MB-920 Practice Test 33 — 15 Questions

Question 1

An organization uses Dynamics 365 Finance. The finance team notices that the 'Purchase order' workflow is not triggering correctly for certain vendors. They suspect it's due to conditions in the workflow configuration. Where should they diagnose the workflow condition logic?

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

Accepted Answer

Purchase order workflow editor. The Purchase order workflow editor is where the workflow conditions are defined and can be diagnosed. In Dynamics 365 Finance, workflows are configured with conditional decisions that determine when the workflow triggers for specific vendors or document types. If the workflow is not triggering correctly for certain vendors, the condition logic (e.g., vendor group, currency, or amount thresholds) must be reviewed in the workflow editor.

Answer

Power Automate flows

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System administration parameters

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Vendor master form

Question 2

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They need to enforce that workers scan a license plate when completing a transfer order receipt. Which configuration should be used?

Accepted Answer

Modify the mobile device menu item for receipt. In Dynamics 365 Supply Chain Management with advanced warehouse management, the mobile device menu item controls what fields and steps a worker sees during a warehouse transaction. To enforce license plate scanning during a transfer order receipt, you modify the mobile device menu item for the receipt process to require the license plate field. This is the correct configuration point because menu items define the workflow and data entry requirements for mobile warehouse operations.

Answer

Configure the mobile device display settings

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Set up cycle counting thresholds

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Define work templates for transfer orders

Question 3

Which TWO features in Dynamics 365 Finance help organizations comply with regulatory requirements for financial reporting? (Choose two.)

Accepted Answer

Audit trails and change logs.. Option D (Audit trails and change logs) is correct because Dynamics 365 Finance maintains detailed audit trails and change logs that record who created, modified, or deleted financial transactions and master data, providing the traceability and evidence regulators require for financial reporting compliance. Option E (Financial reporting (Management Reporter)) is correct because it generates standardized financial statements such as balance sheets, income statements, and cash flow reports from ledger data, enabling organizations to produce consistent, regulation-aligned reports. Option A (Vendor invoice automation) is incorrect because it streamlines accounts payable invoice processing and approvals, which improves operational efficiency but does not itself address regulatory reporting requirements. Option B (Payment schedules) is incorrect because it controls the timing and installment structure of vendor or customer payments, an operational cash management feature rather than a compliance reporting capability. Option C (Budget control) is incorrect because it enforces spending limits against budgeted amounts to prevent overspending, which supports internal financial discipline but is not a regulatory financial reporting feature.

Answer

Vendor invoice automation.

Answer

Payment schedules.

Answer

Budget control.

Question 4

A company wants to use Dynamics 365 Supply Chain Management to optimize their transportation costs and delivery schedules. Which module should they primarily use?

Accepted Answer

Transportation Management. Transportation Management. The Transportation Management module is specifically designed to manage shipping, freight, and logistics optimization, which directly aligns with the goal of optimizing transportation costs and delivery schedules. Option A (Procurement and Sourcing) is incorrect because it manages purchasing and supplier relationships, not transportation. Option B (Master Planning) is incorrect as it focuses on supply and demand planning, not transportation optimization. Option D (Warehouse Management) is incorrect because it deals with internal warehouse operations, not transportation.

Answer

Procurement and Sourcing

Answer

Master Planning

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Warehouse Management

Question 5

An organization uses Dynamics 365 Project Operations. They need to track employee time against a project and automatically bill the customer based on the time entries. Which module should they configure?

Accepted Answer

Project management and accounting. In Dynamics 365 Project Operations, the Project management and accounting module is specifically designed to track employee time against projects and automatically generate customer invoices based on time entries. This module integrates time recording with billing rules, enabling automated invoicing from approved timesheets. The other modules lack the project-specific time-to-bill workflow.

Answer

Human resources

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Accounts receivable

Answer

Expense management

Question 6

Which TWO capabilities are included in Dynamics 365 Project Operations?

Accepted Answer

Project planning. Dynamics 365 Project Operations is designed to manage the end-to-end lifecycle of projects, from planning to invoicing. Project planning (Option B) is a core capability that allows users to create work breakdown structures, define tasks, and set timelines. Resource management (Option E) is another core capability that enables the allocation and scheduling of resources (people, equipment, materials) across projects, ensuring optimal utilization.

Answer

Cash flow forecasting

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Fixed asset depreciation

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Inventory valuation

Question 7

Which TWO features in Dynamics 365 Finance support compliance with regulatory reporting requirements for financial statements?

Accepted Answer

Electronic reporting. Electronic reporting (C) is correct because it provides a configurable engine for defining and generating statutory, tax, and financial statement formats required by different regulatory authorities, including e-invoicing and country-specific reporting schemas. Financial reporting (E) is correct because it produces the balance sheet, income statement, cash flow, and other financial statements in the formats needed for external regulatory and statutory filing. Budget control (A) is not correct because it enforces spending limits on budget accounts rather than producing regulatory financial statements. Intercompany accounting (B) is not correct because it handles transactions and reconciliation between legal entities, not regulatory statement output. Fixed assets management (D) is not correct because it tracks and depreciates assets rather than generating regulatory financial reports.

