MB-920 Practice Test 26 — 15 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management and wants to ensure that when a sales order is created, the system automatically checks if there is enough inventory to fulfill it. If not, the order should be placed on hold until the required materials are available. Which feature should they use?

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

Accepted Answer

Available-to-Promise (ATP) with inventory reservation. Available-to-Promise (ATP) with inventory reservation in Dynamics 365 Supply Chain Management checks inventory availability when a sales order is created. If sufficient inventory is not available, the system can place the order on hold until the required materials are available. This ensures that orders are only confirmed when fulfillment is possible, preventing overselling and managing customer expectations.

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Inbound load planning

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Transfer order status

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Quality orders

Question 2

A company uses Dynamics 365 Supply Chain Management and wants to ensure that when a sales order is created, the system automatically checks if there is enough inventory to fulfill it. If not, the order should be placed on hold until the required materials are available. Which feature should they use?

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

Accepted Answer

Procurement and sourcing. Procurement and sourcing in Dynamics 365 Supply Chain Management covers the entire purchase-to-pay cycle: purchase requisitions, RFQs, purchase orders, vendor comparison, and vendor master data including price, lead time, and quality ratings. Comparing suppliers before selecting a vendor is exactly the RFQ/vendor-evaluation workflow handled by this module.

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Production control

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Sales and marketing

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Inventory management

Question 3

A company uses Dynamics 365 Supply Chain Management to manage quality inspections. They want to automatically generate quality orders for specific products upon receipt. What should they configure?

Accepted Answer

Quality associations. Quality associations in Dynamics 365 Supply Chain Management define the rules that automatically trigger quality orders when specific events occur, such as product receipt for a given item, vendor, or site. By configuring a quality association with the appropriate document type (e.g., receipt) and item sampling, the system generates quality orders automatically. This is the intended mechanism for automating inspection workflows.

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Nonconformance tracking

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Test instruments

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Quality groups

Question 4

A manufacturer uses Dynamics 365 Supply Chain Management and wants to improve demand forecasting accuracy by incorporating external data such as weather and economic indicators. Which module should they use?

Accepted Answer

Demand forecasting. The Demand forecasting module in Dynamics 365 Supply Chain Management is specifically designed to generate and manage demand forecasts, and it supports incorporating external signals such as weather and economic indicators via Azure Machine Learning. This module is where forecast models are trained and forecast entries are produced for master planning. Using it directly addresses the requirement to improve accuracy with external data.

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Master planning

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Product information management

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Inventory management

Question 5

A retail company uses Dynamics 365 Supply Chain Management and wants to ensure that products are available at the right locations to meet customer demand without overstocking. Which planning method should they use?

Accepted Answer

Replenishment planning. Replenishment planning in Dynamics 365 Supply Chain Management is designed to balance supply and demand by ensuring that products are available at the right locations at the right time, without carrying excess inventory. It uses master planning to calculate net requirements and generate planned orders (purchase, transfer, production) to replenish stock based on demand forecasts, safety stock, and lead times. This directly addresses the retail company's goal of meeting customer demand without overstocking.

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Intercompany planning

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Capacity planning

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Product lifecycle management

Question 6

A global manufacturer uses Dynamics 365 Supply Chain Management. They need to configure a product that is manufactured in multiple variants based on size and color, with each variant having its own bill of materials (BOM). Which product configuration approach should they use?

Accepted Answer

Product master with predefined variants. A product master with predefined variants allows a single product definition to have multiple variants (e.g., size and color), each with its own bill of materials, routing, and other variant-specific data. This is the standard approach when variants are known and finite, and each requires distinct manufacturing inputs. It supports variant-specific BOMs without creating separate products.

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Single product with multiple BOM versions

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Product master with constraint-based configuration

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Catch weight product

Question 7

A company wants to use AI to predict customer payment times in Dynamics 365 Finance. Which feature should they enable?

Accepted Answer

Customer payment predictions. Dynamics 365 Finance includes a Customer payment predictions feature that uses machine learning to predict when customers will pay their invoices, based on historical payment behavior. Enabling this feature allows the system to generate predictions that help prioritize collections and improve cash flow forecasting. This is the specific AI capability designed for predicting customer payment times.

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Cash flow forecasting

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Financial reporting

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Invoice capture

Question 8

Northwind Traders uses Dynamics 365 Finance for financial operations. They have a high volume of vendor invoices (5000 per month). Currently, invoices are manually entered into the system. The AP team is overwhelmed and making errors. The company wants to implement automation using AI to capture invoice data from PDFs and emails, and automatically match them to purchase orders. They also want to set up approval workflows for invoices that do not match. You are the Dynamics 365 consultant. What should you recommend?

Accepted Answer

Implement Microsoft Dynamics 365 Invoice capture to automatically extract invoice data and use PO matching with approval workflows.. Dynamics 365 Finance includes the Invoice capture feature, which uses AI Builder/OCR to extract header and line data from PDF and email invoices, then feeds them into the vendor invoice workflow where PO matching and approval routing occur. This directly addresses the AP team's volume, accuracy, and approval requirements without custom code. It is the native, supported automation path for high-volume AP processing.

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Hire temporary staff to enter invoices and use a batch posting job.

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Enable vendor collaboration so vendors can enter invoices directly.

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Use Microsoft Power Automate to process invoices and send them to the AP team for manual entry.

