MB-920 Practice Test 35 — 15 Questions

Question 1

Your organization is implementing Dynamics 365 Finance and needs to ensure that intercompany transactions are automatically reconciled. Which setup is required?

Accepted Answer

Set up intercompany accounting and define intercompany partners.. Setting up intercompany accounting and defining intercompany partners is required for automatic reconciliation of intercompany transactions. Option A is incorrect because elimination rules are part of consolidation processes used to remove intercompany balances, not for automatic reconciliation. Option B is incorrect because allocation rules are used for distributing costs, not for intercompany reconciliation. Option D is incorrect because consolidation processes combine financial statements of multiple legal entities, which is distinct from intercompany transaction reconciliation.

Answer

Define elimination rules for intercompany transactions.

Answer

Create allocation rules for intercompany charges.

Answer

Configure consolidation processes.

Question 2

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 3

A distribution company uses Dynamics 365 Supply Chain Management to manage its supply chain. Recently, the company has been facing issues with late deliveries to customers. The root cause analysis shows that the planning department is not accurately accounting for lead times from suppliers. The company wants to improve the accuracy of purchase order delivery dates. You need to configure the system to automatically calculate purchase order delivery dates based on vendor lead times and calendar exceptions. The company uses the Master Planning module for supply planning. You have the following options: A. Configure the Warehouse Management module to use the shipment consolidation functionality to adjust delivery dates. B. Manually adjust delivery dates on each purchase order based on phone calls with vendors. C. Use the Procurement and Sourcing module to create blanket purchase agreements that override lead times. D. Set up vendor lead times in the Vendor master and configure the purchase lead time field in the Product master. Then run Master Planning to generate planned purchase orders with correct delivery dates. Which option should you choose?

Accepted Answer

Set up vendor lead times in the Vendor master and configure the purchase lead time field in the Product master. Then run Master Planning to generate planned purchase orders with correct delivery dates.. Vendor lead times and product lead times are used by Master Planning to calculate delivery dates automatically. By setting up vendor lead times in the Vendor master and configuring the purchase lead time field in the Product master, Master Planning can generate planned purchase orders with accurate delivery dates based on lead times and calendar exceptions. Option A is incorrect because shipment consolidation in Warehouse Management is for outbound shipments, not for purchase order lead times. Option B is incorrect because manual adjustments are error-prone and not scalable. Option C is incorrect because blanket purchase agreements are for pricing and terms, not for lead time calculation.

Answer

Configure the Warehouse Management module to use the shipment consolidation functionality to adjust delivery dates.

Answer

Manually adjust delivery dates on each purchase order based on phone calls with vendors.

Answer

Use the Procurement and Sourcing module to create blanket purchase agreements that override lead times.

Question 4

A company uses Dynamics 365 Commerce for its online store. They want to offer personalized product recommendations to customers based on their browsing history. Which Dynamics 365 capability should they use?

Accepted Answer

Product recommendations in Commerce. Dynamics 365 Commerce includes a built-in product recommendations engine that leverages AI and machine learning to analyze customer browsing and purchase history, enabling personalized product suggestions directly within the online store. This capability is specifically designed for e-commerce scenarios and integrates seamlessly with Commerce's product catalog and shopping experience.

Answer

Marketing segments in Dynamics 365 Marketing

Answer

Customer Service Insights

Answer

Power BI embedded analytics

Question 5

A company uses Dynamics 365 Finance and wants to use Copilot to assist with financial analysis. Which task can Copilot perform in Dynamics 365 Finance?

Accepted Answer

Generate a cash flow forecast report.. Copilot in Dynamics 365 Finance can generate a cash flow forecast report, assisting financial analysis. Option A is wrong because Copilot cannot configure system parameters for the General ledger; it is an AI assistant that provides insights but does not perform system configuration. Option B is wrong because Copilot cannot run batch jobs for period-end closing; these are automated background processes. Option D is wrong because Copilot cannot automatically post pending invoices; transaction posting requires manual or workflow-driven actions, not Copilot's direct execution.

Answer

Configure system parameters for the General ledger.

Answer

Run batch jobs for period-end closing.

Answer

Automatically post all pending invoices.

Question 6

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to ensure that raw materials are automatically replenished based on current inventory levels and forecasted demand. Which feature should be configured?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the feature designed to calculate material and capacity requirements based on current inventory levels and forecasted demand. It generates planned orders for replenishment, ensuring raw materials are available to meet production and customer demand without overstocking.

Answer

Quality management

Answer

Vendor collaboration

Answer

Warehouse management

Question 7

A manufacturing company uses Dynamics 365 Supply Chain Management. The production planner notices that a planned production order for 1,000 units of finished good FG-100 has a material shortage for component RM-200. The planner wants to automatically create purchase orders for the missing component and reschedule the production order. Which feature should be configured?

Accepted Answer

Master planning. (Master planning) is correct because Master planning in Dynamics 365 Supply Chain Management performs material requirements planning (MRP) that can automatically generate planned purchase orders for missing components and reschedule production orders based on material availability. Option A (Warehouse management) is incorrect because it focuses on warehouse operations like receiving, putaway, and picking, not on planning. Option C (Product configuration) is incorrect as it is used for configurable products in a configure-to-order scenario. Option D (Inventory management) is incorrect because it handles inventory transactions, counting, and adjustments, not planning or automation of purchase orders.

