MB-920 Practice Test 28 — 15 Questions

Question 1

A company uses Dynamics 365 Finance and needs to track expenses by department and project simultaneously. Which financial dimension configuration should they use?

Accepted Answer

Add Department and Project as financial dimensions to the main account.. Financial dimensions in Dynamics 365 Finance allow you to tag transactions with multiple attributes like Department and Project simultaneously. By adding Department and Project as financial dimensions to the main account, you can track expenses by both dimensions in parallel. This is the standard configuration for multi-dimensional financial reporting.

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Create separate cost centers and cost objects.

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Use main accounts and subaccounts.

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Configure budget codes and budget classes.

Question 2

A batch job in Dynamics 365 Supply Chain Management is recalculating inventory on-hand and is currently at 45% progress. The job has been running for 2 hours. What should the administrator do to analyze performance?

Accepted Answer

Review the batch job history for execution details. Reviewing the batch job history provides detailed execution logs, including step-by-step progress, error messages, and performance metrics such as duration per task. This allows the administrator to identify bottlenecks or failures in the recalculation process without interrupting the job. The batch job history is the primary diagnostic tool for analyzing long-running jobs in Dynamics 365 Supply Chain Management.

Answer

Check the status of other batch jobs

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Configure a batch job alert

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Cancel the job and restart it

Question 3

A company uses Dynamics 365 Supply Chain Management and wants to track the environmental impact of their products, such as carbon footprint, across the supply chain. Which capability should they use?

Accepted Answer

Sustainability. The Sustainability capability in Dynamics 365 Supply Chain Management is specifically designed to track and manage environmental impact metrics such as carbon footprint across the supply chain. It provides tools to calculate, monitor, and report on emissions and other sustainability data tied to products and processes.

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Demand planning

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Product feedback

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Asset management

Question 4

A service company uses Dynamics 365 Finance to manage fixed assets. They recently acquired a building and want to split the cost between land (non-depreciable) and building (depreciable). How should they set this up?

Accepted Answer

Create two fixed asset records: one for land with non-depreciable profile, and one for building with depreciable profile. In Dynamics 365 Finance, land and buildings must be set up as separate fixed asset records because land is non-depreciable while buildings are depreciable. Each asset record is linked to a book with the appropriate depreciation profile — land uses a non-depreciable profile, and the building uses a depreciable profile. This ensures correct depreciation calculation and financial reporting.

Answer

Create one fixed asset record for the total cost and manually adjust depreciation

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Use the 'Component Depreciation' feature to split the asset

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Create a parent asset for the building and a sub-asset for the land

Question 5

A project manager needs to create a project from a template that includes a predefined work breakdown structure (WBS) and resource assignments. The template should automatically create the project tasks and assign resources based on skill requirements. Which feature in Dynamics 365 Project Operations should the project manager use?

Accepted Answer

Project template. Project templates in Dynamics 365 Project Operations allow a project manager to create a new project that automatically includes a predefined work breakdown structure (WBS) and resource assignments. When the template is applied, it generates the project tasks and assigns resources based on the skill requirements defined in the template, streamlining project setup and ensuring consistency.

Answer

Project budget

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Resource Reconciliation view

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Scheduling assistant

Question 6

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They have multiple vendors for the same raw material. The procurement team wants to receive automatic suggestions on which vendor to select when creating purchase orders, based on the lowest price and best delivery history. Currently, the buyers research manually. Which feature should they use?

Accepted Answer

Vendor scorecards and rating. Vendor scorecards and rating in Dynamics 365 Supply Chain Management allow procurement teams to evaluate and compare vendors based on criteria such as price and delivery history, enabling automatic suggestions when creating purchase orders. Option A is incorrect because request for quotation is a process to solicit bids from vendors, not a tool for automatic suggestion. Option B is incorrect because purchase agreements are contracts that define terms, not a recommendation mechanism. Option C is incorrect because vendor collaboration is a portal for communication and document sharing, not for vendor evaluation and suggestion.

Answer

Request for quotation

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Purchase agreements

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Vendor collaboration

Question 7

A company uses Dynamics 365 Supply Chain Management. They need to track the movement of inventory items using barcodes and RFID tags. Which module should they use?

Accepted Answer

Warehouse management. Warehouse management (B) is correct because it provides dedicated functionality for tracking inventory movement using barcodes and RFID tags through its mobile device integration and wave processing. This module enables real-time scanning of items during receiving, picking, packing, and shipping operations, leveraging GS1-128 barcode standards and RFID reader integration for automated data capture.

Answer

Inventory management

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Transportation management

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Production control

Question 8

A company uses Dynamics 365 Supply Chain Management. They want to use AI to predict when a critical machine is likely to fail so that maintenance can be scheduled proactively. Which module should they configure?

