps, and carry-forward policies, that can be tailored to local statutory requirements. These plans can be configured to automatically calculate and post leave entitlements at the start of each fiscal year, ensuring compliance with country-specific regulations without manual intervention.

A company uses Dynamics 365 Human Resources. The HR team reports that when they try to generate the 'Employee absence history' report for the previous quarter, the data for some employees is missing. The system shows no errors. What is the most likely cause?

The absence request workflow is not published.

The leave types are not configured for the relevant legal entities.

The employees do not have the required security role to be included in reports.

The work calendar is not assigned to the positions of those employees.

Without a work calendar, absence duration cannot be calculated, causing missing data.

Why: The 'Employee absence history' report relies on the work calendar to calculate accruals and track absence days. If a position is not assigned a work calendar, the system cannot compute absence data for that employee, resulting in missing records even though no errors are displayed. Option D is correct because the work calendar assignment is a prerequisite for absence data to appear in reports.

An organization is configuring Dynamics 365 Human Resources. They want to track skills, certifications, and education for each employee. Which worker type should be used to store this information?

Worker

Worker records store personal information, including skills and certifications.

Applicant

Job

Position

Why: Worker is the correct entity because in Dynamics 365 Human Resources, the Worker record is the primary container for all person-related data, including skills, certifications, and education. This entity is designed to aggregate and manage an individual's professional profile across their employment lifecycle, making it the appropriate store for such information.

A retail company with 500 employees is deploying Dynamics 365 Human Resources. They need to ensure that employees can view their own pay slips and update personal information from a mobile app. Which component should they enable?

Recruitment

Manager self service

Employee self service

Employee self service allows employees to access their own information and pay slips via mobile.

Compensation management

Why: Employee self service (C) is the correct component because it is specifically designed to allow employees to view their own pay slips and update personal information from a mobile app. In Dynamics 365 Human Resources, the Employee self service workspace provides role-based access for employees to perform these tasks without requiring manager or HR intervention.

A company uses Dynamics 365 Human Resources. An HR administrator notices that when they process a termination for an employee, the system does not automatically calculate the final paycheck. The employee is paid monthly. What should the administrator do to ensure final pay is calculated?

Run the pay statement generation process.

Pay statement generation calculates final pay and deductions.

Create an ad hoc pay run for the employee.

Manually add a benefit deduction for the employee.

Submit an absence request to clear leave balances.

Why: In Dynamics 365 Human Resources, final pay is not automatically calculated during termination processing. The administrator must run the pay statement generation process to trigger the calculation of the final paycheck, which includes any remaining pay, deductions, and adjustments based on the termination date and pay schedule.

Which TWO features are available in Dynamics 365 Human Resources for managing employee benefits?

Performance review configuration

Benefit plan setup

Benefit plan setup defines the types, options, and rates of benefits.

Open enrollment for benefit elections

Open enrollment allows employees to select benefits during defined periods.

Compensation grids

Absence accrual schedules

Why: Benefit plan setup is a core feature in Dynamics 365 Human Resources that allows administrators to define and configure various benefit offerings such as health insurance, retirement plans, and other perks. Open enrollment for benefit elections enables employees to select or modify their benefit choices during designated enrollment periods, which is a standard functionality in the benefits management module.

Want more Describe Dynamics 365 Human Resources practice?

All Describe Dynamics 365 Commerce questions

Domain 6: Describe Dynamics 365 Commerce

A retail company uses Dynamics 365 Commerce for its online and physical stores. Customers are reporting that items added to their online shopping cart are not being reserved in the physical store's inventory. The company uses the 'Reserve inventory' feature. What is the most likely cause of this issue?

The 'Process inventory reservation' batch job is not scheduled or is failing.

This batch job is required to process reservations from online orders.

The 'Pick inventory' job is not configured.

The 'Reserve inventory' feature is disabled for the online store channel.

Inventory is not set up at the store level.