Answer

Budget control

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Intercompany accounting

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Fixed assets management

Question 8

A company wants to optimize inventory levels by analyzing historical sales data and predicting future demand. Which module in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Demand forecasting. Demand forecasting in Dynamics 365 Supply Chain Management uses historical sales data and machine learning models to predict future demand, enabling optimized inventory levels. It integrates with the master planning module to generate replenishment suggestions, directly addressing the scenario's need to analyze past data and forecast demand.

Answer

Warehouse management

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Production control

Answer

Transportation management

Question 9

A company uses Dynamics 365 Finance. They need to create a new fiscal year and close the previous year. Which module should they use?

Accepted Answer

General ledger. The General ledger module is the correct choice because fiscal year creation and year-end closing are core General ledger processes. In Dynamics 365 Finance, the General ledger module contains the fiscal calendar setup and the year-end close process, which transfers balances from the closing fiscal year to the new fiscal year's opening balances.

Answer

Budgeting

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Accounts payable

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Accounts receivable

Question 10

Which TWO capabilities are provided by the Warehouse management module in Dynamics 365 Supply Chain Management?

Accepted Answer

Wave processing. Wave processing (B) is a core Warehouse management capability: it groups outbound work into waves and drives picking, replenishment, and load building through wave templates and wave methods. Location directives (E) are also native to Warehouse management, using directive queries, work order types, and location profiles to determine put/pick locations for work. Production scheduling (A) belongs to master planning/production control, route planning for delivery (C) is Transportation management, and vendor collaboration (D) is a separate procurement/vendor portal feature, so they are not Warehouse management capabilities.

Answer

Production scheduling

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Route planning for delivery

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Vendor collaboration

Question 11

A company using Dynamics 365 Finance needs to automate the calculation and posting of periodic transactions such as prepayments and accruals. Which feature should be used?

Accepted Answer

Periodic journal. The Periodic journal in Dynamics 365 Finance can be set up to automatically generate recurring journal entries for prepayments, accruals, and other periodic transactions. Option B is wrong because Financial Reporting is for reporting, not posting. Option C is wrong because Allocation journals allocate costs but do not handle prepayments/accruals automatically. Option D is wrong because the General journal is for manual entries.

Answer

Financial reporting

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Allocation journal

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General journal

Question 12

A manufacturing company is implementing Dynamics 365 Supply Chain Management. They want to ensure that raw material inventory is automatically replenished when stock falls below a predefined level. Which feature should they configure?

Accepted Answer

Reorder point planning. Reorder point planning in Dynamics 365 Supply Chain Management automatically triggers replenishment when inventory falls to or below a predefined minimum level. It uses the item's coverage settings—specifically the minimum and maximum quantities—to generate planned orders. This directly matches the requirement to replenish raw materials when stock drops below a set threshold.

Answer

Quality management

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ABC classification

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Vendor collaboration

Question 13

A company wants to use Dynamics 365 Supply Chain Management to manage maintenance of production equipment. Which module should they use?

Accepted Answer

Asset Management. Asset Management is the correct module because it is specifically designed to manage the lifecycle of production equipment, including preventive, corrective, and predictive maintenance. It provides functionality for tracking assets, scheduling maintenance work orders, and recording costs. Quality Management focuses on product quality, Warehouse Management on inventory and logistics, and Production Control on manufacturing execution, not equipment maintenance.

Answer

Quality Management

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Warehouse Management

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Production Control

Question 14

A company is implementing Dynamics 365 Finance and needs to ensure that all purchase orders over $10,000 require approval from a manager. What is the best approach to configure this?

Accepted Answer

Create a purchase order approval workflow. Correct: A purchase order approval workflow can be configured to require approval based on thresholds such as amount. Option B is wrong because procurement policies govern vendor selection and procurement processes, not approval thresholds. Option C is wrong because budget control rules enforce budget limits but do not trigger approvals for specific amounts. Option D is wrong because security roles control access to features, not approval processes.

Answer

Configure a procurement policy

Answer

Set up a budget control rule

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Assign a security role to managers

Question 15

A manufacturing company uses Dynamics 365 Finance and Operations. They want to streamline their procurement process and improve supplier collaboration. Which TWO capabilities should they consider?

Accepted Answer

Procurement catalogs. Option A, Procurement catalogs, is correct because catalogs in Dynamics 365 Finance and Operations let employees order approved items and services from internal or external suppliers through a standardized, controlled purchasing experience, which directly streamlines the procurement process. Option E, Vendor collaboration, is correct because the Vendor collaboration workspace and vendor portal enable suppliers to respond to RFQs, confirm purchase orders, manage invoices, and view performance data, which directly improves supplier collaboration. Option B, Project accounting, is incorrect because it focuses on tracking project costs, revenue, and billing rather than procurement or supplier interaction. Option C, Fixed asset management, is incorrect because it handles acquisition, depreciation, and disposal of fixed assets, not purchasing workflows or supplier engagement. Option D, Demand forecasting, is incorrect because it supports inventory and supply planning through predicted demand, not the procurement-to-supplier collaboration scenario described.

Answer

Project accounting

Answer

Fixed asset management

Answer

Demand forecasting