MB-920 Practice Test 23 — 15 Questions

Question 1

A company implements Dynamics 365 Finance and Operations. They want to ensure that only authorized users can access the system from external networks. What should they configure?

Accepted Answer

Conditional Access policies in Microsoft Entra ID. Conditional Access policies in Microsoft Entra ID (formerly Azure AD) allow administrators to enforce access controls based on conditions such as user location, device compliance, and network context. For external network access, you can configure policies to require multi-factor authentication or block access from untrusted IP ranges, ensuring only authorized users can connect to Dynamics 365 Finance and Operations from outside the corporate network.

Answer

Mobile device management in Microsoft Intune

Answer

Role-based security in Finance and Operations

Answer

Data loss prevention policies in Microsoft Purview

Question 2

A company wants to use Dynamics 365 Finance to track budget versus actuals for each department. What should they configure?

Accepted Answer

Budget control configuration. Budget control in Dynamics 365 Finance allows tracking budget versus actual expenses at the department level. Option A is wrong because financial dimensions allow segmentation of transactions but do not track budget versus actuals by themselves. Option B is wrong because the chart of accounts structures the general ledger accounts, not budget tracking. Option D is wrong because the general journal is used to record journal entries, not to track budget versus actuals.

Answer

Financial dimensions

Answer

Chart of accounts

Answer

General journal

Question 3

You are a Dynamics 365 Finance consultant for Northwind Traders, a wholesale distribution company. The company uses Dynamics 365 Finance and is experiencing a problem with vendor payments. The accounts payable clerk reports that when running a payment proposal for a specific vendor, the system includes invoices that are not yet due. The company wants to pay invoices only on their due dates. You review the payment proposal setup and find that the payment proposal uses the default settings. You need to configure the payment proposal to include only invoices that are due on or before the payment date. Additionally, the company wants to apply a discount if payment is made within 10 days of the invoice date (a 2% cash discount). The payment terms must be set up accordingly. You need to ensure that the payment proposal correctly calculates cash discounts for early payment. What should you do?

Accepted Answer

Set the payment proposal date criterion to 'Due date' and set the offset to 0. Configure payment terms with a 2% discount if paid within 10 days.. To include only invoices due on or before the payment date, the 'Date criterion' for the payment proposal must be set to 'Due date' with an offset of 0. This ensures that only invoices whose due date is on or before the payment date are included. To apply a 2% cash discount for payment within 10 days, payment terms must be configured with a discount percentage of 2% and a discount period of 10 days. The system will then automatically calculate the discount when the payment is made within the discount period. Option A is incorrect because an offset of 30 would include invoices due up to 30 days after the payment date, which is not desired. Option B is incorrect because 'Payment date' criterion uses the invoice date, not the due date, so it would not filter by due date. Option D is incorrect because setting the date criterion to 'Discount date' would include invoices based on the discount date, but the company wants to pay on the due date; the requirement is to pay only invoices due on or before the payment date, not based on discount dates.

Answer

Set the payment proposal date criterion to 'Due date' and set the offset to 30. Configure payment terms with a 2% discount.

Answer

Set the payment proposal date criterion to 'Payment date' and set the offset to 10. Configure payment terms with a 2% discount if paid within 10 days.

Answer

Set the payment proposal date criterion to 'Discount date' to include invoices where the discount date has passed. Configure payment terms with a 2% discount.

Question 4

Which TWO actions should be performed to set up a loyalty program in Dynamics 365 Commerce?

Accepted Answer

Create a loyalty program.. Creating a loyalty program is the foundational step in Dynamics 365 Commerce; you must define the loyalty program entity (including name, currency, and date range) before any rewards or tiers can be associated. Option C is correct because reward points (with earning and redemption rules) and loyalty tiers (with benefits and thresholds) are essential components that must be configured within the loyalty program to enable differentiated customer rewards.

Answer

Define the returns policy for loyalty purchases.

Answer

Configure payment methods for loyalty points redemption.

Answer

Publish the online store to enable loyalty sign-up.

Question 5

Which TWO are valid methods for posting vendor invoices in Dynamics 365 Finance?

