MB-920 Practice Test 14 — 15 Questions

Question 1

You are the project manager for a large engineering firm that uses Dynamics 365 Project Operations. Your organization has recently deployed Project Operations and is using it to manage multiple concurrent projects. You have been assigned to a new project named 'Bridge Construction' which is a fixed-price contract with a total value of $2,000,000. The project is scheduled to run for 12 months. During the first month, the team encounters an unexpected geological issue that requires additional surveying work. This additional work will require 200 hours of a senior geologist's time and 100 hours of a surveyor's time. The project contract has not accounted for this scope change. You need to ensure that the project stays profitable and that the client is billed appropriately. The client is open to change orders but expects formal documentation. What should you do?

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

Accepted Answer

Create a change order in the project contract to reflect the additional scope, then update the WBS and budget.. In Dynamics 365 Project Operations, when a fixed-price contract encounters unplanned scope, the correct process is to create a change order on the project contract to formally document the scope change, update the Work Breakdown Structure (WBS) with the new tasks, and adjust the budget accordingly. This ensures the client is billed correctly through the contract's billing rules and maintains project profitability by tracking the additional costs against the revised budget.

Answer

Create a separate internal project to track the additional costs and invoice the client manually.

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Proceed with the work and adjust the final invoice at project completion.

Answer

Add the additional labor tasks to the existing work breakdown structure (WBS) and increase the project budget accordingly.

Question 2

Which TWO features in Dynamics 365 Supply Chain Management can be used to manage inventory accuracy?

Accepted Answer

Inventory blocking. Inventory blocking (D) is correct because it lets you quarantine or freeze on-hand stock at a specific inventory status or location, preventing inaccurate or suspect quantities from being picked, reserved, or consumed until the discrepancy is resolved, which directly protects inventory accuracy. Cycle counting (E) is correct because it is the core periodic counting process in Dynamics 365 Supply Chain Management that compares counted quantities against system on-hand and posts adjustments, keeping recorded inventory aligned with physical stock. Wave templates (A) are wrong because they define how outbound picking/replenishment work is grouped and released, which affects warehouse throughput rather than the accuracy of recorded inventory. Location directives (B) are wrong because they are put-away/picking strategies that determine where items are placed or picked from, not a mechanism for verifying or correcting inventory quantities. Transportation management (C) is wrong because it handles inbound/outbound freight, carriers, and rate/route planning, which is unrelated to maintaining accurate on-hand inventory balances.

Answer

Wave templates

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Location directives

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Transportation management

Question 3

A company uses Dynamics 365 Supply Chain Management for quality control. They want to automatically generate quality orders for a specific item when it is received from a certain vendor. How should they achieve this?

Accepted Answer

Quality associations. Quality associations in Dynamics 365 Supply Chain Management are used to automatically generate quality orders based on specific conditions such as item, vendor, or transaction type. By configuring a quality association, the system can trigger a quality order automatically when an item is received from a particular vendor, which is exactly what the company needs.

Answer

Quality groups

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Nonconformance types

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Test instruments

Question 4

A global manufacturer uses Dynamics 365 Supply Chain Management. They are implementing IoT-enabled predictive maintenance for their production equipment. Which component should they integrate with Supply Chain Management to receive and process IoT signals?

Accepted Answer

IoT Intelligence add-in. The IoT Intelligence add-in for Dynamics 365 Supply Chain Management is specifically designed to integrate IoT signals from Azure IoT Hub and provide predictive maintenance capabilities. It processes IoT data and triggers actions in Supply Chain Management, such as creating maintenance work orders. This add-in is the component that directly receives and processes IoT signals within the context of Supply Chain Management.

Answer

Azure Machine Learning

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Power Automate

Answer

Azure IoT Hub

Question 5

Which TWO are examples of production order statuses in Dynamics 365 Supply Chain Management?

