MB-920 Practice Test 13 — 15 Questions

Question 1

A company is implementing Dynamics 365 Finance and needs to configure the chart of accounts. Which TWO statements are true about the chart of accounts?

Accepted Answer

The chart of accounts can be shared across multiple legal entities.. Option A is correct because in Dynamics 365 Finance a single chart of accounts can be shared by multiple legal entities, allowing a common set of main accounts to be maintained centrally while each legal entity keeps its own ledger and accounting currency. Option E is correct because the chart of accounts is precisely the container that defines the list of main accounts available for posting in the general ledger, with each main account carrying properties such as account type, category, and posting type. Option B is not correct because account structures, not the chart of accounts itself, define the valid main account and financial dimension combinations; account structures are separate components that reference the chart of accounts. Option C is not correct because a main account cannot be deleted once it has posted transactions or balances; it can only be blocked or made inactive. Option D is not correct because the chart of accounts does not have to be unique per legal entity — sharing one chart of accounts across legal entities is a supported and common design.

Answer

The chart of accounts includes account structures that define valid dimension combinations.

Answer

Main accounts can be deleted even if they have posted transactions.

Answer

The chart of accounts must be unique for each legal entity.

Question 2

A company uses Dynamics 365 Supply Chain Management and wants to automatically reorder stock when inventory falls below a defined level. Which functionality should be configured?

Accepted Answer

Reorder point. The reorder point functionality in Dynamics 365 Supply Chain Management automatically generates replenishment orders when on-hand inventory drops below a configured minimum level. It uses item coverage settings to determine the reorder point, minimum and maximum quantities, and lead times, triggering purchase or transfer orders automatically. This is exactly the behavior the company needs.

Answer

Cycle counting

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Inventory aging

Answer

Safety stock

Question 3

Which TWO features in Dynamics 365 Supply Chain Management help ensure product quality during the receiving process?

Accepted Answer

Item sampling. Item sampling (A) is correct because it lets you define a sampling plan (for example, a fixed quantity or percentage of an inbound receipt) so that only a statistically valid subset of received goods is pulled for testing, which is a core mechanism for verifying product quality at receiving. Quality orders with inspection criteria (C) are correct because a quality order created during receipt drives the actual inspection, recording test variables, measurements, and pass/fail results against defined criteria, and it can automatically update inventory status or trigger nonconformance handling based on the outcome. Location directives (B) only determine where inventory is put away or picked and do not evaluate quality. Product compliance (D) governs regulatory and hazardous-material data rather than inspection of received goods. Inventory status management (E) controls whether stock is available, blocked, or quarantined, but it is a state mechanism that quality orders and sampling feed into, not a receiving-quality feature by itself.

Answer

Location directives

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Product compliance

Answer

Inventory status management

Question 4

A distribution company is implementing Dynamics 365 Supply Chain Management and wants to optimize transportation costs. They have contracts with multiple carriers offering different rates based on weight, distance, and delivery speed. Which module should they use to automatically select the most cost-effective carrier for each shipment?

Accepted Answer

Transportation management. Transportation management (TMS) includes rate engines and routing guides to select carriers based on defined criteria such as weight, distance, and delivery speed, thereby optimizing transportation costs. Option A (Inventory management) is wrong because it focuses on stock levels and inventory control, not carrier selection. Option B (Warehouse management) is wrong because it handles inbound and outbound warehouse operations, not transportation planning. Option D (Procurement and sourcing) is wrong because it deals with purchasing and vendor selection, not shipping logistics.

Answer

Inventory management

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Warehouse management

Answer

Procurement and sourcing

Question 5

A logistics company uses Dynamics 365 Supply Chain Management to manage transportation. They need to calculate freight charges automatically based on carrier rates and shipment details. Which module should they use?

Accepted Answer

Transportation management. The Transportation management module in Dynamics 365 Supply Chain Management is specifically designed to handle freight rate calculations, carrier rate negotiations, and shipment cost automation. It integrates carrier rate engines to compute charges based on shipment details like weight, volume, and destination, making it the correct choice for this requirement.

Answer

Warehouse management

Answer

Inventory management

Answer

Procurement and sourcing

Question 6

A distribution company uses Dynamics 365 Supply Chain Management. They want to use AI to predict customer demand and automatically suggest purchase orders. Which feature should they enable?

Accepted Answer

Demand Forecasting feature. Demand Forecasting in Dynamics 365 Supply Chain Management uses AI/ML to predict future demand from historical data and then feeds those forecasts into master planning, which generates suggested purchase orders. Enabling the Demand Forecasting feature is the direct way to get AI-driven demand prediction and automated purchase order suggestions. Planning Optimization then consumes the forecast to plan orders.

Answer

Warehouse management module

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Planning Optimization add-in

Answer

Inventory Visibility add-in

Question 7

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?

Accepted Answer

$950. 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.

Answer

$1,000

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$900

Answer

$1,050

Question 8

A company configured the warehouse management parameters as shown in the exhibit. What is the purpose of this configuration?

