MB-920 Practice Test 20 — 15 Questions

Question 1

Contoso Ltd. is a global electronics manufacturer using Dynamics 365 Supply Chain Management. They have three production sites: Seattle (primary), Chicago, and Atlanta. Currently, all sites use manual picking processes. Contoso wants to implement warehouse management system (WMS) functionality to improve efficiency. The Seattle site is already using WMS, but the other two sites are not. The project requires minimal disruption to ongoing operations. The IT team is considering three approaches: (1) Enable WMS for all sites simultaneously after a weekend cutover, (2) Enable WMS for Chicago first, then Atlanta after one month, and (3) Enable WMS only for Seattle and keep others manual. The warehouse manager is concerned about training workers on mobile devices. What is the best course of action?

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

Accepted Answer

Enable WMS for Chicago first, then Atlanta after one month, using lessons learned from Chicago.. The best course of action is to enable WMS for Chicago first, then Atlanta after one month, using lessons learned from Chicago. This phased approach minimizes disruption, allows the IT team to address issues on a smaller scale, and provides valuable experience before rolling out to the next site. It also addresses the warehouse manager's concern about training by allowing a pilot site to refine training materials.

Answer

Keep WMS only for Seattle and continue manual picking at Chicago and Atlanta to avoid training costs.

Answer

Enable WMS for all sites simultaneously during a weekend cutover to standardize processes quickly.

Answer

Revert Seattle to manual picking to maintain consistency across all sites.

Question 2

A company uses Dynamics 365 Finance and wants to track budget funds availability before posting purchase orders. Which budget control configuration must be enabled?

Accepted Answer

Budget control. Budget control in Dynamics 365 Finance is the configuration that checks budget funds availability before a source document such as a purchase order is posted. Enabling budget control activates the checks against the defined budget register entries and dimension combinations, preventing overspending.

Answer

Budget plan

Answer

Budget register entry

Answer

Budget model

Question 3

A multinational manufacturing company uses Dynamics 365 Finance and Operations with multiple legal entities. The finance team needs to run the month-end close process efficiently across all entities, ensuring that intercompany transactions are reconciled and that all journals are posted before consolidation. They want to automate the close workflow. Which feature should they use?

Accepted Answer

Financial period close. Financial period close in Dynamics 365 Finance and Operations provides a structured, automated workflow to manage the month-end close process across multiple legal entities. It enforces a predefined close checklist, ensures intercompany transactions are reconciled, and prevents posting after the close is completed, enabling efficient consolidation.

Answer

Financial reporting

Answer

Intercompany accounting

Answer

Budget control

Question 4

You are the finance system administrator for Contoso Ltd., a global manufacturing company with legal entities in the United States, Germany, and Japan. Each entity uses Dynamics 365 Finance and has its own chart of accounts due to local reporting requirements. The CFO wants to consolidate the financial results of all entities into a single consolidated report at the end of each month. Currently, the consolidation is done manually by exporting data to Excel, which is error-prone and time-consuming. The CFO wants to use the consolidation functionality within Dynamics 365 Finance. Additionally, intercompany transactions between entities are significant, and the CFO wants to automate the elimination of these transactions during consolidation. You need to design a solution that meets the following requirements:
- Use the Dynamics 365 Finance consolidation module.
- Automate the elimination of intercompany transactions.
- Allow each entity to maintain its own chart of accounts.
- Generate consolidated financial statements in the US GAAP format.

What should you do?

Accepted Answer

Create a separate consolidation legal entity, set up consolidation groups and accounts to map the different charts, and configure intercompany elimination rules.. Dynamics 365 Finance consolidation requires a dedicated consolidation legal entity where you define consolidation groups, map each subsidiary's chart of accounts to the consolidation chart via consolidation accounts, and configure intercompany elimination rules. This preserves each entity's local chart of accounts while producing a unified consolidated report in the required format (US GAAP).

Answer

Define the same chart of accounts in all legal entities and then use the consolidation online functionality to consolidate.

Answer

Set up the German and Japanese entities as child companies under the US entity, and then run consolidation.

Answer

Use Power BI to connect to each legal entity's data and create consolidated reports with calculated columns to eliminate intercompany transactions.

