MB-920 Practice Test 34 — 15 Questions

Question 1

A global manufacturer uses Dynamics 365 Finance and Operations with multiple production sites. They need to manage complex bills of materials (BOMs) that include both manufactured and purchased components. They want to ensure that when a BOM is changed, the system automatically re-plans production orders and re-calculates material requirements. Which feature should they use?

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

Accepted Answer

Master planning. Master planning in Dynamics 365 Finance and Operations is the correct feature because it automatically recalculates material requirements and regenerates planned production orders when a bill of materials (BOM) is changed. It uses demand-driven or MRP-based logic to explode the BOM, net available inventory, and create new planned orders for both manufactured and purchased components, ensuring supply matches updated demand across multiple production sites.

Answer

Product configuration

Answer

Production control

Answer

Inventory management

Question 2

A company uses Dynamics 365 Finance and Operations. The finance team wants to post a vendor invoice that has a discount of 2% if paid within 10 days, otherwise net 30. How should this be configured?

Accepted Answer

Define a Terms of payment with a cash discount code that specifies 2% discount within 10 days. In Dynamics 365 Finance and Operations, a cash discount for early payment is configured by defining a Terms of payment record that includes a cash discount code. The cash discount code specifies the discount percentage (2%) and the discount period (10 days), while the Terms of payment record defines the net due date (30 days). This setup ensures the discount is automatically applied when the vendor invoice is posted and the payment is made within the discount period, without requiring manual entry or per-invoice adjustments.

Answer

Enter the discount manually on each vendor invoice

Answer

Set up the discount in the Purchase order form

Answer

Configure the cash discount in the Vendor invoice journal

Question 3

A company uses Dynamics 365 Finance and Operations and has multiple legal entities. The parent company needs to monitor the cash position of all subsidiaries in real time. Currently, each subsidiary uses its own bank account and currency. You need to configure a solution that provides a consolidated view of cash balances across all entities in the parent company's currency (EUR). The solution must support drill-down to individual bank transactions. The company uses the Cash and bank management module. What should you do?

Accepted Answer

Configure a cash position that includes bank accounts from all legal entities with currency exchange rates.. The Cash position feature in Dynamics 365 Finance and Operations allows you to configure a consolidated view of cash balances across multiple legal entities by including bank accounts from all subsidiaries and applying currency exchange rates to convert balances to the parent company's currency (EUR). This solution supports drill-down to individual bank transactions, meeting the real-time monitoring requirement.

Answer

Use Microsoft Power BI to connect to each legal entity's Cash and bank management data.

Answer

Set up intercompany accounting to automatically transfer cash balances to the parent company.

Answer

Use the bank reconciliation workspace to view each subsidiary's bank transactions.

Question 4

Your organization is configuring Accounts payable in Dynamics 365 Finance. You need to set up vendor posting profiles. Which THREE components are part of a vendor posting profile?

Accepted Answer

Summary account. (Summary account) is correct because it represents the main vendor balance account in the vendor posting profile. Option B (Discount account) is correct because it is used to post cash discounts taken on vendor payments. Option C (Settlement account) is correct because it is used for payment settlement transactions. Option D (Inventory account) is incorrect because inventory posting is handled through inventory posting profiles, not vendor posting profiles. Option E (Accounts receivable account) is incorrect because accounts receivable accounts are used for customer balances, not vendor balances.

Answer

Inventory account

Answer

Accounts receivable account

Question 5

Which TWO are examples of production order statuses in Dynamics 365 Supply Chain Management?

Accepted Answer

Released. In Dynamics 365 Supply Chain Management, production order statuses track the lifecycle of a manufacturing order. 'Released' (B) is a valid status that indicates the production order has been authorized for execution on the shop floor. 'Reported as finished' (D) is also a valid status, meaning the entire quantity or a partial quantity of the production order has been completed and reported into inventory.

Answer

Reserved

Answer

Picked

Answer

Invoiced

Question 6

Match each Dynamics 365 Project Operations pricing method to its description.

Accepted Answer

Cost plus: Customer pays actual costs plus an agreed-upon profit margin.. In Dynamics 365 Project Operations, Cost plus covers actual costs plus profit, Fixed price is a predetermined total, and Time and materials charges based on actual hours and materials. The distractors swap these definitions.

Answer

Fixed price: Customer pays based on actual time and materials.

Answer

Time and materials: Customer pays a set amount.

Answer

Cost plus: Customer pays only for materials, not labor.

Question 7

A project manager in Dynamics 365 Project Operations wants to use Copilot to quickly identify which projects are at risk of exceeding their budget. What should the project manager do?

Accepted Answer

Ask Copilot in natural language: "Which projects are over budget?". Copilot in Dynamics 365 Project Operations uses natural language processing to interpret user queries and surface relevant data directly from the system. By asking 'Which projects are over budget?' in natural language, the project manager can instantly get a list of at-risk projects without needing to configure alerts, build reports, or consult external teams. This leverages Copilot's ability to query project financial data in real time.

