MB-920 Practice Test 26 — 15 Questions

Question 1

A company uses Dynamics 365 Finance. The finance team notices that the general ledger journal balance does not equal the sum of debits and credits. What could cause this discrepancy?

Accepted Answer

Unbalanced journal entry. An unbalanced journal entry, where total debits do not equal total credits, will cause the general ledger balance to not match the sum of debits and credits. Option A is incorrect because the voucher number series merely assigns identifiers and does not affect accounting balances. Option B is incorrect because posting profile configuration determines how transactions are posted to accounts but does not cause an imbalance if the journal entry itself is balanced. Option D is incorrect because user permissions control access rights, not the balancing of journal entries.

Answer

Incorrect voucher number series

Answer

Incorrect posting profile configuration

Answer

User permissions

Question 2

A company uses Dynamics 365 Supply Chain Management. They want to use the product configurator to allow salespeople to configure a product's options (e.g., color, size) based on rules. What should they create?

Accepted Answer

Constraint-based product configuration model.. Constraint-based product configuration models use constraints and rules to define valid combinations of options like color and size, allowing salespeople to configure products. Option A (BOM and route) is for manufacturing, not sales configuration. Option B (product variant with predefined options) would require predefining every combination, which is less flexible. Option D (item configuration group) is not a standard concept for rule-based configuration.

Answer

Bill of materials (BOM) and route.

Answer

Product variant with predefined options.

Answer

Item configuration group.

Question 3

Which TWO benefits does using Lifecycle Services (LCS) provide for Dynamics 365 Finance and Operations implementations? (Choose two.)

Accepted Answer

Providing implementation methodology guidance. Options B and C are correct. Lifecycle Services (LCS) provides implementation methodology guidance (e.g., Microsoft Sure Step) and allows provisioning of cloud-hosted environments for development and testing. Option A is incorrect because custom code development is done in Visual Studio, not a core benefit of LCS. Option D is incorrect because user subscriptions are managed through the Microsoft 365 admin center. Option E is incorrect as AI-powered insights are not a primary feature of LCS.

Answer

Writing custom code

Answer

Managing user subscriptions

Answer

Providing AI-powered insights

Question 4

A company uses Dynamics 365 Supply Chain Management. They need to automatically reorder inventory when stock falls below a certain level. Which feature should they use?

Accepted Answer

Reorder point and replenishment. The reorder point and replenishment feature in Dynamics 365 Supply Chain Management automatically generates purchase orders or transfer orders when inventory falls below the defined reorder point. Option A is incorrect because inventory blocking is used to prevent stock from being used, not for automatic reordering. Option C is incorrect because cycle counting is a method to audit inventory accuracy, not to trigger replenishment. Option D is incorrect because safety stock levels define a minimum buffer but do not automatically create orders; they work in conjunction with reorder points.

Answer

Inventory blocking

Answer

Cycle counting

Answer

Safety stock levels

Question 5

A company uses Dynamics 365 Supply Chain Management and wants to automatically reorder stock when inventory falls below a defined level. Which functionality should be configured?

Accepted Answer

Reorder point. The Reorder point functionality triggers purchase orders automatically when inventory falls below a defined level. Option A is incorrect because Cycle counting is an inventory accuracy process, not for replenishment. Option B is incorrect because Inventory aging is for valuation analysis, not for automatic reordering. Option D is incorrect because Safety stock is a buffer quantity but does not automatically create orders; it is used in conjunction with reorder points or other replenishment methods.

Answer

Cycle counting

Answer

Inventory aging

Answer

Safety stock

Question 6

A company uses Dynamics 365 Supply Chain Management. They are experiencing delays in production because the system does not automatically order raw materials when inventory drops below a certain level. Which master planning parameter should be configured to address this?

Accepted Answer

Reorder point. The reorder point (Option D) is the correct parameter to configure for automatic ordering when inventory drops below a certain level. In Dynamics 365 Supply Chain Management, the reorder point defines a minimum inventory level that triggers a planned order for replenishment. Coverage groups (Option A) define planning parameters for groups of items but do not directly trigger automatic ordering. Safety stock (Option B) is a buffer level to protect against uncertainty but does not initiate orders. Forecast (Option C) is used for demand estimation, not for automatic replenishment.

Answer

Coverage group

Answer

Safety stock

Answer

Forecast

Question 7

A manufacturing company uses Dynamics 365 Finance and Operations. They need to automate the process of creating purchase orders when inventory for a critical raw material drops below a predefined level. The solution must minimize manual intervention and ensure that purchase orders are created only during business hours. Which feature should they configure?

Accepted Answer

Define reorder point and coverage group for the item, and schedule the master planning batch job to run during business hours.. Defining a reorder point and coverage group for the item allows the system to automatically suggest replenishment when inventory falls below the reorder point. Scheduling the master planning batch job to run during business hours ensures that purchase orders are created only during those hours, minimizing manual intervention. Option A is incorrect because simply configuring item coverage settings without defining a reorder point and scheduling master planning does not automate order creation during specific hours. Option C is incorrect because purchase requisition workflows require manual approval steps, contradicting the requirement to minimize manual intervention. Option D is incorrect because setting safety stock levels only influences planning suggestions but does not automatically create purchase orders or restrict creation to business hours.

