MB-920 Practice Test 33 — 15 Questions

Question 1

You are a supply chain analyst for a company that uses Dynamics 365 Supply Chain Management. The company procures steel coils from multiple suppliers. The procurement manager wants to evaluate supplier performance based on on-time delivery and price variance. They need a dashboard that shows a scorecard for each supplier, summarizing the percentage of deliveries received on or before the promised date, and the average price deviation from the purchase order price. Which tool should you use to create this dashboard without custom development?

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

Accepted Answer

Power BI. Power BI can connect to Dynamics 365 data and create visual dashboards for supplier scorecards. Option A is wrong because the Procurement and sourcing module provides purchase order management but not a configurable scorecard dashboard. Option B is wrong because Vendor collaboration is for communication with vendors, not analytics. Option D is wrong because Excel is not a dashboard tool for real-time scorecards without manual effort.

Answer

Procurement and sourcing module

Answer

Vendor collaboration

Answer

Excel integration

Question 2

A wholesale distributor uses Dynamics 365 Finance and Operations. They are experiencing high shipping costs because customer orders are often split across multiple shipments from different warehouses. They want to minimize split shipments by consolidating orders to the nearest warehouse with sufficient stock. Which feature should they configure?

Accepted Answer

Wave processing. Wave processing in Warehouse management allows grouping picking work for multiple orders into a single wave, enabling shipment consolidation from the same warehouse. By configuring wave templates and shipment consolidation rules, orders can be combined to minimize split shipments. While Transportation management offers a dedicated 'Shipment consolidation' feature, among the given options, Wave processing (Option A) is the most appropriate. Option B (Warehouse demand replenishment) is for stock replenishment, Option C (Inventory visibility) for real-time inventory, and Option D (Location directives) for put-away/picking routing; none directly consolidate shipments.

Answer

Warehouse demand replenishment

Answer

Inventory visibility

Answer

Location directives

Question 3

You are the Dynamics 365 Finance consultant for Contoso Ltd., a manufacturing company that uses standard cost inventory valuation. The company recently implemented a new production line for a high-volume product. The production manager reports that the actual manufacturing costs significantly exceed the standard costs set for the product. You need to analyze the variance and adjust the standard costs for future periods. The company requires that any adjustment to standard costs be effective from the start of the next fiscal year, which begins in three months. Additionally, the inventory on hand must be revalued at the new standard cost. What should you do?

Accepted Answer

Create a costing version with the new standard costs and set the effective date to the start of the next fiscal year. Then run a cost revaluation journal to revalue inventory at the new cost.. Standard cost changes must be done through a costing version with a future effective date. The requirement is to have the new standard cost effective from the start of the next fiscal year, so creating a costing version with that effective date ensures the cost is updated only from that date. Additionally, running a cost revaluation journal revalues the on-hand inventory to the new standard cost, which satisfies the inventory revaluation requirement. Option A is incorrect because an inventory adjustment journal revalues inventory but does not change the standard cost in the item master for future periods; it would also apply immediately. Option B is incorrect because updating the costing version with immediate effect would make the new cost effective now, not at the start of the next fiscal year. Option C is incorrect because posting variances to an account does not change the standard cost for future periods; it only records the variance.

Answer

Use an inventory adjustment journal to revalue the on-hand inventory to the new standard cost and change the item's standard cost in the item master.

Answer

Create a standard cost revaluation journal for the current period and update the standard cost in the costing version with immediate effect.

Answer

Post the manufacturing variances to a variance account and close the variances to cost of goods sold at year-end.

Question 4

You are a system administrator for a retail company using Dynamics 365 Finance. The company processes a large number of purchase orders and invoices daily. The accounts payable team wants to automate the matching of purchase order receipts with vendor invoices to reduce errors. You need to configure the system to perform three-way matching (purchase order, receipt, invoice). What should you do?

