MB-920 Practice Test 24 — 15 Questions

Question 1

A manufacturer uses Dynamics 365 Supply Chain Management and wants to implement a quality control process where incoming raw materials are inspected before being accepted into inventory. Which feature should they use to enforce that inspection?

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

Accepted Answer

Quality orders. Quality orders in Dynamics 365 Supply Chain Management are the correct feature because they allow you to define inspection requirements for incoming raw materials, automatically blocking receipt or putaway until the inspection is completed and the order is approved. This enforces a mandatory quality check before inventory is accepted, directly meeting the requirement.

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Quarantine zones

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Inventory journals

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Nonconformance management

Question 2

Your organization is configuring a purchase order approval workflow in Dynamics 365 Finance. The exhibit shows a JSON representation of the workflow step. After implementation, POs are automatically approved when the manager does not act within 48 hours, bypassing the intended VP of Procurement. What is the most likely cause?

Accepted Answer

The escalation action is set to 'Approve' instead of 'Escalate'.. In Dynamics 365 Finance workflow configuration, the escalation action determines what happens when the time limit expires without a response. If the escalation action is set to 'Approve' rather than 'Escalate' (or 'Reject'/'Request change'), the workflow will automatically approve the purchase order once the 48-hour time limit elapses, which explains why POs bypass the VP of Procurement entirely. The time limit itself only defines when the escalation triggers — the action defines what occurs.

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The time limit is set to 48 hours.

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The fallback approver is set to VP of Procurement.

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The assignee is set to Manager.

Question 3

Which THREE components are part of the Dynamics 365 Finance General ledger module?

Accepted Answer

Main accounts. In Dynamics 365 Finance, the General ledger module is built around the chart of accounts (D), which defines the structure of all ledger accounts used for financial posting, and the main accounts (B), which are the individual accounts within that structure where transactions are recorded. The ledger calendar (C) is also a core General ledger component because it defines the fiscal calendar, periods, and module statuses that control when and how ledger transactions can be posted. Inventory posting profiles (A) belong to the Inventory management module, where they map inventory transactions to ledger accounts, and payment schedules (E) belong to Accounts payable/Accounts receivable terms of payment setup, not the General ledger module itself.

Answer

Inventory posting profiles

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Payment schedule

Question 4

You are the supply chain consultant for a global electronics manufacturer that uses Dynamics 365 Supply Chain Management. The company procures components from multiple vendors and assembles finished goods in three factories: Berlin, Shanghai, and Monterrey. The current process requires planners to manually review demand and supply for each site and create purchase orders. The company wants to automate the generation of purchase requisitions based on forecasted demand and current inventory levels. Additionally, they need to ensure that the system respects vendor lead times and minimum order quantities. You propose using master planning to generate planned purchase orders. However, the procurement manager is concerned that planned orders might be created too frequently for low-demand items, causing an excessive number of small purchases. What should you configure to consolidate planned purchase orders for the same vendor within a defined time window?

Accepted Answer

Configure purchase order consolidation in master planning parameters.. Configuring purchase order consolidation in master planning parameters allows the system to consolidate planned purchase orders for the same vendor within a defined time window, reducing the number of small purchases. This directly addresses the procurement manager's concern about excessive small orders.

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Increase safety stock levels for low-demand items.

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Enable action messages in master planning.

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Set a coverage time fence for each item.

Question 5

Refer to the exhibit. An inventory adjustment is being posted for item A-001. The ReasonCode is 'CycleCount'. What is the most likely purpose of this adjustment?

Accepted Answer

To correct inventory after a physical count.. In Dynamics 365 Supply Chain Management, a cycle count is a type of physical inventory count used to verify on-hand quantities. When the counted quantity differs from the system quantity, an inventory adjustment with the reason code 'CycleCount' is posted to correct the system's on-hand inventory to match the physical count. This ensures inventory accuracy without affecting other transactions like sales or production.

Answer

To record a sales order delivery.

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To adjust for production consumption.

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To receive a purchase order.

Question 6

Which TWO capabilities are core to Dynamics 365 Commerce?

Accepted Answer

Loyalty management. Loyalty management is a core capability of Dynamics 365 Commerce because it enables retailers to create, manage, and execute loyalty programs (e.g., points-based, tiered) directly within the omnichannel commerce platform. Product recommendations are also core, leveraging AI and machine learning to provide personalized product suggestions across e-commerce and point-of-sale (POS) channels, driving cross-sell and up-sell opportunities.

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Project cost management

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Transportation management

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Budget control

Question 7

A company uses Dynamics 365 Supply Chain Management to manage warehouse operations. They want to ensure that workers are guided step-by-step during the picking process using mobile devices. Which feature should they implement?

Accepted Answer

Warehouse Management. Warehouse Management in Dynamics 365 Supply Chain Management provides mobile-device-driven, step-by-step work execution for picking, packing, put-away, and counting. It uses work templates, location directives, and the Warehouse Management mobile app to guide workers through each task in sequence.

