MB-920 Practice Test 32 — 15 Questions

Question 1

Which TWO are benefits of using Copilot in Dynamics 365 Finance?

Accepted Answer

Automated data entry suggestions. Automated data entry suggestions (A) and natural language query for financial reports (C) are key benefits of Copilot in Dynamics 365 Finance. Option B is incorrect because automatic tax calculation is already a standard feature in the system. Option D is incorrect because manual journal entries are still required for various transactions. Option E is incorrect because direct ledger postings require proper approval workflows.

Answer

Automatic tax calculation

Answer

Elimination of manual journal entries

Answer

Direct ledger postings without approval

Question 2

A company uses Dynamics 365 Finance and wants to automate the process of posting recurring journal entries for monthly depreciation. The journal entries must be generated automatically on the first day of each month. Which tool should you use?

Accepted Answer

Recurring journal voucher.. Recurring journal voucher is specifically designed to automate recurring entries like monthly depreciation. It allows you to set a schedule (e.g., first day of each month) to generate the journal automatically. Option B is incorrect because Periodic processing in Fixed assets is a general process, not a specific tool for recurring journal entries. Option C is incorrect because the Fixed assets journal is used for recording asset acquisitions, disposals, and adjustments, not for recurring depreciation postings. Option D is incorrect because a General journal with a template still requires manual initiation each period and does not automate the recurring schedule.

Answer

Periodic processing in Fixed assets.

Answer

Fixed assets journal.

Answer

General journal with a template.

Question 3

A retail company uses Dynamics 365 Finance for financial operations. They want to automate the process of posting daily sales to the general ledger. Which feature should they use?

Accepted Answer

Create a batch job to post sales orders automatically.. Dynamics 365 Finance allows you to create a batch job that automatically posts sales orders to the general ledger at scheduled intervals. Option A is incorrect because recurring invoices are used for billing customers on a regular basis, not for posting aggregated daily sales. Option C is incorrect because the general journal is typically used for manual adjustments and one-time entries. Option D is incorrect because the payment journal is for recording payments received, not for posting sales transactions.

Answer

Use the recurring invoice functionality.

Answer

Post a general journal with the total sales amount.

Answer

Set up a payment journal for daily sales.

Question 4

A multinational company uses Dynamics 365 Finance with multiple legal entities. They want to streamline intercompany invoicing by automatically creating invoices for intercompany purchases when a purchase order is confirmed. What configuration is required?

Accepted Answer

Configure intercompany parameters to automatically post invoices on purchase order confirmation.. Dynamics 365 Finance allows you to configure intercompany parameters to automatically generate intercompany invoices when purchase orders are confirmed. Option B is incorrect because using vendor invoices manually is not automatic and does not streamline the process. Option C is incorrect because purchase agreements define terms between legal entities but do not automatically create invoices upon purchase order confirmation. Option D is incorrect because recurring invoices are for repetitive invoicing to customers, not for intercompany transactions triggered by purchase orders.

Answer

Use vendor invoices to manually record intercompany transactions.

Answer

Create a purchase agreement between legal entities.

Answer

Set up recurring invoices for each intercompany relationship.

Question 5

A company uses Dynamics 365 Finance and needs to create a consolidated financial report that combines data from multiple legal entities. Which feature should be used?

Accepted Answer

Consolidation module.. The Consolidation module (Option B). This module is specifically designed to combine financial data from multiple legal entities into a single consolidated report. Option A (Budget consolidation) is incorrect because it deals with budget data, not general financial consolidation. Option C (Financial reporting module) is incorrect because it is used for creating reports, but the consolidation process is handled by the Consolidation module. Option D (Intercompany accounting) is incorrect because it manages transactions between entities, not the consolidation of their financial statements.

Answer

Budget consolidation.

Answer

Financial reporting module.

Answer

Intercompany accounting.

Question 6

A retail company uses Dynamics 365 Finance to manage financial operations. The CFO wants to forecast cash flow using historical data. Which feature should be used to predict future cash positions?

