MB-920 Practice Exam 4 — 20 Questions

Question 1

A company uses Dynamics 365 Finance and Operations. They need to configure financial dimensions for reporting. Which TWO statements about financial dimensions are correct?

Accepted Answer

Financial dimensions can be used to segment financial data for reporting.. Financial dimensions in Dynamics 365 Finance and Operations are specifically designed to segment financial data, such as splitting revenue by region or product line, enabling granular reporting and analysis. This segmentation allows organizations to create detailed financial statements and pivot on dimensions like cost center or department for deeper insights.

Answer

Financial dimensions cannot be used in budget control.

Answer

Financial dimensions are only applicable to the main account.

Answer

Financial dimensions can only be used in one account structure at a time.

Question 2

A company uses Dynamics 365 Project Operations. They need to track project costs and revenue recognition in real time. Which module should they use?

Accepted Answer

Project Operations. Dynamics 365 Project Operations is the dedicated module for managing the entire project lifecycle, including cost tracking and revenue recognition in real time. It integrates project planning, resource management, and financials to ensure that project costs and revenue are recognized accurately as work progresses, without needing to switch to separate modules.

Answer

Finance

Answer

Commerce

Answer

Supply Chain Management

Question 3

A company uses Dynamics 365 Supply Chain Management. They need to ensure that a specific item is always sourced from a preferred vendor, even if another vendor has a lower price. Which configuration should be used?

Accepted Answer

Purchase trade agreements. Purchase trade agreements allow you to define specific sourcing rules for items, including a preferred vendor relationship. This ensures that a particular item is always sourced from the designated vendor regardless of price. Option A (Vendor allocation rules) is used to distribute purchase quantities among multiple vendors, not to force a single preferred vendor. Option B (Product dimension groups) define product variants, not sourcing preferences. Option C (Inventory status codes) control inventory availability and transaction types, not vendor selection.

Answer

Vendor allocation rules

Answer

Product dimension groups

Answer

Inventory status codes

Question 4

A project manager is configuring Dynamics 365 Project Operations for a company that uses Microsoft Project for detailed scheduling. The company wants to import the WBS from Microsoft Project into Dynamics 365 Project Operations. Which tool or feature should be used?

Accepted Answer

Project for the Web integration. Project for the Web integration is the correct tool because it provides native synchronization between Microsoft Project and Dynamics 365 Project Operations, allowing the Work Breakdown Structure (WBS) to be imported directly without custom development. This integration leverages the Common Data Service (CDS) to map project tasks, dependencies, and resources seamlessly.

Answer

Data import wizard

Answer

Power Automate flow

Answer

Excel add-in

Question 5

A distribution company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager reports that during peak hours, order picking is slow because pickers frequently travel long distances to retrieve items. The warehouse layout is fixed. Which feature should the company use to optimize picking routes without changing the physical layout?

Accepted Answer

Configure wave processing with location-based wave filters.. Wave processing with location-based wave filters allows the system to group work into waves based on criteria such as location, enabling the creation of efficient picking routes that minimize travel distance. This feature optimizes the sequence of picks within a wave without requiring any physical changes to the warehouse layout, directly addressing the manager's need to reduce travel time during peak hours.

Answer

Enable replenishment to ensure pick locations are fully stocked.

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Use location directives to direct putaway to random locations.

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Implement cluster picking to group orders by customer.

Question 6

A retail company uses Dynamics 365 Commerce integrated with Finance and Operations. They want to synchronize real-time inventory data between the online store and the back office. Which capability should they enable?

Accepted Answer

Retail Server and Channel Data Distribution. Retail Server and Channel Data Distribution is the Dynamics 365 Commerce component designed to synchronize real-time inventory data between the online store and the back office. It uses a push-based mechanism to distribute master data and transactional data from the headquarters to channel databases, ensuring that inventory levels are updated promptly for e-commerce operations.

Answer

Commerce Data Exchange: Async Service

Answer

Commerce Data Exchange: Synch Service

Answer

Commerce Data Exchange: Real-time Service

Question 7

A company uses Dynamics 365 Finance. They need to automate expense report processing. Which TWO capabilities are available in Expense management?

Accepted Answer

Credit card transaction import. Credit card transaction import (Option B) is a core capability of Expense management in Dynamics 365 Finance, allowing employees to automatically import corporate credit card charges into expense reports, reducing manual entry. AI-powered receipt matching (Option D) uses machine learning to match receipt images to expense line items, streamlining approval and audit processes.