Answer

Set up automated alerts when a project exceeds 80% of its budget

Answer

Consult with the finance team to get a list of projects over budget

Answer

Create a custom Power BI report to monitor budget consumption

Question 8

A company has configured the Planning Optimization add-in as shown. A planner manually firms a planned order for a component that has a lead time of 25 days. The order's requirement date is 45 days from now. What will happen during the next master planning run?

Accepted Answer

The order will remain firm and no action will be taken.. The planner manually firmed the planned order. Once a planned order is firmed manually, it becomes a firm planned order and will not be affected by subsequent master planning runs. The Planning Optimization add-in respects manual firming regardless of the time fence settings. Therefore, during the next master planning run, the order will remain firm and no action will be taken. Option A is incorrect because the order is already firmed, so no action message will be generated to reschedule it. Option B is incorrect because the order is outside the 30-day auto-firming time fence, but it was manually firmed, so this is irrelevant. Option C is incorrect because a manually firmed order will not be unfirmed during master planning.

Answer

An action message will be generated to reschedule the order.

Answer

The order will be automatically firmed because it is within the time fence.

Answer

The order will be unfirmed and a new planned order created.

Question 9

Refer to the exhibit. A transfer order is shipped but not received. Which step should be performed next?

Accepted Answer

Register the receipt at WH-02. After a transfer order is shipped, the next step is for the receiving warehouse (WH-02) to register the receipt. This completes the transfer process. Option B is correct. Option A is incorrect because the order has already been shipped. Option C is not standard procedure, and Option D would only be needed if the original order was cancelled.

Answer

Ship the order again

Answer

Delete the transfer order

Answer

Create a new transfer order

Question 10

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to implement a Copilot feature that helps procurement agents draft purchase order lines using natural language. Which feature should they enable?

Accepted Answer

Copilot in procurement. The Copilot in procurement feature within Dynamics 365 Supply Chain Management is specifically designed to assist procurement agents in creating purchase order lines using natural language prompts. This capability leverages generative AI to interpret user intent and automatically populate order details, streamlining the procurement process.

Answer

Copilot in Sales

Answer

Copilot in Finance

Answer

Copilot in Customer Service

Question 11

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

Accepted Answer

Customer payment predictions. Customer payment predictions is the correct feature because it uses AI to analyze historical transaction data, customer payment patterns, and external signals to predict whether a customer will pay an invoice late. This capability is specifically designed to help companies proactively manage collections and reduce days sales outstanding (DSO) in Dynamics 365 Finance.

Answer

Credit and collections management

Answer

Budget control

Answer

Cash flow forecasting

Question 12

Which THREE features are available in Dynamics 365 Supply Chain Management? (Choose three.)

Accepted Answer

Transportation management. Transportation management is a core feature of Dynamics 365 Supply Chain Management that enables businesses to manage inbound and outbound shipments, rate shopping, route planning, and freight reconciliation. It integrates with warehouse and production modules to optimize logistics and carrier selection.

Answer

Project management

Answer

Retail management

Question 13

A company uses Dynamics 365 Project Operations to manage projects. A project manager needs to view the overall health of all active projects in the organization. Which dashboard should the manager use?

Accepted Answer

Project Manager dashboard. The Project Manager dashboard in Dynamics 365 Project Operations is specifically designed to provide a consolidated view of project health metrics, including schedule variance, cost variance, and overall status across all active projects. This dashboard uses built-in Power BI reports to aggregate data from project plans, actuals, and forecasts, enabling the project manager to quickly assess which projects are on track, at risk, or behind schedule.

Answer

Sales dashboard

Answer

Time Entry dashboard

Answer

Resource Manager dashboard

Question 14

A company wants to use Dynamics 365 Supply Chain Management to manage quality inspections for incoming raw materials. Which module should they configure?

Accepted Answer

Quality management. The Quality management module in Dynamics 365 Supply Chain Management is specifically designed to handle quality inspections, including those for incoming raw materials. It allows you to define quality orders, attach item sampling rules, and specify test instruments and failure actions, ensuring that raw materials meet required standards before they are accepted into inventory.

Answer

Production control

Answer

Warehouse management

Answer

Inventory management

Question 15

A multinational corporation uses Dynamics 365 Finance with multiple legal entities. The company needs to streamline the intercompany reconciliation process. They want to automatically generate balancing journal entries when transactions are posted between entities. Which configuration should be used to meet this requirement?

Accepted Answer

Configure intercompany accounting setup. To meet the requirement of automatically generating balancing journal entries when transactions are posted between entities, you need to configure intercompany accounting setup. This setup defines the rules for automatic balancing entries. Option A (Define intercompany transaction pairs) is used for matching intercompany transactions but does not automatically generate balancing entries. Option B (Use intercompany journal posting) is a manual process, not automatic. Option D (Set up consolidation groups) is for consolidating financial statements, not for automatic balancing. Therefore, Option C is correct.

Answer

Define intercompany transaction pairs

Answer

Use intercompany journal posting

Answer

Set up consolidation groups