MB-920 Practice Test 36 — 15 Questions

Question 1

A retailer uses Dynamics 365 Supply Chain Management to manage inventory across multiple stores. They need to ensure that store managers can only see inventory for their own store. What configuration should they use?

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

Accepted Answer

Data security policies. Data security policies in Dynamics 365 Supply Chain Management allow administrators to restrict record-level access based on user roles and context, such as limiting inventory visibility to a specific store. By configuring a data security policy that filters inventory records by the store dimension, store managers will only see data relevant to their assigned store. This is the correct approach because it enforces row-level security without customizing forms or reports.

Answer

Product filters

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Inventory Visibility add-in

Answer

Warehouse management parameters

Question 2

You are analyzing a master plan configuration. The company complains that the plan does not consider material availability when scheduling production orders. Which setting in the exhibit is causing this?

Accepted Answer

The 'FiniteMaterial' parameter is set to false.. The 'FiniteMaterial' parameter controls whether material availability is considered during master planning. When set to false, the system ignores material constraints and schedules production orders without checking if required materials are available, which directly matches the company's complaint.

Answer

The plan scope is limited to one site.

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The scheduling method is 'Operations scheduling'.

Answer

The 'FiniteCapacity' parameter is set to true.

Question 3

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the inventory valuation for a specific item is inconsistent between the financial and operational reports. The item uses FIFO costing. What could be the most likely cause of this discrepancy?

Accepted Answer

The inventory close process has not been run for the period.. In Dynamics 365 Supply Chain Management, inventory valuation discrepancies between financial and operational reports for FIFO items are most commonly caused by the inventory close process not being run for the period. Inventory close settles transactions, adjusts cost amounts, and aligns the financial ledger with operational inventory values. Until close is executed, financial reports may reflect unadjusted or provisional costs, while operational reports show current quantities and receipts.

Answer

The item has batch attributes configured.

Answer

The item's inventory status is set to 'Blocked'.

Answer

The inventory recalculation was run incorrectly.

Question 4

A company uses Dynamics 365 Supply Chain Management and wants to ensure that raw materials are inspected before being put away. Which warehouse management configuration should be used?

Accepted Answer

Set up a quality order that is automatically generated upon receipt.. A quality order can be automatically generated upon receipt to enforce inspection before putaway. Option A is wrong because putaway work is created after inspection; it doesn't enforce inspection. Option B is wrong because location directives guide where to put items, not inspection. Option D is wrong because mobile device menu items are used for scanning, not configuration of inspection.

Answer

Create a putaway work template that requires inspection.

Answer

Configure location directives to direct items to a quarantine location.

Answer

Configure a mobile device menu item for inspection.

Question 5

Which TWO of the following are core financial modules in Dynamics 365 Finance?

Accepted Answer

Accounts payable. Accounts payable (C) is a core financial module in Dynamics 365 Finance because it manages vendor invoices, payment proposals, and outgoing cash flows within the payables subledger. General ledger (D) is the central core financial module that holds the chart of accounts, journals, and posting logic to which all other subledgers, including payables and receivables, post transactions. Sales and marketing (A) is a customer engagement function belonging to Dynamics 365 Sales, not a Finance financial module. Human resources (B) is delivered through Dynamics 365 Human Resources rather than as a core Finance module. Project management (E) is provided by Dynamics 365 Project Operations and is not one of the core financial modules of Dynamics 365 Finance.

Answer

Sales and marketing

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Human resources

Answer

Project management

Question 6

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?

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

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Production control

Answer

Inventory management

Question 7

A manufacturing company uses Dynamics 365 Supply Chain Management with discrete manufacturing. They produce furniture in a make-to-stock environment. The production scheduler creates production orders for batches of 100 chairs. Raw materials are issued from the warehouse to the production floor based on a bill of materials (BOM). The company wants to streamline the process by automatically reserving raw materials when a production order is released, and also to capture the actual raw material consumption during production, rather than posting the full BOM consumption upon order start. Which manufacturing execution feature should you enable?

Accepted Answer

Material consumption registration. 'Material consumption registration' in manufacturing execution allows operators to register actual material usage during production, and automatic reservation can be configured. Option A is wrong because 'Auto-report as finished' automates the reporting of finished goods, not material consumption. Option B is wrong because 'Operation scheduling' is for scheduling operations, not material tracking. Option D is wrong because 'Kanban' is for lean manufacturing, not discrete make-to-stock.

Answer

Operation scheduling

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Auto-report as finished

Answer

Kanban

Question 8

A manufacturing company uses Dynamics 365 Finance and Operations. They need to track the cost of raw materials as they move through production. Which costing method should they use to ensure that inventory valuation reflects the most recent purchase prices?

Accepted Answer

FIFO. FIFO (First In, First Out) is the correct costing method because it assumes that the oldest inventory items are used first, leaving the most recently purchased items in stock. This ensures that the inventory valuation on the balance sheet reflects the most recent purchase prices, which aligns with the requirement to track costs as raw materials move through production in Dynamics 365 Finance and Operations.

Answer

LIFO

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Weighted average

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Standard cost

Question 9

A distribution company uses Dynamics 365 Finance and Operations. The warehouse manager wants to improve inventory accuracy and reduce picking errors. Which THREE features should they implement?