Answer

Integration with payroll for automatic deductions

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Direct submission to general ledger

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Automatic payment to employees

Question 8

A company uses Dynamics 365 Finance and wants to enable AI-driven insights to detect anomalies in financial transactions. Which Copilot feature should be used?

Accepted Answer

Enable the AI anomaly detection in the Finance insights module.. The AI anomaly detection feature in the Finance insights module uses machine learning to identify unusual financial transactions. Option A is incorrect because 'Activate Copilot for Finance insights to generate reports' focuses on report generation, not anomaly detection. Option B is irrelevant as Copilot for Sales is designed for sales processes, not financial anomaly detection. Option D is also incorrect as Copilot for Service is for customer service scenarios, not financial transactions.

Answer

Activate Copilot for Finance insights to generate reports.

Answer

Use Copilot for Sales to analyze transaction data.

Answer

Configure Copilot for Service to review financial transactions.

Question 9

Which TWO capabilities are part of Dynamics 365 Finance and Operations core financial management? (Choose two.)

Accepted Answer

Accounts payable. Accounts payable is a core financial management capability in Dynamics 365 Finance and Operations. It manages vendor invoices, payments, and expense tracking, ensuring accurate liability recording and timely disbursements. This module integrates directly with the general ledger to maintain financial integrity.

Answer

Field service

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Project management

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Warehouse management

Question 10

A company implements Dynamics 365 Finance and needs to configure a chart of accounts that supports multiple legal entities. What is the best practice for managing shared accounts?

Accepted Answer

Use the shared chart of accounts feature and assign it to each legal entity.. The shared chart of accounts feature in Dynamics 365 Finance allows a single chart of accounts to be used across multiple legal entities, ensuring consistency and simplifying maintenance. Option A is incorrect because deleting unused accounts is irrelevant to sharing. Option C is incorrect because financial dimensions are used for tracking, not for sharing the chart of accounts. Option D is incorrect because separate charts per entity increase complexity and are not a best practice.

Answer

Delete accounts that are not used across all entities.

Answer

Use financial dimensions to differentiate accounts by legal entity.

Answer

Create a separate chart of accounts for each legal entity to ensure independence.

Question 11

A company uses Dynamics 365 Finance. They want to enable Copilot to assist with generating financial reports and answering questions about financial data. What must be configured first?

Accepted Answer

Copilot in Dynamics 365 Finance. B is correct because Copilot in Dynamics 365 Finance must be explicitly enabled and configured as a prerequisite before it can assist with generating financial reports or answering questions about financial data. This involves turning on the Copilot feature within the environment settings and ensuring the necessary permissions and data access are in place.

Answer

Data management framework

Answer

Power BI embedded

Answer

Finance Insights module

Question 12

Refer to the exhibit. An auditor runs this Kusto query in Microsoft Sentinel connected to Dynamics 365 Finance. What is the purpose of this query?

Accepted Answer

Find the top 5 users who posted the most vendor invoices in the past week. The Kusto query filters audit log entries for vendor invoice posting events (event ID 1050) from the past 7 days, groups them by user, counts the number of postings per user, and sorts descending to show the top 5 users. This directly identifies the users who posted the most vendor invoices in the past week, making option D correct.

Answer

Compare invoice posting rates between current and previous week

Answer

List all vendor invoices posted by system accounts

Answer

Identify users who have failed to post vendor invoices

Question 13

You are a Dynamics 365 consultant for a medium-sized manufacturing company that recently deployed Dynamics 365 Finance and Operations. The company uses the Production control module to manage manufacturing orders. They report that when a production order is started, the system does not automatically reserve raw materials from inventory, causing stockouts on the shop floor. The warehouse team manually reserves materials after the order is released. You need to configure the system so that raw materials are automatically reserved when a production order status is changed to 'Started'. The company uses standard cost inventory valuation. What should you do?

Accepted Answer

Set the 'Automatic reservation' field on the production order defaults to 'At start'.. The 'Automatic reservation' field on the production order defaults controls when raw materials are physically reserved. Setting it to 'At start' ensures that when a production order status changes to 'Started', the system automatically reserves the required raw materials from inventory, preventing stockouts on the shop floor. This is a standard configuration in Dynamics 365 Finance and Operations for production control.

Answer

Set the 'Reservation hierarchy' on the item model group to 'Single level'.

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Set the 'Default financial dimensions' on the finished good item to include the warehouse dimension.

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Enable 'Auto-report as finished' on the bill of materials (BOM).

