MB-920 Practice Test 29 — 15 Questions

Question 1

A company is implementing Dynamics 365 Finance and needs to configure a chart of accounts that supports multiple legal entities with different fiscal year requirements. What should the administrator do to ensure each legal entity can have its own fiscal calendar while sharing the main accounts?

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

Accepted Answer

Configure shared main accounts and assign a separate fiscal calendar to each legal entity.. In Dynamics 365 Finance, the chart of accounts is shared across legal entities, but each legal entity can have its own fiscal calendar. Configuring shared main accounts and assigning a separate fiscal calendar per legal entity allows multiple legal entities with different fiscal year requirements to use the same chart of accounts while maintaining independent fiscal periods.

Answer

Assign a fiscal calendar to each main account.

Answer

Create a single fiscal calendar and share it across all legal entities.

Answer

Create a separate chart of accounts for each legal entity.

Question 2

A company is implementing Dynamics 365 Finance and needs to support multiple legal entities with different fiscal calendars. Which feature should be used to manage this requirement?

Accepted Answer

Individual fiscal calendars assigned to each legal entity.. Dynamics 365 Finance supports multiple fiscal calendars, and each legal entity can be assigned its own fiscal calendar in the Ledger setup. This allows entities with different year-end dates or period structures to operate independently within the same instance.

Answer

Fiscal year templates applied to all entities.

Answer

Shared fiscal calendars across all legal entities.

Answer

Ledger period configurations in the general ledger.

Question 3

A company using Dynamics 365 Finance needs to ensure that purchase orders exceed a certain amount require additional approval from a director. Which feature should be configured?

Accepted Answer

Purchase order workflow. Purchase order workflow in Dynamics 365 Finance allows configuration of conditional approval rules based on amount thresholds, so that POs exceeding a specified amount require director approval. Workflows are the standard mechanism for defining approval hierarchies and conditions in Finance and Operations apps.

Answer

Approval journal

Answer

Procurement and sourcing parameters

Answer

Budget manager role

Question 4

A warehouse manager wants to assign workers to specific zones and track their performance. Which warehouse management feature should be used?

Accepted Answer

Labor management. Labor management in Dynamics 365 Supply Chain Management is specifically designed to assign workers to zones and track their performance, including metrics like productivity and efficiency. This feature enables warehouse managers to define labor standards, monitor worker activities, and generate performance reports, directly addressing the scenario's requirements.

Answer

Location directives

Answer

Work templates

Answer

Mobile device menu items

Question 5

A company uses Dynamics 365 Finance and Operations. They are experiencing slow performance in the general ledger module when generating financial statements. The database administrator notices that the general journal table has grown significantly. Which action should they take to improve performance?

Accepted Answer

Use the Data archiving feature to archive old journal entries.. The Data archiving feature in Dynamics 365 Finance and Operations is designed to move historical data from the primary database to an archive database, reducing the size of the active database and improving performance for operations like financial statement generation. This is the recommended approach for managing large tables like the general journal.

Answer

Partition the general journal table by fiscal year.

Answer

Add additional indexes to the general journal table.

Answer

Purge all journal entries older than two years.

Question 6

You are the Dynamics 365 Finance and Operations administrator for a medium-sized manufacturing company. The company has two legal entities: a US entity (USMF) and a Canadian entity (CAN). The finance team in the US wants to view the Canadian entity's purchase order data in real-time from within the USMF environment. They do not want to log into a separate instance. The company has a single Dynamics 365 Finance and Operations environment with both legal entities configured. You need to configure the system to allow users in USMF to access purchase order data from CAN without duplicating data. The solution must maintain security so that only authorized users can view Canadian data. What should you do?

Accepted Answer

Configure Cross-company data sharing for purchase orders and assign appropriate security roles.. Cross-company data sharing allows real-time access to purchase order data from the CAN legal entity within the USMF environment without duplicating data. By configuring data sharing policies for the purchase order tables and assigning appropriate security roles, you ensure that only authorized users in USMF can view the Canadian data while maintaining data integrity and security.

Answer

Use Data entities to export purchase order data from CAN and import it into USMF on a scheduled basis.

Answer

Set up Data integration to sync purchase order data to Dataverse and then access it from USMF.

Answer

Create an Organizational hierarchy to allow USMF users to view CAN data automatically.

Question 7

You are a Dynamics 365 consultant for a wholesale distribution company that uses Dynamics 365 Supply Chain Management. The company has a warehouse that uses a 'pick and pack' process. They recently implemented mobile device scanning for warehouse operations. The warehouse manager reports that when workers try to pick items using the mobile device, they receive an error: 'Work not found for this location'. The work creation process is set up correctly, and the mobile device menu items are configured. The location directives and work templates appear correct. The inventory is available at the location. What is the most likely cause?

Accepted Answer

The work has not been released to the mobile device user or warehouse. The error 'Work not found for this location' typically occurs when the work order has been created but not yet released to the warehouse or assigned to a specific user. In Dynamics 365 Supply Chain Management, work must be released via the 'Release to warehouse' process or through wave execution before it becomes available for mobile device scanning. Since the location directives and work templates are correct and inventory exists, the most likely cause is that the work has not been released to the mobile device user or warehouse.

Answer

The item is not enabled for mobile device processing

Answer

The mobile device menu item is not linked to the correct work template

Answer

The location profile is not set to allow picking

Question 8

A retail company uses Dynamics 365 Finance to manage its fixed assets. They purchase a new delivery truck. Which fixed asset transaction type should they use to record the purchase?

