MB-920 Exam Simulation 1 — 100 Questions

Question 1

A service company uses Dynamics 365 Finance and Operations and wants to track project costs against budgets in real-time. They need to automatically prevent further spending when a project exceeds its budget. Which feature should they configure?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Budget control. Budget control in Dynamics 365 Finance and Operations is the correct feature because it enables real-time tracking of project costs against budgets and can automatically prevent further spending when a budget threshold is exceeded. It enforces budget limits by checking available budget balances before transactions are posted, and can block or warn users when a project's budget is exhausted. This directly meets the requirement to stop spending automatically when a project exceeds its budget.

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Expense management

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Project accounting

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Fixed asset management

Question 2

You are the Dynamics 365 Commerce administrator for a medium-sized retail company that operates 20 physical stores and an online store. The company uses Dynamics 365 Commerce with the built-in payment connector for credit card processing. Recently, the company started experiencing a high number of abandoned carts in the online store. Customers report that when they attempt to pay using a credit card, they receive an error message stating 'Payment authorization failed.' However, the same credit cards work fine when used in physical stores. The IT team has verified that the payment connector is configured correctly and that the payment gateway is operational. The online store's checkout page loads correctly and customers can enter their payment details. The error occurs only during the authorization step. What should you do to resolve this issue?

Accepted Answer

Review and update the payment connector configuration for the online store channel.. The issue is isolated to the online store channel, where the payment connector configuration may be missing or incorrect for that specific channel. Since the physical stores process payments successfully, the problem is not with the payment gateway or the connector itself, but with how the connector is configured for the online channel. Reviewing and updating the payment connector configuration for the online store channel ensures that the authorization request is properly formatted and routed.

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Install a hardware station at the online store's data center.

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Reconfigure the credit card payment method in the headquarters.

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Contact the payment gateway provider to check for service outages.

Question 3

Which THREE features are part of Dynamics 365 Supply Chain Management? (Choose three.)

Accepted Answer

Transportation management. Transportation management is a core feature of Dynamics 365 Supply Chain Management that handles inbound and outbound shipping, freight rating, routing, and carrier selection. It integrates with warehouse management to optimize delivery schedules and costs, making it a key supply chain capability.

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Human resources

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Budgeting

Question 4

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They need to enforce strict FIFO (first in, first out) picking for perishable goods. Which configuration ensures that the oldest inventory is picked first?

Accepted Answer

Configure a reservation hierarchy with expiration date as the primary dimension. Configuring a reservation hierarchy with expiration date as the primary dimension ensures that the system prioritizes inventory based on the oldest expiration date first. In Dynamics 365 Supply Chain Management with advanced warehouse management, the reservation hierarchy defines the order in which dimensions (e.g., location, license plate, expiration date) are considered during reservation and picking. By placing expiration date at the top, the system automatically enforces FIFO for perishable goods, picking the oldest stock first.

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Adjust the work template to order by location

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Set up location profiles with strict picking order

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Modify the mobile device menu item for picking

Question 5

Which THREE are benefits of using Dynamics 365 Supply Chain Management's AI and Copilot features?

Accepted Answer

Improved demand forecasting. Dynamics 365 Supply Chain Management's AI and Copilot features use machine learning models to analyze historical sales data, market trends, and external factors (e.g., weather, economic indicators) to generate more accurate demand forecasts. This reduces stockouts and overstock situations by predicting future demand with higher precision than traditional statistical methods.

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Automated supplier negotiation

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Reduced need for manual data entry

Question 6

Which TWO are valid warehouse management processes in Dynamics 365 Supply Chain Management?

Accepted Answer

Receiving and putaway. Receiving and putaway are core warehouse management processes in Dynamics 365 Supply Chain Management. The system uses mobile device menus and warehouse location directives to guide workers through receiving inventory and placing it into storage locations, leveraging license plate tracking and inventory status updates.

