MB-920 Practice Test 12 — 15 Questions

Question 1

Refer to the exhibit. The budget control configuration shows that budget checks are enabled for purchase orders and vendor invoices. A purchase order is created for a budget amount that is 90% of the available budget. What happens during budget checking?

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

Accepted Answer

A warning is displayed but the purchase order can be posted.. The budget control configuration includes a warning threshold (e.g., 80%), and since the purchase order uses 90% of the available budget, it exceeds the warning threshold but not the error threshold (100%), so a warning is displayed but the purchase order can still be posted. Option A is incorrect because the purchase order is not blocked unless it exceeds the error threshold. Option B is incorrect because budget overrun (exceeding 100%) does not occur. Option C is incorrect because purchase orders are configured for budget checking as shown in the exhibit.

Answer

The purchase order is blocked from posting.

Answer

The purchase order is allowed and budget is overrun.

Answer

The budget check is skipped because purchase orders are not configured.

Question 2

You are an implementation consultant for a company that uses Dynamics 365 Finance. The company wants to automate the reconciliation of bank transactions with bank statements. The finance team currently manually matches bank statement lines to bank transactions in Dynamics 365 Finance. The CFO wants to use the advanced bank reconciliation feature to automate this process. What should you configure?

Accepted Answer

Enable advanced bank reconciliation, import bank statements, and configure matching rules to automatically match bank statement lines to bank transactions.. Advanced bank reconciliation uses matching rules to automate reconciliation. Option B is wrong because bank accounts are required, but the key feature is matching rules. Option C is wrong because cash flow forecasting is separate. Option D is wrong because it describes a manual process.

Answer

Set up bank accounts and manually upload bank statements each day.

Answer

Use the cash flow forecasting feature to predict bank balances and reconcile manually.

Answer

Create bank transaction journals and use the 'Reconcile' button to match each transaction.

Question 3

A company wants to use Dynamics 365 Supply Chain Management to optimize their transportation costs and delivery schedules. Which module should they primarily use?

Accepted Answer

Transportation Management. Transportation Management. The Transportation Management module is specifically designed to manage shipping, freight, and logistics optimization, which directly aligns with the goal of optimizing transportation costs and delivery schedules. Option A (Procurement and Sourcing) is incorrect because it manages purchasing and supplier relationships, not transportation. Option B (Master Planning) is incorrect as it focuses on supply and demand planning, not transportation optimization. Option D (Warehouse Management) is incorrect because it deals with internal warehouse operations, not transportation.

Answer

Procurement and Sourcing

Answer

Master Planning

Answer

Warehouse Management

Question 4

A manufacturing company uses Dynamics 365 Finance and Operations. They want to automate the generation of purchase orders based on inventory levels falling below a reorder point. Which feature should they configure?

Accepted Answer

Safety stock and reorder point planning. The 'Safety stock and reorder point planning' feature in Dynamics 365 Finance and Operations uses item coverage settings to automatically generate planned purchase orders when projected inventory falls below the defined reorder point. This is part of master planning, which calculates replenishment proposals based on inventory levels, lead times, and demand forecasts.

Answer

Inventory closing and adjustment

Answer

Inventory cycle counting

Answer

Purchase requisition workflow

Question 5

A multinational manufacturing company uses Dynamics 365 Finance and Operations with multiple legal entities. The finance team needs to run the month-end close process efficiently across all entities, ensuring that intercompany transactions are reconciled and that all journals are posted before consolidation. They want to automate the close workflow. Which feature should they use?

Accepted Answer

Financial period close. Financial period close in Dynamics 365 Finance and Operations provides a structured, automated workflow to manage the month-end close process across multiple legal entities. It enforces a predefined close checklist, ensures intercompany transactions are reconciled, and prevents posting after the close is completed, enabling efficient consolidation.

Answer

Financial reporting

Answer

Intercompany accounting

Answer

Budget control

Question 6

A company uses Dynamics 365 Finance with dual-currency accounting. They have transactions in both USD and EUR. The general ledger is set to USD, but a user posts a vendor invoice in EUR without specifying an exchange rate. The system posts the invoice at a rate of 0. The next day, the exchange rate for EUR/USD is 1.10. What is the impact on the general ledger?

Accepted Answer

The invoice is posted with a zero USD amount, causing an imbalance.. When a vendor invoice is posted in a currency other than the ledger currency without an exchange rate specified, Dynamics 365 Finance uses the default exchange rate. If no default rate is configured, the rate is zero, resulting in a zero amount in the ledger currency (USD) and causing an imbalance in the general ledger. Option A is incorrect because the system does not reject the invoice; it posts with the available rate (zero). Option B is incorrect because the system does not automatically update the invoice after posting with a later exchange rate; the rate at the time of posting is used. Option D is incorrect because the system does not automatically create an exchange rate difference journal when the rate is zero; exchange rate differences are calculated only when the transaction is settled.

