MB-920 Practice Test 19 — 15 Questions

Question 1

A company wants to use Dynamics 365 Supply Chain Management to automate replenishment of raw materials from suppliers based on current inventory levels. Which feature should they configure?

Accepted Answer

Vendor-managed inventory (VMI). Vendor-managed inventory (VMI) allows suppliers to manage inventory levels. Purchase agreements set terms but don't automate replenishment. Intercompany orders handle transfers between subsidiaries. Consignment is a financial ownership model, not automation.

Answer

Intercompany orders

Answer

Consignment inventory

Answer

Purchase agreements

Question 2

Which TWO modules are part of Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse Management. Inventory Management and Warehouse Management are core SCM modules. Project Management is separate. Human Resources is HR. Sales is part of Sales, not SCM directly.

Answer

Sales and Marketing

Answer

Human Resources

Answer

Project Management and Accounting

Question 3

Which TWO capabilities are provided by the Warehouse management module in Dynamics 365 Supply Chain Management?

Accepted Answer

Wave processing. Options B and C are correct. Wave processing allows grouping of loads for efficient picking and shipping, and cluster picking enables picking multiple orders simultaneously—both are core Warehouse management capabilities. Option A (Route planning) belongs to Transportation management. Option D (Quality orders) belongs to Quality management. Option E (Production scheduling) belongs to Production control.

Answer

Route planning

Answer

Quality orders

Answer

Production scheduling

Question 4

Which THREE processes are supported by the Production control module in Dynamics 365 Supply Chain Management?

Accepted Answer

Process manufacturing. Options A, B, and D are correct. Discrete manufacturing, process manufacturing, and lean manufacturing are all supported production types. Option C is wrong because Project manufacturing is handled by Dynamics 365 Project Operations. Option E is wrong because Service management is part of Dynamics 365 Customer Service or Project Operations.

Answer

Project manufacturing

Answer

Service management

Question 5

A company uses Dynamics 365 Supply Chain Management and wants to implement a policy that prevents picking of expired or near-expiry inventory for customer orders. The system should automatically block such inventory from being reserved. Which feature should they use?

Accepted Answer

Quality orders with expiration date control. Quality orders with expiration date control allow the system to automatically block inventory that is expired or near expiry from being reserved or picked. This feature uses expiration date control settings to trigger quality orders that prevent picking of such inventory. Option A (Inventory status) can manually block inventory but does not automatically use expiration dates. Option B (Location profiles) manage warehouse locations but do not enforce expiration-based blocking. Option D (Item model groups) control costing methods and inventory models, not expiration date enforcement.

Answer

Inventory status

Answer

Location profiles

Answer

Item model groups

Question 6

Which THREE modules are part of Dynamics 365 Supply Chain Management?

Accepted Answer

Procurement and sourcing. The correct answers are A, B, and E. Procurement and sourcing, Master planning, and Sales and marketing are core modules of Dynamics 365 Supply Chain Management. Option C (Project management and accounting) is part of Dynamics 365 Project Operations, not Supply Chain Management. Option D (Human resources) is part of Dynamics 365 Human Resources.

Answer

Project management and accounting

Answer

Human resources

Question 7

Which of the following are valid inventory costing methods supported by Dynamics 365 Supply Chain Management?

Accepted Answer

Moving average. All five options—Moving average, LIFO, FIFO, Standard cost, and Weighted average—are supported inventory costing methods in Dynamics 365 Supply Chain Management. Therefore, each option is a valid method, and the correct answer set should include all of them.

Question 8

An organization using Dynamics 365 Finance receives an error when trying to post a vendor invoice: 'Invoice total does not match the expected amount based on the purchase order.' The purchase order has been partially received. What is the most likely cause?

Accepted Answer

The invoice quantity exceeds the received quantity. Correct: Invoice matching validates amounts against purchase order and receipts. Partial receipt causes mismatch. Option A (Invoice not approved in workflow) would not cause this error. Option B (Vendor blocked for posting) would prevent posting entirely. Option C (Invoice currency differs from PO currency) would give a different error.

Answer

The invoice is not yet approved in workflow

Answer

The vendor is blocked for posting

Answer

The invoice currency differs from the purchase order currency

Question 9

Which TWO of the following are features of Dynamics 365 Finance?

