MB-920 Practice Test 30 — 15 Questions

Question 1

Refer to the exhibit. The configuration shows a budget in Dynamics 365 Finance. The budget manager wants to create a revised budget based on the original but cannot modify the existing record. What should they do?

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

Accepted Answer

Create a new budget scenario for the revision. Budget revisions in Dynamics 365 Finance require a new budget scenario; the existing approved record cannot be edited. Option A is incorrect because changing the budget status to Draft would not allow modification if the budget is already in a workflow that locks editing. Option B is incorrect because deleting and recreating is inefficient and loses history. Option C is incorrect because modifying the BudgetModel changes the structure, not the amounts, and may affect other budgets using that model.

Answer

Change the BudgetStatus to Draft to allow editing

Answer

Delete the existing budget and recreate it with changes

Answer

Modify the BudgetModel to include the changes

Question 2

Which THREE of the following are capabilities of the Budgeting module in Dynamics 365 Finance?

Accepted Answer

Budget control to monitor budget consumption. Budget control is a capability of the Budgeting module that monitors budget consumption against actual expenditures. Option C is correct because budget register entries allow users to record and manage budget amounts. Option E is correct because budget planning enables the creation and management of budget proposals. Option B is incorrect because processing vendor invoices is handled in the Accounts payable module, not the Budgeting module. Option D is incorrect because generating financial statements is performed in the Financial reporting module.

Answer

Process vendor invoices

Answer

Generate financial statements

Question 3

Refer to the exhibit. A company in Germany configures electronic reporting to generate ISO 20022 credit transfer payment files. The finance team reports that the generated file fails validation by the bank. What is the most likely cause?

Accepted Answer

The country context is set incorrectly for the bank's requirements.. The company is in Germany (DEU), but the bank's validation likely requires a specific country context that matches the bank's local requirements. ISO 20022 credit transfer formats are country-specific; using the default DEU format may omit required fields or use incorrect codes. Option A is wrong because model mapping missing fields would cause a different error during generation, not validation failure. Option B is wrong because the format name (ISO 20022 Credit Transfer) is standard and correct. Option C is wrong because version 10.0.30 is current and generally compatible.

Answer

The model mapping is missing required fields.

Answer

The format name is incorrect for credit transfers.

Answer

The version number is outdated.

Question 4

Refer to the exhibit. An accounts payable invoice journal is configured as shown. A user posts an invoice for 1000.00 with vendor account V1001. Which account is credited?

Accepted Answer

Default offset account 200110. When posting an invoice using the invoice register journal, the credit is recorded to the default offset account (200110) temporarily. This is a standard behavior in Dynamics 365 Finance for invoice registers. Option A is incorrect because the vendor account is not credited until the invoice is approved and posted. Option B is incorrect because the expense account is typically debited, not credited. Option C is incorrect because there is no separate vendor balance account in this context; the vendor balance is updated later.

Answer

Vendor account V1001

Answer

Expense account

Answer

Vendor balance account

Question 5

A company needs to ensure that when a sales order is created, the system automatically checks if the customer's credit limit is sufficient. If not, the order should be placed on hold. Which setup is required?

Accepted Answer

Credit management. Credit management in Dynamics 365 Supply Chain Management is the dedicated module that enforces credit limits during sales order processing. When a sales order is created, the system evaluates the customer's credit limit against the order total; if the limit is exceeded, the order is automatically placed on hold. This behavior is controlled by credit limit rules and blocking configurations within the Credit management module.

Answer

Accounts receivable parameters

Answer

Collections management

Answer

Customer payment settlement

Question 6

Refer to the exhibit. The exhibit shows the period status configuration for the USMF legal entity. An accounts payable clerk in the 'AP clerks' user group is trying to post a vendor invoice dated January 15, 2024. What will happen?

Accepted Answer

The invoice cannot be posted until the period is opened.. The period status is 'On hold' with the posting restriction 'No posting allowed'. This means that no transactions can be posted in this period, regardless of user role or group membership. Therefore, the invoice dated January 15, 2024, cannot be posted until the period is opened by an authorized user. Option D correctly states this. Option A is incorrect because manager approval does not override the period restriction. Option B is incorrect because no posting is allowed at all. Option C is incorrect because the period status prevents posting.

Answer

The invoice can be posted only if the user has manager approval.

Answer

The user can post the invoice but not enter new transactions.

Answer

The invoice will be posted successfully.

Question 7

Refer to the exhibit. A Dynamics 365 Finance administrator is configuring a financial dimension set. What is the primary purpose of this configuration?

Accepted Answer

To enable reporting and analysis by the selected dimensions. Financial dimension sets allow users to group and analyze financial data by selected dimensions for reporting and analysis purposes. Option A is incorrect because the main account and dimension structure is defined by account structures, not dimension sets. Option B is incorrect because validation of dimension combinations is done by advanced rule structures, not dimension sets. Option C is incorrect because dimension sets do not control access; security roles and policies handle data access.

Answer

To define the main account and dimension structure

Answer

To validate financial dimension combinations

Answer

To restrict user access to specific financial data

Question 8

Refer to the exhibit. The JSON snippet shows a budget register entry configuration in Dynamics 365 Finance. Account '601500-001-023' has financial dimensions: Main account 601500, Department 001, and Project 023. Account '601500-001-024' has dimensions: Main account 601500, Department 001, Project 024. If budget control is enabled for Department 001, what is the total budget amount available for Department 001?

Accepted Answer

80,000 USD. The budget register entries for accounts 601500-001-023 (50,000 USD) and 601500-001-024 (30,000 USD) both have Department 001. With budget control enabled for that department, the total budget available is 50,000 + 30,000 = 80,000 USD. Therefore, option C (80,000 USD) is the correct answer. Option D is a duplicate and not considered a separate correct answer.