Question 14

A manufacturing company is experiencing stockouts of a critical raw material despite maintaining high inventory levels. The procurement team places purchase orders based on historical usage, but demand has become erratic. Which action should the supply chain manager take to improve material availability without increasing inventory costs?

Accepted Answer

Set up a reorder point with dynamic safety stock calculation in Demand Planning.. Dynamics 365 Supply Chain Management's Demand Planning module can calculate dynamic safety stock based on forecasted demand variability and service level targets. This allows the system to automatically adjust reorder points in response to erratic demand patterns, improving material availability without simply increasing inventory levels across the board.

Answer

Increase safety stock percentages for all raw materials by 20%.

Answer

Switch from purchase orders to blanket purchase agreements with the supplier.

Answer

Negotiate with the supplier to reduce lead time by 50%.

Question 15

A purchase order with a total amount of $15,000 is submitted. Based on the exhibit, how many approvals are required?

Accepted Answer

2. The exhibit (not shown here) typically defines approval thresholds for purchase orders. A $15,000 PO exceeds a lower threshold (e.g., $10,000) but is below a higher threshold (e.g., $20,000), triggering two sequential approvals—one from a manager and one from a director—based on the workflow configuration in Dynamics 365 Finance and Operations.

Answer

3

Answer

1

Answer

0 (auto-approve)

Question 16

A batch job for master planning is configured as shown. The job runs daily at 2 AM. The planner notices that planned orders are not being firmed automatically. What is the likely reason?

Accepted Answer

The parameter FirmPlannedOrders is set to false.. The batch job for master planning is configured to run daily at 2 AM, but planned orders are not being firmed automatically. The most likely reason is that the parameter `FirmPlannedOrders` is set to `false`. In Dynamics 365 Supply Chain Management, this parameter controls whether planned orders are automatically firmed during master planning execution. When set to `false`, the system will generate planned orders but will not automatically convert them to firm planned orders or production/purchase orders, requiring manual intervention.

Answer

Safety stock is not included in the planning.

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The recurrence is set to run daily, but the job should run hourly.

Answer

The job status shows an error.

Question 17

Which TWO features are available in Dynamics 365 Finance to support financial reporting and analysis?

Accepted Answer

Financial reporting. Financial reporting (Option B) is a core feature in Dynamics 365 Finance that provides out-of-the-box financial statements (e.g., balance sheet, income statement) using the Financial Reporting module, which leverages the financial dimensions and main accounts for customizable reporting. Business performance analytics (Option C) is a cloud-based, embedded analytics capability that offers pre-built KPIs, dashboards, and drill-through insights for real-time financial and operational analysis, directly supporting decision-making without requiring external tools.

Answer

Catalog management

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Production scheduling

Answer

Inventory valuation

Question 18

A manufacturing company wants to track the cost of raw materials used in production in real-time. Which costing method should they use in Dynamics 365 Supply Chain Management?

Accepted Answer

Standard costing. Standard costing is the correct method because it uses predetermined costs for raw materials, enabling real-time variance analysis against actual costs. This allows the manufacturing company to immediately identify and track cost deviations during production, which is essential for real-time cost monitoring in Dynamics 365 Supply Chain Management.

Answer

FIFO (First In, First Out)

Answer

LIFO (Last In, First Out)

Answer

Moving average

Question 19

A company needs to generate financial statements that comply with local accounting standards in multiple countries. Which Dynamics 365 Finance module should be used to define and manage these reporting requirements?

Accepted Answer

Financial reporting. The Financial reporting module in Dynamics 365 Finance allows creation and management of financial statements for multiple reporting standards. Option A is wrong because Budgeting is for budget planning, not for local reporting standards. Option B is wrong because General ledger is the core ledger but does not directly manage local reporting requirements. Option D is wrong because Accounts payable is for vendor transactions.

Answer

Budgeting

Answer

General ledger

Answer

Accounts payable

Question 20

A store manager needs to process a return for a customer who purchased an item using a loyalty card. The manager wants to ensure that the loyalty points originally earned from that purchase are reversed. What should the manager do?

Accepted Answer

Process the return using the standard return function in POS.. In Dynamics 365 Commerce, the standard return function in POS automatically reverses any loyalty points that were earned on the original transaction. This ensures that the customer's loyalty balance is accurately adjusted without manual intervention or external requests.

Answer

Issue a store credit instead of a refund to keep the points.

Answer

Contact the head office to adjust the points.

Answer

Manually deduct the loyalty points from the customer's account.