MB-920 Practice Test 17 — 15 Questions

Question 1

A retail company is planning to expand its online presence and wants to use Dynamics 365 Commerce to build a new e-commerce site. They need to ensure that the site can handle high traffic during promotional events and that product catalog updates are reflected quickly. What should they consider?

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

Accepted Answer

Use a content delivery network (CDN) and optimize catalog synchronization.. Using a Content Delivery Network (CDN) caches static assets (images, scripts, CSS) at edge nodes, reducing load on the origin server during high-traffic promotional events. Optimizing catalog synchronization (e.g., using incremental syncs and the Commerce Data Exchange) ensures product updates are reflected quickly without full re-indexing, maintaining performance and data freshness.

Answer

Increase the size of the channel database.

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Disable caching for product pages to ensure fresh data.

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Limit the number of products in the catalog.

Question 2

An organization uses Dynamics 365 Supply Chain Management. They have a requirement to automatically generate purchase orders when inventory for a specific item falls below a defined level, but only if the item is not already on order. Which method should they use?

Accepted Answer

Configure coverage groups and item coverage settings with a reorder point and Min/Max coverage code. Dynamics 365 Supply Chain Management uses coverage groups and item coverage settings to automate replenishment. By configuring a reorder point with a Min/Max coverage code, the system generates purchase orders when inventory falls below the defined level, but only if the item is not already on order, as the system checks existing open orders before creating new ones.

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Implement the vendor self-service portal for purchase order creation

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Set up vendor collaboration to allow vendors to manage inventory replenishment

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Create a procurement catalog and enable automatic requisition approval

Question 3

A multinational company uses Dynamics 365 Finance. They need to generate financial statements that comply with both local GAAP and IFRS. What feature should they use?

Accepted Answer

Financial reporting with multiple reporting frameworks. Dynamics 365 Finance includes a Financial reporting module that supports multiple reporting frameworks, such as local GAAP and IFRS, by allowing the creation of separate financial statements from the same underlying data using different accounting rules and configurations. This feature enables the company to meet dual reporting requirements without maintaining separate ledgers or manual adjustments.

Answer

Currency revaluation

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Intercompany accounting

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Budgeting

Question 4

A small business uses Dynamics 365 Finance for the first time. They have one legal entity, one currency (USD), and simple financial needs. They want to record daily sales, pay vendors, reconcile bank accounts, and generate financial statements. They have no intercompany transactions or complex manufacturing. You are setting up the system. What should you do to minimize configuration overhead?

Accepted Answer

Use the standard default configurations and only customize essential modules.. For a small business with one legal entity, one currency, and simple financial needs, using the standard default configurations in Dynamics 365 Finance minimizes configuration overhead while still allowing recording of daily sales, vendor payments, bank reconciliations, and financial statements. Option A is wrong because creating a detailed chart of accounts with many segments adds unnecessary complexity for a simple setup. Option C is wrong because setting up multiple legal entities would increase overhead and is not needed for a single legal entity. Option D is wrong because intercompany accounting is not required and would add unnecessary configuration; it can be implemented later if expansion occurs.

Answer

Create a detailed chart of accounts with many segments for future expansion.

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Set up multiple legal entities to separate financial data.

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Configure intercompany accounting in case they expand later.

Question 5

You are a Dynamics 365 Finance consultant for a company that is implementing Dynamics 365 Finance. The company has a requirement to track expenses by project and by department. They plan to use financial dimensions. However, the finance team is unsure how to set up the dimensions to meet both reporting needs. They want to ensure that all transactions can be analyzed by both project and department. The company has 50 departments and 200 active projects. Which configuration should you recommend?

Accepted Answer

Create separate financial dimensions for Project and Department. Assign both dimensions to all transactions.. Financial dimensions in Dynamics 365 Finance are designed to track multiple analytical categories independently. By creating separate dimensions for Project and Department and assigning both to all transactions, the company can report on expenses by either dimension or a combination of both, meeting the requirement without forcing a hierarchical or concatenated structure.

Answer

Use default dimensions on legal entity and override on each transaction.

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Use account structures to embed department and project in the main account.

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Create one financial dimension that combines project and department as a single value.

Question 6

A company uses Dynamics 365 Finance. The finance team notices that the general ledger journal balance does not equal the sum of debits and credits. What could cause this discrepancy?

Accepted Answer

Unbalanced journal entry. An unbalanced journal entry, where total debits do not equal total credits, will cause the general ledger balance to not match the sum of debits and credits. Option A is incorrect because the voucher number series merely assigns identifiers and does not affect accounting balances. Option B is incorrect because posting profile configuration determines how transactions are posted to accounts but does not cause an imbalance if the journal entry itself is balanced. Option D is incorrect because user permissions control access rights, not the balancing of journal entries.

Answer

Incorrect voucher number series

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Incorrect posting profile configuration

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User permissions

Question 7

A company uses Dynamics 365 Project Operations. They want to track time and expenses against a project and invoice the customer based on actuals. Which billing method should they use?

Accepted Answer

Time and material. Time and material billing is the correct method because it invoices the customer based on actual time entries and expenses tracked against the project. In Dynamics 365 Project Operations, this billing method is designed for projects where the scope is uncertain and the customer agrees to pay for actual effort and costs incurred.