Answer

The system rejects the invoice due to a missing exchange rate.

Answer

The system automatically updates the invoice using the next day's rate of 1.10.

Answer

The system posts the invoice and creates an exchange rate difference journal.

Question 7

A company uses Dynamics 365 Supply Chain Management and wants to optimize warehouse operations by grouping similar items together to reduce travel time for pickers. Which configuration should they use?

Accepted Answer

Warehouse zone groups. Warehouse zone groups allow items to be grouped together in zones based on characteristics like size, velocity, or storage requirements, which reduces travel time for pickers. Option A is correct. Option B (Product filter codes) is used for filtering products in processes like picking or receiving, not for warehouse layout optimization. Option C (Item coverage group) is used for planning replenishment and safety stock. Option D (Batch attributes) are used for batch tracking and quality management.

Answer

Product filter codes

Answer

Item coverage group

Answer

Batch attributes

Question 8

A company uses Dynamics 365 Supply Chain Management. They need to calculate a costed bill of materials (BOM) that includes manufacturing overhead. Which costing method should they use?

Accepted Answer

BOM Calculation with Costing Sheet. D is correct because the BOM Calculation with Costing Sheet is specifically designed to calculate a costed bill of materials that includes manufacturing overhead. In Dynamics 365 Supply Chain Management, the costing sheet allows you to define overhead rates, such as machine or labor overhead, and automatically apply them during BOM calculation, ensuring the total cost reflects both material and overhead components.

Answer

Moving Average

Answer

Standard Cost

Answer

FIFO

Question 9

A company using Dynamics 365 Supply Chain Management wants to optimize warehouse picking routes to reduce travel time. Which feature should they implement?

Accepted Answer

Wave management. Wave management in Dynamics 365 Supply Chain Management allows you to create and process waves for picking, packing, and shipping. By using wave templates and wave steps, you can optimize picking routes by grouping work into efficient sequences, reducing travel time across the warehouse.

Answer

Inventory counting

Answer

Vendor returns

Answer

Product master data

Question 10

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?

Accepted Answer

Run the pay statement generation process.. 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.

Answer

Create an ad hoc pay run for the employee.

Answer

Manually add a benefit deduction for the employee.

Answer

Submit an absence request to clear leave balances.

Question 11

A company uses Dynamics 365 Finance. The controller wants to enforce that all purchase requisitions over $10,000 require CFO approval. Which configuration should be used?

Accepted Answer

Purchase requisition workflow. A purchase requisition workflow is the correct configuration because it allows the controller to define a conditional approval step that triggers CFO approval when the requisition total exceeds $10,000. Workflows in Dynamics 365 Finance are designed to route documents through approval processes based on configurable conditions, such as monetary thresholds. This directly meets the requirement without altering budget control or audit policies.

Answer

Budget control configuration

Answer

Audit policy rule

Answer

Configuration key

Question 12

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?

Accepted Answer

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

Answer

The 'Pick inventory' job is not configured.

Answer

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

Answer

Inventory is not set up at the store level.

Question 13

A project manager notices that resource bookings in a project are not reflecting in the schedule. The project uses Dynamics 365 Project Operations with a hybrid resource management approach. What is the most likely cause?

Accepted Answer

The project uses generic resources that have not been replaced with named resources.. In Dynamics 365 Project Operations with a hybrid resource management approach, generic resources are placeholders that do not have actual availability or booking details. When generic resources are used without being replaced by named resources, their bookings do not reflect in the schedule because the system cannot map them to real resource calendars or capacity. This is the most likely cause of the issue described.

Answer

The resource bookings are set to 'Soft Book' mode.

Answer

The resource calendar has been modified after booking.

Answer

The project status is not updated to 'In Progress'.

Question 14

A company using Dynamics 365 Finance needs to generate financial statements in a specific format required by local regulators. Which tool should they use?

Accepted Answer

Financial reporting (Management Reporter). Financial reporting (Management Reporter) allows creating custom financial statements in various formats. Option B is wrong because Power BI is for data visualization, not formal financial statements. Option C is wrong because the general ledger inquiry shows account balances but not formatted statements. Option D is wrong because Excel integration can help but is not the native tool for regulatory reporting.

Answer

Power BI dashboards

Answer

General ledger inquiry

Answer

Excel export and manual formatting

Question 15

A logistics company uses Dynamics 365 Finance and Operations to manage freight and transportation. They want to optimize delivery routes and reduce fuel costs by automatically consolidating shipments going to the same geographic area. Which feature should they enable?

Accepted Answer

Transportation management. Transportation management (option B) is the correct feature because it is specifically designed to handle freight and transportation operations, including route optimization and shipment consolidation. By automatically grouping shipments destined for the same geographic area, it reduces the number of trips, lowers fuel costs, and improves delivery efficiency. This capability is built into the Transportation management module of Dynamics 365 Finance and Operations.

Answer

Warehouse management

Answer

Inventory management

Answer

Sales and marketing