MB-920 Practice Test 37 — 15 Questions

Question 1

A company uses Dynamics 365 Sales. A sales representative wants to quickly get a summary of a customer's recent interactions without manually searching through emails, meetings, and notes. Which Copilot capability should the representative use?

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

Accepted Answer

Summarize conversations and activities. The Copilot capability to summarize conversations and activities directly addresses the sales representative's need to quickly view a customer's recent interactions without manual searching. This feature uses AI to aggregate and condense emails, meetings, and notes into a concise summary, leveraging Dynamics 365 Sales' Copilot integration with Microsoft 365 data.

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Update the customer's contact details

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Generate a sales forecast

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Automatically create a follow-up task

Question 2

A retail company wants to automate the reconciliation of bank statements with ledger entries in Dynamics 365 Finance. Which feature should they use?

Accepted Answer

Advanced bank reconciliation. Advanced bank reconciliation in Dynamics 365 Finance is purpose-built to import bank statements (via MT940, BAI2, ISO 20022 camt.053, or CSV) and automatically match them against ledger bank transactions. It supports matching rules, reconciliation tolerances, and posting of unreconciled differences, which is exactly what statement-to-ledger reconciliation requires.

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Cash flow forecasting

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Payment journal

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General journal

Question 3

A company uses Dynamics 365 Supply Chain Management. They need to track the cost of raw materials and finished goods accurately for financial reporting. Which module should they use?

Accepted Answer

Cost management. The Cost management module in Dynamics 365 Supply Chain Management is specifically designed to handle cost accounting, inventory valuation, and financial reporting for raw materials and finished goods. It provides features like standard cost, actual cost, and costing sheets to ensure accurate cost tracking and compliance with financial reporting standards.

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Production control

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Inventory management

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Warehouse management

Question 4

Which TWO benefits does using Lifecycle Services (LCS) provide for Dynamics 365 Finance and Operations implementations? (Choose two.)

Accepted Answer

Providing implementation methodology guidance. Option B is correct because LCS (Lifecycle Services) includes Business Process Modeler (BPM) and the Sure Step-derived implementation methodology, giving teams prescriptive guidance, task libraries, and phase-based project templates for Dynamics 365 Finance and Operations rollouts. Option C is correct because LCS provides the Cloud-hosted environments tool, which lets partners and customers deploy Microsoft-managed, Azure-hosted Dynamics 365 F&O sandbox and development VMs (Tier 1 through Tier 5) directly from the LCS portal. Option A is not a benefit of LCS itself, since custom code is written in Visual Studio with X++ and version-controlled in Azure DevOps or Team Foundation Version Control, not authored in LCS. Option D is incorrect because user subscriptions and licensing are managed through the Microsoft 365 admin center and Microsoft Entra ID, not LCS. Option E is incorrect because AI-powered insights come from tools such as Dynamics 365 Customer Insights or Power Platform AI Builder, not from LCS's core project and environment management capabilities.

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Writing custom code

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Managing user subscriptions

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Providing AI-powered insights

Question 5

A company uses Dynamics 365 Supply Chain Management and wants to implement a process where products are tracked from raw material to finished goods using unique identifiers. Which feature should they enable to achieve this?

Accepted Answer

Serial number tracking. Serial number tracking assigns a unique identifier to each individual unit, enabling full traceability from raw material through finished goods. This is exactly what the scenario requires for tracking products with unique identifiers. Batch tracking, by contrast, tracks groups of items rather than individual units.

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Batch tracking

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Product configuration

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Catch weight

Question 6

A company uses Dynamics 365 Finance. The accounts payable manager wants to automate the process of matching purchase orders, product receipts, and vendor invoices. Which feature should they use?

Accepted Answer

Accounts payable invoice matching. Accounts payable invoice matching in Dynamics 365 Finance automates the three-way match between purchase orders, product receipts, and vendor invoices, flagging discrepancies for review. It is the built-in feature designed specifically for this AP reconciliation process. Enabling invoice matching lets the AP manager enforce tolerances and reduce manual verification.

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Vendor collaboration

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Budget control

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Fixed assets management

Question 7

A company using Dynamics 365 Finance is experiencing performance issues when running month-end close processes. The finance team suspects that the issue is related to the number of open transactions. Which strategy should be used to improve performance?

Accepted Answer

Archive historical transactions and reduce the data volume.. Archiving historical transactions reduces the volume of data that month-end close routines must scan, which directly addresses the performance bottleneck caused by a large open-transaction table. This is the standard remediation for slow close processes in Dynamics 365 Finance.

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Increase the number of concurrent users during close.

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Modify the financial reporting to use summary data.

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Run all close processes in batch mode.

Question 8

You are the finance systems manager for a large manufacturing conglomerate using Dynamics 365 Finance. The company has multiple legal entities, each with its own chart of accounts. The CFO wants to consolidate financial results across all entities at month-end. The consolidation must eliminate intercompany transactions and adjust for differences in accounting standards (e.g., US GAAP vs IFRS). You need to design the consolidation process. What should you do?

Accepted Answer

Set up a consolidation company, configure elimination rules, and use currency translation to convert to the parent's reporting currency. Also, set up additional reporting currencies for IFRS adjustments.. Consolidating multiple legal entities with different charts of accounts and accounting standards requires a consolidation company, elimination rules for intercompany transactions, currency translation to the parent's reporting currency, and additional reporting currencies to handle GAAP vs IFRS adjustments. Option B covers all these requirements in a Dynamics 365 Finance consolidation design.

