MB-920 Practice Test 2 — 25 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management. They need to improve the accuracy of demand forecasting by incorporating external data such as weather forecasts and economic indicators. Which THREE features should they consider?

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

Accepted Answer

Demand forecasting. Demand forecasting in Dynamics 365 Supply Chain Management uses historical transaction data and can be extended with external data sources like weather and economic indicators through Azure Machine Learning. This integration improves forecast accuracy by applying machine learning models that correlate external factors with demand patterns.

Answer

Inventory visibility

Answer

Master planning

Question 2

A company uses Dynamics 365 Finance and Operations. They want to provide employees with a self-service portal to view their pay slips, update personal information, and request time off. Which module should they use?

Accepted Answer

Employee self-service. The Employee self-service module in Dynamics 365 Finance and Operations is specifically designed to provide employees with a web-based portal where they can view pay slips, update personal information, and request time off. This module empowers employees to manage their own HR-related tasks without requiring intervention from HR or payroll administrators, directly matching the scenario described.

Answer

Project management and accounting

Answer

Payroll

Answer

Time and attendance

Question 3

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

Question 4

Drag and drop the steps to set up a new product in Dynamics 365 Commerce in the correct order.

Accepted Answer

Create the product, then enter product details, then assign a category, then release to companies.. Product setup requires creating the product, entering details, assigning a category, and releasing it to companies.

Answer

Enter product details, then assign a category, then create the product, then release to companies.

Answer

Create the product, then assign a category, then enter product details, then release to companies.

Answer

Create the product, then enter product details, then release to companies, then assign a category.

Question 5

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.

Answer

Expense management

Answer

Time entry

Answer

Resource scheduling

Question 6

A company using Dynamics 365 Project Operations needs to track time and expenses against a project. Which module should they use?

Accepted Answer

Project management and accounting. In Dynamics 365 Project Operations, the Project management and accounting module is the primary module for tracking time and expenses against a project. It integrates time entry and expense reporting directly with project costing, billing, and budgeting, ensuring that all project-related transactions are captured and allocated correctly.

Answer

Expense management

Answer

Time and attendance

Answer

Human resources

Question 7

An organization uses Dynamics 365 Finance. The finance team notices that purchase invoices are taking too long to process manually. They want to use Copilot to streamline the invoice processing workflow. What is the most efficient way to achieve this?

Accepted Answer

Use Copilot to extract invoice data and suggest matching to purchase orders. Copilot in Dynamics 365 Finance can intelligently extract key data from purchase invoices (such as vendor, amounts, and line items) and then suggest matching to existing purchase orders. This significantly reduces manual data entry and speeds up the invoice processing workflow while still allowing human review for exceptions.

Answer

Use Copilot to detect duplicate invoices only

Answer

Set up Copilot to fully automate invoice approval without human review

Answer

Configure Copilot to automatically create a new workflow for each invoice

Question 8

A project-based organization uses Dynamics 365 Project Operations. They need to track time and materials against a project and invoice the customer based on actuals. Which project contract billing method should they use?

Accepted Answer

Time and material. A is correct because the Time and Material billing method in Dynamics 365 Project Operations allows the organization to track actual hours and expenses against a project and invoice the customer based on those actuals. This method is designed for projects where the scope is not fully defined upfront, and billing is directly tied to the recorded time and material consumption.

Answer

Cost plus

Answer

Fixed price

Answer

Milestone billing

Question 9

A company uses Dynamics 365 Supply Chain Management. They need to improve the accuracy of demand forecasting by incorporating external data such as weather forecasts and economic indicators. Which THREE features should they consider?

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

Accepted Answer

Set the production order status to 'Released' before issuing materials. Setting the production order status to 'Released' triggers the material picking process, ensuring raw materials are issued only after the order is released to the floor. Option D is correct because the 'Release to warehouse' process generates picking work, which controls the physical issuance of materials. Option A is incorrect because 'Estimated' status does not initiate material issuing; it is a preliminary step. Option C is incorrect because quality orders are for quality inspections, not material control. Option E is incorrect because 'Ended' status indicates completion, not material issuance.

Answer

Set the production order status to 'Estimated'

Answer

Create a quality order for raw materials

Answer

Mark the production order as 'Ended'

Question 10

A retail company wants to use Dynamics 365 Commerce to manage online and in-store sales from a single platform. Which core capability should they leverage to unify their sales data?

Accepted Answer

Omnichannel order management. Omnichannel order management is the core capability in Dynamics 365 Commerce that unifies sales data from online and in-store channels into a single order lifecycle. It enables centralized processing, fulfillment, and returns across all channels, ensuring consistent inventory and customer data without silos.

Answer

Loyalty management

Answer

Product recommendations

Answer

Inventory visibility

Question 11

A company wants to use Dynamics 365 Finance for advanced financial planning and analysis. Which THREE capabilities should they enable?

Accepted Answer

Budgeting. Budgeting (C) is a core capability in Dynamics 365 Finance that enables organizations to create, manage, and analyze budgets, which is essential for advanced financial planning and analysis. It integrates with general ledger and other modules to support budget control, budget planning, and budget reporting, allowing for proactive financial management.

