MB-920 Practice Test 4 — 25 Questions

Question 1

You are the system administrator for Contoso Ltd., a multinational manufacturing company implementing Dynamics 365 Finance. The company has three legal entities: Contoso US (functional currency USD), Contoso Germany (EUR), and Contoso Japan (JPY). The CFO requires that all purchase orders for raw materials be centrally managed from Contoso US, but the goods must be received directly at each legal entity's warehouse. Additionally, the CFO wants to ensure that intercompany transactions are automatically posted and eliminated during month-end consolidation. You need to configure the system to meet these requirements. What should you do?

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

Accepted Answer

Configure intercompany purchase orders with direct delivery from Contoso US to the other entities, and set up intercompany elimination rules for consolidation.. Configuring intercompany purchase orders with direct delivery allows Contoso US to centrally manage purchasing while goods are received directly at each legal entity's warehouse. Setting up intercompany elimination rules ensures automatic elimination of intercompany transactions during consolidation, meeting the CFO's requirements. Option A is wrong because separate purchase orders and manual journals do not automate centralization or elimination. Option C is wrong because inventory transfers do not handle purchase order centralization. Option D is wrong because intercompany journals alone do not provide centralized purchasing or direct receipt functionality.

Answer

Create separate purchase orders in each legal entity and use manual journal entries to transfer costs to Contoso US.

Answer

Configure intercompany inventory transfers and use inventory journals to record movements between warehouses.

Answer

Set up intercompany journals to record transactions between legal entities and create elimination rules for consolidation.

Question 2

A company uses Dynamics 365 Finance and Operations for financial management. They need to ensure that all vendor invoices are approved before payment. Which module should they use?

Accepted Answer

Accounts payable. The Accounts payable module in Dynamics 365 Finance and Operations is specifically designed to manage vendor invoices, purchase orders, and payment approvals. It includes invoice matching, approval workflows, and payment holds to ensure invoices are validated and approved before payment is processed.

Answer

Accounts receivable

Answer

General ledger

Answer

Budgeting

Question 3

You are a systems analyst at a multinational corporation using Dynamics 365 Finance. The company operates in multiple countries with different currencies. The CFO requires that all financial reports be presented in the parent company's reporting currency (USD). The company uses the currency translation feature in Dynamics 365 Finance. However, the finance team is unsure about the correct translation method for the income statement accounts. According to accounting standards, income statement accounts should be translated at the average exchange rate for the period. You need to configure the translation method. What should you do?

Accepted Answer

Set the translation method for income statement accounts to 'Average' in the currency translation setup.. Under IAS 21 and ASC 830, income statement accounts are translated at the average exchange rate for the reporting period, while assets and liabilities use the closing rate and equity uses historical rates. Dynamics 365 Finance exposes this through the currency translation setup, where each main account or account category can be assigned a translation method. Selecting 'Average' for income statement accounts produces the rate that best reflects period-wide operating results and avoids distortion from end-of-period volatility.

Answer

Set the translation method for income statement accounts to 'Ending' (same as current).

Answer

Set the translation method for income statement accounts to 'Current' (end of period rate).

Answer

Set the translation method for income statement accounts to 'Historical' (transaction date rate).

Question 4

A company is implementing Dynamics 365 Finance and needs to configure a chart of accounts that supports multiple legal entities with different fiscal requirements. Which structure should be used?

Accepted Answer

Use a shared chart of accounts with separate fiscal calendars per legal entity.. A shared chart of accounts is the recommended approach in Dynamics 365 Finance when multiple legal entities must operate under different fiscal requirements. By sharing the chart of accounts but assigning separate fiscal calendars per legal entity, the organization maintains a consistent account structure across entities while allowing each entity to comply with its own fiscal year, period definitions, and closing schedules. This balances standardization with regulatory flexibility.

Answer

Use a single shared chart of accounts with one shared fiscal calendar.

Answer

Use main accounts only without dimensions.