Accepted Answer

Acquisition. In Dynamics 365 Finance Fixed Assets, the Acquisition transaction type is used to record the initial capitalization of a new asset, including its cost basis, acquisition date, and placement into service. When a company purchases a delivery truck, this transaction creates the asset record and posts the corresponding ledger entries to the fixed asset acquisition accounts.

Answer

Impairment

Answer

Disposal

Answer

Depreciation

Question 9

Which THREE processes are supported by the Production control module in Dynamics 365 Supply Chain Management?

Accepted Answer

Process manufacturing. The Production control module in Dynamics 365 Supply Chain Management supports three production types: Process manufacturing (A), which uses formulas, co-products/by-products, and batch orders for industries like chemicals and food; Discrete manufacturing (B), which uses bills of materials (BOMs) and routes to produce distinct countable units; and Lean manufacturing (D), which uses kanbans, production flows, and activities to support just-in-time pull-based production. These three are the core production methodologies natively configured within the Production control module. Project manufacturing (C) is not a separate production type in Production control; project-related production is handled through the Project management and accounting module, which can reference production orders but is not itself a Production control process. Service management (E) is not part of Production control at all; it belongs to the Service management module used for service orders, agreements, and repairs.

Answer

Project manufacturing

Answer

Service management

Question 10

Your organization is implementing Dynamics 365 Finance and needs to ensure that all financial transactions comply with local regulatory requirements for electronic invoicing in a specific country. Which feature should be configured?

Accepted Answer

Electronic reporting (ER). Electronic reporting (ER) is the correct feature because it provides a configurable tool for generating electronic documents in formats required by local regulations, such as electronic invoices. ER allows you to define the data model, mapping, and format for outbound documents, ensuring compliance with country-specific electronic invoicing requirements without custom code.

Answer

Data entities

Answer

Budget control

Answer

Audit policies

Question 11

Your company is implementing Dynamics 365 Finance and needs to manage intercompany transactions. Which TWO statements about intercompany accounting are correct?

Accepted Answer

Intercompany transactions can be eliminated during consolidation using elimination rules.. Option B is correct because Dynamics 365 Finance supports intercompany elimination during consolidation through elimination rules configured on the consolidation accounts, allowing reciprocal balances and transactions between legal entities to be offset so the consolidated financial statements reflect only external activity. Option C is correct because intercompany journals (General ledger > Journal entries > Intercompany accounting) let you post a single voucher that automatically creates the corresponding due-to/due-from entries in the specified offset legal entities, effectively transferring balances between them. Option A is wrong because intercompany transactions are not limited to sales orders; they also cover purchase orders, intercompany journals, and other voucher types. Option D is wrong because intercompany accounting is designed to avoid duplicate manual entry — one entry generates the reciprocal entries in the counterpart legal entity. Option E is wrong because it directly contradicts option B: elimination rules do exist and are used precisely to eliminate intercompany balances during consolidation.

Answer

Intercompany transactions are only supported for sales orders.

Answer

Intercompany transactions must be entered manually in each legal entity.

Answer

Intercompany transactions cannot be eliminated during consolidation.

Question 12

Which TWO are key features of Dynamics 365 Finance?

Accepted Answer

Financial reporting. Option D (Financial reporting) is correct because Dynamics 365 Finance includes core general ledger capabilities that produce financial statements such as balance sheets, income statements, and cash flow reports, along with configurable financial dimensions and reporting via Financial Reporter and Management Reporter. Option E (Budgeting) is correct because Dynamics 365 Finance provides budget planning, budget control, and budget register entries that let organizations create, approve, and enforce budgets against actual transactions. The unmarked options do not belong: Human resources (A) is a separate Dynamics 365 Human Resources app, Inventory management (B) is a core capability of Dynamics 365 Supply Chain Management, and Customer relationship management (C) belongs to Dynamics 365 Sales/Customer Engagement rather than Finance.

Answer

Human resources

Answer

Inventory management

Answer

Customer relationship management

Question 13

A manufacturing company uses Dynamics 365 Finance. They need to track the cost of raw materials and finished goods across multiple production stages. Which costing method should they use?

Accepted Answer

Standard costing. Standard costing in Dynamics 365 Finance uses predetermined costs for materials and finished goods, allowing the manufacturer to value inventory and analyze variances across multiple production stages. It is the preferred method when production processes are repetitive and costs are estimated in advance, enabling consistent tracking of raw material and work-in-progress costs.

Answer

Moving average

Answer

Last in, first out (LIFO)

Answer

First in, first out (FIFO)

Question 14

A company needs to calculate the cost of manufactured products including direct materials, labor, and overhead. Which costing methodology in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Standard costing. Standard costing is the correct methodology because it allows the company to define predetermined costs for direct materials, labor, and overhead, and then calculate variances against actual costs. In Dynamics 365 Supply Chain Management, standard costing is specifically designed for manufacturing scenarios where you need to value inventory and cost of goods sold based on expected costs, with variance tracking for deviations.

Answer

Weighted average

Answer

FIFO

Answer

Moving average

Question 15

A company wants to use Dynamics 365 Finance to manage its cash flow. Which feature allows them to forecast future cash positions based on historical data and expected payments?

Accepted Answer

Cash flow forecasting. Dynamics 365 Finance includes a Cash flow forecasting feature that projects future cash positions by combining historical transaction patterns with expected customer payments, vendor invoices, and other scheduled cash movements. It uses ledger data and forecast models to produce rolling projections. This is the specific capability designed for the scenario described.

Answer

General ledger

Answer

Bank reconciliation

Answer

Payment schedules