MB-920 Practice Test 19 — 15 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management to manage vendor collaboration. They want vendors to view and respond to purchase orders directly in the system. Which portal or workspace should they enable?

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

Accepted Answer

Vendor collaboration workspace. The Vendor collaboration workspace in Dynamics 365 Supply Chain Management is specifically designed to allow vendors to view and respond to purchase orders, manage their profiles, and collaborate on other procurement activities. It provides a dedicated interface for external vendors.

Answer

Employee self-service

Answer

Customer portal

Answer

Self-service portal

Question 2

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

Accepted Answer

Benefit plan setup. Option B (Benefit plan setup) is correct because Dynamics 365 Human Resources includes a Benefits management module where administrators define benefit plans, plan types, coverage options, eligibility rules, and contribution rates that employees can enroll in. Option C (Open enrollment for benefit elections) is correct because the Benefits workspace supports open enrollment periods during which employees can review available plans and make or change their benefit elections through Employee self-service. Option A (Performance review configuration) belongs to the Performance management module, not Benefits, so it does not apply. Option D (Compensation grids) is part of the Compensation management module used for pay structures and fixed/variable compensation, not benefits administration. Option E (Absence accrual schedules) is part of the Leave and absence module for tracking time-off accruals, which is separate from benefit plan management.

Answer

Performance review configuration

Answer

Compensation grids

Answer

Absence accrual schedules

Question 3

A multinational organization uses Dynamics 365 Finance with multiple currencies. They need to comply with local accounting standards that require revaluation of foreign currency balances at month-end. Which THREE actions should be performed?

Accepted Answer

Run Accounts payable foreign currency revaluation. Options A, C, and D are correct because month-end foreign currency revaluation in Dynamics 365 Finance is performed separately for each relevant subledger and the general ledger: Accounts payable foreign currency revaluation (A) revalues open vendor transactions and unrealized gains/losses on AP balances, General ledger foreign currency revaluation (C) revalues main account balances in foreign currencies, and Accounts receivable foreign currency revaluation (D) revalues open customer transactions and AR balances. These three revaluation runs together ensure that monetary foreign currency balances across AP, AR, and GL comply with local accounting standards requiring month-end revaluation. Option B (Reporting currency translation) is not correct because translation converts functional currency balances into a reporting currency for consolidation/reporting, not for local month-end revaluation of foreign currency balances. Option E (Exchange rate adjustment) is not correct because it is not the specific month-end revaluation process; exchange rate adjustments relate to updating exchange rates or adjusting transactions, whereas the required actions are the dedicated foreign currency revaluation routines for AP, AR, and GL.

Answer

Run Reporting currency translation

Answer

Run Exchange rate adjustment

Question 4

A manufacturing company uses Dynamics 365 Finance. They need to automate the process of reordering raw materials when inventory falls below a predefined level. Which core capability should they use?

Accepted Answer

Replenishment rules. Replenishment rules in Dynamics 365 Finance allow you to define automatic reordering logic based on predefined inventory levels, such as minimum and maximum stock quantities. This capability directly addresses the requirement to trigger purchase orders or transfer orders when raw materials fall below a threshold, without manual intervention.

Answer

Inventory counting

Answer

Demand forecasting

Answer

Vendor collaboration

Question 5

A global manufacturer uses Dynamics 365 Supply Chain Management. They need to configure a process that automatically generates purchase orders when inventory drops below a predefined level, based on real-time demand. Which feature should they use?

Accepted Answer

Reorder point planning. Reorder point planning in Dynamics 365 Supply Chain Management automatically generates purchase orders when on-hand inventory falls below a predefined reorder point, using real-time demand and lead time. It is designed for items with independent demand and simple replenishment rules, exactly matching the scenario.

Answer

Vendor collaboration

Answer

Master planning

Answer

Demand forecasting

Question 6

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to track the carbon footprint of each product throughout its lifecycle. Which capability should they use?

Accepted Answer

Sustainability module. The Sustainability module in Dynamics 365 Supply Chain Management is specifically designed to calculate and track carbon footprints across product lifecycles. It provides capabilities for emissions calculation, sustainability scorecards, and regulatory reporting, which directly matches the requirement to track carbon footprint per product.

Answer

Asset management

Answer

Quality management

Answer

Product compliance

Question 7

A company is implementing Dynamics 365 Finance and needs to track inventory costs using a standard costing method. Which inventory model should they select?

Accepted Answer

Standard cost. Standard cost is the correct inventory model because it values inventory at predetermined costs, which aligns with the requirement to track inventory costs using a standard costing method. In Dynamics 365 Finance, the standard cost model uses predefined item costs and variances to capture differences between actual and standard costs, enabling cost control and analysis.

Answer

LIFO

Answer

FIFO

Answer

Weighted average

Question 8

Which THREE of the following are valid methods to reduce the number of vendor invoices posted manually in Dynamics 365 Finance?

