MB-920 Practice Test 5 — 25 Questions

Question 1

Refer to the exhibit. A purchase order line shows a LineDiscount of 10.0 and LineAmount of 225.00. If the discount is applied as a percentage, what is the correct interpretation?

Accepted Answer

The line discount is a 10% discount on the line total. Option B is correct because the LineDiscount of 10.0 is interpreted as a percentage (10%) when the discount method is set to percentage. This means the line discount is calculated as 10% of the line total, resulting in a LineAmount of 225.00 after the discount is applied. In Dynamics 365 Finance and Operations, the LineDiscount field stores the discount value, and its interpretation depends on the discount method selected on the purchase order line.

Answer

The line discount is applied after line amount calculation

Answer

The line discount is a flat $10.00 reduction

Answer

The line discount is 10% of the unit price

Question 2

Which THREE modules are part of Dynamics 365 Commerce?

Accepted Answer

Point of sale (POS). Point of Sale (POS) is a core module of Dynamics 365 Commerce that enables in-store transactions, inventory management, and customer engagement at the physical retail location. It integrates directly with the online store and call center modules to provide a unified omnichannel commerce experience.

Answer

Budgeting

Answer

Production control

Question 3

A company uses Dynamics 365 Human Resources. They need to automate the process of sending onboarding tasks to new employees based on their start date. Which feature should they configure?

Accepted Answer

Personnel actions workflow. Personnel actions workflows in Dynamics 365 Human Resources allow you to automate business processes, such as sending onboarding tasks to new employees based on their start date. By configuring a personnel action workflow, you can define conditions (e.g., start date) that trigger specific actions, including the assignment of onboarding checklists and tasks. This directly meets the requirement for automated task distribution.

Answer

Employee self-service goals

Answer

Position hierarchies

Answer

Checklist templates

Question 4

A company implements Dynamics 365 Finance and Operations. They want to ensure that only authorized users can access the system from external networks. What should they configure?

Accepted Answer

Conditional Access policies in Microsoft Entra ID. Conditional Access policies in Microsoft Entra ID (formerly Azure AD) allow administrators to enforce access controls based on conditions such as user location, device compliance, and network context. For external network access, you can configure policies to require multi-factor authentication or block access from untrusted IP ranges, ensuring only authorized users can connect to Dynamics 365 Finance and Operations from outside the corporate network.

Answer

Mobile device management in Microsoft Intune

Answer

Role-based security in Finance and Operations

Answer

Data loss prevention policies in Microsoft Purview

Question 5

A company uses Dynamics 365 Finance to manage intercompany transactions. They need to automate the elimination of intercompany sales and purchases during consolidation. What feature should they configure?

Accepted Answer

Intercompany elimination rules. Option C is correct because intercompany elimination rules in Dynamics 365 Finance are specifically designed to automate the removal of intercompany sales and purchase transactions during the consolidation process. These rules define matching criteria (e.g., intercompany trade agreements, dimensions) and generate elimination entries that offset the intercompany revenue and expense, ensuring the consolidated financial statements reflect only external transactions.

Answer

Fixed asset management

Answer

Budget control

Answer

Vendor collaboration

Question 6

A company uses Dynamics 365 Finance. The finance team needs to ensure that purchase invoices are automatically matched to purchase orders and product receipts before payment is processed. Which feature should be configured?

Accepted Answer

Accounts payable invoice matching. Accounts payable invoice matching (option D) is the correct feature because it automatically compares purchase invoice details (quantities, prices, charges) against the corresponding purchase order and product receipt. This three-way matching ensures that payment is only processed when the invoice matches the order and receipt, preventing overpayment and discrepancies.

Answer

Fixed asset management

Answer

Workflow approval

Answer

Vendor collaboration portal

Question 7

Refer to the exhibit. A warehouse uses location directives for sales picking with FEFO strategy. Workers are unable to pick from bulk locations even though there is stock. What is the most likely cause?

Accepted Answer

The location profile 'BULK' is not set to allow picking.. Option A is correct because location directives use location profiles to filter locations for picking. If the 'BULK' location profile is not configured to allow picking (i.e., the 'Allow pick' option is disabled), the system will not consider bulk locations, even if stock is available. The FEFO strategy still requires valid picking locations; without the proper profile setting, the directive cannot select those locations. Option B is incorrect because FEFO does rely on expiration dates, but that does not prevent picking from bulk locations—the issue is profile setup. Option C is incorrect because the exhibit shows both 'BULK' and 'PICK' profiles in the directive, so the line exists. Option D is incorrect because switching to FIFO would not resolve a profile permission issue; the core problem is profile configuration, not strategy.