Accepted Answer

Cash flow forecasting. Cash flow forecasting is the correct feature because it uses historical data to predict future cash positions. Option B, Cash flow forecasting, is designed for this purpose. Budgeting (D) is for planning, not forecasting. Bank reconciliation (C) matches transactions. Payment proposals (A) generate payments. Therefore, B is correct.

Answer

Payment proposal

Answer

Bank reconciliation

Answer

Budgeting

Question 7

Which TWO of the following are core financial modules in Dynamics 365 Finance?

Accepted Answer

Accounts payable. The correct answers are C (Accounts payable) and D (General ledger), which are core financial modules in Dynamics 365 Finance. Accounts payable manages vendor invoices and payments, while General ledger serves as the central repository for financial transactions. Option A (Sales and marketing) is part of Dynamics 365 Sales, not Finance. Option B (Human resources) belongs to Dynamics 365 Human Resources. Option E (Project management) is a project accounting module but is not considered a core financial module in the same sense as Accounts payable and General ledger.

Answer

Sales and marketing

Answer

Human resources

Answer

Project management

Question 8

Your organization is configuring a purchase order approval workflow in Dynamics 365 Finance. The exhibit shows a JSON representation of the workflow step. After implementation, POs are automatically approved when the manager does not act within 48 hours, bypassing the intended VP of Procurement. What is the most likely cause?

Accepted Answer

The escalation action is set to 'Approve' instead of 'Escalate'.. The workflow JSON shows 'escalationAction': 'Approve', meaning if the time limit expires, the purchase order is automatically approved rather than routed to the fallback approver (VP of Procurement). To send the PO to the VP after the manager fails to act, the escalationAction should be 'Escalate' or 'Assign' to the fallback. Option A is incorrect because the 48-hour time limit itself is not the problem; the action taken after the limit is. Option C is incorrect because the fallback is correctly set to VP of Procurement, but it is unused due to the escalation action. Option D is incorrect because the assignee being 'Manager' is the intended first-level approver; the issue is not the assignment but the escalation behavior.

Answer

The time limit is set to 48 hours.

Answer

The fallback approver is set to VP of Procurement.

Answer

The assignee is set to Manager.

Question 9

You are a supply chain consultant for a mid-sized manufacturing company that uses Dynamics 365 Supply Chain Management. The company produces electronic components and has two warehouses: one for raw materials (Warehouse A) and one for finished goods (Warehouse B). They have been experiencing frequent delays in production because raw materials are not available when needed, even though the materials are in stock at Warehouse A. The production scheduler reports that the system does not automatically reserve materials for production orders. Additionally, the warehouse manager wants to implement a policy where high-value raw materials are stored in a secure, locked area within Warehouse A, and only authorized workers can pick them. You need to configure the system to: (1) automatically reserve raw materials for production orders when they are firm planned; (2) restrict picking of high-value materials to specific workers. What should you do?

Accepted Answer

Configure production reservation in the production control parameters to reserve materials automatically when production orders are firm planned. Create a new warehouse location for high-value items, and set up a mobile device menu item with a worker filter to restrict picking to authorized workers.. To automatically reserve raw materials for production orders when they are firm planned, you configure the production reservation setting in the Production control parameters (not in production order defaults or master planning). For restricting picking of high-value materials to specific workers, you create a dedicated warehouse location for those items and set up a mobile device menu item with a worker filter, so only authorized workers can perform picks from that location. Option D correctly combines both steps. Option A is incorrect because location profiles alone cannot restrict worker access; worker filters are needed. Option B incorrectly suggests using batch attributes and a separate warehouse, which is not the standard approach for access restriction. Option C is wrong because inventory status and quality orders do not restrict picking to specific workers.

Answer

Set up location profiles to mark the secure area as 'Restricted' and configure location directives to use these locations for high-value items. Enable production reservation in the production order defaults.