Answer

Create a separate chart of accounts for each legal entity.

Question 5

A manufacturing company uses Dynamics 365 Finance and Operations. They need to automatically adjust raw material orders when production schedules change. Which feature should they configure?

Accepted Answer

Master planning. Master planning in Dynamics 365 Finance and Operations is the correct feature because it uses demand and supply data to generate planned orders for raw materials. When production schedules change, master planning automatically recalculates material requirements and adjusts planned purchase orders to ensure inventory levels match the new schedule, preventing stockouts or overstock.

Answer

Fixed asset management

Answer

Vendor collaboration

Answer

Inventory journal posting

Question 6

A company uses Dynamics 365 Finance and wants to improve the efficiency of their accounts payable team. They have enabled Copilot for Dynamics 365. Which Copilot capability should they use to help the team automatically match purchase orders, receipts, and invoices?

Accepted Answer

Copilot for vendor invoice automation. Copilot for vendor invoice automation is specifically designed to streamline the accounts payable process by automatically matching purchase orders, receipts, and invoices using predefined matching rules and AI. This capability reduces manual effort and accelerates invoice processing in Dynamics 365 Finance.

Answer

Copilot for cash flow forecasting

Answer

Copilot for sales order processing

Answer

Copilot for expense report management

Question 7

A Dynamics 365 Customer Service agent is using Copilot to draft email responses to customers. The agent notices that Copilot sometimes suggests responses that include incorrect information about the company's return policy. What should the agent do to ensure accurate responses?

Accepted Answer

Edit the suggested response to correct the inaccuracies before sending. Copilot in Dynamics 365 Customer Service generates draft responses based on available data, but it may not always reflect the most current or accurate policy details. The agent is responsible for reviewing and editing the suggested content before sending, ensuring the final response is accurate and compliant with company policies. This aligns with the principle that Copilot is an assistive tool, not a replacement for human judgment.

Answer

Disable Copilot and draft all responses manually

Answer

Ask the administrator to change the Copilot language model

Answer

Provide feedback to Copilot by rating the response as unhelpful

Question 8

An organization using Dynamics 365 Finance needs to streamline vendor payments by grouping multiple invoices into a single payment. Which feature should they use?

Accepted Answer

Payment proposal. The Payment proposal feature in Dynamics 365 Finance is used to select and group multiple vendor invoices into a single payment based on criteria such as due date, vendor, or payment method. It generates a proposal that can be reviewed, modified, and then used to create payments, thereby streamlining the payment process by consolidating invoices. This directly addresses the requirement to group multiple invoices into a single payment.

Answer

Electronic payment format

Answer

Payment schedule

Answer

Positive pay

Question 9

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to ensure that raw materials are automatically replenished based on current inventory levels and forecasted demand. Which feature should be configured?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the feature designed to calculate material and capacity requirements based on current inventory levels and forecasted demand. It generates planned orders for replenishment, ensuring raw materials are available to meet production and customer demand without overstocking.

Answer

Quality management

Answer

Vendor collaboration

Answer

Warehouse management

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. The Inventory Visibility add-in for Dynamics 365 Supply Chain Management provides a highly scalable, real-time inventory query service that exposes inventory levels across warehouses and legal entities via APIs. It is specifically designed to share on-hand data with external partners and downstream systems without hitting the transactional database directly. This makes it the correct choice for real-time visibility to external partners.

Answer

Master planning

Answer

Inventory journals

Answer

Warehouse mobile app

Question 11

A company uses Dynamics 365 Finance to manage its financial operations. They need to automate the process of posting vendor invoices that are received via email. Which feature should they configure?

