MB-920 Practice Test 30 — 15 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management. They need to track inventory by batch number and expiration date. How should they configure the product?

Accepted Answer

Assign a tracking dimension group that includes batch and expiration date. In Dynamics 365 Supply Chain Management, batch numbers and expiration dates are tracking dimensions, which are configured through tracking dimension groups. A tracking dimension group defines which tracking dimensions (e.g., batch number, serial number, expiration date) are active and mandatory for an item. Therefore, to track inventory by batch number and expiration date, you must assign a tracking dimension group that includes these dimensions. Option A is incorrect because storage dimension groups control dimensions like site, warehouse, and location, not batch or expiration dates. Option C is correct.

Answer

Assign a storage dimension group that includes batch and expiration date

Answer

Enable warehouse management only

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Configure the item's product category

Question 2

A multinational corporation uses Dynamics 365 Finance and Operations with multiple legal entities. The finance team needs to generate a consolidated financial statement that eliminates intercompany transactions automatically. Which feature should they use?

Accepted Answer

Consolidation. Consolidation in Dynamics 365 Finance and Operations is specifically designed to combine financial data from multiple legal entities into a single set of consolidated financial statements. It includes built-in functionality to automatically eliminate intercompany transactions and balances, ensuring that the consolidated report reflects only external financial activity. This directly meets the requirement for generating a consolidated financial statement with automatic intercompany elimination.

Answer

Intercompany accounting

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Budget planning

Answer

Financial reporting

Question 3

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

Accepted Answer

Warehouse Management. Warehouse Management (A) is a core module within Dynamics 365 Supply Chain Management, handling inbound/outbound operations, work creation, wave and load planning, and mobile device-driven picking and put-away. Inventory Management (D) is also a native Supply Chain Management module, covering on-hand inventory tracking, item and warehouse dimensions, inventory transactions, reservations, and costing. Sales and Marketing (B) is not a Supply Chain Management module; it belongs to Dynamics 365 Sales (customer engagement). Human Resources (C) is a separate Dynamics 365 Human Resources application, not part of Supply Chain Management. Project Management and Accounting (E) is a module in Dynamics 365 Finance, not Supply Chain Management.

Answer

Sales and Marketing

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Human Resources

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Project Management and Accounting

Question 4

Refer to the exhibit. The JSON snippet shows a main account configuration in Dynamics 365 Finance. Based on this configuration, which of the following is true about this account?

Accepted Answer

It has a debit balance of 100,000.. The question cannot be validated because the referenced exhibit is missing. If the exhibit is intended to show a main account configuration, it would typically contain fields such as Main account category, Posting type, and Account type — not a posted balance. A main account's balance is derived from posted ledger entries, not from configuration JSON. Without the exhibit, none of the options can be confirmed as correct.

Answer

It defaults to credit posting.

Answer

It belongs to the Bank main account category.

Answer

It is a liability account.

Question 5

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the production schedule is not reflecting real-time capacity constraints, causing delays. Which feature should they configure to dynamically adjust schedules based on current resource availability?

Accepted Answer

Finite scheduling. Finite scheduling in Dynamics 365 Supply Chain Management considers actual resource capacity constraints (machine hours, labor, working calendars) when sequencing production jobs, so the schedule reflects real-time availability. It dynamically adjusts job start/end times when resources are constrained, preventing over-capacity scheduling. This is exactly what the scenario requires to stop delays caused by ignoring capacity limits.

Answer

Shop floor execution

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Gantt chart views

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Material requirements planning (MRP)

Question 6

During a financial audit, it is discovered that some vendor invoices were posted with incorrect tax codes. The tax codes were set up correctly, but users manually overrode them. How can the company prevent manual tax code overrides in the future?

Accepted Answer

Set the 'Tax code override' option to 'No' in Accounts payable parameters.. The correct option is C: setting the 'Tax code override' option to 'No' in Accounts payable parameters directly prevents users from manually changing the default tax code on vendor invoices, which addresses the exact control gap described. Since the tax codes themselves were configured correctly and the problem was manual overrides, this parameter setting enforces the default tax code and blocks user edits at the point of invoice entry. Option A only records changes for auditing and does not stop overrides, while option D adds an approval step rather than preventing the override itself. Option B is a correction mechanism for already-posted tax differences and does not prevent future manual overrides.

Answer

Enable audit trail for tax code changes.

Answer

Use tax settlement to adjust incorrect tax.

Answer

Implement a workflow approval for tax codes.

Question 7

A manufacturing company uses Dynamics 365 Finance to manage its financial operations. The finance team reports that when they post a purchase invoice, the system occasionally fails to update the general ledger correctly. What is the most likely cause of this issue?

Accepted Answer

Incorrect vendor (Accounts payable) posting profiles. The most likely cause is an incorrectly configured vendor (Accounts payable) posting profile. In Dynamics 365 Finance, the vendor posting profile determines the summary and ledger accounts used when a purchase invoice is posted, so a misconfigured vendor posting profile causes the general ledger to be updated with wrong or missing account entries. Inventory posting profiles map inventory transactions (receipts, issues, etc.) to ledger accounts and are not the primary determinant for purchase invoice GL posting. Options B, C, and D do not fit: audit policies only track database changes and do not affect ledger posting, budget control settings block or warn on budget overruns rather than cause incorrect GL updates, and payment schedules only control due date distribution of payments, not general ledger account determination.

