MB-920 Practice Test 25 — 15 Questions

Question 1

A company uses Dynamics 365 Finance with multiple legal entities. The finance team needs to enforce a consistent chart of accounts across all entities. Which feature should they use?

Accepted Answer

Shared chart of accounts. A shared chart of accounts in Dynamics 365 Finance allows multiple legal entities to use the same chart of accounts structure, ensuring consistency across entities. This feature enables centralized management of main accounts and financial dimensions while still allowing entity-specific settings. It is the correct choice for enforcing a consistent chart of accounts across all legal entities.

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Financial dimensions

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Legal entity override

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Main account categories

Question 2

Match each Dynamics 365 Human Resources capability to its definition.

Accepted Answer

Leave and absence management: Manage employee time off requests, track accruals, and handle absence approvals.. These are core HR capabilities in Dynamics 365 Human Resources. Common confusions include swapping leave and absence management with compensation management, or benefits management with personnel management.

Answer

Compensation management: Manage employee time off requests and absence tracking.

Answer

Personnel management: Administer employee benefit plans and enrollments.

Question 3

An organization uses Dynamics 365 Finance and Operations and wants to automatically reconcile bank transactions with general ledger entries. Which feature should they use?

Accepted Answer

Bank reconciliation. Bank reconciliation in Dynamics 365 Finance and Operations is the correct feature because it is specifically designed to automatically match bank statement transactions with general ledger entries, identifying discrepancies and ensuring financial accuracy. It uses imported bank statement data to reconcile against posted ledger transactions, supporting both manual and automated matching rules.

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Payment schedule

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Advanced ledger entries

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Cash flow forecasting

Question 4

A company wants to use Dynamics 365 Finance to automate the approval of purchase requisitions under $1,000. What feature should be configured?

Accepted Answer

Workflow automation. Workflow automation in Dynamics 365 Finance allows you to define business processes that route documents for approval. By configuring a purchase requisition workflow with a conditional decision (e.g., amount <= $1,000), the system can automatically approve the requisition without manual intervention. This feature is specifically designed to automate approval steps based on configurable rules.

Answer

Budget control

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Vendor approval

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Purchase policies

Question 5

Which TWO capabilities are core to Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse management. Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced inbound and outbound warehouse operations, wave processing, and location directives. Transportation management (E) is also core, offering freight rating, routing, and shipment consolidation to optimize logistics. Together, they directly support the end-to-end supply chain processes within the application.

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Project cost management

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Omnichannel order management

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Financial reporting

Question 6

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items from a central warehouse to regional distribution centers based on real-time sales data. Which concept should they use?

Accepted Answer

Replenishment strategies (e.g., min/max). Replenishment strategies such as min/max are designed to automate inventory replenishment based on predefined thresholds and real-time demand signals. In Dynamics 365 Supply Chain Management, these strategies calculate when stock at a regional distribution center falls below a minimum level and automatically generate replenishment orders from the central warehouse, making them the correct choice for this scenario.

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Transfer orders

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Bill of materials

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Kanban signals

Question 7

Contoso Ltd. is a manufacturing company with 1,200 employees across three legal entities: USMF (United States), FRRT (France), and GBSI (United Kingdom). They are implementing Dynamics 365 Human Resources. The HR director wants to set up a unified absence management system that complies with local regulations. In the US, employees accrue vacation based on years of service (0-5 years: 10 days; 5+ years: 15 days). In France, all employees receive 25 days annually, plus additional RTT days for managers. In the UK, statutory leave is 28 days, but the company offers 25 days base with 3 bank holidays. The system must automatically calculate accruals on the first day of each month for US and UK, and at the start of the leave year (January 1) for France. Additionally, employees in France must be able to request RTT days separately, and managers must approve them. The HR team is unsure how to configure this. Which approach should be recommended?

Accepted Answer

Create separate leave and absence plans for each legal entity, configuring accrual rules, frequencies, and leave types per country.. Dynamics 365 Human Resources allows you to create separate leave and absence plans per legal entity, each with its own accrual rules, frequencies, and leave types. This enables you to configure US vacation accruals based on years of service with monthly accrual, French annual leave with RTT days and yearly accrual, and UK statutory leave with bank holidays, all while complying with local regulations.

Answer

Create a single global leave plan with the maximum accrual (28 days) and then manually adjust balances for each employee based on their country.

Answer

Use compensation plans to handle leave entitlements because they are based on employee classification.

Answer

Use the same leave plan for all entities and rely on approval workflows to validate leave requests according to local rules.

Question 8

An organization uses Dynamics 365 Project Operations. A project manager needs to track the budget consumption and actual costs against the approved budget for a project. Which feature should they use?

Accepted Answer

Project budget and cost control. Project budget and cost control in Dynamics 365 Project Operations enables project managers to track budget consumption and actual costs against the approved budget. This feature provides real-time visibility into budget variances, cost overruns, and remaining budget, directly supporting the requirement to monitor financial performance against the plan.

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Expense management

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Time entry

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Resource scheduling

Question 9

A manufacturing company uses Dynamics 365 Supply Chain Management. Which THREE components are required to set up a production process for a discrete manufacturing scenario?