Answer

Warehouse management

Answer

Product configuration

Answer

Inventory management

Question 8

A manufacturing company uses Dynamics 365 Finance. The finance team notices that the general ledger balances do not match the subledger details for accounts payable. What should you troubleshoot first?

Accepted Answer

Run the 'Troubleshoot GL balance' report in Accounts payable.. The correct first step is to run the 'Troubleshoot GL balance' report in Accounts payable. This report is specifically designed to identify discrepancies between the general ledger and the subledger for accounts payable. Option A is incorrect because the invoice approval workflow affects approval processes, not GL-subledger balances. Option B is incorrect because reviewing the vendor payment settlement process pertains to payments, not balance discrepancies. Option D is incorrect because re-running the payment journal report shows payment details, not balance reconciliation.

Answer

Check the invoice approval workflow configuration.

Answer

Review the vendor payment settlement process.

Answer

Re-run the payment journal report.

Question 9

A company uses Dynamics 365 Supply Chain Management. They need to track the serial numbers of products sold to customers for warranty management. Which inventory configuration should they use?

Accepted Answer

Serial number tracking. Serial number tracking is the correct inventory configuration because it allows the company to assign a unique identifier to each individual unit of a product. This enables precise tracking of which specific item was sold to which customer, which is essential for managing warranty claims, returns, and service history in Dynamics 365 Supply Chain Management.

Answer

Batch tracking

Answer

Location tracking

Answer

Product dimensions

Question 10

Which TWO core capabilities are part of Dynamics 365 Human Resources? (Choose two.)

Accepted Answer

Employee self-service. Employee self-service (A) is a core capability of Dynamics 365 Human Resources because it allows employees to view and update their personal information, request time off, and access pay slips without administrator intervention. Leave and absence management (E) is also a core capability, providing configurable leave plans, accrual rules, and workflows for requesting and approving time off. Both features are built into the Human Resources module of Dynamics 365 Finance and Operations apps.

Answer

Talent acquisition

Answer

Payroll integration

Answer

Learning management

Question 11

A manufacturing company uses Dynamics 365 Finance. The finance team notices that the 'Work in process' (WIP) account balances are not clearing correctly after production orders are completed. The production orders use the 'Standard cost' costing method. What is the most likely cause of this issue?

Accepted Answer

The production order variances have not been calculated and posted.. In standard costing, any variances between actual costs and standard costs must be calculated and posted to clear the Work in Process (WIP) account. If variances are not posted, the WIP balance remains uncleared. Option B is incorrect because an unapproved BOM version prevents production from being released or costed, but does not directly cause WIP clearing issues. Option C is incorrect because the cost category type (indirect vs. direct) affects how costs are applied but not the clearing of WIP. Option D is incorrect because item coverage group settings pertain to planning and replenishment, not to accounting transactions like WIP clearing.

Answer

The bill of materials (BOM) version is not approved.

Answer

The cost category for the production route is set to 'Indirect cost' instead of 'Direct'.

Answer

The item coverage group is set to 'Period' instead of 'Requirement'.

Question 12

Which THREE of the following are capabilities of Dynamics 365 Project Operations? (Choose three.)

Accepted Answer

Resource Management. Resource Management (B) is a core capability of Dynamics 365 Project Operations, enabling project managers to find, schedule, and assign resources based on skills, availability, and role requirements. It integrates with Project Operations' scheduling engine to optimize resource utilization across projects.

Answer

Inventory Management

Answer

Payroll Processing

Question 13

Which THREE capabilities are part of the core capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse management. Warehouse management (A) is a core capability of Dynamics 365 Supply Chain Management, providing advanced functionality for managing warehouse operations including receiving, putaway, picking, packing, and shipping. It integrates with barcode scanning and RFID to optimize inventory accuracy and labor efficiency.

Answer

Payroll processing

Answer

Sales order management

Question 14

A company uses Dynamics 365 Commerce and wants to implement a buy-online-pick-up-in-store (BOPIS) scenario. The inventory must be reserved in real-time when the customer places the order. Which configuration is required?

Accepted Answer

Enable real-time inventory reservation at the store warehouse.. Dynamics 365 Commerce requires the 'Enable real-time inventory reservation at the store warehouse' configuration to ensure that when a customer places a BOPIS order, the inventory is immediately reserved from the store’s warehouse. This setting triggers a real-time service call to the Commerce Scale Unit (CSU) to check and reserve stock, preventing overselling and ensuring the item is available for pickup.

Answer

Use the Inventory Visibility Add-in for external systems.

Answer

Configure the warehouse management process for the store.

Answer

Set up cross-docking for store replenishment.

Question 15

A company uses Dynamics 365 Finance with multiple legal entities. The finance team needs to enforce a consistent chart of accounts across all entities. Which feature should they use?

Accepted Answer

Shared chart of accounts. A shared chart of accounts allows a single chart of accounts to be used across all legal entities, ensuring consistency. Option A is incorrect because financial dimensions are used to add additional segmentation to transactions, not to enforce a chart of accounts structure. Option B is incorrect because legal entity overrides are used to customize configurations for specific entities, not to enforce consistency. Option C is incorrect because main account categories group main accounts for reporting but do not enforce the chart of accounts across entities.

Answer

Financial dimensions

Answer

Legal entity override

Answer

Main account categories