MB-920 Practice Test 5 — 25 Questions

Question 1

Which TWO features in Dynamics 365 Finance can help automate accounts payable processes?

Accepted Answer

Vendor invoice automation. Vendor invoice automation (C) is correct because it uses the Vendor invoice automation feature in Accounts payable to automatically match incoming vendor invoices to purchase orders and product receipts, run invoice validation, and route exceptions to workflow, thereby reducing manual AP data entry. Payment proposal (E) is correct because the Payment proposal/Vendor payment proposal process in Accounts payable lets you generate, review, and post vendor payment journals automatically based on criteria such as due date, cash discount, and payment method, which automates the outbound payment side of AP. Collections management (A) is incorrect because it is an Accounts receivable feature for managing customer collections, not vendor payables. Bank reconciliation (B) is incorrect because it reconciles bank statements to ledger transactions and does not automate vendor invoice or payment processing. Customer payment predictions (D) is incorrect because it is an Accounts receivable AI feature that predicts when customers will pay, which is unrelated to automating accounts payable.

Answer

Collections management

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Bank reconciliation

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Customer payment predictions

Question 2

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.

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Cost accounting

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Procurement and sourcing

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Inventory management

Question 3

A Dynamics 365 administrator is configuring Copilot features for the sales team. Which TWO actions should the administrator take to ensure responsible AI usage?

Accepted Answer

Enable the feedback mechanism to allow users to report inaccurate responses. Enabling the feedback mechanism allows users to report inaccurate or inappropriate Copilot responses, which is a core requirement for responsible AI usage. This feedback loop helps administrators identify and correct issues, ensuring the AI system remains trustworthy and compliant with Microsoft's responsible AI principles. Without this mechanism, the organization would lack visibility into potential harms or inaccuracies generated by the AI.

Answer

Disable access to all customer data to prevent Copilot from using it

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Restrict Copilot to only respond in English

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Encrypt all data at rest and in transit

Question 4

Refer to the exhibit. The production order status is 'Started' and BOM consumption is set to 'Manual'. What must happen before the order can be reported as finished?

Accepted Answer

A picking list must be registered to consume raw materials. When BOM consumption is set to Manual, raw materials are not automatically consumed when the production order starts. A picking list must be posted/registered to physically consume the components before the order can be reported as finished. This ensures inventory is correctly relieved and costs are captured.

Answer

The system automatically consumes raw materials

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The order must be scheduled again

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The order must be estimated

Question 5

A food processing company uses Dynamics 365 Supply Chain Management. They need to track raw materials by lot number for quality control and recall management. The company purchases ingredients from multiple vendors, and each lot must be traceable from the vendor to the final product. The company also needs to ensure that when a product is produced, the system automatically consumes the raw materials based on the batch order. You need to configure the system to support lot tracking and automatic consumption. You have the following options: A. Enable lot tracking in the Product master for each raw material. Use the Batch order process with automatic consumption set to 'At start' or 'At completion'. B. Use the Warehouse Management module to configure location directives for lot-controlled items. C. Enable serial tracking for all raw materials and manually enter serial numbers during production. D. Use the Inventory Management module to create inventory adjustments for lot consumption. Which option should you choose?

Accepted Answer

Enable lot tracking in the Product master for each raw material. Use the Batch order process with automatic consumption set to 'At start' or 'At completion'.. Lot tracking in Dynamics 365 Supply Chain Management is enabled at the item level via the tracking dimension group assigned in the Product master, which activates the Lot ID dimension for inventory transactions. Combining that with the Batch order process and setting automatic consumption to 'At start' or 'At completion' makes the system consume the lot-controlled raw materials automatically when the batch order is started or reported finished, satisfying both traceability and automatic consumption.

Answer

Use the Warehouse Management module to configure location directives for lot-controlled items.

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Enable serial tracking for all raw materials and manually enter serial numbers during production.

Answer

Use the Inventory Management module to create inventory adjustments for lot consumption.

Question 6

A company uses Dynamics 365 Finance. The accounts receivable team needs to send payment reminders to customers automatically. Which feature should they configure?