Accepted Answer

Released. In Dynamics 365 Supply Chain Management, a production order progresses through defined statuses such as Created, Estimated, Scheduled, Released, Started, Reported as finished, and Ended. Option B (Released) is correct because releasing a production order is a distinct status that makes the order available for shop floor execution and journal postings. Option D (Reported as finished) is correct because it is the status reached when the finished quantity is declared via the report-as-finished journal, moving the order toward completion. Option A (Reserved) is not a production order status; reservation is an inventory transaction concept applied to on-hand stock. Option C (Picked) is not a production order status; picking relates to warehouse work and output/input picking processes. Option E (Invoiced) is not a production order status; invoicing applies to sales orders and purchase orders, not production orders.

Answer

Reserved

Answer

Picked

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Invoiced

Question 6

A retail company using Dynamics 365 Finance notices that inventory valuations are incorrect due to varying purchase prices. Which costing method will provide the most accurate valuation by averaging costs over a period?

Accepted Answer

Weighted average. Weighted average costing in Dynamics 365 Finance calculates inventory value by averaging the cost of all units purchased over a period, which smooths out price fluctuations and provides a more accurate valuation when purchase prices vary. This matches the requirement to average costs over a period.

Answer

Standard cost

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FIFO

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Moving average

Question 7

A company uses Dynamics 365 Supply Chain Management. They are experiencing inventory discrepancies during physical counts. The discrepancies occur only for items using a specific storage dimension group that includes location and pallet ID. What is the most likely cause?

Accepted Answer

The storage dimension group does not require pallet ID tracking for all transactions. When a storage dimension group includes pallet ID but does not require pallet ID tracking for all transactions, users can skip entering the pallet ID during inventory movements or counts. This leads to discrepancies because the system cannot accurately track inventory at the pallet level, causing mismatches between physical stock and system records.

Answer

The warehouse management parameters are misconfigured

Answer

Items are using batch numbers inconsistently

Answer

The inventory posting setup is incorrect

Question 8

A company uses Dynamics 365 Supply Chain Management and needs to track the cost of raw materials as they move through production. The company uses standard cost methodology. Which module should be used to view the cost breakdown of a finished good?

Accepted Answer

Cost management. Cost management is the correct module because it provides cost breakdowns, cost roll-ups, and variance analysis for finished goods under standard cost methodology. It tracks raw material costs as they flow through production and shows the standard versus actual cost components of a manufactured item.

Answer

Product information management

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Production control

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Inventory management

Question 9

Your organization needs to automate the process of sending payment remittance advice to vendors after payments are made. Which Dynamics 365 Finance feature should be configured?

Accepted Answer

Vendor payment journal. In Dynamics 365 Finance, the vendor payment journal is used to record and post payments to vendors. It includes functionality to generate and send remittance advice to vendors after payment is made. The remittance advice can be configured to be sent via email, print, or electronic format. The other options do not directly handle the automation of sending remittance advice after payment.

Answer

Purchase order

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Vendor invoice journal

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Payment format

Question 10

A manufacturing company uses Dynamics 365 Finance to manage its financial operations. The company recently acquired a subsidiary and needs to consolidate financial statements. The subsidiary uses a different fiscal calendar and chart of accounts. What is the recommended approach to consolidate financial data?

Accepted Answer

Use the Consolidate with elimination feature in Dynamics 365 Finance, mapping the subsidiary's accounts to the parent company's chart of accounts.. Dynamics 365 Finance provides a built-in Consolidate with elimination feature that supports consolidating multiple legal entities with different charts of accounts and fiscal calendars. You map the subsidiary's accounts to the parent's chart of accounts and define exchange rates and elimination rules. This is the recommended, supported approach for financial consolidation.

Answer

Recreate the subsidiary's chart of accounts to match the parent company before consolidation.

Answer

Use the General ledger export process to transfer trial balance data and then manually consolidate.

Answer

Export data from the subsidiary's system and import it into the parent company's Dynamics 365 Finance using data integration.

Question 11

A wholesale distributor uses Dynamics 365 Finance and Operations. They are experiencing high shipping costs because customer orders are often split across multiple shipments from different warehouses. They want to minimize split shipments by consolidating orders to the nearest warehouse with sufficient stock. Which feature should they configure?

