MB-920 Practice Test 21 — 15 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management and wants to use AI to predict potential supply chain disruptions, such as supplier delays, and suggest alternative actions. Which Copilot feature should they use?

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

Accepted Answer

Copilot in Supply Chain Management. Copilot in Supply Chain Management is the AI feature within Dynamics 365 Supply Chain Management that provides predictive insights and suggestions for disruptions. It uses AI to analyze data and recommend actions, such as alternative suppliers or inventory adjustments. This directly addresses the need to predict supplier delays and suggest alternatives.

Answer

Copilot for sales orders

Answer

Inventory optimization

Answer

Production scheduling

Question 2

Which THREE components are part of the advanced warehouse management setup in Dynamics 365 Supply Chain Management?

Accepted Answer

Location directives. Location directives (A) are a core part of advanced warehouse management because they define the strategy rules that determine where put-away, picking, and movement work should take place based on query criteria, work order type, and location constraints. Location profiles (B) are also required, as they control the behavior of locations such as whether a location is license plate controlled, whether it allows mixed items, and which location types and formats are permitted. Work templates (D) are essential because they define the sequence of work lines and the location types used for each work order type, such as receiving, picking, or put-away, thereby driving how warehouse work is generated and executed. BOM versions (C) belong to production and bill-of-materials management, not to the advanced warehouse management configuration, and costing methods (E) relate to inventory costing and valuation rather than warehouse execution setup.

Answer

BOM versions

Answer

Costing methods

Question 3

A company implements Dynamics 365 Finance and needs to ensure that vendor invoices are automatically matched to purchase orders and product receipts before payment. Which configuration should be used?

Accepted Answer

Enable invoice matching validation in Accounts payable parameters.. The correct option is C: Enable invoice matching validation in Accounts payable parameters. This setting activates two-way or three-way matching so that vendor invoices are validated against the corresponding purchase order and product receipt before they can be posted or paid, which is exactly the requirement described. Option A is incorrect because payment schedules only control the timing and installments of payments, not invoice-to-PO/receipt matching. Option B is incorrect because an approval workflow routes invoices for human approval but does not itself perform PO/product receipt matching. Option D is incorrect because budget control checks available budget funds, not the matching of invoices to purchase orders and receipts.

Answer

Define payment schedules for each vendor.

Answer

Configure vendor invoice workflow for approval.

Answer

Set up budget control to validate invoice amounts against available budget.

Question 4

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the planned production orders are not considering the latest demand changes. What should you check first?

Accepted Answer

Master planning execution. Master planning in Dynamics 365 Supply Chain Management is the engine that calculates net requirements and generates planned production orders, planned purchase orders, and planned transfer orders based on current demand, supply, and inventory. If planned production orders are not reflecting the latest demand, the first thing to verify is whether master planning has been re-run (or is scheduled to run) after the demand change.

Answer

Warehouse location directives

Answer

Inventory on-hand report

Answer

Quality order settings

Question 5

A company uses Dynamics 365 Supply Chain Management and wants to use AI to predict potential supply chain disruptions, such as supplier delays, and suggest alternative actions. Which Copilot feature should they use?

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

Accepted Answer

Verify that the dual-write table mappings include the pricing entity. Dual-write synchronizes data between Dynamics 365 apps by mapping tables and entities across the two environments. If product pricing changes in Supply Chain Management are not appearing in Sales, the most likely cause is that the pricing entity (e.g., Price List Item or Sales Price) is not included in the dual-write table mappings. Without a mapping, no data flows for that entity, regardless of other settings. Therefore, verifying the table mappings is the correct first troubleshooting step.

Answer

Check the currency exchange rates in both systems

Answer

Review the Power Platform admin center for data integration errors

Answer

Ensure that the pricing engine is set to real-time updates

Question 6

Drag and drop the steps to create a new budget in Dynamics 365 Finance in the correct order.