Question 5

A company uses Dynamics 365 Finance and Operations and has multiple legal entities. The parent company needs to monitor the cash position of all subsidiaries in real time. Currently, each subsidiary uses its own bank account and currency. You need to configure a solution that provides a consolidated view of cash balances across all entities in the parent company's currency (EUR). The solution must support drill-down to individual bank transactions. The company uses the Cash and bank management module. What should you do?

Accepted Answer

Configure a cash position that includes bank accounts from all legal entities with currency exchange rates.. The Cash position feature in Dynamics 365 Finance and Operations allows you to configure a consolidated view of cash balances across multiple legal entities by including bank accounts from all subsidiaries and applying currency exchange rates to convert balances to the parent company's currency (EUR). This solution supports drill-down to individual bank transactions, meeting the real-time monitoring requirement.

Answer

Use Microsoft Power BI to connect to each legal entity's Cash and bank management data.

Answer

Set up intercompany accounting to automatically transfer cash balances to the parent company.

Answer

Use the bank reconciliation workspace to view each subsidiary's bank transactions.

Question 6

You are a functional consultant for a pharmaceutical company implementing Dynamics 365 Supply Chain Management. The company must comply with strict regulatory requirements for traceability and lot control. They produce serialized products where each batch must be tracked from raw material receipt to final product shipment. The production process involves mixing raw materials in a specific sequence and quantity, and the company currently uses paper-based batch records. They want to digitize the process to enforce that operators cannot proceed to the next step unless the previous step is completed and quantities are within specification. Additionally, they need to capture actual consumption of raw materials against the batch order. Which combination of features should you recommend?

Accepted Answer

Use production control with manufacturing execution and material consumption registration.. Production control with manufacturing execution and material consumption registration directly addresses the requirement to enforce step-by-step completion and capture actual raw material consumption against the batch order. Manufacturing execution allows operators to register each production step and prevents proceeding until the previous step is completed and quantities are within specification. Material consumption registration captures the actual quantities of raw materials used, enabling traceability from raw material receipt to final product shipment.

Answer

Use quality management with quality orders for each production step.

Answer

Use warehouse management with mobile device menus for production put-away and picking.

Answer

Use engineering change management to control batch record versions.

Question 7

A company wants to ensure that quality inspections are performed on a random sample of incoming raw materials. Which feature should be configured in Dynamics 365 Supply Chain Management?

Accepted Answer

Quality orders with sampling plans. Quality orders with sampling plans in Dynamics 365 Supply Chain Management allow you to define a sampling plan (e.g., AQL or percentage-based) that determines how many items from a received batch are inspected. This directly supports random sampling of incoming raw materials for quality inspections.

Answer

Quarantine zones

Answer

Disposition codes

Answer

Nonconformance management

Question 8

A manufacturer wants to implement a pull-based production system where work cells signal upstream processes when they need more parts. Which Dynamics 365 Supply Chain Management feature should they use?

Accepted Answer

Kanban boards. Kanban boards in Dynamics 365 Supply Chain Management enable a pull-based production system where downstream work cells signal upstream processes when they need more parts, aligning with lean manufacturing principles. Option A (Production orders) is incorrect because they are typically used in push-based discrete manufacturing. Option B (Master planning) is incorrect as it is a push-based planning approach. Option C (Batch orders) is incorrect because they are designed for process manufacturing, not pull signaling.

Answer

Production orders

Answer

Master planning

Answer

Batch orders

Question 9

A company uses Dynamics 365 Supply Chain Management and needs to ensure that all inbound shipments from a specific vendor are inspected before being put away. Which feature should be configured?

Accepted Answer

Quality management with quality orders. Quality management with quality orders in Dynamics 365 Supply Chain Management is designed to enforce inspection of inbound shipments. You can configure quality associations to automatically generate quality orders for specific vendors or items upon receipt, ensuring inspection before put-away.

Answer

Production control

Answer

Outbound load planning

Answer

Work creation policies

Question 10

Which THREE are features of Dynamics 365 Supply Chain Management for quality control?

