MB-920 Practice Test 31 — 15 Questions

Question 1

A multinational corporation uses Dynamics 365 Finance with multiple legal entities. The consolidation team needs to eliminate intercompany transactions automatically during the consolidation process. What is the best approach?

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

Accepted Answer

Define intercompany elimination rules in the consolidation process. Intercompany elimination rules in Dynamics 365 Finance allow automatic elimination of intercompany transactions during the consolidation process. Option B is wrong because consolidation companies aggregate data but do not eliminate intercompany transactions automatically. Option C is wrong because manual identification and removal is error-prone and not automatic. Option D is wrong because intercompany accounting posts transactions to both legal entities but does not eliminate them during consolidation.

Answer

Use consolidation companies to aggregate data without elimination

Answer

Manually identify and remove intercompany transactions before consolidation

Answer

Set up intercompany accounting to automatically post to both legal entities

Question 2

A company needs to ensure that only users with the 'Accounts payable manager' role can approve vendor invoices. How should this be configured?

Accepted Answer

Assign the role in Security configuration. Correct: Assign the role in Security configuration. In Dynamics 365 Finance, roles are assigned via the Security configuration to control user permissions. Option A is incorrect because an Organization hierarchy defines reporting structures, not specific role-based access for invoice approval. Option B is incorrect because an Audit policy is used for monitoring transactions, not for controlling approval rights. Option C is incorrect because while a workflow can specify which roles can perform actions, the role must first be assigned to users via Security configuration for the workflow to enforce it.

Answer

Configure an Organization hierarchy

Answer

Set up an Audit policy

Answer

Create a workflow that requires the role

Question 3

A company is migrating from a legacy system to Dynamics 365 Finance. They have historical data that must be imported with proper financial dimensions. What is the recommended approach?

Accepted Answer

Use the Data management framework. Correct: Use Data management framework for import, as it supports bulk data import with financial dimensions. Option A is wrong because the Excel add-in is for simple data entry, not complex imports. Option C is wrong because Power Platform is for extensions and custom apps, not the recommended import tool. Option D is wrong because Entity store is for reporting, not data import.

Answer

Use the Excel add-in to manually enter data

Answer

Build a custom app in Power Platform

Answer

Use Entity store for data import

Question 4

You are using the data management framework to export general journal entries from Dynamics 365 Finance. The exhibit shows a data export job configuration. Which data entity is being exported?

Accepted Answer

GeneralJournalAccountEntry. The exhibit shows "DataEntity": "GeneralJournalAccountEntry", so that is the entity being exported. Option D is correct. Option A (DimensionSetEntry) is for dimension sets, not general journal entries. Option B (GeneralJournalTransaction) is for individual transaction lines. Option C (GeneralJournalEntry) is for the journal header. Only GeneralJournalAccountEntry contains the detailed account-level lines.

Answer

DimensionSetEntry

Answer

GeneralJournalTransaction

Answer

GeneralJournalEntry

Question 5

A company needs to ensure that employee expense reports are approved by their manager before being reimbursed. Which Dynamics 365 Finance feature should be configured?

Accepted Answer

Set up an Expense report workflow with an approval step assigned to the employee's manager.. Setting up an Expense report workflow with an approval step assigned to the employee's manager ensures that expense reports are routed to the manager for approval before reimbursement. Option A is incorrect because project workflows are for project-related transactions, not general expense reports. Option B is incorrect because expense policies define validation rules (e.g., receipt requirements) but do not route approvals. Option C is incorrect because the Electronic reporting module is for generating documents and reports, not for approval routing.

Answer

Configure a Project workflow for expense reports.

Answer

Define expense policies that require manager sign-off.

Answer

Use the Electronic reporting module to generate approval forms.

Question 6

A company wants to use AI to predict customer payment times in Dynamics 365 Finance. Which feature should they enable?

Accepted Answer

Customer payment predictions. Customer payment predictions use AI to forecast when customers will pay invoices. This feature is designed to help businesses predict payment times and manage cash flow more effectively. Option C is correct. Option A (Cash flow forecasting) is for predicting cash inflows and outflows, not specifically customer payment times. Option B (Financial reporting) is for generating financial statements and reports. Option D (Invoice capture) is for automating invoice data entry, not for payment predictions.

Answer

Cash flow forecasting

Answer

Financial reporting

Answer

Invoice capture

Question 7

Your Dynamics 365 Finance environment experiences slow performance when running the period closing process. Which approach should you recommend to improve performance?

Accepted Answer

Run period closing tasks as batch jobs with multiple threads. Running period closing tasks as batch jobs with multiple threads allows parallel processing of independent tasks, which can significantly reduce the overall closing time. Option C is correct because it leverages parallelism to improve performance. Option A is incorrect because increasing batch group size does not directly improve performance; it may even cause resource contention. Option B (archiving historical data) is a long-term maintenance task, not a direct performance improvement for the closing process. Option D is incorrect because data sharing is for data integration across legal entities, not for performance optimization.

Answer

Increase the maximum batch group size

Answer

Archive historical data

Answer

Use data sharing to distribute closing tasks across legal entities

Question 8

A Dynamics 365 Finance user reports that the 'Customer payment journal' shows an incorrect exchange rate for a foreign currency payment. The exchange rate was updated yesterday. What is the most likely reason for the incorrect rate?

Accepted Answer

The exchange rate date on the journal is different from the payment date.. The exchange rate date on the journal may default to a date different from the payment date, causing the system to use an incorrect rate even if the rate table was updated correctly. Option A is wrong because the exchange rate table was updated, but the journal date mismatch is the key issue. Option B is wrong because if the currency were not set up for updates, payments would likely fail entirely. Option C is wrong because rounding rules affect the calculated amounts, not the rate applied.