Accepted Answer

Vendor invoice automation. Vendor invoice automation is the correct feature because it is specifically designed to ingest vendor invoices from email (via an Exchange mailbox or Microsoft Dataverse), use OCR/invoice recognition to create pending vendor invoices, and then match and post them automatically according to configured rules. This directly addresses the scenario of automating the posting of email-received vendor invoices in Dynamics 365 Finance. Electronic reporting is for configuring and generating statutory/financial documents and formats, not for capturing and posting incoming vendor invoices. Data management is used for importing/exporting and integrating data via entities, not for email-driven invoice processing. Workflow routes documents for review and approval but does not itself receive emails or perform invoice recognition and posting.

Answer

Electronic reporting

Answer

Data management

Answer

Workflow

Question 12

Drag and drop the steps to process a purchase order receipt in Dynamics 365 Finance in the correct order.

Accepted Answer

Select purchase order, then choose product receipt, then enter receipt details, then post the product receipt.. Processing a receipt involves selecting the PO, choosing product receipt, entering details, and posting.

Answer

Select purchase order, then enter receipt details, then choose product receipt, then post.

Answer

Choose product receipt, then select purchase order, then enter details, then post.

Answer

Select purchase order, then choose product receipt, then post, then enter receipt details.

Question 13

A company uses Dynamics 365 Finance and Operations with dual-write integration to Dataverse. They notice that some purchase order headers are not syncing to Dataverse. What should they check first to resolve the issue?

Accepted Answer

Check the Dual-write application orchestration form to view synchronization logs and errors. The Dual-write application orchestration form in Dynamics 365 Finance and Operations provides a dedicated interface to view synchronization logs and errors for dual-write mappings. When purchase order headers fail to sync to Dataverse, this form shows the specific error messages, retry status, and mapping details, making it the first place to diagnose the issue directly within the dual-write infrastructure.

Answer

Examine the System administration > User operations log for errors

Answer

Review Power Automate flow run history for the purchase order sync flow

Answer

Run the Data management framework’s data project to force sync

Question 14

A company uses Dynamics 365 Finance with multiple legal entities. They need to view consolidated financial data across all entities without manual intervention. What should they configure?

Accepted Answer

Consolidation. Consolidation in Dynamics 365 Finance is the feature that aggregates financial data from multiple legal entities into a single consolidated view. It allows organizations to combine account balances, apply elimination rules, and produce consolidated financial statements without manual data entry. Configuring consolidation lets the system pull transactions from subsidiary entities into a consolidation legal entity automatically.

Answer

Currency revaluation

Answer

Financial dimension sets

Answer

Elimination rules

Question 15

A small business uses Dynamics 365 Supply Chain Management to manage inventory. They currently sell products from a single warehouse. The owner wants to start tracking the cost of goods sold (COGS) for each product using the standard costing method. You need to set up the system to calculate COGS correctly. You have the following options: A. Enable standard costing in the Inventory model group for each product and run the Inventory close process periodically. B. Use the FIFO costing method and run the Inventory recalculation. C. Use the Moving average costing method and rely on automatic posting to the general ledger. D. Configure the Product master to use the Purchase price as the cost price and post directly to COGS. Which option should you choose?

Accepted Answer

Enable standard costing in the Inventory model group for each product and run the Inventory close process periodically.. Standard costing in Dynamics 365 Supply Chain Management is configured on the Inventory model group, and COGS is calculated and posted when the Inventory close process runs periodically. This is the correct setup for a business that wants to track COGS per product using standard costs, because standard costing relies on the close process to settle variances between standard and actual costs.

Answer

Use the FIFO costing method and run the Inventory recalculation.

Answer

Configure the Product master to use the Purchase price as the cost price and post directly to COGS.

Answer

Use the Moving average costing method and rely on automatic posting to the general ledger.

Question 16

You are a finance manager at Contoso Ltd. The company is implementing Dynamics 365 Finance and needs to set up the chart of accounts. Which TWO statements about the chart of accounts are correct?