Answer

Accounts payable

Answer

Invoice capture

Question 12

Your organization is implementing Dynamics 365 Finance. They need to ensure that financial transactions comply with local regulatory requirements for electronic invoicing. Which feature should they use?

Accepted Answer

Electronic reporting (ER). Electronic reporting (ER) is the correct feature as it allows configuring electronic documents for different countries/regions, including electronic invoices. Option B (Payment formats) is used for defining payment formats, not for electronic invoicing compliance. Option C (Financial reporting) is for creating financial statements and reports, not for electronic invoicing. Option D (Data management) is a framework for data import/export and entity management, not specifically for electronic invoicing.

Answer

Payment formats

Answer

Financial reporting

Answer

Data management

Question 13

Drag and drop the steps to set up a new user in Dynamics 365 Finance and Operations in the correct order.

Accepted Answer

Create user record, then enter user details, then assign security roles, then enable user.. User setup includes creating the user, entering details, assigning roles, and enabling.

Answer

Create user record, then assign security roles, then enter user details, then enable user.

Answer

Create user record, then enter user details, then enable user, then assign security roles.

Answer

Enter user details, then create user record, then assign security roles, then enable user.

Question 14

A company uses Dynamics 365 Project Operations to manage project expenses. An employee submits an expense report for a project. The project manager needs to approve the expense report. Where does the project manager perform this approval?

Accepted Answer

Expense Approval workspace. In Dynamics 365 Project Operations, expense report approvals are handled through the Expense Approval workspace. This workspace is specifically designed for project managers and approvers to review, approve, or reject expense reports submitted by project team members. It provides a centralized view of all pending expense approvals tied to projects.

Answer

Project Contract

Answer

Resource Manager dashboard

Answer

Time Approval workspace

Question 15

A manufacturing company uses Dynamics 365 Finance and Operations to manage its production processes. They need to track the consumption of raw materials and labor during the production run. Which module should they use to capture this data in real time?

Accepted Answer

Production control. Production control is the correct module because it is specifically designed to manage and execute production orders, including real-time registration of raw material consumption (via pick lists or reporting as finished) and labor hours (via route card or job card entries). This data is captured directly against the production order, enabling accurate tracking of actual costs during the production run.

Answer

Cost accounting

Answer

Procurement and sourcing

Answer

Inventory management

Question 16

A company needs to calculate the cost of manufactured products including direct materials, labor, and overhead. Which costing methodology in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Standard costing. Standard costing is the correct methodology because it allows the company to define predetermined costs for direct materials, labor, and overhead, and then calculate variances against actual costs. In Dynamics 365 Supply Chain Management, standard costing is specifically designed for manufacturing scenarios where you need to value inventory and cost of goods sold based on expected costs, with variance tracking for deviations.

Answer

Weighted average

Answer

FIFO

Answer

Moving average

Question 17

A company is implementing Dynamics 365 Finance and needs to automate the reconciliation of bank transactions. Which feature should be used to match bank statement lines with open bank document lines based on rules?

Accepted Answer

Advanced bank reconciliation. Advanced bank reconciliation in Dynamics 365 Finance allows you to import bank statement lines and automatically match them to open bank document lines (such as checks, deposits, and transfers) using user-defined matching rules. This feature supports rule-based matching (e.g., by amount, date, or reference) and handles complex scenarios like partial matches or tolerance thresholds, making it the correct choice for automating bank transaction reconciliation.

Answer

Bank account reconciliation

Answer

Payment proposal

Answer

Automatic settlement

Question 18

A manufacturing company uses Dynamics 365 Supply Chain Management for process manufacturing. They produce a liquid chemical that requires a specific mixing time. Which feature should be used to enforce that the production step takes at least 30 minutes before the next step can begin?

Accepted Answer

Route operation with a 'Process time' set to 30 minutes. A route operation with a 'Process time' of 30 minutes will enforce that the operation takes at least that long. Option A is for discrete manufacturing, not process. Option C is for product configuration, not production steps. Option D is for quality management, not time enforcement.

Answer

Product configuration model

Answer

Production orders with a bill of materials (BOM)

Answer

Quality order with a test time

Question 19

A Dynamics 365 Finance administrator configures an AI Builder model for invoice processing with the above JSON. After deployment, the system correctly extracts data from 90% of invoices but sends 10% to manual review. What is the most likely reason for the manual review?

Accepted Answer

The confidence score for extracted fields is below the threshold of 0.8 for those invoices. The JSON configuration sets a confidence threshold of 0.8 for extracted fields. When the model's confidence in the extracted data falls below this threshold, the system automatically routes the invoice to manual review. This is the standard behavior for AI Builder invoice processing models to ensure accuracy and reduce errors from low-confidence predictions.

Answer

The invoice images are too blurry for the model to read

Answer

The model extracts all fields but with confidence below 0.9

Answer

The invoice contains multiple pages that need to be split

Question 20

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.. Elimination rules automate the removal of intercompany balances. Option A is wrong because manual journal entries are not automated. Option C is wrong because intercompany accounting is for transaction posting, not elimination. Option D is wrong because the consolidation online feature is for real-time consolidation but does not automatically eliminate.

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.