Question 9

A company uses Dynamics 365 Finance and needs to track expenses by department and project. Which dimension type should be used to capture this information?

Accepted Answer

Financial dimensions.. Financial dimensions in Dynamics 365 Finance are the actual data elements (such as Department, CostCenter, or Project) that get attached to transactions to enable tracking and reporting by those categories. To track expenses by department and project, you create financial dimensions for Department and Project and assign them to the relevant account structures. Dimension sets and account structures are configuration mechanisms that use dimensions, not the dimensions themselves.

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Account structures.

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Dimension sets.

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Advanced rules.

Question 10

Refer to the exhibit. A warehouse location is configured with LocationProfileId 'BULK' and MaxPalletWeight 1000. What is the primary purpose of this configuration?

Accepted Answer

To define physical constraints like weight capacity. The configuration sets LocationProfileId to 'BULK' and MaxPalletWeight to 1000. In Dynamics 365 Supply Chain Management, a location profile defines the physical characteristics of a warehouse location, such as weight capacity, volume, and dimensions. MaxPalletWeight specifically enforces the maximum weight a pallet can hold at that location, ensuring safe storage and handling. Thus, the primary purpose is to define physical constraints like weight capacity, not to specify zones, picking routes, or item restrictions.

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To specify the warehouse zone

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To define the picking route sequence

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To restrict the types of items stored

Question 11

A company uses Dynamics 365 Finance. The finance team notices that the general ledger balances do not match the subsidiary ledger balances for accounts payable. What should they investigate first?

Accepted Answer

Unposted vendor invoices and payments. The most likely cause of a mismatch between general ledger and subsidiary ledger balances for accounts payable is unposted vendor invoices and payments. These transactions are recorded in the subsidiary ledger but not yet posted to the general ledger, causing a temporary difference. Investigating unposted items is the first step.

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The audit trail of posted transactions

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The process automation framework

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The posting profiles for vendors

Question 12

A manufacturing company uses Dynamics 365 Finance. The procurement team notices that purchase order (PO) approvals are taking too long because managers are frequently out of office. They want to configure a fallback approval process. What should you do?

Accepted Answer

Configure an alternate approver or escalation step in the purchase order approval workflow.. Dynamics 365 Finance purchase order workflows support configuring an alternate approver and escalation steps directly in the workflow definition. When the primary approver is unavailable, the workflow can automatically route the task to an alternate approver or escalate after a timeout, providing a built-in fallback without manual intervention. This is the correct configuration-level solution.

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Instruct managers to delegate their approvals to a colleague before leaving.

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Use the workflow history to identify pending approvals and reassign them.

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Create a Microsoft Power Automate flow to reassign the PO when the manager is out of office.

Question 13

A company uses Dynamics 365 Finance and needs to create a consolidated financial report that combines data from multiple legal entities. Which feature should be used?

Accepted Answer

Consolidation module.. The Consolidation module in Dynamics 365 Finance is purpose-built to combine financial data from multiple legal entities into a single consolidated view. It allows you to define consolidation groups, select the accounts and dimensions to include, and run consolidation processes that aggregate balances across legal entities into a single consolidation legal entity. This is the standard feature for producing consolidated financial statements across a multi-entity organization.

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Budget consolidation.

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Financial reporting module.

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Intercompany accounting.

Question 14

A distribution company uses Dynamics 365 Supply Chain Management to manage its supply chain. Recently, the company has been facing issues with late deliveries to customers. The root cause analysis shows that the planning department is not accurately accounting for lead times from suppliers. The company wants to improve the accuracy of purchase order delivery dates. You need to configure the system to automatically calculate purchase order delivery dates based on vendor lead times and calendar exceptions. The company uses the Master Planning module for supply planning. You have the following options: A. Configure the Warehouse Management module to use the shipment consolidation functionality to adjust delivery dates. B. Manually adjust delivery dates on each purchase order based on phone calls with vendors. C. Use the Procurement and Sourcing module to create blanket purchase agreements that override lead times. D. Set up vendor lead times in the Vendor master and configure the purchase lead time field in the Product master. Then run Master Planning to generate planned purchase orders with correct delivery dates. Which option should you choose?

Accepted Answer

Set up vendor lead times in the Vendor master and configure the purchase lead time field in the Product master. Then run Master Planning to generate planned purchase orders with correct delivery dates.. Setting vendor lead times in the Vendor master and purchase lead times in the Product master, then running Master Planning, lets Dynamics 365 Supply Chain Management automatically calculate purchase order delivery dates while accounting for calendar exceptions. Master Planning uses these lead times to generate planned purchase orders with accurate dates.

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Configure the Warehouse Management module to use the shipment consolidation functionality to adjust delivery dates.

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Manually adjust delivery dates on each purchase order based on phone calls with vendors.

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Use the Procurement and Sourcing module to create blanket purchase agreements that override lead times.

Question 15

A retail company using Dynamics 365 Commerce wants to implement a loyalty program that rewards customers based on purchase frequency and total spend. They need to assign different point multipliers for specific product categories. Which configuration should they use?

Accepted Answer

Loyalty program rules. Loyalty program rules in Dynamics 365 Commerce allow you to define earning and redemption rules, including point multipliers based on product categories. This configuration directly supports rewarding customers based on purchase frequency and total spend while assigning different multipliers for specific categories, making it the correct choice.

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Category hierarchy rules

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Assortment management

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Channel navigation hierarchy