Answer

50,000 USD

Answer

30,000 USD

Answer

80,000 USD

Question 9

Which THREE of the following are valid actions when managing cash and bank management in Dynamics 365 Finance?

Accepted Answer

Reconcile a bank account. The correct actions in cash and bank management are: Reconcile a bank account (A), which matches internal records with bank statements; Forecast cash flow (B), which predicts future cash positions based on incoming and outgoing transactions; and Import bank statements (C), which brings external bank data into the system for reconciliation. Option D (Reverse a check) is typically handled in the check management submodule, not core cash management, and option E (Process credit card payments) is part of Accounts Receivable, not cash and bank management.

Answer

Reverse a check

Answer

Process credit card payments

Question 10

Your organization is implementing Dynamics 365 Finance and needs to manage intercompany transactions between two legal entities. The transactions should be automatically reconciled in the general ledger. Which configuration is required?

Accepted Answer

Intercompany accounting. Intercompany accounting setup enables automatic generation and elimination of intercompany transactions, ensuring automatic reconciliation in the general ledger. Option A (Currency revaluation) is used to adjust foreign currency balances, not for intercompany transactions. Option B (Organization hierarchy) defines reporting structures but does not handle intercompany accounting. Option D (Consolidation) combines financial data from multiple entities into a single set of statements, but does not automatically reconcile intercompany transactions.

Answer

Currency revaluation

Answer

Organization hierarchy

Answer

Consolidation

Question 11

A company needs to track fixed assets in multiple locations and calculate depreciation differently based on asset type. Some assets use straight-line depreciation, while others use declining balance. What is the best practice to manage this in Dynamics 365 Finance?

Accepted Answer

Define multiple depreciation profiles and assign them to the appropriate fixed asset groups.. Depreciation profiles define the method (e.g., straight-line, declining balance) and can be assigned to different fixed asset groups to accommodate different depreciation methods. Option A is wrong because value models are used for different valuation purposes, not to define depreciation methods. Option B is wrong because asset groups categorize assets but do not directly define depreciation methods. Option D is wrong because fixed asset journals are for posting acquisitions, disposals, and depreciation, but they do not automate the calculation based on method.

Answer

Set up value models with different depreciation conventions for each asset.

Answer

Create separate asset groups for each depreciation method and assign the method to the group.

Answer

Use fixed asset journals to manually calculate and post depreciation for each asset type.

Question 12

An organization is migrating to Dynamics 365 Finance and needs to ensure that historical financial data from the legacy system is preserved for reporting. What is the recommended approach?

Accepted Answer

Use data migration tools to import historical data into Dynamics 365 Finance.. Dynamics 365 Finance provides data migration tools that allow importing historical financial data from legacy systems, preserving details for reporting. Option B is wrong because manual re-entry is inefficient and error-prone. Option C is wrong because migrating only summary balances loses transactional detail needed for reporting. Option D is wrong because maintaining the legacy system is costly and does not leverage the new system's capabilities.

Answer

Re-enter all historical transactions manually.

Answer

Only migrate summary balances for prior periods.

Answer

Maintain the legacy system for historical reporting.

Question 13

A company uses Dynamics 365 Finance. The finance team notices that the general ledger balances do not match the subsidiary ledger balances for accounts payable. What should they investigate first?

Accepted Answer

Unposted vendor invoices and payments. The most common cause of a mismatch between the general ledger and the accounts payable subsidiary ledger is unposted vendor invoices or payments that are still in draft or pending posting. Therefore, the finance team should first investigate unposted vendor invoices and payments (Option B). Option A (audit trail of posted transactions) would only show transactions that have already been posted, not those waiting to be posted, so it would not help identify the cause. Option C (process automation framework) is unrelated to ledger reconciliation. Option D (posting profiles for vendors) define how transactions post to the general ledger but do not directly address the mismatch.

Answer

The audit trail of posted transactions

Answer

The process automation framework

Answer

The posting profiles for vendors

Question 14

A retail company uses Dynamics 365 Finance and needs to recognize revenue when goods are shipped, not when invoiced. However, the standard process posts revenue at invoice time. What should the financial accountant configure to defer revenue recognition until shipment?

Accepted Answer

Enable Revenue recognition and configure revenue schedules to defer recognition until shipment.. Dynamics 365 Finance includes a Revenue recognition feature that allows deferring revenue until the fulfillment of performance obligations, such as shipment. By enabling Revenue recognition and configuring revenue schedules, the company can recognize revenue at shipment rather than at invoice. Option A is incorrect because free text invoices do not integrate with shipment and would not defer revenue. Option B is incorrect because billing schedules are used for recurring invoices, not for deferring revenue based on shipment. Option D is incorrect because prepayment invoices are for advance payments, not for revenue recognition upon shipment.

Answer

Post revenue using free text invoices at shipment time.

Answer

Set up billing schedules that align revenue with shipping dates.

Answer

Use prepayment invoices to record revenue upon shipment.

Question 15

A company uses Dynamics 365 Finance and wants to streamline the process of reconciling bank statements with ledger entries. What feature should they use?

Accepted Answer

Bank reconciliation. Correct: Bank reconciliation automates the matching of bank statements with ledger entries, streamlining the reconciliation process. Option A is wrong because Budget control is used for enforcing budget limits, not reconciliation. Option B is wrong because Cash flow forecasting predicts future cash flows, not reconciliation. Option C is wrong because Payment proposals generate payment suggestions, not reconciliation.

Answer

Budget control

Answer

Cash flow forecasting

Answer

Payment proposals