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: 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: 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.

All Describe Dynamics 365 Finance questions

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: 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?

Practice this domain

Domain 2: Describe Dynamics 365 Finance

33% of exam · 6 sample questions below

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: 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.

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

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?

Practice this domain

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

28% of exam · 6 sample questions below

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.