MB-920 Practice Test 13 — 15 Questions

Question 1

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the production schedule is not reflecting real-time capacity constraints, causing delays. Which feature should they configure to dynamically adjust schedules based on current resource availability?

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

Accepted Answer

Finite scheduling. Finite scheduling considers capacity constraints and dynamically adjusts production schedules based on current resource availability. Option B (Shop floor execution) is incorrect because it tracks and manages actual production activities, not schedule adjustments. Option C (Gantt chart views) is incorrect because Gantt charts are visualization tools that display schedules but do not automatically adjust them based on capacity. Option D (Material requirements planning, MRP) is incorrect because MRP focuses on material planning and procurement, not on capacity-based scheduling.

Answer

Shop floor execution

Answer

Gantt chart views

Answer

Material requirements planning (MRP)

Question 2

A global company uses Dynamics 365 Commerce and wants to provide a consistent shopping experience across online and physical stores. They need to ensure that product prices are synchronized in real-time between channels. Which capability should they leverage?

Accepted Answer

Price synchronization. Dynamics 365 Commerce provides a Price synchronization capability that ensures product prices are updated in real-time across all channels, including online and physical stores. This feature leverages the Retail Server and channel database to propagate price changes instantly, maintaining consistency without manual intervention.

Answer

Inventory visibility

Answer

Customer engagement

Answer

Omnichannel order management

Question 3

A company uses Dynamics 365 Finance and Operations. They need to set up financial dimensions for cost centers and departments. Which TWO statements about financial dimensions are correct?

Accepted Answer

Financial dimensions are linked to main accounts.. Financial dimensions are linked to main accounts to provide additional segmentation and analytical capabilities in Dynamics 365 Finance and Operations. This linkage allows transactions to be tracked and reported across multiple dimensions, such as cost centers and departments, enabling detailed financial analysis and compliance.

Answer

Financial dimensions are automatically derived from vendor master.

Answer

Financial dimensions are used only in the chart of accounts.

Answer

Financial dimensions cannot be used with advanced rules.

Question 4

A batch job in Dynamics 365 Supply Chain Management is recalculating inventory on-hand and is currently at 45% progress. The job has been running for 2 hours. What should the administrator do to analyze performance?

Accepted Answer

Review the batch job history for execution details. Reviewing the batch job history provides detailed execution logs, including step-by-step progress, error messages, and performance metrics such as duration per task. This allows the administrator to identify bottlenecks or failures in the recalculation process without interrupting the job. The batch job history is the primary diagnostic tool for analyzing long-running jobs in Dynamics 365 Supply Chain Management.

Answer

Check the status of other batch jobs

Answer

Configure a batch job alert

Answer

Cancel the job and restart it

Question 5

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

Accepted Answer

Benefit plan setup. 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.

Answer

Performance review configuration

Answer

Compensation grids

Answer

Absence accrual schedules

Question 6

You are an ERP consultant for Contoso Ltd., a manufacturing company that recently deployed Dynamics 365 Finance and Supply Chain Management. The company has two legal entities: USMF (US operations) and EURF (European operations). They use a shared chart of accounts and shared products. The finance team reports that when they post a purchase invoice in USMF, the general ledger entries appear correctly, but when they view the trial balance in EURF, they see unexpected balances in accounts that should not have any activity. The EURF trial balance shows transactions from USMF postings. However, the EURF team has not posted any transactions. The shared chart of accounts is correctly configured. The intercompany accounting setup is not enabled. What is the most likely cause of this issue?

Accepted Answer

The main accounts in the shared chart of accounts are missing the legal entity financial dimension assignment. The shared chart of accounts allows multiple legal entities to use the same set of main accounts, but each legal entity must have its own legal entity financial dimension assignment to segregate transactions. Without this assignment, postings in USMF are not filtered by legal entity, causing them to appear in EURF's trial balance. Since intercompany accounting is not enabled, the issue is not related to intercompany or consolidation, but rather to missing dimension filtering.

Answer

The consolidation process is incorrectly configured to include USMF transactions in EURF

Answer

The shared chart of accounts is not properly synchronized between legal entities

Answer

Intercompany accounting is enabled but configured incorrectly

Question 7

A company uses Dynamics 365 Finance and needs to track expenses by department and project simultaneously. Which financial dimension configuration should they use?