Accepted Answer

Enable three-way matching in Accounts payable parameters, and configure matching policies to validate prices and quantities.. Three-way matching is configured in Accounts payable parameters, where you can enable matching validation and set policies to match prices and quantities across the purchase order, receipt, and invoice. Option A is incorrect because two-way matching only matches the purchase order and invoice, not the receipt. Option B is incorrect because vendor invoice policies control receipt confirmation requirements but do not enable three-way matching. Option C is incorrect because purchase agreements set price tolerances, but the invoice matching validation is configured in Accounts payable parameters, not via agreements.

Answer

Enable two-way matching in Accounts payable parameters, and set up matching tolerance.

Answer

Configure vendor invoice policies to require receipt confirmation before posting.

Answer

Set up purchase agreements with price tolerance, and use invoice matching validation.

Question 5

You are the finance system administrator for Contoso Ltd., a global manufacturing company with legal entities in the United States, Germany, and Japan. Each entity uses Dynamics 365 Finance and has its own chart of accounts due to local reporting requirements. The CFO wants to consolidate the financial results of all entities into a single consolidated report at the end of each month. Currently, the consolidation is done manually by exporting data to Excel, which is error-prone and time-consuming. The CFO wants to use the consolidation functionality within Dynamics 365 Finance. Additionally, intercompany transactions between entities are significant, and the CFO wants to automate the elimination of these transactions during consolidation. You need to design a solution that meets the following requirements:
- Use the Dynamics 365 Finance consolidation module.
- Automate the elimination of intercompany transactions.
- Allow each entity to maintain its own chart of accounts.
- Generate consolidated financial statements in the US GAAP format.

What should you do?

Accepted Answer

Create a separate consolidation legal entity, set up consolidation groups and accounts to map the different charts, and configure intercompany elimination rules.. To consolidate with different charts of accounts, you must create a consolidation company that uses a chart of accounts for US GAAP, and set up consolidation groups and accounts to map the source accounts. Intercompany elimination rules can be defined to automate eliminations. Option A is wrong because it suggests changing all entities to use the same chart, which contradicts the requirement. Option C is wrong because setting up child companies does not solve the chart of accounts mapping or intercompany elimination. Option D is wrong because Power BI is not the consolidation module and cannot automate eliminations.

Answer

Define the same chart of accounts in all legal entities and then use the consolidation online functionality to consolidate.

Answer

Set up the German and Japanese entities as child companies under the US entity, and then run consolidation.

Answer

Use Power BI to connect to each legal entity's data and create consolidated reports with calculated columns to eliminate intercompany transactions.

Question 6

You are a financial analyst at Fabrikam Inc., a retail company using Dynamics 365 Finance. The company has a requirement to track expenses by department and project. Currently, the chart of accounts uses a single segment for main accounts. The CFO wants to add cost centers and projects as financial dimensions to provide more granular reporting. You need to configure financial dimensions without disrupting existing transactions. You also need to ensure that new dimensions are available for budgeting. What should you do?

Accepted Answer

Create new financial dimensions for cost center and project, activate them, and set up budget models to use these dimensions.. Creating and activating new financial dimensions, such as cost center and project, allows them to be used for future transactions without impacting existing data. By configuring budget models to use these dimensions, they become available for budgeting, meeting the requirement for granular reporting by department and project. Option B is incorrect because requiring dimension values on all journal entries would force entry on existing transactions, causing disruption. Option C is incorrect because posting restrictions would limit combinations to only existing ones, preventing the use of new dimension values. Option D is incorrect because setting dimensions as defaults on the main account does not make them available for budgeting; budget models must be configured separately.

Answer

Create new financial dimensions, activate them, and require dimension values on all journal entries. Then deactivate old dimension values.

Answer

Create new financial dimensions, then configure posting restrictions so that only existing dimension combinations are allowed.

Answer

Create new financial dimensions for cost center and project, then set them as default dimensions on the main account.

