MB-920 Practice Test 15 — 15 Questions

Question 1

A warehouse manager queries the on-hand inventory for item L0101 and receives the JSON output above:

```json
{
  "ItemId": "L0101",
  "OnHandQuantity": 700,
  "PhysicallyReserved": 400,
  "AvailablePhysical": 300
}
```

Currently, how many units of item L0101 are available to be picked for new orders?

Accepted Answer

300. The on-hand inventory for item L0101 is 700 units, but 400 units are physically reserved for existing orders. The available-to-pick quantity is the on-hand total minus physically reserved inventory, which equals 300 units. This is confirmed by the 'AvailablePhysical' field in the JSON output, which directly represents the quantity available to be picked for new orders in Dynamics 365 Supply Chain Management.

Answer

500

Answer

200

Answer

700

Question 2

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

Answer

$900

Answer

$1,050

Question 3

A manufacturing company uses Dynamics 365 Finance. They want to ensure that raw materials are automatically reserved when a production order is created and that the cost of the raw materials is included in the production order cost. Which costing method supports this requirement?

Accepted Answer

Standard costing. Standard costing uses predefined standard costs, allowing automatic reservation of materials at standard cost and inclusion of those costs in the production order. Option A (Weighted average) calculates cost based on average inventory cost, not standard cost, and does not support automatic reservation. Option C (LIFO) and D (FIFO) are inventory valuation methods based on physical flow and actual costs, not standard costs, and do not enable automatic reservation at standard cost.

Answer

Weighted average

Answer

LIFO

Answer

FIFO

Question 4

An organization is implementing Dynamics 365 Human Resources. They need to store employee certifications and track expiration dates. Which TWO actions can be performed using standard functionality?

Accepted Answer

Set up alerts to notify managers when certifications are about to expire. Dynamics 365 Human Resources includes built-in alert functionality that can be configured to notify managers when employee certifications are approaching their expiration dates. This is part of the standard certification tracking feature, which allows setting up notification rules based on date fields.

Answer

Configure automatic renewal of certifications before expiration

Answer

Link certifications to worker skills for gap analysis

Answer

Automatically attach certifications to positions when hiring

Question 5

A manufacturing company uses Dynamics 365 Finance and Operations. They need to track the cost of raw materials as they move through production. Which costing method should they use to ensure that inventory valuation reflects the most recent purchase prices?

Accepted Answer

FIFO. FIFO (First In, First Out) is the correct costing method because it assumes that the oldest inventory items are used first, leaving the most recently purchased items in stock. This ensures that the inventory valuation on the balance sheet reflects the most recent purchase prices, which aligns with the requirement to track costs as raw materials move through production in Dynamics 365 Finance and Operations.

Answer

LIFO

Answer

Weighted average

Answer

Standard cost

Question 6

An organization uses Dynamics 365 Finance and Operations and wants to automatically reconcile bank transactions with general ledger entries. Which feature should they use?

Accepted Answer

Bank reconciliation. Bank reconciliation in Dynamics 365 Finance and Operations is the correct feature because it is specifically designed to automatically match bank statement transactions with general ledger entries, identifying discrepancies and ensuring financial accuracy. It uses imported bank statement data to reconcile against posted ledger transactions, supporting both manual and automated matching rules.

Answer

Payment schedule

Answer

Advanced ledger entries

Answer

Cash flow forecasting

Question 7

Refer to the exhibit. This XML snippet shows a workflow configuration in Dynamics 365 Finance. What is the purpose of this workflow?

Accepted Answer

To automate purchase order approval based on amount. The workflow configuration in Dynamics 365 Finance uses a condition based on the purchase order amount to trigger an approval step. This is the core purpose of a purchase order approval workflow: to automatically route purchase orders for approval when they exceed a defined monetary threshold, ensuring proper authorization before the order is processed.

Answer

To enforce budget control on purchase orders

Answer

To facilitate vendor collaboration

Answer

To match purchase orders with invoices

Question 8

A Dynamics 365 Customer Service agent is using Copilot to draft email responses to customers. The agent notices that Copilot sometimes suggests responses that include incorrect information about the company's return policy. What should the agent do to ensure accurate responses?