Answer

The items do not have expiration dates set.

Answer

The location directive is missing a line for the 'PICK' profile.

Answer

The strategy should be FIFO instead of FEFO.

Question 8

A manufacturing company uses Dynamics 365 Finance to manage its financial operations. The finance team reports that when they post a purchase invoice, the system occasionally fails to update the general ledger correctly. What is the most likely cause of this issue?

Accepted Answer

Incorrect inventory posting profiles. Option A is correct because inventory posting profiles determine how inventory transactions are posted to the general ledger. If they are not correctly set up, posting may fail or update the wrong accounts. Option B is wrong because audit policies review transactions after posting and do not affect the general ledger update process itself. Option C is wrong because budget control settings prevent posting when budget is exceeded, but the issue described is intermittent and not specifically related to budget constraints. Option D is wrong because payment schedules affect payment timing, not the posting of purchase invoices to the general ledger.

Answer

Improperly configured audit policies

Answer

Budget control settings are too restrictive

Answer

Incorrect payment schedule setup

Question 9

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 10

Refer to the exhibit. A product has a tax group of 'WA' and a tax rate of 0.087. The price is set to 29.99. A customer in Washington state purchases this product. What will be the final price including tax?

Accepted Answer

$32.60. Option C is correct because the final price including tax is calculated by adding the tax amount to the base price. The tax amount is $29.99 * 0.087 = $2.60913, which rounds to $2.61 (standard rounding to two decimal places). Adding this to $29.99 gives $32.60. Dynamics 365 Commerce applies tax rounding based on the system's tax calculation settings, typically rounding to the nearest cent.

Answer

$29.99

Answer

$32.59

Answer

$32.48

Question 11

A company uses Dynamics 365 Commerce and has multiple stores. They want to implement a loyalty program where customers earn points based on purchase amounts, and the points can be redeemed at any store. The program should also allow for tiered rewards. Which component should be used to define the loyalty program rules?

Accepted Answer

Loyalty module in Dynamics 365 headquarters. The Loyalty module in Dynamics 365 headquarters is the correct component because it is the centralized back-office tool where loyalty program rules—such as earning rates, redemption rules, and tier definitions—are configured. This module allows you to define program-wide settings that apply across all stores, ensuring consistent point accrual and redemption behavior regardless of where the customer shops.

Answer

Channel database

Answer

Point of Sale (POS)

Answer

Retail Server

Question 12

A company uses Dynamics 365 Finance and Operations. They are experiencing slow performance in the general ledger module when generating financial statements. The database administrator notices that the general journal table has grown significantly. Which action should they take to improve performance?

Accepted Answer

Use the Data archiving feature to archive old journal entries.. Option D is correct because the Data archiving feature in Dynamics 365 Finance and Operations allows moving old journal entries to a separate archive, reducing the table size and improving query performance without permanently deleting data. Option A is incorrect because partitioning the table may help but does not remove data; archiving is a better practice for reducing data volume. Option B is incorrect because adding indexes can improve read performance but also degrades write performance and does not address the root cause of large table size. Option C is incorrect because purging journal entries older than two years permanently deletes data that may be needed for reporting or legal purposes; archiving retains it.

Answer

Partition the general journal table by fiscal year.

Answer

Add additional indexes to the general journal table.

Answer

Purge all journal entries older than two years.

Question 13

A store manager needs to process a return for a customer who purchased an item using a loyalty card. The manager wants to ensure that the loyalty points originally earned from that purchase are reversed. What should the manager do?

Accepted Answer

Process the return using the standard return function in POS.. In Dynamics 365 Commerce, the standard return function in POS automatically reverses any loyalty points that were earned on the original transaction. This ensures that the customer's loyalty balance is accurately adjusted without manual intervention or external requests.

Answer

Issue a store credit instead of a refund to keep the points.

Answer

Contact the head office to adjust the points.

Answer

Manually deduct the loyalty points from the customer's account.

Question 14

A retail company uses Dynamics 365 Commerce for its online and physical stores. Customers are reporting that items added to their online shopping cart are not being reserved in the physical store's inventory. The company uses the 'Reserve inventory' feature. What is the most likely cause of this issue?