Why: The 'Reserve inventory' feature in Dynamics 365 Commerce relies on the 'Process inventory reservation' batch job to synchronize online cart reservations with physical store inventory. If this batch job is not scheduled or is failing, items added to the online shopping cart will not be reserved in the store's inventory, causing the reported issue. This is the most likely cause because the batch job is responsible for processing reservation requests from the online channel.

A company is setting up a new store in Dynamics 365 Commerce. They want to ensure that prices for products are automatically updated across all channels when changed in the head office. Which configuration should they use?

Use the Point of Sale (POS) to update prices directly.

Configure Retail Server to push price changes.

Enable real-time service for the channel database.

Set up a Commerce Data Exchange (CDE) schedule for price updates.

CDE is designed for data synchronization between HQ and channels.

Why: Commerce Data Exchange (CDE) is the dedicated Dynamics 365 Commerce component for synchronizing data between the head office (HQ) and channel databases. A CDE schedule specifically handles the distribution of master data changes, such as price updates, ensuring that all channels (e.g., online stores, POS terminals) receive the updated prices automatically and consistently. This is the correct configuration for automated, scheduled price propagation across channels.

A company uses Dynamics 365 Commerce and has multiple stores. They want to implement a loyalty program where customers earn points based on purchase amounts, and the points can be redeemed at any store. The program should also allow for tiered rewards. Which component should be used to define the loyalty program rules?

Channel database

Point of Sale (POS)

Retail Server

Loyalty module in Dynamics 365 headquarters

Loyalty programs are defined and managed in the headquarters.

Why: The Loyalty module in Dynamics 365 headquarters is the correct component because it is the centralized back-office tool where loyalty program rules—such as earning rates, redemption rules, and tier definitions—are configured. This module allows you to define program-wide settings that apply across all stores, ensuring consistent point accrual and redemption behavior regardless of where the customer shops.

A retail company is planning to expand its online presence and wants to use Dynamics 365 Commerce to build a new e-commerce site. They need to ensure that the site can handle high traffic during promotional events and that product catalog updates are reflected quickly. What should they consider?

Increase the size of the channel database.

Disable caching for product pages to ensure fresh data.

Use a content delivery network (CDN) and optimize catalog synchronization.

CDN helps with traffic, and optimizing sync ensures quick updates.

Limit the number of products in the catalog.

Why: Option C is correct because using a Content Delivery Network (CDN) caches static assets (images, scripts, CSS) at edge nodes, reducing load on the origin server during high-traffic promotional events. Optimizing catalog synchronization (e.g., using incremental syncs and the Commerce Data Exchange) ensures product updates are reflected quickly without full re-indexing, maintaining performance and data freshness.

A store manager needs to process a return for a customer who purchased an item using a loyalty card. The manager wants to ensure that the loyalty points originally earned from that purchase are reversed. What should the manager do?

Issue a store credit instead of a refund to keep the points.

Process the return using the standard return function in POS.

The return function automatically reverses points.

Contact the head office to adjust the points.

Manually deduct the loyalty points from the customer's account.

Why: In Dynamics 365 Commerce, the standard return function in POS automatically reverses any loyalty points that were earned on the original transaction. This ensures that the customer's loyalty balance is accurately adjusted without manual intervention or external requests.

A company uses Dynamics 365 Commerce and has set up a new online store. They notice that the product images are not displaying on the product detail pages. The images are stored in the media library in the headquarters. What is the most likely cause?

The images lack alternative text.

Commerce Data Exchange is not configured for image synchronization.

The images have not been published to the online store channel.

Images must be published to the channel to appear.

The images are not uploaded to the media library.

Why: In Dynamics 365 Commerce, product images must be explicitly published to the online store channel after being uploaded to the headquarters media library. Simply storing images in the media library does not make them available on the product detail pages; they require a channel-level publication step to synchronize and render on the storefront. This ensures that only approved media is visible to customers.

Want more Describe Dynamics 365 Commerce practice?

