MB-920 Practice Test 25 — 15 Questions

Question 1

Refer to the exhibit. This JSON snippet represents a budget record in Dynamics 365 Finance. Which core capability is being configured?

Accepted Answer

Budget control. The JSON snippet defines budget control parameters such as 'BudgetControlConfiguration', 'BudgetCycle', and 'BudgetInterval', which are used to enforce budget checks during financial transactions. This directly configures the Budget Control module in Dynamics 365 Finance, enabling organizations to monitor and restrict expenditures against approved budgets.

Answer

Fixed asset management

Answer

Project accounting

Answer

General ledger

Question 2

A manufacturing company is implementing Dynamics 365 Supply Chain Management. They want to ensure that raw material inventory is automatically replenished when stock falls below a predefined level. Which feature should they configure?

Accepted Answer

Reorder point planning. Reorder point planning in Dynamics 365 Supply Chain Management automatically triggers replenishment when inventory drops below a predefined reorder point. Option A (Quality management) is incorrect because it is used for inspections and quality control, not for inventory replenishment. Option B (ABC classification) is incorrect because it is used to categorize items based on value and importance, not to trigger replenishment. Option D (Vendor collaboration) is incorrect because it facilitates communication with vendors but does not automatically replenish inventory.

Answer

Quality management

Answer

ABC classification

Answer

Vendor collaboration

Question 3

A distribution company uses Dynamics 365 Supply Chain Management. They notice that transfer order shipments are not being consolidated into loads efficiently. What should they configure to improve consolidation?

Accepted Answer

Load building workbench. The Load building workbench is used to consolidate transfer order shipments into loads efficiently by allowing manual or automatic load building. The other options serve different purposes: Item arrival overview is for inbound receiving, Inventory reservation hierarchy controls reservation priorities, and Picking workbench is for warehouse picking operations.

Answer

Item arrival overview

Answer

Inventory reservation hierarchy

Answer

Picking workbench

Question 4

A consulting firm uses Dynamics 365 Project Operations to manage fixed-price projects. During project execution, the project manager notices that the actual cost is exceeding the budget. What should the project manager do to track and communicate the impact on profit?

Accepted Answer

Review the Cost Performance Index (CPI) on the project and update the estimate at completion (EAC).. In Dynamics 365 Project Operations, the Cost Performance Index (CPI) is the key metric for measuring cost efficiency on a project. When actual costs exceed the budget, the project manager should review the CPI and update the Estimate at Completion (EAC) to forecast the total expected cost based on current performance, directly communicating the impact on profit.

Answer

Analyze resource utilization percentages to identify over-allocated resources.

Answer

Review the Schedule Performance Index (SPI) to assess if the project is behind schedule.

Answer

Compare the project budget to the actual cost in the project invoice.

Question 5

Refer to the exhibit. A sales representative tries to confirm a sales order for 50 units of item L-5000, but the system does not allow confirmation because the available quantity is only 40. The reservation method is set to Manual. What should the sales representative do to proceed with the order?

Accepted Answer

Manually reserve 40 units and backorder the remaining 10. The reservation method is set to Manual, meaning the system does not automatically allocate inventory. The sales representative must manually reserve the available 40 units and backorder the remaining 10 units to proceed with the order, which aligns with the manual reservation process in Dynamics 365 Supply Chain Management.

Answer

Create a purchase order for 10 units

Answer

Change the reservation method to Automatic

Answer

Reduce the order quantity to 40 units

Question 6

An organization wants to automate the process of reconciling bank transactions with entries in Dynamics 365 Finance. Which feature should be used?

Accepted Answer

Bank reconciliation. The Bank reconciliation module in Dynamics 365 Finance automates matching bank statement lines to ledger entries. Option A is wrong because Cash and bank management is a module that includes bank reconciliation, but not the specific feature. Option B is wrong because Advanced bank reconciliation is an optional add-on that provides more automation, but the standard bank reconciliation feature is available in Cash and bank management. Option C is wrong because Payment journal is for recording payments, not reconciliation.

Answer

Cash and bank management

Answer

Advanced bank reconciliation

Answer

Payment journal

Question 7

Refer to the exhibit. A purchase order is received with a freight charge. The company wants the freight cost to be allocated to inventory value for landed cost calculations. Which configuration is required?

Accepted Answer

Set up the charge code 'FREIGHT' as a landing cost and allocate it to the purchase order line.. In Dynamics 365 Supply Chain Management, to allocate a freight charge to inventory value for landed cost calculations, you must set up a charge code (e.g., 'FREIGHT') with the 'Landing cost' option enabled. This charge code is then assigned to the purchase order line, which automatically distributes the freight cost proportionally across the items, increasing their inventory value as part of the landed cost.

Answer

Use the 'Charges' code with debit type 'Item' to post to inventory.

Answer

Add the freight charge as a fixed cost to the vendor's invoice.

Answer

Create a new item for freight and include it in the purchase order.

Question 8

A company uses Dynamics 365 Supply Chain Management and wants to optimize logistics costs by consolidating shipments from multiple orders to the same customer. Which feature should they use?