Question 7

A medical device manufacturer uses Dynamics 365 Supply Chain Management. They are subject to strict regulatory requirements requiring complete traceability of each device to its raw material lots. The company uses process manufacturing with batch orders. Each finished device has a unique serial number that must be linked to the lot numbers of all raw materials used. The company also needs to maintain a genealogy of components. You need to configure the system to capture this traceability. You have the following options: A. Enable serial tracking for the finished device and lot tracking for raw materials. Use the batch order to record the consumption of raw material lots against the serial number. B. Use the Product master to assign a serial number to the finished good and manually enter lot numbers in a free text field. C. Use the Warehouse Management module to create location labels that include serial and lot information. D. Use the Quality management module to create quality orders for each batch and associate them with serial numbers. Which option should you choose?

Accepted Answer

Enable serial tracking for the finished device and lot tracking for raw materials. Use the batch order to record the consumption of raw material lots against the serial number.. It properly uses serial and lot tracking. In Dynamics 365 Supply Chain Management, enabling serial tracking for the finished device and lot tracking for raw materials allows the batch order to record the consumption of raw material lots against the serial number of the finished good. This captures the full genealogy and traceability required. Option A is incorrect because quality orders are used for inspections, not for capturing traceability relationships. Option C is incorrect because manual entry of lot numbers in a free text field is not an integrated or reliable method for traceability. Option D is incorrect because location labels in Warehouse Management do not capture the genealogy of components.

Answer

Use the Quality management module to create quality orders for each batch and associate them with serial numbers.

Answer

Use the Product master to assign a serial number to the finished good and manually enter lot numbers in a free text field.

Answer

Use the Warehouse Management module to create location labels that include serial and lot information.

Question 8

You are a Dynamics 365 Human Resources administrator for a multinational corporation with 5,000 employees across three regions: North America, Europe, and Asia Pacific. The company uses Dynamics 365 Human Resources to manage employee records, benefits, leave, and compensation. Recently, the HR team has been receiving complaints from employees in the Asia Pacific region that their leave balances are not updating correctly after they submit leave requests. Additionally, managers in that region report that they cannot see their direct reports' leave balances when trying to approve leave. You investigate and find that employees in Asia Pacific have a different leave policy than other regions, and this policy is configured using a custom leave type called "Regional Leave." The system is set up with a single legal entity. You need to resolve the issue so that leave balances update correctly and managers can view leave balances. What should you do?

Accepted Answer

Create a separate legal entity for the Asia Pacific region and configure a dedicated leave policy for that entity.. In Dynamics 365 Human Resources, leave policies are tied to legal entities. Since the company uses a single legal entity, all employees share the same leave policy configuration, which causes the Asia Pacific region's custom 'Regional Leave' type to behave incorrectly. Creating a separate legal entity for Asia Pacific allows you to configure a dedicated leave policy with its own leave types, accrual rules, and balance calculations, ensuring that leave balances update correctly and managers can view them.

Answer

Create a new leave type called 'Regional Leave - Asia Pacific' and assign it to employees in that region.

Answer

Disable the leave functionality for Asia Pacific employees and process leave manually.

Answer

Modify the calendar parameters to exclude Asia Pacific holidays from leave balance calculations.

Question 9

You are a functional consultant for a pharmaceutical company implementing Dynamics 365 Supply Chain Management. The company must comply with strict regulatory requirements for traceability and lot control. They produce serialized products where each batch must be tracked from raw material receipt to final product shipment. The production process involves mixing raw materials in a specific sequence and quantity, and the company currently uses paper-based batch records. They want to digitize the process to enforce that operators cannot proceed to the next step unless the previous step is completed and quantities are within specification. Additionally, they need to capture actual consumption of raw materials against the batch order. Which combination of features should you recommend?

Accepted Answer

Use production control with manufacturing execution and material consumption registration.. Production control with manufacturing execution and material consumption registration provides step-by-step guidance, enforces process sequence, and captures actual material consumption. Option A is wrong because quality management with quality orders is for inspections, not for guiding production steps. Option B is wrong because warehouse management is for storage and movement, not for production process enforcement. Option D is wrong because engineering change management is for managing product versions, not for production execution.