Accepted Answer

Wave processing. Wave processing in Warehouse management allows grouping picking work for multiple orders into a single wave, enabling shipment consolidation from the same warehouse. By configuring wave templates and shipment consolidation rules, orders can be combined to minimize split shipments. While Transportation management offers a dedicated 'Shipment consolidation' feature, among the given options, Wave processing (Option A) is the most appropriate. Option B (Warehouse demand replenishment) is for stock replenishment, Option C (Inventory visibility) for real-time inventory, and Option D (Location directives) for put-away/picking routing; none directly consolidate shipments.

Answer

Warehouse demand replenishment

Answer

Inventory visibility

Answer

Location directives

Question 12

A company uses Dynamics 365 Finance and needs to track the financial performance of individual projects. Costs for materials, labor, and overhead must be recorded against each project. Which module should be used to manage this?

Accepted Answer

Project management and accounting. Project management and accounting in Dynamics 365 Finance is specifically designed to track the financial performance of projects, including costs for materials, labor, and overhead. It allows the creation of project budgets, cost tracking, revenue recognition, and profitability analysis. This module provides the necessary tools to record and categorize expenses against each project, enabling accurate financial management.

Answer

Procurement and sourcing

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Production control

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Fixed assets

Question 13

You are a Dynamics 365 Supply Chain Management functional consultant for a food and beverage company. The company receives raw materials from multiple suppliers and needs to enforce quality inspections on all inbound shipments of dairy products. If a dairy shipment fails inspection, the entire lot must be quarantined and cannot be used in production. Additionally, the company wants to automatically generate purchase orders when the inventory level of a key ingredient falls below a reorder point. The inventory planner will review and approve the suggested orders before they are sent to suppliers. You need to configure the system to: (1) enforce quality inspections on inbound dairy products; (2) automatically quarantine failed lots; (3) generate purchase order suggestions based on reorder points. What should you do?

Accepted Answer

Use quality orders with a sampling plan for dairy products and set inventory status to 'Quarantine' on failure. Set up item coverage with a reorder point and run master planning to generate planned purchase orders.. Quality orders with a sampling plan enforce inspection on inbound dairy receipts, and setting the inventory status to 'Quarantine' on failure prevents the lot from being consumed in production. Item coverage configured with a reorder point (minimum) plus master planning generates planned purchase orders that the planner can review and firm before sending to suppliers, satisfying the 'review and approve' requirement.

Answer

Create a quality order for each inbound dairy shipment and configure a workflow to approve or reject. Use safety stock journal to create purchase orders when stock is low.

Answer

Set up vendor evaluation to inspect dairy suppliers and use inventory blocking to quarantine. Configure master planning with safety stock for automatic purchase orders.

Answer

Create a cycle counting plan for dairy products and set up a quarantine zone in the warehouse. Configure item coverage with a min-max system for automatic purchase orders.

Question 14

A retail company with 500 employees is deploying Dynamics 365 Human Resources. They need to ensure that employees can view their own pay slips and update personal information from a mobile app. Which component should they enable?

Accepted Answer

Employee self service. Employee self service (C) is the correct component because it is specifically designed to allow employees to view their own pay slips and update personal information from a mobile app. In Dynamics 365 Human Resources, the Employee self service workspace provides role-based access for employees to perform these tasks without requiring manager or HR intervention.

Answer

Recruitment

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Manager self service

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Compensation management

Question 15

A company uses Dynamics 365 Finance to manage its fixed assets. They have purchased a new piece of machinery and want to record it in the system. Which module should they use to create the fixed asset record?

Accepted Answer

Fixed assets. The Fixed assets module in Dynamics 365 Finance is purpose-built for creating, tracking, depreciating, and disposing of fixed asset records such as machinery, vehicles, and buildings. When a company purchases machinery, the asset record is created in the Fixed assets module, where acquisition cost, depreciation profile, service life, and book setup are configured. This module integrates with the General ledger to post acquisition and depreciation transactions automatically.

Answer

Budgeting

Answer

Inventory management

Answer

General ledger