Answer

Configure item coverage settings and run the master planning batch job during business hours.

Answer

Create a purchase requisition workflow that triggers when inventory falls below a certain level.

Answer

Set up safety stock levels for the raw material.

Question 8

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 with Azure Machine Learning can ingest external data such as weather patterns and economic indicators to improve demand predictions. Option A is incorrect because Sales and marketing forecasting typically relies on historical sales data, not external factors. Option B is incorrect because Master planning uses internal demand forecasts, not external data. Option D is incorrect because Supply planning focuses on procurement and inventory management, not forecasting with external data.

Answer

Sales and marketing forecasting

Answer

Master planning

Answer

Supply planning

Question 9

Refer to the exhibit. A validation rule configuration for Dynamics 365 Finance and Operations is shown. What happens when a user enters a vendor invoice with an invoice date of tomorrow and a total amount of $100?

Accepted Answer

The date rule fails and the invoice is not saved. The validation rule checks that InvoiceDate <= Today. Since tomorrow's date is greater than today, the date rule fails, and the invoice is not saved. Option A is incorrect because the amount rule does not fail (the total amount is positive $100). Option B is incorrect because the date rule fails, so the invoice is not saved. Option D is incorrect because the date rule fails, not passes.

Answer

The amount rule fails and the invoice is not saved

Answer

Both rules pass and the invoice is saved

Answer

The date rule passes, but the amount rule fails

Question 10

A company uses Dynamics 365 Finance to manage intercompany transactions. They need to ensure that when a sales order is created in one legal entity, a corresponding purchase order is automatically generated in another legal entity. Which feature should they configure?

Accepted Answer

Intercompany trading. Intercompany trading in Dynamics 365 Finance automatically generates corresponding purchase orders in other legal entities when sales orders are created. Option A is incorrect because Budget control is for managing spending limits, not intercompany order generation. Option C is incorrect because Elimination rules are used to remove intercompany transactions in consolidated reports. Option D is incorrect because Consolidations is for combining financial results, not operational transactions.

Answer

Budget control

Answer

Elimination rules

Answer

Consolidations

Question 11

A company uses Dynamics 365 Supply Chain Management. They need to track the location of items in the warehouse using barcodes. Which feature should they use?

Accepted Answer

Warehouse management. Warehouse management in Dynamics 365 Supply Chain Management uses mobile devices to scan barcodes and track inventory location. Option A (Quality management) is focused on quality control, not location tracking. Option B (Inventory management) is the base module for inventory transactions but lacks barcode-directed warehouse operations. Option C (Transportation management) handles shipment planning, not warehouse-level tracking.

Answer

Quality management

Answer

Inventory management

Answer

Transportation management

Question 12

A company uses Transportation Management. The exhibit shows a rate configuration for a carrier. If a shipment weighs 8 kg, what is the total freight cost?

Accepted Answer

$45.00. The total freight cost is calculated as RateBase + (RatePerKg * weight) = $25.00 + ($2.50 * 8 kg) = $25.00 + $20.00 = $45.00. Since $45.00 exceeds the MinimumCharge of $10.00, the total is $45.00. Option B is incorrect because it equals only the MinimumCharge ($10.00), ignoring the RateBase and per-kg charge. Option C is incorrect because it equals only the per-kg charge ($20.00), omitting the RateBase. Option D is incorrect because it represents an erroneous calculation, such as using the RateBase plus MinimumCharge ($35.00).

Answer

$10.00

Answer

$20.00

Answer

$35.00

Question 13

A company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to ensure that high-value items are stored in the most secure locations. What feature should they use to define storage restrictions based on item value?

Accepted Answer

Location directives. Location directives are used in Dynamics 365 Supply Chain Management to define rules for item placement, including criteria such as item value, to ensure high-value items are stored in secure locations. Inventory status codes track item availability, not placement. Warehouse zones group locations but do not enforce placement rules based on item value. Product filters are used for item selection, not storage restrictions.

Answer

Inventory status codes

Answer

Product filters

Answer

Warehouse zones

Question 14

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. Workers are reporting that pick lines are being created with incorrect locations, causing delays. What could be the root cause?

Accepted Answer

Location directives are incorrectly configured.. Location directives determine the specific pick locations for work orders based on criteria such as inventory location, zone, and sequence. If misconfigured, incorrect locations are assigned, causing delays. Option A is incorrect because mobile device menu items affect the user interface and scanning, not the location logic. Option B is incorrect because wave templates group work and create waves but do not assign specific locations. Option D is incorrect because work templates define the structure of work (e.g., which lines form pick and put) but not the actual locations.

Answer

Mobile device menu items are set up incorrectly.

Answer

Wave templates are not assigned to the correct warehouse.

Answer

Work templates have the wrong work class.

Question 15

A logistics manager wants to optimize delivery routes to reduce transportation costs. Which module in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Transportation management. Transportation management handles routing and freight optimization. Option B is incorrect because Procurement and sourcing is for purchasing. Option C is incorrect because Warehouse management is for warehousing. Option D is incorrect because Production control is for manufacturing.

Answer

Procurement and sourcing

Answer

Warehouse management

Answer

Production control