Accepted Answer

Step 1: Open budget register entry, Step 2: Select budget model and financial dimensions, Step 3: Enter budget amounts, Step 4: Submit the budget register entry.. Creating a budget starts with the budget register, selecting model/dimensions, entering amounts, and submitting.

Answer

Step 1: Open budget register entry, Step 2: Enter budget amounts, Step 3: Select budget model and financial dimensions, Step 4: Submit the budget register entry.

Answer

Step 1: Select budget model and financial dimensions, Step 2: Open budget register entry, Step 3: Enter budget amounts, Step 4: Submit the budget register entry.

Answer

Step 1: Open budget register entry, Step 2: Select budget model and financial dimensions, Step 3: Submit the budget register entry, Step 4: Enter budget amounts.

Question 7

Which THREE components are essential for setting up a production process in Dynamics 365 Supply Chain Management?

Accepted Answer

Bill of materials (BOM). A Bill of materials (BOM) is essential because it defines the components, raw materials, and quantities required to manufacture a finished item in Dynamics 365 Supply Chain Management. A Route is essential because it specifies the sequence of operations, work centers, and resource requirements needed to produce the item. A Production order is essential because it authorizes and drives the actual manufacturing execution, tying the BOM and Route to a specific quantity, date, and item to be produced. A Purchase order is not required for production setup itself, as it is used for procuring materials from vendors rather than defining the manufacturing process. A Sales order is also not essential, because it represents customer demand and is not part of the core production process configuration.

Answer

Purchase order

Answer

Sales order

Question 8

Which THREE of the following are capabilities of the Warehouse management module in Dynamics 365 Supply Chain Management?

Accepted Answer

License plate tracking. License plate tracking (A) is a core Warehouse management capability: license plates are unique identifiers used to track inventory items, quantities, and mixed pallets as they move through receiving, put-away, picking, and shipping. Inbound and outbound operation management (C) is exactly what the WMS module handles, orchestrating receiving, put-away, picking, packing, and shipping work through work templates, location directives, and mobile device flows. Wave processing for picking and packing (E) is a native WMS feature that groups work orders into waves so picking and packing can be released and executed in coordinated batches. Route planning for inbound and outbound shipments (B) belongs to Transportation management, not Warehouse management, and demand forecasting using machine learning (D) is a capability of Demand planning/Forecast, so neither is a WMS capability.

Answer

Route planning for inbound and outbound shipments

Answer

Demand forecasting using machine learning

Question 9

Which THREE components are part of the production control module in Dynamics 365 Supply Chain Management?

Accepted Answer

Bills of materials (BOMs). In Dynamics 365 Supply Chain Management, the production control module is built around the core manufacturing artifacts: Bills of materials (BOMs) (A) define the components and quantities required to produce an item, Routes (C) define the sequence of operations and resources needed, and Production orders (E) are the actual execution documents that combine a BOM and a route to manufacture a specific quantity. These three work together as the foundation of discrete and process manufacturing in the module. Purchase orders (B) belong to the Procurement and sourcing module, while Sales orders (D) belong to the Sales and marketing module, so neither is a production control component.

Answer

Purchase orders

Answer

Sales orders

Question 10

Which TWO of the following are features of Dynamics 365 Finance for managing intercompany transactions?

Accepted Answer

Intercompany accounting. Intercompany accounting (A) is correct because Dynamics 365 Finance uses it to automatically generate the reciprocal due-to/due-from entries in the counterparty legal entity when an intercompany journal or document is posted, keeping both companies' books balanced without manual duplicate entry. Elimination rules (D) are correct because they define how intercompany balances and transactions are removed during consolidation so that the consolidated financial statements do not double-count revenue, expenses, or balances between affiliated legal entities. Consolidation (B) is not the intercompany transaction feature itself; it is the broader process that consumes intercompany data and can apply elimination rules. Fixed asset management (C) handles asset acquisition, depreciation, and disposal, and budget control (E) enforces spending limits against budget registers—neither manages intercompany due-to/due-from postings or eliminations.