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Cost plus

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Milestone billing

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Fixed price

Question 8

A manufacturing company uses Dynamics 365 Supply Chain Management. They need to reduce inventory holding costs by optimizing reorder points. Which feature should they use?

Accepted Answer

Reorder Point Planning. Reorder Point Planning in Dynamics 365 Supply Chain Management is the feature designed to calculate and manage reorder points and safety stock based on demand, lead times, and service levels, directly reducing inventory holding costs while avoiding stockouts. It uses coverage settings and minimum/maximum keys to trigger replenishment at the right time. This is the purpose-built capability for the stated goal.

Answer

Vendor Managed Inventory

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Inventory Visibility

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Demand Forecasting

Question 9

A retail company wants to use Dynamics 365 Commerce to manage online and in-store sales from a single platform. Which core capability should they leverage to unify their sales data?

Accepted Answer

Omnichannel order management. Omnichannel order management is the core capability in Dynamics 365 Commerce that unifies sales data from online and in-store channels into a single order lifecycle. It enables centralized processing, fulfillment, and returns across all channels, ensuring consistent inventory and customer data without silos.

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Loyalty management

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Product recommendations

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Inventory visibility

Question 10

An organization is migrating to Dynamics 365 Finance and needs to ensure that historical financial data from the legacy system is preserved for reporting. What is the recommended approach?

Accepted Answer

Use data migration tools to import historical data into Dynamics 365 Finance.. The recommended approach is to use data migration tools to import historical data into Dynamics 365 Finance. This ensures that historical financial data is available for reporting within the new system, maintaining continuity and avoiding the need to maintain legacy systems.

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Re-enter all historical transactions manually.

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Only migrate summary balances for prior periods.

Answer

Maintain the legacy system for historical reporting.

Question 11

A retail company uses Dynamics 365 Finance and wants to implement Copilot (AI-powered assistant) to help the finance team analyze financial data and generate insights. Which feature in Dynamics 365 Finance provides Copilot capabilities?

Accepted Answer

Copilot in finance and operations. Copilot in finance and operations is the AI-powered assistant embedded in Dynamics 365 Finance that helps users analyze financial data, generate insights, and automate tasks using natural language. It is the specific feature that provides Copilot capabilities within the Finance module, leveraging generative AI to summarize data, suggest actions, and answer questions. Power BI embedded, Financial reporting, and AI Builder are separate tools that do not provide the Copilot experience.

Answer

Power BI embedded

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Financial reporting

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AI Builder

Question 12

Which TWO features in Dynamics 365 Supply Chain Management are used to manage and track inventory in a warehouse?

Accepted Answer

Location directives. Location directives (B) are correct because they are the warehouse management rules that tell the system where to put away, pick, or move inventory within warehouse locations, directly supporting inventory management and tracking at the location level. Inventory status (E) is correct because it lets you classify on-hand inventory with statuses such as Available, On order, or Quarantine, and control which transactions and reservations are allowed, which is essential for tracking inventory condition and availability. Kanban (A) is a lean manufacturing tool for signaling production and replenishment rather than a core warehouse inventory tracking feature. Route planning (C) concerns transportation and delivery scheduling, not warehouse inventory management. Product configuration (D) defines how a product is built or customized and does not manage or track warehouse inventory.

Answer

Kanban

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Route planning

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Product configuration

Question 13

Refer to the exhibit. You are configuring a general journal in Dynamics 365 Finance. Based on the JSON snippet, what is the purpose of the 'VoucherSeries' field?

Accepted Answer

It defines the number sequence for vouchers.. The 'VoucherSeries' field in a Dynamics 365 Finance general journal configuration specifies the number sequence that will be used to generate unique voucher numbers for journal entries. This ensures each voucher has a distinct identifier, which is essential for audit trails and financial tracking.

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It defines the journal type (Daily, etc.).

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It defines the description of the journal.

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It defines the name of the journal.

Question 14

A retail company is implementing Dynamics 365 Finance and Operations. They need to track the financial performance of each store as a separate profit center. Which configuration should they use?

Accepted Answer

Assign financial dimensions to each store and configure the store as a profit center.. Financial dimensions in Dynamics 365 Finance and Operations allow you to segment financial data for reporting and analysis. By assigning a financial dimension to each store and configuring it as a profit center, the company can track revenue, costs, and profitability at the store level without creating separate legal entities.

Answer

Use the Budget control feature to monitor store spending.

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Set up cost centers for each store.

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Create a separate legal entity for each store.

Question 15

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They notice that during wave processing, pick work is not being created for some sales orders. What should they check first?

Accepted Answer

Wave template and its criteria. Wave templates define the criteria and actions for processing waves, including the creation of pick work. If pick work is not being generated for certain sales orders, the wave template's query filters (e.g., shipping method, warehouse, or item criteria) may be excluding those orders. Checking the wave template and its criteria is the first logical step because it directly controls which orders are processed and how work is created.

Answer

Release to warehouse status

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Reservation hierarchy

Answer

Inventory status of the items