Accepted Answer

Collection letters. Collection letters in Dynamics 365 Finance are used to automatically generate and send payment reminders to customers with overdue balances. The accounts receivable team configures collection letter sequences, which define when and how reminders are issued based on due dates and aging.

Answer

Customer payment journals

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Interest notes

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Invoice journals

Question 7

Your organization is implementing Dynamics 365 Finance and needs to manage intercompany transactions between two legal entities. The transactions should be automatically reconciled in the general ledger. Which configuration is required?

Accepted Answer

Intercompany accounting. Intercompany accounting in Dynamics 365 Finance enables automatic creation and reconciliation of transactions between legal entities. It requires setting up intercompany accounting relationships, defining due-to/due-from accounts, and configuring posting profiles. This ensures that when a transaction is entered in one legal entity, the corresponding entries are automatically generated in the counterparty legal entity and reconciled in the general ledger.

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Currency revaluation

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Organization hierarchy

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Consolidation

Question 8

A food and beverage company uses Dynamics 365 Supply Chain Management. They need to manage batch attributes such as shelf-life and allergen information for raw materials. Which feature should they configure?

Accepted Answer

Batch attributes. Batch attributes in Dynamics 365 Supply Chain Management are specifically designed to track characteristics of batch-controlled items, such as shelf-life, allergen information, country of origin, and potency. Configuring batch attributes lets the company record and query these properties per batch of raw materials, which is exactly the requirement described.

Answer

Quality orders

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Inventory dimension groups

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Product variants

Question 9

A company uses Dynamics 365 Finance. The accounts payable team needs to automatically calculate discounts based on payment terms when entering vendor invoices. Where should they configure the discount?

Accepted Answer

Payment terms. Payment terms in Dynamics 365 Finance define the discount percentage, discount period, and net due period for vendor invoices. Configuring the cash discount on the payment terms record allows the system to automatically calculate the discount when the invoice is entered and the terms are applied.

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Procurement categories

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Invoice policies

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Vendor master

Question 10

A logistics company uses Dynamics 365 Supply Chain Management to manage transportation. They want to use the built-in route planning to optimize delivery routes. Which module should they primarily use?

Accepted Answer

Transportation management. Transportation management in Dynamics 365 Supply Chain Management is the module specifically designed for planning, executing, and optimizing transportation operations, including route planning. It provides tools for load building, route scheduling, and rate shopping to optimize delivery routes. The built-in route planning capabilities, such as the Transportation management engine, are part of this module. Therefore, the logistics company should use Transportation management to achieve their goal.

Answer

Warehouse management

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Production control

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Inventory management

Question 11

A manufacturing company uses Dynamics 365 Supply Chain Management. The production planner notices that work orders are not being automatically generated when raw material inventory falls below the reorder point. Which configuration should the administrator verify?

Accepted Answer

Master planning setup. Master planning in Dynamics 365 Supply Chain Management is responsible for generating planned orders (including production orders) based on inventory levels, demand, and reorder points. If work orders are not being generated when inventory falls below the reorder point, the master planning setup (e.g., coverage settings, reorder point, planned order type) should be verified.

Answer

Product configuration model

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Production control parameters

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Quality management configuration

Question 12

A company uses Dynamics 365 Supply Chain Management and wants to improve demand forecasting by including external data such as weather patterns and economic indicators. Which feature should be used?

Accepted Answer

Demand forecasting with Azure Machine Learning. Demand forecasting in Dynamics 365 Supply Chain Management is designed to extend beyond internal historical data by integrating external signals. The Azure Machine Learning-powered demand forecasting feature allows companies to blend internal sales history with external datasets such as weather patterns, economic indicators, and social trends to produce more accurate predictions. This is the only option that natively supports external data ingestion for forecasting purposes.

Answer

Sales and marketing forecasting

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Master planning

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Supply planning

Question 13

Match each Dynamics 365 Human Resources entity to its role.

Accepted Answer

Worker: Represents an individual employed by the organization. In HR, Worker tracks individuals, Position is a specific assignment of a Job. Distractors confuse Job with location or Worker with role.

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Job: A specific physical location where work is performed

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Worker: A set of duties and responsibilities grouped into a role

Question 14

Match each Dynamics 365 Finance module to its primary function.

