MB-920 Practice Test 27 — 15 Questions

Question 1

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?

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

Accepted Answer

Intercompany elimination rules. 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.

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Fixed asset management

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Budget control

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Vendor collaboration

Question 2

A finance team in Dynamics 365 Finance needs to automate the generation of vendor payments based on due dates and available cash discounts. Which feature should they use?

Accepted Answer

Payment proposals. Payment proposals in Dynamics 365 Finance allow the finance team to automatically generate vendor payments by filtering invoices based on due dates and cash discount terms. This feature evaluates vendor invoices against configured payment schedules and discount periods, then proposes payments for approval or direct processing, eliminating manual selection.

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Vendor invoices

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Vendor collaboration workspace

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Purchase orders

Question 3

A Dynamics 365 Finance administrator configures a financial dimension called 'Department' with the following dimension values: 100 - Sales, 200 - Marketing, 300 - IT, 400 - HR. An accountant needs to post an expense to the Marketing department. Which dimension value should they use?

Accepted Answer

200. In Dynamics 365 Finance, financial dimensions use a code-value structure. The dimension value code for Marketing is 200. When posting transactions, the code is used, not the display name. Therefore, the accountant must use dimension value 200 to post an expense to the Marketing department.

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100

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300

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400

Question 4

Which THREE capabilities are provided by Dynamics 365 Finance? (Select three.)

Accepted Answer

General ledger. The General ledger is the core of Dynamics 365 Finance, providing a centralized chart of accounts, journal entries, and financial reporting. It enables organizations to track all financial transactions and maintain a complete audit trail, which is fundamental to the application's finance capabilities.

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Warehouse management

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Asset management

Question 5

A company uses Dynamics 365 Finance and has multiple legal entities. They want to share a chart of accounts across all entities while allowing different fiscal calendars. What configuration should be used?

Accepted Answer

Shared chart of accounts with entity-specific fiscal calendars. D is correct because Dynamics 365 Finance allows a shared chart of accounts across legal entities while enabling entity-specific fiscal calendars. This configuration meets the requirement of maintaining a unified account structure for reporting and consolidation, while respecting local regulatory or business needs for different fiscal year periods.

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Single fiscal calendar for all entities

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Separate chart of accounts per entity

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Consolidations with elimination

Question 6

Refer to the exhibit. A Power BI report configuration for Dynamics 365 Finance and Operations shows a data source, measure, filter, and visual. What does this configuration produce?

Accepted Answer

A bar chart of total sales for 2025. The configuration shows a filter set to 'Year = 2025', a measure for 'Total Sales', and a visual type set to 'Bar chart'. This means the report will display a bar chart of total sales specifically for the year 2025, not any other year or a line chart over time.

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A bar chart of total sales for 2024

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A table showing total sales by year

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A line chart of total sales over time

Question 7

A company wants to use AI to automatically classify vendor invoices in Dynamics 365 Finance. Which feature should be enabled?

Accepted Answer

Invoice capture. Invoice capture in Dynamics 365 Finance is the feature specifically designed to automatically classify and process vendor invoices using AI and machine learning. It ingests invoices from various sources (email, SharePoint, etc.), uses OCR to extract data, and then applies AI models to classify the invoice and route it for approval. This directly addresses the requirement to automatically classify vendor invoices.

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Intelligent order management

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Vendor collaboration

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Optical character recognition (OCR)

Question 8

A company uses Dynamics 365 Finance and Operations. They want to automate the approval of purchase orders based on the total amount. What should they configure?

Accepted Answer

Workflow for purchase orders. Workflows in Dynamics 365 Finance and Operations allow you to define automated business processes, such as approval of purchase orders based on conditions like total amount. By configuring a workflow for purchase orders, you can set up conditional approval rules (e.g., if amount > $5,000, route to manager; if > $20,000, route to director) without custom code. This directly addresses the requirement to automate approval based on the total amount.

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Procurement catalog

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Vendor master

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Purchase order form configuration

Question 9

A company uses Dynamics 365 Supply Chain Management and wants to implement a policy where a specific supplier must be used for a particular item. Which configuration enforces this?

Accepted Answer

Add the supplier to the approved supplier list for the item.. In Dynamics 365 Supply Chain Management, the approved supplier list for an item enforces that only specific suppliers can be used for that item. This configuration is used to restrict procurement to approved vendors, ensuring compliance with company policies.

Answer

Configure a procurement category and assign the supplier.

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Create a purchase agreement with that supplier.