Answer

Consolidation

Answer

Fixed asset management

Answer

Budget control

Question 11

You are a Dynamics 365 Finance consultant for a retail company that operates in multiple countries. The company uses Dynamics 365 Finance with the following configuration: The main legal entity is based in the United States (US), and there are subsidiary legal entities in Canada (CA) and the United Kingdom (UK). The finance team needs to generate consolidated financial reports that combine data from all three entities. Additionally, the company wants to automate the elimination of intercompany transactions during consolidation. The company also needs to comply with local tax reporting requirements in each country. The tax rates and rules change frequently, and the company wants to manage these changes without modifying the source code. You have set up the consolidation module and the tax engine. However, during the consolidation process, you notice that the intercompany transactions are not being eliminated, and the consolidated report shows double-counting. What should you do to automatically eliminate intercompany transactions during consolidation?

Accepted Answer

Configure elimination rules in the consolidation module to automatically generate elimination entries.. To automatically eliminate intercompany transactions during consolidation in Dynamics 365 Finance, you must configure elimination rules in the consolidation module. These rules define how to identify and eliminate intercompany balances and transactions, generating elimination entries automatically during the consolidation process. This ensures that the consolidated financial statements do not double-count intercompany activities.

Answer

Create manual journal entries to eliminate intercompany balances after consolidation.

Answer

Set up intercompany accounting to post elimination entries automatically.

Answer

Use the consolidation online feature to eliminate transactions in real time.

Question 12

A retail company uses Dynamics 365 Finance and needs to recognize revenue when goods are shipped, not when invoiced. However, the standard process posts revenue at invoice time. What should the financial accountant configure to defer revenue recognition until shipment?

Accepted Answer

Enable Revenue recognition and configure revenue schedules to defer recognition until shipment.. To recognize revenue at shipment instead of invoice, the financial accountant should enable Revenue recognition and configure revenue schedules to defer recognition until shipment. This allows revenue to be recognized when the performance obligation is satisfied, which is at shipment.

Answer

Post revenue using free text invoices at shipment time.

Answer

Set up billing schedules that align revenue with shipping dates.

Answer

Use prepayment invoices to record revenue upon shipment.

Question 13

A distribution company uses Dynamics 365 Supply Chain Management. They want to automatically generate transfer orders between warehouses based on demand. Which feature should they configure?

Accepted Answer

Replenishment rules. Replenishment rules in Dynamics 365 Supply Chain Management define minimum and maximum stock levels per item and warehouse, and the system automatically generates transfer orders or purchase orders when inventory falls below the minimum. This is exactly the feature used to move stock between warehouses based on demand signals. Configuring replenishment ensures warehouses are restocked automatically without manual intervention.

Answer

Warehouse receipt process

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Wave processing

Answer

Outbound shipment processing

Question 14

A company is migrating from a legacy system to Dynamics 365 Finance. They have historical data that must be imported with proper financial dimensions. What is the recommended approach?

Accepted Answer

Use the Data management framework. The Data management framework (DMF) is the recommended tool for importing historical data with financial dimensions into Dynamics 365 Finance. It supports data entities that map to financial dimension structures, allows staging and validation before load, and handles the dimension combinations required for general ledger integrity.

Answer

Use the Excel add-in to manually enter data

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Build a custom app in Power Platform

Answer

Use Entity store for data import

Question 15

A company uses Dynamics 365 Supply Chain Management. They want to use AI to predict potential stockouts and suggest reorder quantities. Which feature should they enable?

Accepted Answer

Demand forecasting. Demand forecasting in Dynamics 365 Supply Chain Management uses AI and machine learning to analyze historical transaction data, predict future demand, and proactively identify potential stockouts. It also suggests optimal reorder quantities to maintain inventory levels, directly addressing the scenario's need for AI-driven stockout prediction and replenishment recommendations.

Answer

Product configuration

Answer

Inventory Visibility

Answer

Warehouse management