MB-920 Practice Test 34 — 15 Questions

Question 1

A manufacturing company uses Dynamics 365 Supply Chain Management. The warehouse manager notices that a critical raw material is frequently out of stock, causing production delays. The planner wants to ensure that the material is reordered before stock hits zero. Which inventory planning feature should be configured to automatically generate replenishment orders based on forecasted demand and current inventory levels?

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

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the correct feature because it uses forecasted demand, current inventory levels, and lead times to automatically generate replenishment orders (purchase orders or transfer orders) before stock hits zero. This prevents stockouts by planning net requirements and creating planned orders that can be firmed into actual orders.

Answer

Inventory adjustment journal

Answer

Cycle counting

Answer

Quality order

Question 2

A food processing company needs to track raw materials by batch and expiration date to comply with regulations. Which capability in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Batch and shelf life management. Dynamics 365 Supply Chain Management includes a dedicated 'Batch and shelf life management' capability that allows companies to assign batch numbers and track expiration dates for raw materials and finished goods. This feature is specifically designed to meet regulatory compliance requirements, such as those in food and pharmaceutical industries, by enabling traceability and shelf-life monitoring throughout the supply chain.

Answer

Warehouse management

Answer

Quality management

Answer

Product configuration

Question 3

A clothing retailer wants to implement a buy online, return in store (BORIS) process using Dynamics 365 Commerce. The retailer has multiple stores with different tax rates. Which configuration is essential to ensure that returns are processed correctly with the appropriate tax?

Accepted Answer

Configure tax settings for each physical store.. In Dynamics 365 Commerce, each physical store can have its own tax settings, including tax groups and tax rates. When a return is processed in-store for an online purchase, the system uses the store's tax configuration to calculate the correct tax for the return transaction. This ensures compliance with local tax regulations, which vary by store location.

Answer

Assign tax groups to customer profiles based on their home address.

Answer

Ensure the online store's tax settings match the headquarters location.

Answer

Set the tax override option for all return transactions in the online store.

Question 4

A company is implementing Dynamics 365 Finance and needs to comply with the Sarbanes-Oxley (SOX) act. Which feature should they use to enforce separation of duties?

Accepted Answer

Security roles and duties. To comply with the Sarbanes-Oxley (SOX) act, segregation of duties is enforced through security roles and duties in Dynamics 365 Finance. Option D is correct. Option A (Electronic reporting) is used for generating and processing electronic documents, not for separation of duties. Option B (Audit trail) tracks changes made to the system but does not enforce separation of duties. Option C (Batch job) is used for automated background processing, unrelated to security.

Answer

Electronic reporting

Answer

Audit trail

Answer

Batch job

Question 5

A production manager needs to see the real-time status of all production orders on the shop floor. Which workspace in Dynamics 365 Supply Chain Management should be used?

Accepted Answer

Production floor management. The Production floor management workspace is specifically designed to provide production managers with a real-time, aggregated view of all production orders and their status on the shop floor. It includes key performance indicators, job statuses, and actionable insights for managing production operations directly from a single dashboard.

Answer

Master planning

Answer

Warehouse management

Answer

Inventory management

Question 6

A company uses Dynamics 365 Finance. The tax accountant needs to configure value-added tax (VAT) codes for multiple jurisdictions. Where should they set up the VAT rates?

Accepted Answer

Sales tax codes. In Dynamics 365 Finance, value-added tax (VAT) rates are configured using sales tax codes, which are set up in the Tax module, not in General ledger, Accounts payable, or Inventory management parameters. The sales tax code defines the tax rate and calculation method for each jurisdiction, and it is the standard location for VAT rate setup across all modules.

Answer

General ledger parameters

Answer

Accounts payable parameters

Answer

Inventory management parameters

Question 7

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.. Dynamics 365 Finance uses the Workflow framework to enforce approvals on business documents, and expense reports are one of the supported workflow types. Configuring an Expense report workflow with an approval step assigned to the employee's manager ensures the report cannot be reimbursed until the manager approves it. This is the standard, out-of-the-box mechanism for routing expense reports through approval before posting and payment.

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 8

Which TWO capabilities are part of Dynamics 365 Supply Chain Management?

Accepted Answer

Transportation management. Transportation management (Option B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced features for inbound and outbound transportation planning, freight rating, routing, and shipment consolidation. It integrates with warehouse management to optimize logistics and reduce shipping costs.

Answer

Fixed asset management

Answer

Project management

Answer

Human resources

Question 9

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to improve inventory accuracy and reduce stockouts. Which TWO actions should they take?