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Purchase order creation

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Production scheduling

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Invoice matching

Question 7

Which TWO actions should a Dynamics 365 Finance administrator take to ensure that intercompany transactions are automatically reconciled and eliminated during consolidation?

Accepted Answer

Set up an elimination rule for intercompany transactions.. Options A and C are correct. Setting up intercompany accounting (option C) ensures that transactions are automatically matched between legal entities, and an elimination rule (option A) automates the elimination of intercompany balances during consolidation. Option B is wrong because the consolidation online feature is for transferring balances, not for elimination. Option D is wrong because consolidation groups are for grouping legal entities, not for eliminating intercompany transactions. Option E is wrong because intercompany workflows are for approval, not for reconciliation or elimination.

Answer

Use the Consolidation online feature to transfer balances.

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Define consolidation groups to group legal entities.

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Create an intercompany workflow to approve transactions.

Question 8

Which THREE are key capabilities of Dynamics 365 Supply Chain Management's warehouse management module?

Accepted Answer

Cycle counting. Cycle counting is a core capability of the Dynamics 365 Supply Chain Management warehouse management module, allowing for ongoing inventory accuracy checks without full physical inventory shutdowns. It supports scheduled and ad-hoc counts based on item criteria, locations, or zones, and integrates with warehouse operations to minimize disruption.

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Product lifecycle management

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Service agreements

Question 9

A company uses Dynamics 365 Supply Chain Management and wants to use Copilot to assist with supply chain planning. Which THREE capabilities are provided by Copilot in Supply Chain Management?

Accepted Answer

Explain master planning results in natural language. Options A, C, and E are correct. Copilot in Supply Chain Management can explain master planning results in natural language (A), predict potential supplier delays (C), and suggest alternative suppliers based on historical performance (E). Option B (generate purchase orders automatically) is not a Copilot capability but a standard automation feature. Option D (automatically adjust inventory levels using AI) is related to inventory optimization, not Copilot.

Answer

Generate purchase orders automatically

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Automatically adjust inventory levels using AI

Question 10

Refer to the exhibit. A warehouse manager runs the on-hand inventory report for item P-1000 in warehouse WH01. The report shows zero on-hand quantity but the inventory status is 'Available'. The manager knows that there should be 500 units in stock based on a recent purchase order receipt. What is the most likely cause of this discrepancy?

Accepted Answer

The purchase order receipt has not been registered in the warehouse. The most likely cause is that the purchase order receipt has not been registered in the warehouse (Option A). In Dynamics 365 Supply Chain Management, inventory status is set to 'Available' by default when an item is created or received, but the on-hand quantity only updates after the receipt is physically registered against the warehouse. Since the manager sees zero on-hand quantity despite knowing 500 units were received, the receipt transaction likely exists in the system but hasn't been posted to the warehouse inventory, leaving the quantity unrecorded.

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The item is stored in a different location

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The item is reserved for a sales order

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The item is on a quality order

Question 11

Which TWO are benefits of using warehouse management in Dynamics 365 Supply Chain Management?

Accepted Answer

Defining location directives for putaway. Location directives in Dynamics 365 Supply Chain Management (SCM) automatically guide the system to the optimal storage location for putaway, ensuring efficient warehouse space utilization and inventory accuracy. Option C is correct because wave management groups picking work into waves, allowing the system to optimize picking sequences and resource allocation, which reduces travel time and increases throughput.

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Managing financial budgets

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Generating purchase orders automatically

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Tracking production order status

Question 12

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?

Accepted Answer

Project price list. 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.

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Product catalog

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Role price list

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Resource price list

Question 13

Which THREE components are part of the advanced warehouse management setup in Dynamics 365 Supply Chain Management?

Accepted Answer

Location directives. Options A, B, and D are correct. Location directives determine pick/put locations, location profiles define location characteristics, and work templates define work types and processes. Option C (BOM versions) is incorrect because BOM versions are used for product structure and manufacturing, not warehouse management. Option E (Costing methods) is incorrect because costing methods are for inventory valuation and accounting.