Accepted Answer

Transportation management. The Transportation management module allows shipment consolidation based on rules like same customer, delivery address, or route. Option B is wrong because the Warehouse management module handles internal warehouse operations. Option C is wrong because the Sales and marketing module manages sales orders, not logistics optimization. Option D is wrong because the Master planning module calculates supply requirements, not shipment consolidation.

Answer

Warehouse management

Answer

Sales and marketing

Answer

Master planning

Question 9

A company uses Dynamics 365 Supply Chain Management. They want to enable a vendor to manage their own inventory at the customer's site (consignment inventory). What process should they set up?

Accepted Answer

Consignment inventory. Consignment inventory in Dynamics 365 Supply Chain Management allows a vendor to own stock that is physically located at the customer's site. The customer only pays for the inventory when it is consumed or transferred to their ownership. Setting up the consignment inventory process enables the vendor to manage replenishment and visibility of their stock at the customer location through vendor collaboration features.

Answer

Vendor collaboration

Answer

Purchase order with drop shipment

Answer

Transfer order

Question 10

A company uses Dynamics 365 Supply Chain Management and wants to provide real-time visibility of inventory levels across multiple warehouses to external partners. Which feature should they use?

Accepted Answer

Inventory Visibility add-in. (Inventory Visibility add-in) is correct because it provides real-time, multi-warehouse inventory visibility to external partners via APIs. Option A (Master planning) is wrong because it is used for supply and demand planning, not real-time inventory sharing. Option B (Inventory journals) is wrong because they are used for internal inventory adjustments and transactions, not for external visibility. Option D (Warehouse mobile app) is wrong because it is designed for warehouse workers to perform tasks, not for sharing inventory data with external partners.

Answer

Master planning

Answer

Inventory journals

Answer

Warehouse mobile app

Question 11

Refer to the exhibit. A Dynamics 365 Finance batch job configuration is shown. The job started on December 1, 2025 at 08:00 UTC and is recurring daily. It is currently December 2, 2025 at 10:00 UTC and the job status is 'Executing'. What does this indicate?

Accepted Answer

The job from December 1 is still running, exceeding the recurrence interval.. The batch job started on December 1 at 08:00 UTC with a daily recurrence, and as of December 2 at 10:00 UTC (26 hours later), its status is still 'Executing'. This means the first instance never completed, so the recurrence interval (24 hours) has been exceeded, and the system will not start a new instance until the current one finishes. In Dynamics 365 Finance, a batch job with a recurrence interval shorter than its actual runtime will remain in 'Executing' status and block subsequent scheduled runs.

Answer

The job has encountered an error and is retrying.

Answer

The job is scheduled for weekly recurrence, not daily.

Answer

The job completed successfully on December 1 and is now running the December 2 instance.

Question 12

A company uses Dynamics 365 Supply Chain Management. They want to ensure that when a purchase order is received, the system automatically creates a quality order for inspection. Which configuration is required?

Accepted Answer

Set up a quality association for purchase order product receipt. A quality association links a quality order creation to a process event like product receipt. Option B is wrong because setting inventory status to blocking does not trigger quality order creation; it is used for controlling inventory availability. Option C is wrong because nonconformance management handles failed inspections, not triggering them. Option D is wrong because item sampling defines which items are tested, not the trigger.

Answer

Set inventory status to blocking

Answer

Configure nonconformance management

Answer

Define item sampling for the product

Question 13

You are reviewing a work template configuration in Dynamics 365 Supply Chain Management. Based on the exhibit, what will this work template do?

Accepted Answer

Create picking work for sales orders.. The work template has a work order type of 'Sales orders' and a work line type of 'Pick', which creates picking work for sales orders. Option D correctly identifies this. Option A is wrong because the work order type is sales orders, not purchase orders. Option B is wrong because the line class is 'Sales', not 'Receiving'. Option C is wrong because the work priority is 10, which indicates lower priority (higher number), but the question asks what the template does, not the priority level.

Answer

Create receiving work for purchase order lines.

Answer

Create put-away work for purchase order receipts.

Answer

Assign high priority to sales order picking work.

Question 14

Refer to the exhibit. A Dynamics 365 Finance and Operations administrator reviews a batch job configuration. The job is scheduled to run daily. What is the purpose of this batch job?

Accepted Answer

Post recurring invoices automatically. The batch job configuration shown is for the 'Recurring invoices' process in Dynamics 365 Finance and Operations. When a batch job is set to run daily with the action 'Post,' its purpose is to automatically post recurring invoices that have been previously set up in the recurring invoice template. This automates the posting step, eliminating the need for manual intervention each period.

Answer

Generate recurring invoices

Answer

Send invoice payment reminders

Answer

Print recurring invoices

Question 15

Which TWO are common features shared across Dynamics 365 ERP applications? (Select exactly two.)

Accepted Answer

Power BI integration. Power BI integration is a common feature across Dynamics 365 ERP applications because it is built into the platform via the Power BI content packs and embedded analytics, allowing users to visualize and share insights from financial and operational data without leaving the application. This integration is a core part of the Power Platform, which is shared across all Dynamics 365 apps, enabling real-time reporting and dashboards.

Answer

Machine learning models

Answer

Batch attribute management

Answer

Compliance management