Accepted Answer

Use cycle counting to regularly verify inventory.. Option A is correct because cycle counting continuously verifies inventory quantities on a rolling basis, catching discrepancies early and improving inventory record accuracy without shutting down operations. Option C is correct because safety stock acts as a buffer for critical items, absorbing demand and lead-time variability so those items do not stock out. Option B is not correct because ABC classification is a prioritization technique that helps focus counting and planning efforts, but by itself it does not directly verify inventory or prevent stockouts. Option D is not correct because sales forecasting supports demand planning but does not by itself ensure inventory accuracy or eliminate stockouts for critical items. Option E is not correct because annual physical inventory counts are infrequent and can allow errors and stockouts to persist throughout the year.

Answer

Implement ABC classification for all items.

Answer

Enable sales forecasting for all products.

Answer

Conduct annual physical inventory counts.

Question 10

A distribution company uses Dynamics 365 Supply Chain Management and needs to set up a consignment inventory process where the supplier owns the inventory until it is consumed. Which inventory model should be used?

Accepted Answer

Consignment inventory. Consignment inventory is the specific inventory model in Dynamics 365 Supply Chain Management where the supplier retains ownership of goods stored at the customer's location until the customer actually consumes or draws them. Ownership transfers only at consumption, and the customer pays for what is used. This matches the described business requirement exactly.

Answer

Purchase order

Answer

Return order

Answer

Non-stocked product

Question 11

A company uses Dynamics 365 Finance. The finance team needs to generate financial reports that combine data from multiple legal entities into a single report. Which tool should they use?

Accepted Answer

Financial Reporting (Management Reporter). Financial Reporting (Management Reporter) in Dynamics 365 Finance is specifically designed to create financial statements and reports that can consolidate data across multiple legal entities. It provides the ability to design row definitions, column definitions, and reporting trees that include multiple companies.

Answer

General ledger inquiry

Answer

Power BI

Answer

Excel integration

Question 12

An organization using Dynamics 365 Finance receives an error when trying to post a vendor invoice: 'Invoice total does not match the expected amount based on the purchase order.' The purchase order has been partially received. What is the most likely cause?

Accepted Answer

The invoice quantity exceeds the received quantity. In Dynamics 365 Finance, when a purchase order is partially received, the system matches the invoice quantity against the received quantity. If the invoice quantity exceeds what has been received, the invoice total will not match the expected amount based on the PO, triggering this error. The most likely cause is that the vendor invoiced for more units than were actually received.

Answer

The invoice is not yet approved in workflow

Answer

The vendor is blocked for posting

Answer

The invoice currency differs from the purchase order currency

Question 13

A warehouse uses Warehouse Management. The exhibit shows an inventory record. Which process would update the location for this license plate?

Accepted Answer

Warehouse Transfer. In Dynamics 365 Warehouse Management, a license plate (LPN) represents a physical container of inventory. Moving that license plate from one warehouse location to another is performed by a Warehouse Transfer (movement) process, which updates the location on the license plate record. This is the standard mechanism for relocating inventory within a warehouse.

Answer

Sales Order Picking

Answer

Cycle Counting

Answer

Purchase Order Receipt

Question 14

An organization uses Dynamics 365 Finance to manage its cash and bank accounts. The treasurer needs to reconcile a bank statement with the system's bank transactions. Which module should the treasurer use?

Accepted Answer

Cash and bank management. Cash and bank management handles bank reconciliation. Accounts payable and Accounts receivable are for vendor and customer transactions. General ledger is for the chart of accounts.

Answer

Accounts payable

Answer

General ledger

Answer

Accounts receivable

Question 15

A data analyst is configuring data entities for export to Azure Data Lake in Dynamics 365 Finance and Operations. The analyst needs to export fiscal calendar period data and customer payment journal headers. Based on the PowerShell exhibit, what action must be taken?

Accepted Answer

Enable the CustomerPaymentJournalHeader data entity.. The PowerShell exhibit shows that the CustomerPaymentJournalHeader data entity is currently disabled, while the FiscalCalendarPeriod data entity is already enabled. To export customer payment journal headers to Azure Data Lake, the CustomerPaymentJournalHeader entity must be enabled. Since the FiscalCalendarPeriod entity is already enabled, no action is needed for it. Therefore, the correct action is to enable the CustomerPaymentJournalHeader data entity.

Answer

Disable the VendorOpenTransactions data entity.

Answer

Enable the FiscalCalendarPeriod data entity.

Answer

Disable the GeneralJournalEntry data entity.