All Describe Dynamics 365 Project Operations questions

Domain 7: Describe Dynamics 365 Project Operations

A consulting firm uses Dynamics 365 Project Operations to manage fixed-price projects. During project execution, the project manager notices that the actual cost is exceeding the budget. What should the project manager do to track and communicate the impact on profit?

Analyze resource utilization percentages to identify over-allocated resources.

Review the Cost Performance Index (CPI) on the project and update the estimate at completion (EAC).

CPI is the correct metric to monitor cost efficiency and forecast final costs.

Review the Schedule Performance Index (SPI) to assess if the project is behind schedule.

Compare the project budget to the actual cost in the project invoice.

Why: In Dynamics 365 Project Operations, the Cost Performance Index (CPI) is the key metric for measuring cost efficiency on a project. When actual costs exceed the budget, the project manager should review the CPI and update the Estimate at Completion (EAC) to forecast the total expected cost based on current performance, directly communicating the impact on profit.

A project manager needs to approve time entries submitted by team members. Where in Dynamics 365 Project Operations can the manager approve these time entries?

Resource Manager dashboard

Sales entity

Project Contract

Project Manager Time Approval workspace

This workspace is specifically for approving time and expenses.

Why: The Project Manager Time Approval workspace in Dynamics 365 Project Operations is the dedicated area where project managers can review, approve, or reject time entries submitted by team members. This workspace provides a filtered view of pending time entries and integrates with the project's approval workflow, ensuring that only authorized managers can process time submissions.

A company is implementing Dynamics 365 Project Operations and wants to ensure that project costs are accurately tracked for both time and materials (T&M) and fixed-price contracts. The company uses a single project for both types of contracts. Which approach should be used to correctly invoice each contract type?

Create two project contracts, one T&M and one fixed-price, and link both to the same project.

Multiple contracts can be linked to one project, each with its own billing method.

Create two separate projects and link each to its own contract.

Create a single project contract with the billing method set to fixed-price and adjust invoices manually.

Create one project contract with a billing method of T&M and manually create invoices for the fixed-price portion.

Why: Option A is correct because Dynamics 365 Project Operations allows multiple project contracts to be linked to a single project, enabling different billing methods (T&M and fixed-price) for the same project. This ensures that time and material costs are tracked and invoiced according to the T&M contract terms, while fixed-price milestones are invoiced under the fixed-price contract, all from the same project data.

A project manager is using Dynamics 365 Project Operations to estimate project costs. The project involves a mix of in-house employees and external contractors. The company wants to use standard cost prices for employees and purchase prices for contractors. Which entity should the project manager use to set up these prices?

Product catalog

Role price list

Resource price list

Project price list

Project price lists can include cost and billing prices for roles and categories.

Why: The project manager should use the Project price list (Option D) because it is specifically designed to define cost and sales prices for resources in a project context. In Dynamics 365 Project Operations, the Project price list allows you to set standard cost prices for employees and purchase prices for contractors, as it supports role-based pricing and can differentiate between internal and external resource costs based on the price list setup.

A company uses Dynamics 365 Project Operations to manage projects. A project manager needs to view the overall health of all active projects in the organization. Which dashboard should the manager use?

Project Manager dashboard

Provides an overview of all active projects.

Sales dashboard

Time Entry dashboard

Resource Manager dashboard

Why: The Project Manager dashboard in Dynamics 365 Project Operations is specifically designed to provide a consolidated view of project health metrics, including schedule variance, cost variance, and overall status across all active projects. This dashboard uses built-in Power BI reports to aggregate data from project plans, actuals, and forecasts, enabling the project manager to quickly assess which projects are on track, at risk, or behind schedule.

A project manager needs to create a project from a template that includes a predefined work breakdown structure (WBS) and resource assignments. The template should automatically create the project tasks and assign resources based on skill requirements. Which feature in Dynamics 365 Project Operations should the project manager use?

Project budget

Resource Reconciliation view

Project template

Templates can include WBS and resource assignments.