Accepted Answer

Asset Management. Asset Management in Dynamics 365 Supply Chain Management is the module designed for managing physical assets, including maintenance planning, work orders, and predictive maintenance. It integrates with IoT and AI capabilities to predict equipment failures and schedule proactive maintenance, which directly matches the requirement to predict critical machine failure. Production control, warehouse management, and transportation management do not provide asset failure prediction or maintenance scheduling.

Answer

Warehouse management

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Transportation management

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Production control

Question 9

A global company uses Dynamics 365 Finance and needs to comply with multiple tax regulations. They want to automatically apply the correct tax rate based on the customer's address. What should be configured?

Accepted Answer

Tax determination by address. To automatically apply the correct tax rate based on the customer's address in Dynamics 365 Finance, you configure 'Tax determination by address'. This feature uses the delivery address or primary address of the customer to determine the appropriate sales tax group and item sales tax group, enabling compliance with multiple tax regulations without manual intervention.

Answer

Tax exempt numbers

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Tax reporting

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Manual tax overrides

Question 10

Which THREE are components of the Dynamics 365 Supply Chain Management demand-driven planning?

Accepted Answer

Demand-driven reorder logic. Demand-driven planning in Dynamics 365 Supply Chain Management (the DDMRP-based functionality) is built around three core components: demand-driven reorder logic, buffer levels, and decoupling points. Option B, demand-driven reorder logic, is correct because the system uses buffer-position-based replenishment signals (net flow position versus buffer thresholds) rather than traditional forecast-based reordering to trigger supply orders. Option C, buffer levels, is correct because each decoupled item or location is assigned a buffer with zones (red, yellow, green) defined by the average daily usage, decoupling lead time, and variability factors, which determine when and how much to reorder. Option E, decoupling points, is correct because they are the strategic positions in the bill of materials or supply network where inventory buffers are placed to absorb variability and decouple upstream and downstream operations. Option A, product variants, is not a component of demand-driven planning itself; variants are simply item configurations that may be planned, and the same applies to Option D, cost accounting, which is a separate financial module and not part of the demand-driven planning methodology.

Answer

Product variants

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Cost accounting

Question 11

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager reports that the system is not automatically reserving raw materials when a production order is released. What should you check first?

Accepted Answer

Confirm that the 'Automatic reservation' field is set to 'On' in the production order defaults.. The most direct cause of automatic reservation not occurring on release is that the 'Automatic reservation' field in the production order defaults is not set to 'On'. This setting controls whether the system automatically reserves raw materials when a production order is released.

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Check if the raw materials are batch-controlled and batch attributes are configured.

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Verify that the raw materials have an inventory status of 'Available'.

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Ensure that the production route includes all required operation steps.

Question 12

A project-based organization uses Dynamics 365 Project Operations. They need to track time and materials against a project and invoice the customer based on actuals. Which project contract billing method should they use?

Accepted Answer

Time and material. A is correct because the Time and Material billing method in Dynamics 365 Project Operations allows the organization to track actual hours and expenses against a project and invoice the customer based on those actuals. This method is designed for projects where the scope is not fully defined upfront, and billing is directly tied to the recorded time and material consumption.

Answer

Cost plus

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Fixed price

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Milestone billing

Question 13

A company uses Dynamics 365 Supply Chain Management to plan production. They need to ensure that materials are available to meet production schedules without overstocking. Which module would they use to balance supply and demand?

Accepted Answer

Master Planning. Master Planning in Dynamics 365 Supply Chain Management is the module responsible for balancing supply and demand. It evaluates current inventory, open production orders, purchase orders, and demand forecasts to generate planned orders that ensure materials are available without overstocking. This is the core purpose of master planning (MRP) — netting requirements against supply to produce a feasible plan.

Answer

Production Control

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Inventory Management

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Warehouse Management

Question 14

A manufacturing company uses Dynamics 365 Finance and Operations. They need to track the consumption of raw materials in real time during production runs. Which feature should they use?

Accepted Answer

Production orders. Production orders are the correct feature because they are the primary mechanism in Dynamics 365 Finance and Operations for managing and tracking the manufacturing process, including real-time consumption of raw materials through operations such as 'Start', 'Report as finished', and 'Picking list' registrations. This allows for immediate updates to inventory levels and work-in-progress accounting during production runs.

Answer

Warehouse mobile device menu items

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Purchase orders

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Inventory journals

Question 15

A company uses Dynamics 365 Supply Chain Management. The warehouse manager wants to use barcode scanning for receiving and shipping. Which feature should be configured?

Accepted Answer

Warehouse mobile app. The Warehouse Management mobile app in Dynamics 365 Supply Chain Management is the purpose-built interface for barcode scanning on handheld devices for receiving, put-away, picking, packing, and shipping. It is configured through mobile device menus, work user accounts, and work classes. This is the correct feature for enabling barcode-driven warehouse operations.

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Product information management

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Sales and marketing

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Master planning