Answer

Improperly configured audit policies

Answer

Budget control settings are too restrictive

Answer

Incorrect payment schedule setup

Question 8

A company wants to automate the generation of vendor payments based on due dates. Which Dynamics 365 Finance feature should they use?

Accepted Answer

Payment proposals. Correct: Payment proposals automate payment generation. Option A (Cash flow forecasting) is wrong because it is used for predicting cash positions, not initiating payments. Option B (Purchase agreements) is wrong because they define contract pricing and terms, not payment processing. Option D (Vendor invoice capture) is wrong because it is for capturing invoice data, not generating payments.

Answer

Cash flow forecasting

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Purchase agreements

Answer

Vendor invoice capture

Question 9

A retail company using Dynamics 365 Commerce is experiencing slow performance in the point of sale (POS) system during peak hours. The company uses a hybrid deployment with on-premises back-office and cloud-based POS. What is the most likely cause of the performance issue?

Accepted Answer

Network latency between on-premises and cloud environments. In a hybrid deployment where the on-premises back-office handles data processing and the cloud-based POS relies on real-time communication, network latency between the two environments is the most likely cause of slow performance during peak hours. The POS system must send requests (e.g., inventory lookups, transaction processing) to the on-premises back-office over the internet, and high latency or packet loss can significantly degrade response times, especially under heavy load.

Answer

On-premises data center overload

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Incorrect POS hardware profile configuration

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Insufficient POS terminal memory

Question 10

A company wants to automate the replenishment of raw materials to production lines based on actual consumption. Which capability in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Kanban rules. Kanban rules in Dynamics 365 Supply Chain Management are specifically designed to automate material replenishment based on actual consumption signals (e.g., from production line scans or barcode reads). They implement a pull-based system where a kanban card triggers a replenishment event only when material is consumed, aligning directly with the requirement for consumption-driven automation.

Answer

Master planning

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Quality management

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Vendor collaboration

Question 11

A company using Dynamics 365 Finance needs to generate financial statements in a specific format required by local regulators. Which tool should they use?

Accepted Answer

Financial reporting (Management Reporter). Financial reporting (Management Reporter) is the dedicated Dynamics 365 Finance tool for designing and generating formatted financial statements — balance sheets, income statements, cash flow statements — that comply with specific regulatory layouts. It supports row/column/tree definitions and can output to formats regulators accept. Power BI, GL inquiry, and Excel export cannot produce the governed, repeatable regulatory statement formats that Financial reporting provides.

Answer

Power BI dashboards

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General ledger inquiry

Answer

Excel export and manual formatting

Question 12

A company's finance team reports that in the general ledger, the balance for the 'Office Supplies' account shows a credit balance of $500, but they expected a debit balance. What is the most likely cause of this discrepancy?

Accepted Answer

A voucher was posted with the wrong debit/credit sign. In Dynamics 365 Finance, the general ledger account for 'Office Supplies' is an expense account, which normally carries a debit balance. A credit balance indicates that a voucher was posted with the wrong debit/credit sign, such as entering a negative amount or selecting the wrong account type during transaction entry. This is the most common cause of a balance sign reversal in an expense account.

Answer

The period close process was run without finalizing

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A reversing entry was posted incorrectly

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A financial dimension was incorrectly assigned

Question 13

A company using Dynamics 365 Finance notices that the trial balance does not balance because the 'Accounts Payable' account has a negative balance. What could be the reason?

Accepted Answer

A vendor payment was posted to the wrong vendor account. A negative balance in the Accounts Payable account typically indicates that credits (payments) exceed debits (invoices) for a vendor. Posting a vendor payment to the wrong vendor account creates a credit balance in the intended vendor's subledger without a corresponding invoice, causing the trial balance to be out of balance because the general ledger account reflects the payment but the subledger detail is misaligned.

Answer

A prepayment invoice was posted without a purchase order

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Intercompany transactions were posted incorrectly

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A bank reconciliation was not performed

Question 14

A company uses Dynamics 365 Finance and needs to ensure that all vendor invoices are approved by the department manager before payment. Which feature should they use?

Accepted Answer

Configure vendor invoice workflows. Vendor invoice workflows in Dynamics 365 Finance allow you to define a business process that routes invoices for approval based on specific conditions, such as department manager approval. This feature ensures that invoices are reviewed and approved before payment is processed, meeting the requirement for managerial approval.

Answer

Set up payment schedules

Answer

Enable invoice matching validation

Answer

Create purchase order approval workflows

Question 15

An organization uses Dynamics 365 Finance and Operations with dual-write integration to Dataverse. They notice that some financial dimension values are not syncing correctly. What should they verify first?

Accepted Answer

Dual-write mapping configurations. Dual-write mapping configurations define how financial dimension values are synchronized between Dynamics 365 Finance and Operations and Dataverse. If the mappings are incorrect or incomplete, specific dimension values will not sync properly. Verifying these mappings is the first logical step before investigating other integration components.

Answer

Microsoft Entra ID application registration

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Power Automate flows

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Data management framework export settings