Accepted Answer

The chart of accounts is the foundation for financial reporting.. Option B is correct because the chart of accounts defines the structure of all main accounts used to record financial transactions, and it directly drives the general ledger, trial balance, financial dimensions, and all financial statements and reporting in Dynamics 365 Finance. Option E is correct because main accounts in Dynamics 365 Finance are stored in a shared chart of accounts table and can be referenced by multiple legal entities, allowing a consistent account structure across organizations while each legal entity maintains its own balances. Option A is incorrect because posting profiles are required to determine which main accounts are used for specific transaction types (such as customer, vendor, and inventory postings); without them, transactions cannot be posted correctly. Option C is incorrect because Dynamics 365 Finance does not limit a chart of accounts to 100 main accounts; the practical limit is far higher (tens of thousands of accounts). Option D is incorrect because main accounts are not created automatically when a legal entity is created; they must be created manually or imported into the chart of accounts.

Answer

Posting profiles are optional for posting transactions.

Answer

A chart of accounts can contain a maximum of 100 main accounts.

Answer

Main accounts are automatically created when a legal entity is created.

Question 17

A company is implementing Dynamics 365 Customer Service and wants to use Copilot to improve agent productivity. Which TWO actions can Copilot perform in the customer service workspace?

Accepted Answer

Draft an email response to a customer based on the conversation context. Option C is correct because Copilot in Dynamics 365 Customer Service can generate a draft email reply using the context of the ongoing conversation, which agents can then review and edit before sending. Option E is correct because Copilot can produce a case summary that highlights key details, customer interactions, and history when an agent opens a case, helping them get up to speed quickly. Option A is not correct because automatic case creation from incoming email is handled by rule-based automation such as automatic record creation and update rules, not by Copilot. Option B is not correct because generating a knowledge article from a resolved case is not a Copilot capability in the customer service workspace. Option D is not correct because scheduling a follow-up call requires agent action or workflow automation, not Copilot.

Answer

Create a new case automatically when an email arrives

Answer

Create a knowledge article from a resolved case

Answer

Schedule a follow-up call with the customer

Question 18

An organization using Dynamics 365 Finance implements AI-driven cash flow forecasting. What data source does the feature primarily use?

Accepted Answer

Historical transaction data. Dynamics 365 Finance's AI-driven cash flow forecasting primarily uses historical transaction data — past customer payments, vendor invoices, and cash movements — to train models that predict future cash positions. This historical data provides the patterns and seasonality the AI needs to generate forecasts. External balances and budgets can supplement, but the core input is historical transactions.

Answer

External bank account balances

Answer

Vendor payment history

Answer

Budget and forecast data

Question 19

A warehouse manager wants to optimize picking routes by grouping orders that are located in the same aisle. Which feature in Dynamics 365 Supply Chain Management should be configured?

Accepted Answer

Wave management. Wave management in Dynamics 365 Supply Chain Management is the correct feature because it allows grouping of orders into waves based on criteria such as location or aisle, enabling optimized picking routes. By configuring wave templates and methods, the system can automatically consolidate orders from the same aisle into a single wave, reducing travel time and improving warehouse efficiency.

Answer

Inventory status

Answer

Location directives

Answer

Mobile device menu items

Question 20

Which TWO of the following are capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Transportation management. Transportation management (B) is a core capability of Dynamics 365 Supply Chain Management, providing inbound and outbound load planning, rate and route configuration, carrier management, and freight reconciliation through the Transportation management module. Demand forecasting (C) is also a native Supply Chain Management capability, delivered via master planning and the Demand forecasting feature that uses historical data and Azure Machine Learning to generate item-level forecasts consumed by planning runs. Customer relationship management (A) belongs to Dynamics 365 Sales/Customer Engagement, not Supply Chain Management. Project accounting (D) is provided by Dynamics 365 Project Operations (and previously Finance project management and accounting), not as a Supply Chain Management capability. Human resources management (E) is delivered by Dynamics 365 Human Resources, so it is not part of Supply Chain Management.

Answer

Customer relationship management

Answer

Project accounting

Answer

Human resources management