Accepted Answer

Add Department and Project as financial dimensions to the main account.. In Dynamics 365 Finance, financial dimensions (e.g., Department and Project) are attributes attached to a main account to enable tracking by multiple dimensions simultaneously. Option A is wrong because cost centers and cost objects belong to cost accounting, not general ledger dimension tracking. Option B is wrong because main accounts and subaccounts are for chart of accounts structure, not for multi-dimensional tracking. Option C is wrong because budget codes and budget classes are used for budgeting, not for expense tracking across dimensions.

Answer

Create separate cost centers and cost objects.

Answer

Use main accounts and subaccounts.

Answer

Configure budget codes and budget classes.

Question 8

You are a system administrator for a company that uses Dynamics 365 Supply Chain Management. The warehouse manager reports that pickers are frequently going to the wrong locations for items, causing delays. The warehouse uses a directed putaway and picking process. Currently, location profiles are set up but not optimized. The manager wants to ensure that items are stored in locations that minimize travel time and that pickers are directed to the correct locations. The warehouse has 10,000 SKUs and high turnover. Which configuration should you implement?

Accepted Answer

Use the location stocking limits and zone-based slotting to assign items to optimal locations based on velocity.. Location stocking limits and zone-based slotting in Dynamics 365 Supply Chain Management allow you to assign items to optimal locations based on velocity (pick frequency). This ensures high-turnover items are stored in easily accessible zones, minimizing travel time and directing pickers to correct locations, directly addressing the warehouse manager's requirements.

Answer

Configure wave processing for order picking.

Answer

Implement barcode scanning for all warehouse transactions.

Answer

Set up location profiles with fixed locations for all SKUs.

Question 9

A project manager creates a project with a budget of $60,000 in Draft status, but the workflow does not trigger the Senior Manager Approval step. What is the most likely reason?

Accepted Answer

The workflow is not activated for the project.. In Dynamics 365 Project Operations, workflows must be explicitly activated to run automatically when a project is created or updated. A workflow in Draft status is not active, so it will not trigger any approval steps regardless of the project's budget or status. Activating the workflow enables the system to evaluate conditions and initiate the Senior Manager Approval step as designed.

Answer

The project budget is too low.

Answer

The approver email is incorrect.

Answer

The project status is not 'Draft' after approval.

Question 10

An organization uses Dynamics 365 Finance to manage fixed assets. Which THREE capabilities are part of the fixed assets module? (Choose three.)

Accepted Answer

Depreciation calculation. The fixed assets module in Dynamics 365 Finance includes automated depreciation calculation using multiple methods (e.g., straight-line, declining balance, sum-of-years-digits). The system applies user-defined depreciation profiles and schedules to systematically allocate the asset's cost over its useful life, generating periodic journal entries without manual intervention.

Answer

Lease accounting

Answer

Impairment testing

Question 11

Contoso Ltd. is a global manufacturer of industrial pumps. They use Dynamics 365 Supply Chain Management with warehouse management (WMS) enabled. The warehouse in Chicago has been experiencing frequent inventory discrepancies during cycle counting. The discrepancies are mostly for items stored in bulk locations (floor storage) with high movement volume. The warehouse manager suspects that the issue is related to how inventory transactions are processed during outbound picking. When pickers confirm a pick, the system immediately reduces on-hand inventory. However, the physical movement to the staging area often happens later, sometimes after the system confirmation. This timing difference leads to phantom inventory. The manager wants to avoid a full physical inventory and implement a solution that aligns system and physical movements without major process changes. They consider four options:

A. Enable negative inventory adjustments for bulk locations.
B. Use the 'Registration' process instead of picking confirmation for outbound orders.
C. Implement a staging location and use the 'Stage for packing' functionality to defer inventory reduction until the item is physically staged.
D. Disable cycle counting for bulk locations and rely on annual physical counts.

Which option should Contoso implement?