Accepted Answer

Purchase order-based invoice. Options C and D are correct. A purchase order-based invoice is created when a vendor invoice is associated with an existing purchase order. Vendor invoice entry allows direct manual entry of vendor invoices without a purchase order. Option A is incorrect because general journal entries are used for accounting adjustments, not for vendor invoices. Option B is incorrect because sales order invoices are used for customer transactions, not vendor invoices. Option E is incorrect because free text invoices are used for billing customers, not vendors.

Answer

General journal entry

Answer

Sales order invoice

Answer

Free text invoice

Question 6

Drag and drop the steps to configure a new warehouse in Dynamics 365 Supply Chain Management in the correct order.

Accepted Answer

Create a new warehouse, then specify the site, then define locations, then activate the warehouse. Warehouse setup includes creating the warehouse, specifying site, defining locations, and activating.

Answer

Specify the site, then create a new warehouse, then define locations, then activate the warehouse

Answer

Create a new warehouse, then define locations, then specify the site, then activate the warehouse

Answer

Activate the warehouse, then create a new warehouse, then specify the site, then define locations

Question 7

Match each Dynamics 365 Human Resources entity to its role.

Accepted Answer

Worker: Represents an individual employed by the organization. In HR, Worker tracks individuals, Position is a specific assignment of a Job. Distractors confuse Job with location or Worker with role.

Answer

Job: A specific physical location where work is performed

Answer

Worker: A set of duties and responsibilities grouped into a role

Question 8

Match each Dynamics 365 Finance module to its primary function.

Accepted Answer

General ledger: Records all financial transactions and provides a complete audit trail. The correct matches are: General ledger (records transactions), Accounts payable (vendor invoices), Accounts receivable (customer invoices), and Fixed assets (asset lifecycle). Distractors swap definitions between General ledger and Accounts payable.

Answer

General ledger: Manages customer invoices and payments

Answer

Accounts payable: Records all financial transactions and audit trail

Question 9

A manufacturer uses Dynamics 365 Supply Chain Management and wants to implement a vendor-managed inventory (VMI) process where suppliers monitor stock levels and trigger replenishment. Which feature should they enable?

Accepted Answer

Vendor collaboration. Vendor collaboration in Dynamics 365 Supply Chain Management enables suppliers to view inventory levels, demand forecasts, and purchase orders through a dedicated portal. This allows suppliers to monitor stock and trigger replenishment, which is the core requirement of a vendor-managed inventory (VMI) process.

Answer

Purchase agreements

Answer

Intercompany orders

Answer

Consignment inventory

Question 10

A company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to implement a strategy where fast-moving items are stored closer to the shipping dock to reduce travel time. Currently, all items are stored randomly. You need to configure the system to automatically assign storage locations based on item movement frequency. The company uses advanced warehouse management. What should you do?

Accepted Answer

Configure location directives to direct putaway to locations near the shipping dock for items with high movement frequency.. Location directives in Dynamics 365 Supply Chain Management automatically guide putaway processes by evaluating criteria such as item movement frequency. By configuring a location directive with a query that identifies fast-moving items and directing them to locations near the shipping dock, the system ensures efficient, rule-based storage without manual intervention. This directly addresses the requirement to reduce travel time using advanced warehouse management capabilities.

Answer

Set up wave processing to prioritize fast-moving items during picking.

Answer

Define inventory statuses and enable 'Auto-report as finished' to trigger movement.

Answer

Create a new inventory status for fast-moving items and manually move them to desired locations.

Question 11

You are the supply chain manager for a company using Dynamics 365 Supply Chain Management. The company produces high-value electronic components and needs to track each unit by serial number from receipt to sale. They also require that when a customer returns a defective unit, the system automatically identifies the original purchase order and vendor batch number for quality investigation. Currently, the system captures serial numbers at receipt and sale, but the link to the vendor batch is not maintained. You need to configure the product and tracking dimensions to ensure the vendor batch is recorded and associated with the serial number on the sales return. The company uses advanced warehouse management processes. What should you do?