Answer

Assign batch attributes to high-value materials and use batch reservation. Restrict picking by setting up a separate warehouse for high-value items.

Answer

Use inventory status to block high-value items and create a quality order to release them. Enable automatic reservation in master planning parameters.

Question 10

You are the supply chain consultant for a global electronics manufacturer that uses Dynamics 365 Supply Chain Management. The company procures components from multiple vendors and assembles finished goods in three factories: Berlin, Shanghai, and Monterrey. The current process requires planners to manually review demand and supply for each site and create purchase orders. The company wants to automate the generation of purchase requisitions based on forecasted demand and current inventory levels. Additionally, they need to ensure that the system respects vendor lead times and minimum order quantities. You propose using master planning to generate planned purchase orders. However, the procurement manager is concerned that planned orders might be created too frequently for low-demand items, causing an excessive number of small purchases. What should you configure to consolidate planned purchase orders for the same vendor within a defined time window?

Accepted Answer

Configure purchase order consolidation in master planning parameters.. The 'Purchase order consolidation' feature in master planning parameters allows grouping planned purchase orders by vendor into a single purchase order within a defined time window, reducing the number of small orders. Option B is wrong because increasing safety stock levels ensures inventory availability but does not consolidate orders. Option C is wrong because action messages suggest changes to existing orders, such as expediting or delaying, not consolidation. Option D is wrong because a coverage time fence determines how far ahead the system plans, not how orders are consolidated.

Answer

Increase safety stock levels for low-demand items.

Answer

Enable action messages in master planning.

Answer

Set a coverage time fence for each item.

Question 11

A company uses Dynamics 365 Supply Chain Management with Warehouse Management (WMS). The warehouse manager wants to optimize the picking process by grouping multiple orders into a single picking wave. The company uses cluster picking and wants workers to pick items for multiple orders at once. You need to configure the system to support cluster picking. You have the following options: A. Create a wave template that uses cluster picking and assign it to the appropriate warehouse. Configure a mobile device menu item for cluster picking. B. Use the work creation process to combine orders into a single work order. C. Configure the location directives to direct all picks to a single location. D. Use the load planning workbench to create loads and then pick by load. Which option should you choose?

Accepted Answer

Create a wave template that uses cluster picking and assign it to the appropriate warehouse. Configure a mobile device menu item for cluster picking.. Cluster picking is enabled via wave templates and mobile device menu items specifically for cluster picking. Option A is incorrect because location directives are for directing picks, not for grouping orders. Option C is incorrect because load planning is for shipments, not for cluster picking within a wave. Option D is incorrect because the work creation process does not combine orders into a single work order for cluster picking.

Answer

Configure the location directives to direct all picks to a single location.

Answer

Use the load planning workbench to create loads and then pick by load.

Answer

Use the work creation process to combine orders into a single work order.

Question 12

A distribution company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to ensure that when inventory levels for a critical item fall below the reorder point, a purchase requisition is automatically generated. Currently, the buyer must monitor stock levels manually and create purchase orders. The company has set up item coverage groups and reorder points in the system. What is the next step to automate the generation of purchase requisitions?

Accepted Answer

Run master planning to generate planned orders.. Master planning must be run to calculate net requirements and generate planned orders based on coverage settings. Option A is wrong because the reorder point is already set, so that is not the missing step. Option B is wrong because setting up vendor accounts is necessary for purchase orders, but without running master planning, no purchase requisitions are generated. Option D is wrong because configuring approval workflows is for the approval process after purchase requisitions are generated, not for triggering generation.

Answer

Define reorder point for the item.

Answer

Set up vendor accounts for the items.

Answer

Configure purchase order approval workflow.

Question 13

You are a solutions architect for a furniture manufacturer that uses Dynamics 365 Supply Chain Management. The company produces custom furniture and uses make-to-order production. They have the following requirements: (1) When a sales order is created, the system must automatically create a production order for the configured product. (2) The production order must use a BOM and route that are specific to the order configuration. (3) The production order must be scheduled based on material availability and capacity. (4) The company wants to use Copilot to assist in creating the production schedule. Which set of configurations should you implement?