Accepted Answer

To automatically replenish picking locations when the quantity falls below the minimum of 10 units. The configuration sets a minimum replenishment quantity of 10 units, which triggers automatic replenishment during wave processing when the picking location falls below that threshold. Option A is incorrect because the configuration does not adjust min/max during picking; it defines a fixed threshold. Option C is incorrect because location directives are still used; the wave step is for replenishment, not to disable directives. Option D is incorrect because replenishment is automatic, not manual.

Answer

To adjust the minimum and maximum replenishment quantities during picking

Answer

To disable location directives and use wave-based processing

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To manually trigger replenishment when inventory drops below 10 units

Question 9

A retail company plans to use Dynamics 365 Commerce for both online and physical store operations. They need to ensure that inventory across all channels is synchronized in near real-time. Which feature should they leverage?

Accepted Answer

Distributed Order Management (DOM). Distributed Order Management (DOM) is the correct feature because it enables near real-time inventory synchronization across online and physical store channels by intelligently routing orders to the optimal fulfillment location based on current stock levels. This ensures that inventory data is consistently updated across all sales channels, preventing overselling and enabling seamless omnichannel operations.

Answer

Loyalty programs

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Product recommendations

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Call center functionality

Question 10

A company uses Dynamics 365 Supply Chain Management. They want to improve warehouse efficiency by grouping multiple orders into a single picking wave. Which feature should they use?

Accepted Answer

Wave processing. Wave processing in Dynamics 365 Supply Chain Management is the feature used to group multiple orders into a single picking wave. It allows warehouse managers to consolidate orders that share similar characteristics, such as same carrier or destination, and release them together for picking. This improves efficiency by reducing travel time and optimizing picking routes.

Answer

Load planning

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Cluster picking

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Cycle counting

Question 11

A company uses Dynamics 365 Supply Chain Management with the Quality Management module. They want to automatically generate quality orders for incoming raw materials based on specific criteria like vendor and item. Which feature should they configure?

Accepted Answer

Quality associations.. Quality associations in Dynamics 365 Supply Chain Management allow you to define rules that automatically generate quality orders when specific conditions are met, such as a particular vendor or item for incoming raw materials. This feature links the triggering event (e.g., a purchase order receipt) to the required quality testing process without manual intervention.

Answer

Nonconformance reports.

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Quarantine zones.

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Test groups.

Question 12

A retail company uses Dynamics 365 Finance. They want to automatically allocate overhead costs from a cost center to multiple departments based on a predefined percentage. Which costing feature should they use?

Accepted Answer

Cost allocations. Cost allocations in Dynamics 365 Finance are used to distribute costs from a source cost center or cost object to one or more destination cost objects using a defined allocation basis, such as a fixed percentage, quantity, or amount. This is exactly the mechanism for spreading overhead from a single cost center to multiple departments per a predefined percentage.

Answer

Cost accounting

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Overhead calculation

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Cost rollup

Question 13

A company wants to use Dynamics 365 Finance to manage its cash flow by forecasting future bank balances. Which module should they use?

Accepted Answer

Cash and bank management. The Cash and bank management module in Dynamics 365 Finance is specifically designed to manage bank accounts, reconcile bank statements, and forecast future bank balances. It includes cash flow forecasting tools that project future cash positions based on expected receipts, payments, and other cash transactions. This is the correct module for forecasting future bank balances.

Answer

Accounts receivable

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Accounts payable

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General ledger

Question 14

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to use AI to forecast demand for raw materials based on historical sales and external factors like weather. Which feature should they enable?

Accepted Answer

Enable Demand Forecasting with Azure Machine Learning integration.. The scenario explicitly requires AI-driven demand forecasting that incorporates external factors like weather. Dynamics 365 Supply Chain Management's Demand Forecasting feature integrates with Azure Machine Learning to apply advanced algorithms that analyze historical sales data alongside external variables, producing more accurate predictions than traditional methods.

Answer

Use the Forecasting setup in Master planning to generate baseline forecasts.

Answer

Configure Material Requirements Planning (MRP) to run nightly.

Answer

Implement Inventory Forecasting with Power BI dashboards.

Question 15

A company uses Dynamics 365 Finance and needs to ensure that purchase order invoices are automatically matched to the original purchase order and receipt quantities before payment. Which configuration is required?

Accepted Answer

Enable invoice matching validation. Invoice matching validation in Dynamics 365 Finance is the specific feature that enforces a three-way match between the purchase order, product receipt, and vendor invoice before an invoice can be posted or paid. Enabling this validation ensures that invoice quantities and prices are compared against the original PO and receipt quantities, and any discrepancies beyond the configured tolerances block the invoice from proceeding. This directly satisfies the requirement to automatically match invoices to PO and receipt quantities before payment.

Answer

Create a vendor payment journal

Answer

Configure a purchase agreement

Answer

Set up a payment schedule