Accepted Answer

Location directives. Location directives (A) are correct because they define the rules that determine where items are put away and picked from, directing warehouse workers to the optimal locations and thereby reducing picking errors and improving inventory accuracy. Cycle counting (C) is correct because it enables periodic, ongoing counting of inventory by location or item without shutting down operations, which helps identify and correct discrepancies to maintain accurate on-hand quantities. Warehouse mobile device support (E) is correct because it lets workers scan barcodes and confirm picks, puts, and counts directly on handheld devices, validating transactions in real time and minimizing manual data-entry mistakes that cause picking errors. Demand forecasting (B) is not directly aimed at reducing picking errors or improving on-hand accuracy; it supports planning and replenishment. Vendor collaboration (D) focuses on supplier interactions such as purchase order and invoice collaboration, which does not address warehouse picking accuracy.

Answer

Demand forecasting

Answer

Vendor collaboration

Question 10

Which TWO are valid warehouse management processes in Dynamics 365 Supply Chain Management?

Accepted Answer

Receiving and putaway. In Dynamics 365 Supply Chain Management, warehouse management processes are the inbound and outbound workflows executed within the warehouse, and receiving and putaway (option C) is the core inbound process where goods are received against a load, license plate, or work order and then directed to storage locations via putaway work. Picking and shipping (option E) is the corresponding outbound process, where pick work is generated for sales orders or transfer orders and the goods are packed and shipped through the outbound dock. Purchase order creation (option A) is a procurement/procurement-and-sourcing activity, not a warehouse execution process, and it occurs before any warehouse work is generated. Production scheduling (option B) belongs to master planning and production control, since it plans and sequences production orders rather than executing warehouse movements. Invoice matching (option D) is an accounts payable/procurement task (two-way or three-way matching of invoice, PO, and receipt), not a warehouse management process.

Answer

Purchase order creation

Answer

Production scheduling

Answer

Invoice matching

Question 11

Your organization uses Dynamics 365 Finance and needs to track expenses by project for a construction project. Which module and configuration should you use?

Accepted Answer

Project management and accounting module with cost categories and budgets.. The Project management and accounting module in Dynamics 365 Finance is specifically designed to plan, execute, and track project costs, revenues, and budgets. Cost categories allow you to classify expenses (e.g., labor, materials, subcontractor) against a project, and project budgets enable detailed cost control and reporting. For a construction project where tracking expenses by project is critical, this module provides the necessary structure and integration with other financial modules.

Answer

Fixed assets module with asset tracking.

Answer

Budgeting module with budget control.

Answer

Expense management module with expense categories.

Question 12

A company needs to generate financial statements in Dynamics 365 Finance that comply with local regulatory requirements. Which tool should be used to design custom financial reports?

Accepted Answer

Financial reporting (Management Reporter).. Financial reporting (Management Reporter) is the dedicated tool in Dynamics 365 Finance for designing, generating, and distributing statutory and management financial statements such as balance sheets, income statements, and cash flow statements. It supports row/column/tree definitions that map to main accounts and dimensions, enabling compliance with local regulatory formats. It also supports XBRL tagging for regulatory filings in many jurisdictions.

Answer

Excel integration via OData.

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Power BI dashboards.

Answer

General ledger inquiry.

Question 13

A company uses Dynamics 365 Finance and has multiple legal entities. They need to consolidate financial data from all entities into a single reporting entity for quarterly reports. What feature should be used to perform this consolidation?

Accepted Answer

Consolidations. The Consolidations feature in Dynamics 365 Finance is purpose-built to combine the financial data of multiple legal entities into a single consolidated legal entity for reporting. It supports specifying which entities to include, the consolidation period, and the accounts to consolidate. This is the standard mechanism for producing quarterly consolidated reports across legal entities.

Answer

Intercompany accounting

Answer

Financial reporting

Answer

General ledger

Question 14

A company is implementing Dynamics 365 Supply Chain Management and wants to use AI-powered demand forecasting. The data scientist needs to include external factors like weather and economic indicators. Which feature should be enabled?

Accepted Answer

Demand Forecasting with Azure Machine Learning. Demand Forecasting with Azure Machine Learning is the specific feature in Dynamics 365 Supply Chain Management that allows data scientists to incorporate external factors such as weather and economic indicators into demand predictions. This feature leverages Azure Machine Learning to train custom models that can ingest external datasets alongside historical transaction data, enabling more accurate and context-aware forecasts.

Answer

Asset Management

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Inventory Visibility Add-in

Answer

Warehouse Management

Question 15

You are a Dynamics 365 Finance functional consultant for a company that operates in a country where tax regulations require the use of tax codes with different rates for various goods and services. The company needs to ensure that sales invoices automatically calculate tax based on the item's tax group and the customer's tax exemption status. They also need to generate tax reports for authorities. Requirements: 1) Configure tax codes and groups for automated tax calculation. 2) Handle tax exemptions. 3) Use standard Dynamics 365 Finance features. Which configuration should you set up?

Accepted Answer

Create sales tax codes, sales tax groups, and item sales tax groups. Assign tax exemption certificates to customers as needed.. Setting up sales tax codes, sales tax groups, and item sales tax groups, and assigning tax exemption certificates to customers, allows automatic tax calculation and reporting. Option A is correct.

Answer

Use the 'Tax calculation' service in Dynamics 365 Finance.

Answer

Configure the 'General ledger parameters' to apply a default tax rate to all transactions.

Answer

Set up a custom workflow for tax approval on each invoice.