Accepted Answer

Create a production order from the sales order, use product configuration models to generate BOM and route, schedule operations using finite capacity, and enable Copilot for scheduling.. (1) Creating a production order from the sales order is standard for make-to-order scenarios. (2) Product configuration models dynamically generate a BOM and route specific to the order configuration. (3) Scheduling operations using finite capacity ensures material and capacity constraints are respected. (4) Copilot can assist in creating the production schedule. Option A (blanket sales order and kanban) is for repetitive manufacturing, not make-to-order. Option C (direct picking) bypasses production entirely, which doesn't meet the make-to-order requirement. Option D (purchase order and transfer order) is for procuring finished goods, not producing configured products.

Answer

Create a blanket sales order and use a kanban rule to trigger production.

Answer

Create a sales order and directly pick inventory; no production order needed.

Answer

Create a purchase order for the configured product and use a transfer order.

Question 14

Contoso Ltd. is a global electronics manufacturer using Dynamics 365 Supply Chain Management. They have three production sites: Seattle (primary), Chicago, and Atlanta. Currently, all sites use manual picking processes. Contoso wants to implement warehouse management system (WMS) functionality to improve efficiency. The Seattle site is already using WMS, but the other two sites are not. The project requires minimal disruption to ongoing operations. The IT team is considering three approaches: (1) Enable WMS for all sites simultaneously after a weekend cutover, (2) Enable WMS for Chicago first, then Atlanta after one month, and (3) Enable WMS only for Seattle and keep others manual. The warehouse manager is concerned about training workers on mobile devices. What is the best course of action?

Accepted Answer

Enable WMS for Chicago first, then Atlanta after one month, using lessons learned from Chicago.. Enable WMS for Chicago first, then Atlanta after one month, using lessons learned from Chicago. This phased approach minimizes disruption, allows for training and process adjustments, and aligns with best practices for warehouse management implementation. Option A is incorrect because limiting WMS to Seattle does not improve efficiency at other sites. Option B is incorrect because enabling WMS for all sites simultaneously is risky and could cause major operational disruption. Option D is incorrect because reverting Seattle to manual picking is counterproductive and does not leverage existing WMS investment.

Answer

Keep WMS only for Seattle and continue manual picking at Chicago and Atlanta to avoid training costs.

Answer

Enable WMS for all sites simultaneously during a weekend cutover to standardize processes quickly.

Answer

Revert Seattle to manual picking to maintain consistency across all sites.

Question 15

A company uses Dynamics 365 Supply Chain Management. The procurement manager wants to automate the creation of purchase orders from purchase requisitions that are approved by an approval workflow. The company uses procurement categories to classify purchases. You need to configure the system so that when a purchase requisition is approved, a purchase order is automatically created. You have the following options: A. Set up a purchase requisition workflow that includes the 'Create purchase order' action as part of the workflow. B. Manually create purchase orders after the requisition is approved. C. Use the Procurement and Sourcing module to set up a purchase agreement that automatically generates purchase orders. D. Use the Master Planning module to generate planned purchase orders from requisitions. Which option should you choose?

Accepted Answer

Set up a purchase requisition workflow that includes the 'Create purchase order' action as part of the workflow.. A purchase requisition workflow can include the 'Create purchase order' action, which automatically generates a purchase order upon approval. Option A is incorrect because purchase agreements are used for pricing and terms, not for automatic creation from requisitions. Option B is incorrect because it requires manual intervention. Option D is incorrect because Master Planning generates planned purchase orders, which are suggestions and not directly created from approved requisitions.

Answer

Use the Procurement and Sourcing module to set up a purchase agreement that automatically generates purchase orders.

Answer

Manually create purchase orders after the requisition is approved.

Answer

Use the Master Planning module to generate planned purchase orders from requisitions.