Accepted Answer

The 'Process inventory reservation' batch job is not scheduled or is failing.. The 'Reserve inventory' feature in Dynamics 365 Commerce relies on the 'Process inventory reservation' batch job to synchronize online cart reservations with physical store inventory. If this batch job is not scheduled or is failing, items added to the online shopping cart will not be reserved in the store's inventory, causing the reported issue. This is the most likely cause because the batch job is responsible for processing reservation requests from the online channel.

Answer

The 'Pick inventory' job is not configured.

Answer

The 'Reserve inventory' feature is disabled for the online store channel.

Answer

Inventory is not set up at the store level.

Question 15

A company uses Dynamics 365 Finance. The accounting team needs to create a financial report that shows actual vs. budgeted expenses by department. Which THREE components must be configured?

Accepted Answer

Financial dimension sets. Financial dimension sets (A) are required because they define the combination of dimensions (e.g., Department, Cost Center) used to segment actual and budget data in reports. Main accounts (B) are the core accounts from the chart of accounts that capture the expense values. A budget model (C) is necessary because it holds the budget amounts for each account and dimension combination, enabling the actual vs. budget comparison.

Answer

Chart of accounts

Answer

Fixed asset group

Question 16

A company uses Dynamics 365 Finance. They want to enable Copilot to assist with generating financial reports and answering questions about financial data. What must be configured first?

Accepted Answer

Copilot in Dynamics 365 Finance. B is correct because Copilot in Dynamics 365 Finance must be explicitly enabled and configured as a prerequisite before it can assist with generating financial reports or answering questions about financial data. This involves turning on the Copilot feature within the environment settings and ensuring the necessary permissions and data access are in place.

Answer

Data management framework

Answer

Power BI embedded

Answer

Finance Insights module

Question 17

A company uses Dynamics 365 Supply Chain Management. The warehouse manager wants to enable wave processing to automatically create work for outbound orders. Which setup is required?

Accepted Answer

Warehouse management parameters with wave processing enabled. Wave processing in Dynamics 365 Supply Chain Management automates the creation of picking work for outbound orders. To enable this, the warehouse management parameters must have wave processing turned on, which allows the system to automatically generate and process waves when outbound orders are released to the warehouse. Without this setting, waves must be created and processed manually, defeating the automation goal.

Answer

Inventory status for the items

Answer

Location directives for picking

Answer

Reservation hierarchy for the item

Question 18

Which TWO features are included in Dynamics 365 Commerce to enhance the customer experience?

Accepted Answer

Personalized offers. Personalized offers (B) are correct because Dynamics 365 Commerce uses AI-driven customer insights and segmentation to deliver tailored discounts and promotions in real time, directly enhancing the shopping experience. Product recommendations (C) are correct because the system leverages machine learning algorithms to analyze browsing and purchase history, suggesting relevant items to increase cross-sell and upsell opportunities.

Answer

Vendor collaboration

Answer

Inventory visibility

Answer

Demand forecasting

Question 19

Which TWO of the following are capabilities of Dynamics 365 Commerce?

Accepted Answer

Online store management. Dynamics 365 Commerce is a unified commerce solution that covers omnichannel retail operations. Online store management (Option B) is a core capability, enabling businesses to create and manage e-commerce sites with product catalogs, pricing, and promotions. Call center management (Option C) is also a key capability, providing order processing, customer service, and fulfillment features for phone-based sales channels.

Answer

Budget planning

Answer

Master planning

Answer

Employee self-service

Question 20

A retail company uses Dynamics 365 Commerce integrated with Finance. They notice that store transactions are not appearing in the general ledger. What is the most likely cause?

Accepted Answer

P-job distribution is failing. In Dynamics 365 Commerce integrated with Finance, store transactions are processed through a series of batch jobs. The P-job (Processing job) is responsible for pulling raw transaction data from the channel database into the headquarters (HQ) staging tables. If the P-job distribution is failing, transactions never reach HQ, and therefore cannot be posted to the general ledger, even if statement posting is run later.

Answer

Commerce scheduler is not configured

Answer

Statement posting is not run

Answer

Inventory update is not completed

MB-920 Practice Test 5 — 25 Questions

Exhibit

MB-920 Practice Test 5 — 25 Questions

Exhibit