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Transport Management

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Inventory Management

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Production Control

Question 8

A company needs to track the purchase order commitment against the budget in Dynamics 365 Finance. Which feature should they use?

Accepted Answer

Budget control. Budget control in Dynamics 365 Finance checks whether sufficient budget funds are available before a purchase order (or other source document) is confirmed, and it can block or warn on posting if the budget would be exceeded. This directly addresses tracking purchase order commitments against budget.

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Recurring journal

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Transaction posting definitions

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Encumbrance accounting

Question 9

A company uses Dynamics 365 Finance and needs to allocate overhead costs from a cost center to multiple departments based on square footage. Which costing method should be used?

Accepted Answer

Cost allocation. Cost allocation in Dynamics 365 Finance is the method used to distribute overhead costs from a cost center to multiple departments based on a driver such as square footage. Cost allocation rules define the source cost center, the target departments, and the allocation basis (e.g., square footage percentage), then post the allocated amounts to the appropriate dimensions.

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Activity-based costing

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Standard costing

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Absorption costing

Question 10

A retail company using Dynamics 365 Finance notices that sales tax is not being calculated correctly on invoices for cross-border transactions. The tax setup includes multiple tax codes and tax groups. What is the most likely cause?

Accepted Answer

Tax codes are not correctly assigned to the items or customers involved.. If tax codes are not assigned to items or customers, the system cannot determine the appropriate tax rate, leading to incorrect calculations. Option B is wrong because the tax authority configuration is about reporting and remittance, not calculation. Option C is wrong because ledger posting groups only affect where tax amounts are posted, not how they are calculated. Option D is wrong because withholding tax is a separate deduction and does not impact sales tax calculation.

Answer

The tax authority is not configured for cross-border transactions.

Answer

The ledger posting group for sales tax is set incorrectly.

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Withholding tax is enabled for the vendor.

Question 11

A multinational company using Dynamics 365 Finance needs to comply with local tax reporting requirements in multiple countries. The tax rates and rules change frequently. Which tool should you use to manage tax configurations without customizing the code?

Accepted Answer

Tax engine.. The Tax engine in Dynamics 365 Finance is specifically designed to handle complex, frequently changing tax rules across multiple jurisdictions without requiring code customization. It allows tax professionals to configure tax rates, rules, and calculation logic through a no-code interface, making it ideal for multinational compliance scenarios.

Answer

General ledger parameters.

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Electronic reporting module.

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Feature management.

Question 12

A multinational company uses Dynamics 365 Finance with multiple legal entities. They want to process intercompany transactions automatically. What should they configure?

Accepted Answer

Intercompany accounting. Intercompany accounting in Dynamics 365 Finance enables automatic processing of transactions between legal entities within the same organization. It allows you to set up relationships, define accounts, and automate the creation of offsetting entries, ensuring accurate and efficient intercompany transactions.

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Elimination rules

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Consolidations

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Transfer orders

Question 13

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.. Option B is correct because Offline mode in Dynamics 365 Commerce POS is specifically designed to let the register keep processing sales transactions when the connection to the Retail Server/Commerce Scale Unit is lost, so store operations can continue uninterrupted. Option D is correct because, while offline, the POS stores the completed transactions in the local offline database (SQL Server Express/LocalDB) and later uploads them to the channel database when connectivity is restored. Option A is not valid because real-time inventory data requires a live connection to the Commerce Scale Unit/Retail Server, which is exactly what Offline mode lacks. Option C is not valid because Offline mode is a resiliency feature, not a performance optimization, and it does not inherently speed up transaction processing. Option E is not valid because testing new POS features without affecting production is done through sandbox environments or feature flags, not through the POS Offline mode.

Answer

To access real-time inventory data.

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To improve transaction processing speed.

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To test new POS features without affecting the production environment.

Question 14

An organization uses Dynamics 365 Supply Chain Management. They receive a large shipment of raw materials that have variable quality. They need to ensure that only materials meeting quality specifications are accepted into inventory. The process should include sampling and testing. Which feature should they use?

Accepted Answer

Quality management. Dynamics 365 Supply Chain Management's Quality management module provides quality associations, sampling plans, and test groups to inspect incoming materials against specifications before they are accepted into inventory. It supports quarantine orders and non-conformance tracking, which is exactly the sampling-and-testing workflow described.

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Inventory management

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Warehouse management

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Production control

Question 15

A company wants to use Dynamics 365 Supply Chain Management to manage supplier collaboration for purchase orders. Which portal should they enable?

Accepted Answer

Vendor Collaboration. In Dynamics 365 Supply Chain Management, the Vendor Collaboration portal is the feature that enables external vendors to interact with purchase orders, respond to RFQs, and view consignment inventory. It is specifically designed for supplier collaboration on procurement documents. Enabling this portal allows vendors to log in and perform actions on POs without direct access to the internal ERP system.

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Customer Self-Service

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Procurement and Sourcing

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Supplier Portal