Answer

BOM versions

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Costing methods

Question 14

Refer to the exhibit. A configuration snippet from Dynamics 365 Finance and Operations defines a workflow. What does this workflow do?

Accepted Answer

Require manager approval for purchase orders over $10,000. The workflow configuration in Dynamics 365 Finance and Operations defines a conditional approval step: when a purchase order exceeds $10,000, it is routed to the user's manager for approval. This is a standard workflow condition that triggers a specific approval step based on a monetary threshold, ensuring that high-value orders receive managerial oversight before proceeding.

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Reject purchase orders over $10,000

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Automatically approve all purchase orders under $10,000

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Send all purchase orders to the VP for approval

Question 15

A company uses Dynamics 365 Project Operations. They need to track time and expenses for project resources and bill clients accordingly. Which core capability should they use?

Accepted Answer

Time and expense management. Time and expense management is the core capability in Dynamics 365 Project Operations that enables project resources to log their hours and incurred costs. This data is then used to drive accurate client billing, as the system can automatically calculate billable amounts based on recorded time and expenses against the project.

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Invoicing

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Resource scheduling

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Project budgeting

Question 16

Which TWO benefits does the Asset management module in Dynamics 365 Supply Chain Management provide?

Accepted Answer

Preventive maintenance scheduling. Options C and E are correct. Preventive maintenance scheduling (C) allows organizations to plan and perform maintenance based on time or usage intervals, reducing unplanned downtime. Maintenance history tracking (E) provides a complete record of all maintenance activities, costs, and parts used, enabling better asset lifecycle management. Option A is incorrect because automated warranty claims processing is not a feature of the Asset management module; warranty management is handled elsewhere. Option B is incorrect because vendor performance analysis is part of Procurement or Vendor management, not Asset management. Option D is incorrect because demand forecasting is part of Master planning or Demand forecasting modules.

Answer

Automated warranty claims processing

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Vendor performance analysis

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Demand forecasting

Question 17

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?

Accepted Answer

The reservation hierarchy is not configured for production. 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.

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The default order settings for the item are incorrect

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The bom version is not approved

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

Question 18

A manufacturing company uses Dynamics 365 Finance and Operations. They want to automatically post a purchase order once it is approved by a manager. What feature should they configure?

Accepted Answer

Workflow. Workflow in Dynamics 365 Finance and Operations is the correct feature because it allows you to define a business process that automatically triggers an action—such as posting a purchase order—once a specific condition (e.g., manager approval) is met. Workflows can be configured to run without manual intervention, enabling the automatic posting of the purchase order immediately after the approval step completes.

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Electronic reporting

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Batch job

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Budget control

Question 19

Which TWO features are included in Dynamics 365 Commerce to enhance the customer experience?

Accepted Answer

Personalized offers. Personalized offers (B) are correct because Dynamics 365 Commerce uses AI-driven customer insights and segmentation to deliver tailored discounts and promotions in real time, directly enhancing the shopping experience. Product recommendations (C) are correct because the system leverages machine learning algorithms to analyze browsing and purchase history, suggesting relevant items to increase cross-sell and upsell opportunities.

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Vendor collaboration

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Inventory visibility

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Demand forecasting

Question 20

A distribution company uses Dynamics 365 Supply Chain Management. They want to improve picking efficiency in the warehouse by grouping multiple orders into a single pick run. Which warehouse process should they configure?

Accepted Answer

Wave processing. Wave processing in Dynamics 365 Supply Chain Management is the correct warehouse process for grouping multiple orders into a single pick run. It allows you to create waves that consolidate multiple sales orders or transfer orders based on criteria such as warehouse, shipping method, or inventory availability, and then release them together for efficient picking.

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Batch balancing

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Inbound shipment management

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Load planning