Scheduling assistant

Why: Option C is correct because project templates in Dynamics 365 Project Operations allow a project manager to create a new project that automatically includes a predefined work breakdown structure (WBS) and resource assignments. When the template is applied, it generates the project tasks and assigns resources based on the skill requirements defined in the template, streamlining project setup and ensuring consistency.

Want more Describe Dynamics 365 Project Operations practice?

All Describe shared Dynamics 365 ERP features questions

Domain 8: Describe shared Dynamics 365 ERP features

A manufacturing company uses Dynamics 365 Finance and Operations. The production manager notices that raw material costs are being recorded against the wrong work order. What feature should be configured to ensure costs are correctly allocated?

Power BI reports

Data management

Production orders

Cost accounting dimensions

Enables tracking costs by work order.

Why: Cost accounting dimensions in Dynamics 365 Finance and Operations allow you to define and track financial data by specific attributes, such as work orders, projects, or cost centers. By configuring cost accounting dimensions, the system can enforce that raw material costs are allocated to the correct work order based on predefined rules, ensuring accurate cost tracking and reporting.

A retailer using Dynamics 365 Commerce wants to implement a buy-one-get-one-free promotion. Which type of discount should be configured?

Total discount

Multibuy discount

Supports BOGO and quantity-based deals.

Simple discount

Customer loyalty discount

Why: A buy-one-get-one-free (BOGO) promotion is a classic multibuy discount scenario where purchasing a specific quantity of an item triggers a free item. In Dynamics 365 Commerce, the Multibuy discount type is designed exactly for this: it applies a discount when a defined quantity of products is purchased, and it can be configured to give a percentage off or a fixed amount off, including making the second item free. This is distinct from simple discounts which apply to a single item, and total discounts which apply to the entire cart.

A company uses Dynamics 365 Finance and has multiple legal entities. They want to share a chart of accounts across all entities while allowing different fiscal calendars. What configuration should be used?

Single fiscal calendar for all entities

Separate chart of accounts per entity

Consolidations with elimination

Shared chart of accounts with entity-specific fiscal calendars

Meets the requirement.

Why: D is correct because Dynamics 365 Finance allows a shared chart of accounts across legal entities while enabling entity-specific fiscal calendars. This configuration meets the requirement of maintaining a unified account structure for reporting and consolidation, while respecting local regulatory or business needs for different fiscal year periods.

A project manager needs to track time spent on a project in Dynamics 365 Project Operations. Which feature allows employees to submit time entries that can be approved and billed?

Expense management

Resource scheduling

Project budget control

Time entry

Allows submission and approval for billing.

Why: Time entry in Dynamics 365 Project Operations is the dedicated feature for recording hours worked on projects. These entries can be submitted for approval and then used to bill customers, directly linking time capture to the project billing lifecycle.

A company wants to prevent sales orders from being processed if the customer exceeds their credit limit. What feature in Dynamics 365 Sales should be enabled?

Credit limit management

Enforces credit limits on sales orders.

Tax calculation

Shipping management

Price management

Why: Credit limit management in Dynamics 365 Sales allows organizations to define credit limits for customers and enforce them during order processing. When enabled, the system checks the customer's outstanding balance against their credit limit before a sales order is saved or submitted, blocking the order if the limit is exceeded. This prevents revenue leakage and reduces financial risk by ensuring orders are not processed for customers who have exceeded their credit capacity.

A global company uses Dynamics 365 Finance and needs to comply with multiple tax regulations. They want to automatically apply the correct tax rate based on the customer's address. What should be configured?

Tax determination by address

Automatically applies correct tax.

Tax exempt numbers

Tax reporting

Manual tax overrides

Why: To automatically apply the correct tax rate based on the customer's address in Dynamics 365 Finance, you configure 'Tax determination by address'. This feature uses the delivery address or primary address of the customer to determine the appropriate sales tax group and item sales tax group, enabling compliance with multiple tax regulations without manual intervention.

Want more Describe shared Dynamics 365 ERP features practice?