Accepted Answer

Nonconformance Management. Nonconformance Management (B) is a core quality control feature that lets you record, track, and resolve items or processes that fail to meet quality standards, including corrections and related costs. Quality Associations (D) define the conditions under which quality orders are automatically generated, such as for specific items, vendors, or receipt transactions. Quality Orders (E) are the actual inspection documents that specify tests, sample sizes, and acceptance criteria, and record pass/fail results against inventory. Costing Sheets (A) belong to cost accounting and are used to calculate item costs, not quality inspections, and Inventory Statuses (C) are used to control inventory availability and blocking, not to perform quality testing or nonconformance handling.

Answer

Costing Sheets

Answer

Inventory Statuses

Question 11

A retail company uses Dynamics 365 Finance to process customer payments. The accounts receivable clerk receives a payment from a customer that partially pays an invoice. The clerk wants to apply the payment to the oldest invoice first. Which feature should the clerk use?

Accepted Answer

Use the settlement functionality in the customer payment journal.. The settlement functionality in the customer payment journal is the correct feature because it allows the clerk to manually select which invoice(s) to apply the payment against, including the ability to mark the oldest invoice first. This is the standard method in Dynamics 365 Finance for applying a customer payment to specific outstanding transactions. The clerk can open the settlement form from the payment journal line and choose the invoice to settle, ensuring the payment is applied as desired.

Answer

Run the collections process to identify the oldest invoice.

Answer

Configure the credit and collections parameters to auto-apply payments.

Answer

Create a payment schedule for the customer.

Question 12

A company uses Dynamics 365 Finance and needs to settle a customer invoice against a credit note for the same customer. The credit note amount is less than the invoice amount. The accountant wants to apply the credit note to the invoice and leave the remaining balance on the invoice open. Which functionality should be used?

Accepted Answer

Settlement of transactions. The Settlement of transactions page is designed to match debit and credit transactions for a customer or vendor. By selecting the invoice and the credit note, the system offsets the credit note amount against the invoice. If the credit note is smaller, the invoice retains a remaining balance. This is the standard method for partial settlement in Dynamics 365 Finance.

Answer

Credit note creation

Answer

Open transaction editing

Answer

Collection letter setup

Question 13

Refer to the exhibit. A master plan has generated a planned purchase order for 100 units of item A0001 with status 'Approved'. What does the 'Approved' status indicate?

Accepted Answer

The order has been reviewed and confirmed by a planner.. The 'Approved' status on a planned purchase order generated by a master plan indicates that the order has been reviewed and confirmed by a planner, meaning a human has validated the plan's suggestion. This status distinguishes it from newly generated, unreviewed planned orders, which would carry a different status such as 'New' or 'Unreviewed'. It does not mean the order is fully processed or completed, nor does it mean it has been firmed and is ready to be released, as those are separate subsequent stages in the order lifecycle. Options B, C, and D therefore describe other statuses or lifecycle stages that do not match the 'Approved' designation.

Answer

The order has been automatically created and is waiting for review.

Answer

The order has been fully processed and completed.

Answer

The order has been firmed and is ready to be released.

Question 14

A retail company uses Dynamics 365 Commerce. They want to offer a loyalty program that awards points based on purchase amount and allows customers to redeem points for discounts. Which capability should be configured?

Accepted Answer

Loyalty program management. Loyalty program management in Dynamics 365 Commerce is the specific capability designed to define and administer loyalty schemes, including earning rules (points per purchase amount) and redemption rules (discounts for points). This directly matches the requirement to award points based on purchase amount and allow customers to redeem points for discounts.

Answer

Call center functionality

Answer

Channel setup

Answer

Product assortment management

Question 15

Which THREE are key capabilities of Dynamics 365 Supply Chain Management's warehouse management module?

Accepted Answer

Cycle counting. Cycle counting (A) is a core warehouse management capability that lets you create and process cycle count work to reconcile on-hand inventory against recorded quantities without halting operations. Cluster picking (D) is a supported picking method in the warehouse management module that groups multiple order lines into a single pick cluster to reduce travel time and increase picker efficiency. License plate tracking (E) is a fundamental warehouse management feature that uses license plates (unique IDs for containers, pallets, or groupings of items) to track inventory movements and locations throughout the warehouse. Product lifecycle management (B) belongs to engineering and product information management rather than warehouse execution, and service agreements (C) are part of the Field Service/service management domain, so neither is a warehouse management module capability.

Answer

Product lifecycle management

Answer

Service agreements