Accepted Answer

Credit and collections management. Options B and D are correct. B: Credit and collections management is a core feature of Dynamics 365 Finance, handling customer credit limits and collections processes. D: Budget planning is another core feature, enabling organizations to create and manage budgets. Options A, C, and E are incorrect: A (Power BI dashboards) is a reporting capability often integrated but not a core Finance feature; C (Warehouse management) is part of Dynamics 365 Supply Chain Management; E (Omnichannel order management) belongs to Dynamics 365 Commerce.

Answer

Power BI dashboards

Answer

Warehouse management

Answer

Omnichannel order management

Question 10

A manufacturing company uses Dynamics 365 Finance. They need to track the cost of raw materials and finished goods across multiple production stages. Which costing method should they use?

Accepted Answer

Standard costing. Correct: Standard costing uses predetermined costs for materials and labor, making it suitable for tracking costs across multiple production stages in manufacturing. Option A (Moving average) calculates cost based on average cost of goods. Option B (LIFO) is an inventory valuation method that assumes last units added are sold first, but it is not designed for predetermined cost tracking across production stages. Option C (FIFO) is another inventory valuation method that assumes oldest inventory is sold first.

Answer

Moving average

Answer

Last in, first out (LIFO)

Answer

First in, first out (FIFO)

Question 11

Which THREE of the following are requirements for setting up 'Intercompany accounting' in Dynamics 365 Finance?

Accepted Answer

Trading partner relationships must be defined between legal entities.. Options A, C, and D are correct. Intercompany accounting requires trading partner relationships, intercompany journals, and elimination rules. Option B is wrong because a shared chart of accounts is not required; each legal entity can have its own. Option E is wrong because a single currency is not required; different currencies are allowed.

Answer

All legal entities must use a shared chart of accounts.

Answer

All legal entities must use the same currency.

Question 12

A company uses Dynamics 365 Finance. The accounts payable manager wants to automate the process of matching purchase orders, product receipts, and vendor invoices. Which feature should they use?

Accepted Answer

Accounts payable invoice matching. Correct: Accounts payable invoice matching (option A) automates the three-way matching process among purchase orders, product receipts, and vendor invoices. Option B (Vendor collaboration) is for communication with vendors, not matching. Option C (Budget control) manages budgets. Option D (Fixed assets management) handles asset lifecycle.

Answer

Vendor collaboration

Answer

Budget control

Answer

Fixed assets management

Question 13

A multinational company uses Dynamics 365 Finance. They need to report financial data in both local GAAP and IFRS. Which feature should they use?

Accepted Answer

Financial dimensions. Correct answer: D - Financial dimensions. Financial dimensions in Dynamics 365 Finance allow you to track financial data by different attributes, such as cost center, department, or accounting standard. By setting up a financial dimension for 'Accounting Standard' and assigning values like 'Local GAAP' and 'IFRS', you can report in both standards simultaneously. Option A is incorrect because Currency translation deals with converting amounts between currencies, not accounting standards. Option B is incorrect because Ledger period refers to the fiscal period (month, quarter, year) for transactions, not for tracking different standards. Option C is incorrect because Consolidation is used to combine financial results of multiple legal entities, not to report under multiple accounting standards within one entity.

Answer

Currency translation

Answer

Ledger period

Answer

Consolidation

Question 14

A multinational organization uses Dynamics 365 Finance. They need to consolidate financial data from subsidiaries that use different currencies and accounting standards. The consolidation must be performed automatically on a monthly basis. What should they configure?

Accepted Answer

Consolidation and currency translation. Correct Answer: Consolidation and currency translation. This feature automatically consolidates financial data from subsidiaries using different currencies and accounting standards into a single reporting currency, meeting the requirement for automatic monthly consolidation. Option A (Fixed assets management) manages asset lifecycle but does not handle consolidation. Option B (Intercompany accounting) records transactions between entities but does not automate multi-currency consolidation. Option C (Budget planning) is for creating budgets, not consolidation. Option D (Consolidation and currency translation) is the correct feature for this scenario.

Answer

Fixed assets management

Answer

Intercompany accounting

Answer

Budget planning

Question 15

A company uses Dynamics 365 Finance and has multiple legal entities. They need to consolidate financial data from all entities into a single reporting entity for quarterly reports. What feature should be used to perform this consolidation?

Accepted Answer

Consolidations. The Consolidations module in Dynamics 365 Finance is designed to consolidate financial data from multiple legal entities. Option A is wrong because Intercompany accounting handles transactions between entities, not consolidation. Option B is wrong because Financial reporting uses data from the ledger but does not perform the consolidation process itself. Option D is wrong because the General ledger does not consolidate automatically.

Answer

Intercompany accounting

Answer

Financial reporting

Answer

General ledger