Answer

Create a consolidation company and run the consolidation process, which automatically eliminates intercompany transactions.

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Export each entity's trial balance to Excel, manually adjust for intercompany transactions, and import into a consolidation company.

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Set up reporting currencies in each legal entity to report in both GAAP and IFRS, and use Management Reporter for consolidation.

Question 9

Contoso Ltd. is a global manufacturing company with legal entities in the US (USD), UK (GBP), and Germany (EUR). They use Dynamics 365 Finance. The CFO wants a consolidated financial report that combines data from all entities into USD, using month-end exchange rates. The consolidation must be performed monthly, and adjustments should be automatically eliminated. The company also needs to maintain separate accounting rules for each entity (e.g., GAAP vs. IFRS). You are tasked with configuring the consolidation process. What should you do?

Accepted Answer

Set up a consolidation group, define exchange rates, configure elimination rules, and run the consolidation process online.. The consolidation module in Dynamics 365 Finance enables you to set up a consolidation group containing the relevant legal entities, define exchange rates (e.g., month-end rates), configure elimination rules to automatically remove intercompany transactions, and run the consolidation process online. This automates the monthly consolidation into USD while respecting each entity's accounting rules (GAAP/IFRS). Option A is incorrect because intercompany accounting handles transactions between entities, not the consolidated reporting of separate entities. Option B is incorrect because manually exporting/importing trial balances to Excel is error-prone and does not automate the process. Option C is incorrect because a general journal is for manual adjustments, not for running an automated consolidation that includes currency conversion and eliminations.

Answer

Configure intercompany accounting and use the intercompany reconciliation report.

Answer

Export each entity's trial balance to Excel, apply exchange rates, and import to a consolidated company.

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Create a general journal to manually post consolidated entries using exchange rates.

Question 10

A company needs to comply with a new regulation requiring that all journal entries be approved by a supervisor before posting. The company uses Dynamics 365 Finance. What should they configure?

Accepted Answer

Create a journal approval workflow. A journal approval workflow in Dynamics 365 Finance enforces a supervisory review step before journal entries can be posted. Workflows are configured in the General ledger module and can route journal entries to designated approvers based on rules such as amount thresholds, journal names, or legal entity. This directly satisfies the regulatory requirement that all journal entries be approved by a supervisor before posting.

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Configure financial dimension sets

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Modify general ledger parameters

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Enable audit trail settings

Question 11

A company implements Dynamics 365 Finance and needs to configure a chart of accounts that supports multiple legal entities. What is the best practice for managing shared accounts?

Accepted Answer

Use the shared chart of accounts feature and assign it to each legal entity.. The shared chart of accounts feature in Dynamics 365 Finance allows a single chart of accounts to be used across multiple legal entities, ensuring consistency and simplifying maintenance. Option A is incorrect because deleting unused accounts is irrelevant to sharing. Option C is incorrect because financial dimensions are used for tracking, not for sharing the chart of accounts. Option D is incorrect because separate charts per entity increase complexity and are not a best practice.

Answer

Delete accounts that are not used across all entities.

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Use financial dimensions to differentiate accounts by legal entity.

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Create a separate chart of accounts for each legal entity to ensure independence.

Question 12

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to forecast demand for the next quarter to plan procurement and production. Which module should they use for demand forecasting?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the module specifically designed for demand forecasting. It uses historical data and statistical methods to generate forecasts that drive procurement and production planning. The other modules handle execution or sales tracking, not the forecasting engine.

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Procurement and sourcing

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Production control

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Sales and marketing

Question 13

A distribution company needs to automate the generation of purchase orders when inventory levels fall below a predefined threshold. Which feature in Dynamics 365 Supply Chain Management should be configured?

Accepted Answer

Replenishment rules. Replenishment rules in Dynamics 365 Supply Chain Management define minimum/maximum inventory thresholds and trigger automatic generation of purchase orders (or transfer orders) when stock falls below the minimum. This is exactly the automation the distribution company needs. Configuring min/max or safety stock on the item's coverage settings drives the master planning engine to create the POs.

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Inventory visibility

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Vendor collaboration

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Batch balancing

Question 14

Refer to the exhibit. A configuration snippet from Dynamics 365 Finance and Operations defines a workflow. What does this workflow do?

Accepted Answer

Require manager approval for purchase orders over $10,000. The workflow configuration in Dynamics 365 Finance and Operations defines a conditional approval step: when a purchase order exceeds $10,000, it is routed to the user's manager for approval. This is a standard workflow condition that triggers a specific approval step based on a monetary threshold, ensuring that high-value orders receive managerial oversight before proceeding.

Answer

Reject purchase orders over $10,000

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Automatically approve all purchase orders under $10,000

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Send all purchase orders to the VP for approval

Question 15

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. They want to implement a strategy where workers are guided through tasks using scanning devices. Which feature should they configure?

Accepted Answer

Warehouse mobile app. The Warehouse mobile app in Dynamics 365 Supply Chain Management is the feature that runs on handheld scanning devices and guides warehouse workers through tasks such as receiving, put-away, picking, and counting. It provides the task-driven, scan-based workflow the company wants. Configuring it is the correct step to enable guided scanning operations.

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Inventory management

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Warehouse management

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RF scanning