Answer

The exchange rate table was not updated correctly.

Answer

The currency is not set up for exchange rate updates.

Answer

The rounding rule for the currency is incorrect.

Question 9

You are reviewing a journal entry in Dynamics 365 Finance. The exhibit shows the accounting distribution for a transaction. What type of account is 110120 likely to be?

Accepted Answer

Asset account. A main account starting with 1 and having a posting type 'Balance' typically indicates a balance sheet asset account. Option D is correct. Option A is wrong because revenue accounts start with 4. Option B is wrong because liability accounts start with 2. Option C is wrong because expense accounts start with 6.

Answer

Revenue account

Answer

Liability account

Answer

Expense account

Question 10

A company uses Dynamics 365 Finance. The finance team needs to automate periodic tasks such as creating ledger settlements and running month-end closing processes. Which feature should they use?

Accepted Answer

Batch job processing. Batch job processing in Dynamics 365 Finance allows scheduling and automation of periodic tasks like ledger settlements and month-end closing. This feature enables the finance team to set up recurring processes that run without manual intervention. Option B (Bank reconciliation) is for reconciling bank transactions, not for automating ledger settlements. Option C (Vendor invoice pool) is for managing vendor invoices, not for periodic automation. Option D (Financial reporting) is for generating reports, not for scheduling tasks.

Answer

Bank reconciliation

Answer

Vendor invoice pool

Answer

Financial reporting

Question 11

A company is implementing Dynamics 365 Finance. They need to support multiple languages and currencies for international subsidiaries. Which module should they configure?

Accepted Answer

System administration. System administration contains settings for languages, currencies, and localization features that apply across the entire organization. Option A is incorrect because Accounts payable focuses on vendor transactions, not system-wide configurations. Option C is incorrect because Organization administration manages legal entities and organizational structures, but the multilingual and multi-currency settings are configured in System administration. Option D is incorrect because General ledger deals with the chart of accounts and financial dimensions, not language and currency settings.

Answer

Accounts payable

Answer

Organization administration

Answer

General ledger

Question 12

You are a finance manager at Contoso Ltd. The company is implementing Dynamics 365 Finance and needs to set up the chart of accounts. Which TWO statements about the chart of accounts are correct?

Accepted Answer

The chart of accounts is the foundation for financial reporting.. The chart of accounts provides the structure for categorizing financial transactions, which is essential for financial reporting. Option E is correct because Dynamics 365 Finance supports shared main accounts, allowing the same main account to be used across multiple legal entities within the organization. Option A is incorrect because posting profiles are mandatory for posting transactions; they define the accounting entries for source documents. Option C is incorrect because there is no fixed maximum of 100 main accounts; the system can support many more. Option D is incorrect because main accounts are not automatically created when a legal entity is created; they must be manually defined or imported as part of the chart of accounts setup.

Answer

Posting profiles are optional for posting transactions.

Answer

A chart of accounts can contain a maximum of 100 main accounts.

Answer

Main accounts are automatically created when a legal entity is created.

Question 13

A manufacturing company uses Dynamics 365 Finance. The procurement team notices that purchase order (PO) approvals are taking too long because managers are frequently out of office. They want to configure a fallback approval process. What should you do?

Accepted Answer

Configure an alternate approver or escalation step in the purchase order approval workflow.. Dynamics 365 Finance allows you to configure alternate approvers or escalation steps in the purchase order approval workflow. This built-in feature automatically routes approvals to a designated fallback when the primary approver is unavailable, addressing the delay issue. Option A is incorrect because manual delegation is not an automated fallback and relies on managers remembering to delegate. Option B is incorrect because reassigning manually via workflow history is not automated and does not provide a consistent fallback process. Option C is incorrect because while Power Automate could be used, it is an external tool and not the native built-in method within Dynamics 365 Finance; the recommended approach is to use the workflow configuration.

Answer

Instruct managers to delegate their approvals to a colleague before leaving.

Answer

Use the workflow history to identify pending approvals and reassign them.

Answer

Create a Microsoft Power Automate flow to reassign the PO when the manager is out of office.

Question 14

Refer to the exhibit. A company has configured budget control in Dynamics 365 Finance as shown. The finance team reports that when posting a purchase invoice for raw materials, no budget check is performed. What is the most likely cause?

Accepted Answer

The CheckLevel is set to "None", disabling budget checks for purchase invoices.. The 'CheckLevel' for purchase invoices is set to 'None', which disables budget checks for that document type. Option B is incorrect because purchase invoices are a supported source document type for budget control. Option C is incorrect; while the account structure may lack financial dimensions, the primary issue is the CheckLevel setting. Option D is incorrect because budget control is enabled (as shown in the exhibit).

Answer

The source document type is not supported for budget control.

Answer

The account structure does not include any financial dimensions.

Answer

Budget control is not enabled in the system.

Question 15

Refer to the exhibit. A financial analyst needs to post an expense to the Research & Development cost center. They attempt to use the value 'R&D001' but the system does not accept it. The dimension value shown in the exhibit is the only valid value for R&D. What is the most likely reason the entry fails?

Accepted Answer

The dimension value must match 'CC001' exactly.. The dimension value 'CC001' must be used exactly as defined. Option A is wrong because the description is not used for posting. Option B is wrong because the dimension name ('CostCenter') is not included in the value; only the value itself is entered. Option D is wrong because cost centers are a type of financial dimension.

Answer

The dimension description must be entered instead of the value.

Answer

The dimension name must be included in the value.

Answer

Cost centers are not financial dimensions; they are separate.