Answer

Use quality management with quality orders for each production step.

Answer

Use warehouse management with mobile device menus for production put-away and picking.

Answer

Use engineering change management to control batch record versions.

Question 10

A company uses Dynamics 365 Finance. The finance team needs to ensure that purchase invoices are automatically matched to purchase orders and product receipts before payment is processed. Which feature should be configured?

Accepted Answer

Accounts payable invoice matching. Accounts payable invoice matching (option D) is the correct feature because it automatically compares purchase invoice details (quantities, prices, charges) against the corresponding purchase order and product receipt. This three-way matching ensures that payment is only processed when the invoice matches the order and receipt, preventing overpayment and discrepancies.

Answer

Fixed asset management

Answer

Workflow approval

Answer

Vendor collaboration portal

Question 11

A company using Dynamics 365 Supply Chain Management notices that inventory accuracy is low due to manual data entry errors. Which feature can help automate data capture and improve accuracy?

Accepted Answer

Warehouse mobile devices. Warehouse mobile devices allow barcode scanning to automate data entry, reducing manual errors and improving inventory accuracy. Option B is wrong because Quality management is used for inspections, not automated data capture. Option C is wrong because Inventory counting is a manual process that does not inherently automate data capture. Option D is wrong because Vendor collaboration involves external communication, not automated data capture.

Answer

Quality management

Answer

Inventory counting

Answer

Vendor collaboration

Question 12

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. The procurement manager notices that purchase requisitions are not being converted to purchase orders automatically as expected. The workflow for purchase requisitions is set to auto-approve for amounts under $1,000. Upon investigation, the manager finds that a requisition for $950 is stuck in 'Draft' status. What is the most likely cause?

Accepted Answer

The purchase requisition has not been submitted for review.. In Dynamics 365 Supply Chain Management, a purchase requisition must be explicitly submitted to trigger the workflow. Even if the workflow is configured for auto-approval, the requisition remains in 'Draft' status until the user clicks 'Submit'. The $950 requisition was never submitted, so the auto-approval process never started.

Answer

The workflow requires budget approval for all requisitions.

Answer

The purchase requisition was rejected by the workflow.

Answer

The dollar limit for auto-approval is set to $900.

Question 13

A company uses Dynamics 365 Supply Chain Management with warehouse management. They need to enforce that workers scan a license plate when picking items from a bulk location. Which configuration should be used?

Accepted Answer

Set the 'License plate required' option on the location directive for the bulk location. A location directive with a 'License plate required' setting forces workers to scan the license plate during picking. Option A is a general setup, not specific to scanning. Option B controls item registration, not scanning enforcement. Option D controls menu navigation, not scanning.

Answer

Create a mobile device menu item with 'Scan by' set to License plate

Answer

Assign a menu item to a role that only allows license plate scanning

Answer

Configure a work creation policy that requires license plate registration

Question 14

A company uses Dynamics 365 Supply Chain Management and wants to reduce stockouts. Which TWO strategies should they implement?

Accepted Answer

Reorder point. Reorder point is correct because it triggers a replenishment order when inventory falls to a predefined level, directly preventing stockouts by ensuring timely restocking. Safety stock is correct because it maintains an extra buffer of inventory above expected demand to absorb variability in supply or demand, reducing the risk of stockouts during lead time fluctuations.

Answer

Vendor managed inventory

Answer

ABC classification

Answer

Cycle counting

Question 15

A company uses Dynamics 365 Supply Chain Management. They need to ensure that when a sales order is created, the system automatically checks credit limits and inventory availability. Which THREE components are involved?

Accepted Answer

Inventory management. Inventory management (B) is correct because it tracks stock levels and provides real-time inventory availability checks when a sales order is created. Sales order processing (D) is correct because it triggers the credit limit and inventory checks during order entry. Accounts receivable (E) is correct because it maintains customer credit limits and evaluates them against the order total to approve or block the sale.

Answer

Procurement and sourcing

Answer

Master planning