Accepted Answer

Enable vendor collaboration for electronic invoice submission.. Option A is correct because enabling vendor collaboration in Dynamics 365 Finance lets vendors submit electronic invoices through the Vendor collaboration workspace, which are then imported into the pending vendor invoice pool and can be processed automatically, eliminating manual keying. Option C is correct because OCR (often via the Invoice capture solution or third-party OCR integration) digitizes paper invoices into structured data that flows into the pending vendor invoice list, reducing manual data entry. Option D is correct because configuring purchase order matching (two-way or three-way matching with invoice matching tolerances) allows invoices tied to purchase orders to be automatically matched and posted without manual intervention. Option B is not a reduction method—the payment journal is used to settle liabilities and record payments, not to automate vendor invoice creation. Option E is the opposite of the goal, since manually entering all invoices increases manual work rather than reducing it.

Answer

Use the payment journal to record invoices.

Answer

Manually enter all invoices to ensure accuracy.

Question 9

A company uses Dynamics 365 Supply Chain Management to manage vendor collaboration. They want vendors to view and respond to purchase orders directly in the system. Which portal or workspace should they enable?

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

Accepted Answer

Ship the transfer order from the source warehouse and receive it at the destination warehouse. To physically move inventory between warehouses in Dynamics 365 Supply Chain Management, the correct process is to ship the transfer order from the source warehouse and then receive it at the destination warehouse. This two-step process updates inventory quantities in both locations and creates the necessary inventory transactions to reflect the movement. Simply creating a transfer order without shipping and receiving does not change physical stock levels.

Answer

Perform an inventory counting journal

Answer

Create an inventory adjustment journal

Answer

Post a production consumption journal

Question 10

You are reviewing a journal entry in Dynamics 365 Finance. The exhibit shows the accounting distribution for a transaction. What type of account is 110120 likely to be?

Accepted Answer

Asset account. In Dynamics 365 Finance, the account number 110120 follows the typical main account numbering convention where accounts starting with 1 represent assets. Specifically, 110120 is a sub-account under the 110000 range, which is commonly used for cash, bank, or other current asset accounts. Therefore, it is an asset account.

Answer

Revenue account

Answer

Liability account

Answer

Expense account

Question 11

A retail company uses Dynamics 365 Finance to manage financial operations. The CFO wants to forecast cash flow using historical data. Which feature should be used to predict future cash positions?

Accepted Answer

Cash flow forecasting. Cash flow forecasting in Dynamics 365 Finance is the feature that uses historical transaction data and configured parameters to predict future cash inflows and outflows. It generates projected cash positions by analyzing customer payment patterns, vendor payment schedules, and other financial data, allowing the CFO to anticipate liquidity needs. This is the correct tool for forecasting future cash positions based on historical data.

Answer

Payment proposal

Answer

Bank reconciliation

Answer

Budgeting

Question 12

Which THREE are core capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse management. Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced inbound and outbound processes, wave execution, and location directives to optimize inventory movement and storage. It integrates with barcode scanning and mobile device workflows to enable real-time warehouse operations.

Answer

Budgeting

Answer

Sales order processing

Question 13

A company wants to use AI capabilities to predict customer payment delays in Dynamics 365 Finance. Which feature should they enable?

Accepted Answer

Customer payment predictions. Customer payment predictions is the correct feature because it uses AI to analyze historical transaction data, customer payment patterns, and external signals to predict whether a customer will pay an invoice late. This capability is specifically designed to help companies proactively manage collections and reduce days sales outstanding (DSO) in Dynamics 365 Finance.

Answer

Credit and collections management

Answer

Budget control

Answer

Cash flow forecasting

Question 14

Which TWO are common features shared across Dynamics 365 ERP applications? (Select exactly two.)

Accepted Answer

Power BI integration. Power BI integration is a common feature across Dynamics 365 ERP applications because it is built into the platform via the Power BI content packs and embedded analytics, allowing users to visualize and share insights from financial and operational data without leaving the application. This integration is a core part of the Power Platform, which is shared across all Dynamics 365 apps, enabling real-time reporting and dashboards.

Answer

Machine learning models

Answer

Batch attribute management

Answer

Compliance management

Question 15

A distribution company uses Dynamics 365 Supply Chain Management. They notice that the cost of goods sold (COGS) is being incorrectly calculated for certain items. The items are set up with a costing method of 'FIFO' and the inventory model is 'FIFO with physical value'. The issue occurs when purchase orders are received but not yet invoiced. What is the most likely cause of the incorrect COGS calculation?

Accepted Answer

The physical receipt cost differs from the final invoice cost. The most likely cause is that the physical receipt cost (recorded when the purchase order is received) differs from the final invoice cost. With FIFO costing and 'FIFO with physical value' inventory model, COGS is calculated based on the physical receipt cost until the invoice is posted. If the invoice cost is different, the COGS may be temporarily incorrect until the invoice is processed and inventory is revalued.

Answer

The inventory close process has not been run

Answer

The costing method should be 'Standard cost'

Answer

The inventory model should be 'FIFO with financial value'