Accepted Answer

General ledger: Records all financial transactions and provides a complete audit trail. The correct matches are: General ledger (records transactions), Accounts payable (vendor invoices), Accounts receivable (customer invoices), and Fixed assets (asset lifecycle). Distractors swap definitions between General ledger and Accounts payable.

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General ledger: Manages customer invoices and payments

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Accounts payable: Records all financial transactions and audit trail

Question 15

A company uses Dynamics 365 Human Resources. They need to track employee training and certifications. Which module should they use?

Accepted Answer

Learning management. The Learning management module in Dynamics 365 Human Resources is specifically designed to track employee training, certifications, and skill development. It allows administrators to define courses, assign them to employees, record completion, and manage expiration dates for certifications, directly meeting the requirement.

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Benefits management

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Organization administration

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Leave and absence

Question 16

Which TWO features are part of Dynamics 365 Finance shared financial management? (Select exactly two.)

Accepted Answer

Accounts payable. Accounts payable (Option C) is a core component of Dynamics 365 Finance shared financial management, handling vendor invoices, payments, and expense tracking across legal entities. It is part of the shared financial management module that provides centralized processing of payables, ensuring consistency and compliance in multi-company environments.

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Fixed assets

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Budget control

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Cash flow forecasting

Question 17

Which TWO features in Dynamics 365 Finance help ensure compliance with regulatory reporting requirements?

Accepted Answer

Electronic reporting (ER) tool. Electronic reporting (ER) tool (B) is correct because it provides a configurable, no-code framework for designing and generating regulatory documents and statutory reports in required formats (for example, XML, JSON, or Excel) that can be mapped to specific country/region schemas and submitted to tax or government authorities. Tax reporting (D) is correct because Dynamics 365 Finance includes dedicated tax reporting capabilities, such as sales tax/GST/VAT reporting, withholding tax reporting, and tax declaration generation, which directly support statutory and regulatory filing obligations. Budget control (A) is not the intended answer because it governs spending limits and budget checks, not external regulatory reporting. Fixed asset management (C) handles asset acquisition, depreciation, and disposal accounting, but it is not itself a regulatory reporting compliance feature. Vendor collaboration (E) supports supplier interactions and procurement processes, not regulatory report generation or submission.

Answer

Budget control

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Fixed asset management

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Vendor collaboration

Question 18

Match each Dynamics 365 Commerce feature to its purpose.

Accepted Answer

Channel: A point of interaction between the retailer and the customer (e.g., online, physical store). The correct matches are: Channel (point of interaction), Product Catalog (collection of products), Order Fulfillment (picking/packing/shipping). Common confusions involve swapping definitions of Channel with Order Fulfillment, Product Catalog with Pricing Engine, and so on.

Answer

Channel: The process of picking, packing, and shipping customer orders

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Product Catalog: Determines prices based on pricing rules and promotions

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Pricing Engine: A collection of products and their attributes suitable for sale

Question 19

Refer to the exhibit. The SQL-like query is used to retrieve data from Dynamics 365 Finance. What does this query return?

Accepted Answer

Main accounts with total debits greater than 10,000, ordered by total descending.. The query uses aggregation (SUM) with a GROUP BY on main account, a HAVING-style filter for totals greater than 10,000, and an ORDER BY total DESC. This returns only main accounts whose aggregated debit totals exceed the threshold, sorted from highest to lowest. It does not return individual journal entries, so it is a summary/aggregate result rather than a transaction listing.

Answer

All general journal entries for a specific main account.

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Main accounts with total amounts less than 10,000, ordered ascending.

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All main accounts with any activity in 2025.

Question 20

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. Transportation management in Dynamics 365 Supply Chain Management is the module designed to plan, rate, and consolidate loads and shipments, including pooling multiple sales orders destined for the same customer into a single shipment to reduce freight cost. It provides load building, route planning, rate shopping across carriers, and freight reconciliation — exactly the capabilities needed to consolidate shipments and optimize logistics spend. Warehouse management handles internal storage and picking, not outbound shipment consolidation across orders.

Answer

Warehouse management

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Sales and marketing

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Master planning