Accepted Answer

Implement a staging location and use the 'Stage for packing' functionality to defer inventory reduction until the item is physically staged.. Implementing a staging location with the 'Stage for packing' functionality allows the system to defer inventory reduction until the item is physically moved to the staging area. This aligns the system transaction with the physical movement, eliminating the phantom inventory caused by early picking confirmation. It solves the timing discrepancy without requiring major process changes or a full physical inventory.

Answer

Disable cycle counting for bulk locations and rely on annual physical counts.

Answer

Enable negative inventory adjustments for bulk locations.

Answer

Use the 'Registration' process instead of picking confirmation for outbound orders.

Question 12

A distribution company uses Dynamics 365 Supply Chain Management. Which TWO methods can be used to reduce the time taken to receive inbound shipments?

Accepted Answer

Use advanced shipping notice (ASN). Advanced shipping notices (ASNs) allow the warehouse to receive shipment details before the physical arrival, enabling pre-receiving processing, staging, and labor planning. This reduces the time spent on data entry and verification during actual receipt, as the system can automatically match the ASN to the purchase order and initiate put-away workflows.

Answer

Use cross-docking

Answer

Use put-away clusters

Answer

Require quality orders for all receipts

Question 13

Northwind Traders uses Dynamics 365 Supply Chain Management for their distribution operations. They have a requirement to manage inventory across multiple warehouses and legal entities. They want to transfer finished goods from their manufacturing subsidiary (legal entity A) to their distribution subsidiary (legal entity B) at a transfer price that includes a markup. The transfer should be recorded as a sale in entity A and a purchase in entity B. They plan to use intercompany functionality. The finance team has set up intercompany parameters, but the transactions are not creating the expected intercompany orders. The administrator has verified that both entities are configured correctly in the system. However, the intercompany orders are not generated automatically when a purchase order is created in entity B. What should the administrator check next?

Accepted Answer

Ensure that the intercompany relationship is defined for the specific item in the item mapping setup.. Intercompany orders require that the intercompany relationship is defined on the item level, not just the legal entity level. The item must be mapped between entities to trigger automatic order creation. The vendor setup on the purchase order is correct but without item mapping, no interchain. Intercompany parameters are global, but item relations are per item.

Answer

Confirm that the inventory unit of measure is the same in both entities.

Answer

Check that the intercompany parameters in entity B are set to 'Create intercompany purchase orders automatically'.

Answer

Verify that the vendor associated with entity A is set up as an intercompany vendor in entity B.

Question 14

You are a Dynamics 365 Finance system administrator for a large manufacturing company. The company uses the 'Standard cost' inventory model and performs periodic inventory closing to recalculate standard costs. Recently, the finance team noticed that the inventory closing process is taking too long and sometimes fails, causing delays in month-end closing. They need to optimize the inventory closing process. The company has millions of inventory transactions per month. Requirements: 1) Reduce inventory closing processing time. 2) Ensure data integrity. 3) Use available Dynamics 365 Finance features. Which approach should you recommend?

Accepted Answer

Enable 'Use inventory close parallel processing' and schedule the closing batch job during off-peak hours.. Using the 'Inventory close' batch job with 'Recalculate' option and enabling 'Use inventory close parallel processing' can speed up the process. Option D is correct.

Answer

Switch to 'Moving average' inventory model to avoid closing.

Answer

Archive old inventory transactions to reduce data volume.

Answer

Run the 'Inventory recalculation' report instead of the closing process.

Question 15

You are a Dynamics 365 Finance administrator for a company that needs to generate financial reports in compliance with local GAAP. The company has multiple legal entities and wants to consolidate financial data into a single reporting entity. They also need to support multiple currencies and translation adjustments. The CFO wants to use a standard tool that integrates with Dynamics 365 Finance. Requirements: 1) Consolidate financial data from multiple legal entities. 2) Support currency translation. 3) Use a built-in tool. Which feature should you recommend?

Accepted Answer

Use the Consolidations module with currency translation settings.. Consolidations in Dynamics 365 Finance allow consolidation of multiple legal entities with currency translation. Financial reporting is for individual reports. Budgeting is for planning. Intercompany accounting is for transactions. Option A is correct.

Answer

Set up Budgeting with exchange rates.

Answer

Use Financial reporting with row definitions that sum across companies.

Answer

Configure Intercompany accounting to post balancing entries.