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Set the supplier as the default vendor on the item's vendor setup.

Question 10

Which THREE modules are part of Dynamics 365 Supply Chain Management?

Accepted Answer

Master planning. Master planning (A) is a core Dynamics 365 Supply Chain Management module that generates planned orders and demand/supply forecasts to keep inventory aligned with requirements. Transportation management (D) is also part of Supply Chain Management, handling carriers, rate engines, load planning, and freight reconciliation for inbound and outbound shipments. Warehouse management (E) belongs to Supply Chain Management as well, providing advanced inbound/outbound workflows, location directives, work templates, and mobile device handling. Project management (B) is not a Supply Chain Management module; project accounting and project management capabilities live in Dynamics 365 Project Operations. Human resources (C) is not part of Supply Chain Management either, since HR capabilities are delivered through Dynamics 365 Human Resources.

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Project management

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Human resources

Question 11

You are a business analyst at Northwind Traders, a wholesale distribution company using Dynamics 365 Finance. The company processes a high volume of customer invoices daily. The accounts receivable team is spending too much time manually applying customer payments to open invoices. The CFO wants to automate the payment application process to reduce manual effort. You are evaluating the use of payment journal templates and payment proposals. What should you configure?

Accepted Answer

Set up payment proposals in the customer payment journal to automatically apply payments to open invoices.. Payment proposals in the customer payment journal automate the application of customer payments to open invoices by generating payment lines based on criteria such as due date, discount date, or invoice number. This directly reduces manual effort for the accounts receivable team. Configuring payment proposals is the correct approach to automate payment application.

Answer

Configure settlement priority so that payments are automatically applied to the oldest invoice first.

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Create payment journal templates that automatically post payments to the ledger.

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Use the 'Apply payments' button on the customer payment journal to manually select invoices for each payment.

Question 12

A multinational organization uses Dynamics 365 Finance with multiple legal entities. They need to centralize cash management and consolidate bank account balances across entities. What is the recommended approach?

Accepted Answer

Use the Cash and bank management module with cross-company bank accounts. The Cash and bank management module in Dynamics 365 Finance supports cross-company bank accounts, allowing centralized visibility and management of bank balances across legal entities. Option A is incorrect because the General ledger consolidation process is for aggregating financial data for reporting, not real-time cash management. Option C is incorrect because Budget control is used to enforce spending limits, not for cash visibility. Option D is incorrect because Intercompany accounting handles transactions between entities, but does not provide centralized cash management.

Answer

Run the consolidation process in General ledger

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Configure Budget control for each entity

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Set up intercompany accounting for each entity

Question 13

A company uses Dynamics 365 Finance and Operations with multiple legal entities. They need to eliminate intercompany transactions during consolidation. What should they configure?

Accepted Answer

Elimination rules in consolidation. Elimination rules in consolidation are specifically designed to remove intercompany transactions when consolidating financial data from multiple legal entities. In Dynamics 365 Finance, these rules automatically generate reversing entries to eliminate balances between entities, ensuring the consolidated financial statements reflect only external transactions. This is the correct configuration for eliminating intercompany activity during the consolidation process.

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Consolidation groups

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Financial dimensions

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Intercompany accounting setup

Question 14

Refer to the exhibit. A company manufactures a finished good (FGI-100) and produces a co-product (CP-01) during production. The cost accountant notices that the cost of FGI-100 does not reflect the offset from the co-product. What should they configure?

Accepted Answer

Set up co-product cost allocation. In Dynamics 365 Supply Chain Management, when a production order yields both a main finished good and one or more co-products, the cost of the main item must be reduced by the value of the co-products produced. This offset is achieved by configuring co-product cost allocation, which defines how the total production cost is split between the main item and the co-products based on a cost allocation percentage or a burden method. Without this configuration, the full production cost is absorbed by FGI-100, and the co-product CP-01 carries no cost offset, exactly the symptom described.

Answer

Adjust the costing sheet

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Create a new BOM version

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Define a route version

Question 15

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager notices that raw material inventory levels frequently drop below the reorder point, causing production delays. Which feature should be configured to automatically suggest purchase orders based on demand and current inventory levels?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management automatically calculates net requirements and suggests purchase orders based on demand, current inventory levels, and lead times. It considers reorder points, safety stock, and forecasted demand to generate planned orders. This directly addresses the issue of raw material inventory dropping below reorder points and causing production delays.

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Landed cost

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Warehouse management

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Inventory Visibility