Accepted Answer

Edit the suggested response to correct the inaccuracies before sending. Copilot in Dynamics 365 Customer Service generates draft responses based on available data, but it may not always reflect the most current or accurate policy details. The agent is responsible for reviewing and editing the suggested content before sending, ensuring the final response is accurate and compliant with company policies. This aligns with the principle that Copilot is an assistive tool, not a replacement for human judgment.

Answer

Disable Copilot and draft all responses manually

Answer

Ask the administrator to change the Copilot language model

Answer

Provide feedback to Copilot by rating the response as unhelpful

Question 9

A company uses Dynamics 365 Finance and wants to automate the approval of purchase orders under $10,000 while requiring manual approval for larger amounts. Which feature should they use?

Accepted Answer

Workflow automation. Workflow automation in Dynamics 365 Finance can be configured to automatically approve purchase orders under a specified amount and route larger ones for manual approval. Option B is incorrect because budget control enforces spending limits but does not automate approval workflows. Option C is incorrect because audit logging records user actions for compliance, not approval routing. Option D is incorrect because vendor collaboration is for communication with suppliers, not internal approval processes.

Answer

Budget control

Answer

Audit logging

Answer

Vendor collaboration

Question 10

A multinational organization uses Dynamics 365 Finance with multiple legal entities. They need to centralize cash management and consolidate bank account balances across entities. What is the recommended approach?

Accepted Answer

Use the Cash and bank management module with cross-company bank accounts. The Cash and bank management module in Dynamics 365 Finance supports cross-company bank accounts, allowing centralized visibility and management of bank balances across legal entities. Option A is incorrect because the General ledger consolidation process is for aggregating financial data for reporting, not real-time cash management. Option C is incorrect because Budget control is used to enforce spending limits, not for cash visibility. Option D is incorrect because Intercompany accounting handles transactions between entities, but does not provide centralized cash management.

Answer

Run the consolidation process in General ledger

Answer

Configure Budget control for each entity

Answer

Set up intercompany accounting for each entity

Question 11

Drag and drop the steps to process a purchase order receipt in Dynamics 365 Finance in the correct order.

Accepted Answer

Select purchase order, then choose product receipt, then enter receipt details, then post the product receipt.. Processing a receipt involves selecting the PO, choosing product receipt, entering details, and posting.

Answer

Select purchase order, then enter receipt details, then choose product receipt, then post.

Answer

Choose product receipt, then select purchase order, then enter details, then post.

Answer

Select purchase order, then choose product receipt, then post, then enter receipt details.

Question 12

A company uses Dynamics 365 Finance and wants to automate the approval of purchase requisitions based on dollar amount and department. What feature should be configured?

Accepted Answer

Workflows.. Workflows in Dynamics 365 Finance allow you to define automated approval processes based on criteria such as dollar amount and department. Option B is incorrect because procurement categories are used to classify items, not to automate approvals. Option C is incorrect because role-based security controls access permissions, not approval flows. Option D is incorrect because budget control monitors spending against budgets, not the approval of purchase requisitions.

Answer

Procurement categories.

Answer

Role-based security.

Answer

Budget control.

Question 13

A finance manager needs to create a journal entry to record the monthly depreciation of fixed assets. The company uses Dynamics 365 Finance. Which journal type should be used?

Accepted Answer

Fixed assets journal. The Fixed assets journal is specifically designed to record fixed asset transactions such as acquisitions, disposals, and depreciation. In Dynamics 365 Finance, this journal type automatically posts to the correct fixed asset ledger accounts and updates the asset's net book value, making it the appropriate choice for monthly depreciation entries.

Answer

Payment journal

Answer

Inventory journal

Answer

General journal

Question 14

A company wants to automate the approval of purchase orders under $1,000 in Dynamics 365 Finance and Operations. What should they configure?

Accepted Answer

Workflow for purchase orders. Workflow in Dynamics 365 allows automation of approval processes based on conditions like PO amount.

Answer

Vendor invoice policy

Answer

Budget control

Answer

Purchase agreement

Question 15

A company uses Dynamics 365 Supply Chain Management. They want to implement a lean manufacturing process. Which THREE features should they configure?

Accepted Answer

Production flows. Production flows are the core modeling element for lean manufacturing in Dynamics 365 Supply Chain Management, defining the sequence of activities and the movement of materials through a value stream. They are required to set up a lean production environment and are the foundation for kanban rules and work cells.

Answer

Bill of materials

Answer

Route operations