Accepted Answer

Enable both serial number and batch tracking on the item, and set the reservation hierarchy to use batch below serial.. Enabling both serial number and batch tracking on the item, and setting the reservation hierarchy to use batch below serial, ensures that each serialized unit is linked to its vendor batch at receipt. This hierarchy allows the system to reserve the serial number first, then the batch, so when a defective unit is returned, the system can trace back to the original purchase order and vendor batch number for quality investigation. This configuration is essential for high-value electronics where lot-level traceability is required, and it works seamlessly with advanced warehouse management processes.

Answer

Use the location dimension to record the vendor batch in the warehouse.

Answer

Enable serial number tracking on the item, and disable batch tracking.

Answer

Enable batch tracking on the item, and use the batch number as the only tracking dimension.

Question 12

You are the Dynamics 365 Finance administrator for a multinational manufacturing company, Contoso Ltd. The company operates in three legal entities: Contoso US (US), Contoso Germany (DE), and Contoso Japan (JP). Contoso US is the primary legal entity and consolidates all intercompany transactions. The CFO requires a consolidated financial report that includes actuals and budget data from all legal entities. The company uses shared data tables for customers and vendors across all legal entities. However, each legal entity maintains its own chart of accounts and fiscal calendars. The company recently implemented Dynamics 365 Finance and needs to set up consolidation to meet the CFO's requirements. You need to configure the consolidation process. Which course of action should you take?

Accepted Answer

Set up a separate consolidation legal entity and use the Consolidate online process to transfer balances from all subsidiaries.. In Dynamics 365 Finance, when legal entities use different charts of accounts and fiscal calendars, the recommended approach is to create a separate consolidation legal entity and use the Consolidate online process. This method transfers balances from each subsidiary into the consolidation company, allowing account mapping and period adjustments to produce a unified consolidated report. Option B (Consolidate with import) is designed for importing data from external sources, not for consolidating existing Dynamics 365 legal entities. Option A is too manual and error-prone for ongoing needs. Option D is incorrect because the General ledger consolidation process must be run in the consolidation company, not directly in Contoso US.

Answer

Export financial data from each legal entity to Excel and manually create consolidated reports.

Answer

Use the Consolidate with import process to bring data from each subsidiary into Contoso US.

Answer

Run the General ledger consolidation process directly in the Contoso US legal entity to include subsidiaries.

Question 13

Match each Dynamics 365 Commerce feature to its purpose.

Accepted Answer

Channel: A point of interaction between the retailer and the customer (e.g., online, physical store). The correct matches are: Channel (point of interaction), Product Catalog (collection of products), Order Fulfillment (picking/packing/shipping). Common confusions involve swapping definitions of Channel with Order Fulfillment, Product Catalog with Pricing Engine, and so on.

Answer

Channel: The process of picking, packing, and shipping customer orders

Answer

Product Catalog: Determines prices based on pricing rules and promotions

Answer

Pricing Engine: A collection of products and their attributes suitable for sale

Question 14

Which TWO of the following are valid reasons to use the 'Offline mode' in Dynamics 365 Commerce POS?

Accepted Answer

To continue processing sales when the internet connection is lost.. Options B and D are correct. B is correct because if the network connection is lost, POS can switch to offline mode to continue operations. D is correct because offline mode uses a local database to store transactions. Option A is wrong because offline mode does not provide real-time inventory; it uses cached data. Option C is wrong because offline mode does not improve speed; it may be slower. Option E is wrong because offline mode is not for testing.

Answer

To access real-time inventory data.

Answer

To improve transaction processing speed.

Answer

To test new POS features without affecting the production environment.

Question 15

A project manager needs to track time and expenses against a project budget in Dynamics 365 Project Operations. Which module should they primarily use?

Accepted Answer

Time and Expense. The Time and Expense module in Dynamics 365 Project Operations is specifically designed for project managers to record and track time entries and expense reports against a project budget. It provides the core functionality to capture actuals, compare them to budgeted amounts, and manage approvals, making it the primary module for this task.

Answer

Sales

Answer

Finance

Answer

Procurement