Accepted Answer

Bill of materials. In Dynamics 365 Supply Chain Management, a discrete manufacturing production process requires a Bill of Materials (B) to define the components and quantities of raw materials needed to produce the finished item, a Production order (C) to authorize and track the manufacturing of a specific quantity of an item on a given date, and a Route (D) to specify the sequence of operations, work centers, and resource requirements needed to manufacture the item. These three components together form the core setup for discrete manufacturing: the BOM defines what materials are consumed, the route defines how the item is produced, and the production order drives the actual execution. Kanban rules (A) are used for lean manufacturing scenarios, not discrete manufacturing, and a costing sheet (E) is used for indirect cost calculation and overhead absorption rather than being a required component for setting up a discrete production process.

Answer

Kanban rules

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Costing sheet

Question 10

A company uses Dynamics 365 Supply Chain Management and wants to ensure that raw materials are available for production without overstocking. They use a planning method that considers both demand and supply. Which planning method is most appropriate?

Accepted Answer

Master planning (MRP). Master planning (MRP) in Dynamics 365 Supply Chain Management is the planning engine that nets demand against supply and generates planned orders to cover the gap, balancing both sides to avoid stockouts and overstocking. It considers sales orders, forecasts, on-hand inventory, purchase orders, and production orders to produce a time-phased plan. This is exactly the demand-and-supply balancing the company needs.

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Kanban

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Demand forecasting

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Reorder point planning

Question 11

A company uses Dynamics 365 Supply Chain Management and wants to implement a vendor-managed inventory (VMI) process where vendors monitor and replenish stock at the customer's warehouse. What is the recommended setup?

Accepted Answer

Set up consignment inventory for the vendor. Vendor-managed inventory (VMI) in Dynamics 365 Supply Chain Management is implemented using consignment inventory. In a consignment setup, the vendor owns the stock until it is consumed or transferred to the customer's inventory, which aligns with the VMI process where the vendor monitors and replenishes stock at the customer's warehouse. The system supports this through consignment replenishment orders and vendor-owned inventory tracking.

Answer

Configure warehouse management for the vendor

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Enable quality management for received items

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Create a purchase agreement with the vendor

Question 12

A company uses Dynamics 365 Supply Chain Management and wants to use AI to optimize inventory levels by predicting stockouts and suggesting reorder quantities. Which Copilot feature should they use?

Accepted Answer

Copilot in Dynamics 365 Supply Chain Management. Copilot in Dynamics 365 Supply Chain Management is specifically designed to provide AI-driven insights for inventory optimization, including predicting stockouts and suggesting reorder quantities. It leverages the native inventory and demand forecasting capabilities of the Supply Chain Management module. The other Copilot features are tailored to different domains (customer service, finance, sales) and do not include inventory-specific AI assistance.

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Copilot in Dynamics 365 Customer Service

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Copilot in Dynamics 365 Finance

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Copilot in Dynamics 365 Sales

Question 13

Refer to the exhibit. A budget transfer has been proposed in Dynamics 365 Finance for the Sales department, cost center CC001. The budget manager receives an error that the transfer exceeds the available budget. What is the most likely cause?

Accepted Answer

The budget amount exceeds the available budget for the combination of dimensions. The error message indicates that the proposed budget transfer would cause the budget balance for the specific combination of financial dimensions (Sales department, cost center CC001) to go negative. In Dynamics 365 Finance, budget control checks are performed against the available budget balance for each dimension combination; if the transfer amount exceeds the remaining budget, the system blocks the transaction.

Answer

The main account is not valid

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The fiscal year 2024 is not open for budget

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The budget model ORIGINAL is not defined

Question 14

Northwind Traders operates a chain of grocery stores using Dynamics 365 Commerce. They recently implemented a new loyalty program where customers earn 1 point for every $1 spent, and 100 points can be redeemed for a $5 discount. The program is set up correctly in the headquarters. However, when a customer makes a purchase at a store, the POS does not display the loyalty points earned. The store manager confirms that the customer's loyalty card is linked to the customer account. The IT team verifies that the loyalty program is published to the channel. What is the most likely cause of the issue?

Accepted Answer

The POS screen layout does not include the loyalty points field.. The POS screen layout controls which fields are visible to the cashier. Even if the loyalty program is correctly configured in Headquarters and published to the channel, the POS will not display loyalty points earned unless the screen layout includes the specific loyalty points field. The store manager confirmed the loyalty card is linked, and the IT team verified the program is published, so the missing field in the screen layout is the most likely cause.

Answer

The 'Process loyalty points' job is not scheduled.

Answer

The customer's loyalty card is not properly linked to the customer account.

Answer

The loyalty program is not published to the store's channel database.

Question 15

Refer to the exhibit. A purchase order is confirmed but the lines are still open. What does this indicate?

Accepted Answer

The purchase order is approved but not yet received. In Dynamics 365 Supply Chain Management, a purchase order status of 'Confirmed' means the order has been approved and committed to the vendor, but the 'Open order' / 'Open lines' status indicates no receipt has yet been posted against the lines. So the PO is approved but not yet received.

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The purchase order is pending approval

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The purchase order is fully invoiced

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The purchase order is fully received