MB-920 Practice Test 38 — 15 Questions

Question 1

A multinational company is implementing Dynamics 365 Human Resources. They need to ensure that employees in different countries can accrue leave based on local statutory requirements. The HR manager wants to automate the calculation of leave entitlements at the beginning of each fiscal year. Which feature should they configure?

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

Accepted Answer

Leave and absence plans. Leave and absence plans in Dynamics 365 Human Resources allow organizations to define accrual rules, including rates, caps, and carry-forward policies, that can be tailored to local statutory requirements. These plans can be configured to automatically calculate and post leave entitlements at the start of each fiscal year, ensuring compliance with country-specific regulations without manual intervention.

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Position-based hierarchies

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Approval workflows for leave requests

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Compensation plans

Question 2

A company uses Dynamics 365 Finance and wants to automate the approval of purchase requisitions based on dollar amount and department. What feature should be configured?

Accepted Answer

Workflows.. Workflows in Dynamics 365 Finance allow you to define automated approval processes based on criteria such as dollar amount and department. Option B is incorrect because procurement categories are used to classify items, not to automate approvals. Option C is incorrect because role-based security controls access permissions, not approval flows. Option D is incorrect because budget control monitors spending against budgets, not the approval of purchase requisitions.

Answer

Procurement categories.

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Role-based security.

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Budget control.

Question 3

A company uses Dynamics 365 Project Operations. They need to track project costs and revenue recognition in real time. Which module should they use?

Accepted Answer

Project Operations. Dynamics 365 Project Operations is the dedicated module for managing the entire project lifecycle, including cost tracking and revenue recognition in real time. It integrates project planning, resource management, and financials to ensure that project costs and revenue are recognized accurately as work progresses, without needing to switch to separate modules.

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Finance

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Commerce

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Supply Chain Management

Question 4

A company uses Dynamics 365 Supply Chain Management. They want to track the carbon footprint of each product throughout its lifecycle, from raw material to end-of-life disposal. Which module should they use?

Accepted Answer

Sustainability. The Sustainability module in Dynamics 365 Supply Chain Management is specifically designed to calculate and track carbon emissions across the entire product lifecycle, including raw material extraction, production, distribution, usage, and end-of-life disposal. It uses predefined emission factors and activity data to compute the carbon footprint per product, enabling organizations to meet environmental reporting requirements and identify reduction opportunities.

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Transportation management

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Warehouse management

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Product information management

Question 5

A manufacturing company is experiencing stockouts of a critical raw material despite maintaining high inventory levels. The procurement team places purchase orders based on historical usage, but demand has become erratic. Which action should the supply chain manager take to improve material availability without increasing inventory costs?

Accepted Answer

Set up a reorder point with dynamic safety stock calculation in Demand Planning.. Dynamics 365 Supply Chain Management's Demand Planning module can calculate dynamic safety stock based on forecasted demand variability and service level targets. This allows the system to automatically adjust reorder points in response to erratic demand patterns, improving material availability without simply increasing inventory levels across the board.

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Increase safety stock percentages for all raw materials by 20%.

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Switch from purchase orders to blanket purchase agreements with the supplier.

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Negotiate with the supplier to reduce lead time by 50%.

Question 6

A company uses Dynamics 365 Finance with multiple legal entities. The accounting manager notices that when intercompany transactions are posted, the due-to and due-from accounts are not automatically created. The intercompany setup appears correct, but the transactions fail to generate the intercompany accounting entries. What should you verify first?

Accepted Answer

Check the intercompany accounting setup for the due-to and due-from account mappings.. The intercompany accounting setup defines the specific due-to and due-from account mappings for each intercompany relationship. Without these mappings, the system cannot generate the offset entries, even if other settings are correct. Option B is wrong because currency configuration affects exchange rate calculations but not the creation of due-to/due-from accounts. Option C is wrong because while the chart of accounts must include intercompany accounts, the first verification step should be the mapping setup that tells the system which accounts to use. Option D is wrong because default financial dimensions do not control intercompany accounting entries.

Answer

Confirm that the intercompany currency is properly configured.

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Verify that the chart of accounts includes intercompany accounts.

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Ensure each legal entity has a default financial dimension set.

Question 7

Which TWO features are available in Dynamics 365 Finance to support financial reporting and analysis?

Accepted Answer

Financial reporting. Financial reporting (Option B) is a core feature in Dynamics 365 Finance that provides out-of-the-box financial statements (e.g., balance sheet, income statement) using the Financial Reporting module, which leverages the financial dimensions and main accounts for customizable reporting. Business performance analytics (Option C) is a cloud-based, embedded analytics capability that offers pre-built KPIs, dashboards, and drill-through insights for real-time financial and operational analysis, directly supporting decision-making without requiring external tools.

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Catalog management

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Production scheduling

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Inventory valuation

Question 8

Refer to the exhibit. A Dynamics 365 Finance administrator is configuring a financial dimension set. What is the primary purpose of this configuration?

Accepted Answer

To enable reporting and analysis by the selected dimensions. A financial dimension set in Dynamics 365 Finance is a predefined list of financial dimensions that can be used together for reporting and analysis. Its primary purpose is to enable reporting and analysis by the selected dimensions, allowing users to filter and group financial data based on combinations of dimensions. This configuration does not define the main account structure, validate combinations, or restrict user access; those are handled by other features.

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To define the main account and dimension structure

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To validate financial dimension combinations

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To restrict user access to specific financial data

Question 9

A company uses Dynamics 365 Supply Chain Management. They need to automatically reorder inventory when stock falls below a certain level. Which feature should they use?

Accepted Answer

Reorder point and replenishment. Reorder point and replenishment in Dynamics 365 Supply Chain Management automatically triggers purchase orders or transfer orders when on-hand inventory falls below a configured minimum. It is the native feature for automated replenishment and integrates with master planning. Safety stock, cycle counting, and inventory blocking serve different purposes.

Answer

Inventory blocking

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Cycle counting

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Safety stock levels

Question 10

You are a system administrator for a retail company using Dynamics 365 Finance. The company processes a large number of purchase orders and invoices daily. The accounts payable team wants to automate the matching of purchase order receipts with vendor invoices to reduce errors. You need to configure the system to perform three-way matching (purchase order, receipt, invoice). What should you do?

Accepted Answer

Enable three-way matching in Accounts payable parameters, and configure matching policies to validate prices and quantities.. Three-way matching in Dynamics 365 Finance is enabled in Accounts payable parameters, and matching policies are configured to validate invoice prices and quantities against the purchase order and product receipt. This ensures that invoices are only posted when they match the PO and receipt within defined tolerances, reducing errors and fraud.

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Enable two-way matching in Accounts payable parameters, and set up matching tolerance.

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Configure vendor invoice policies to require receipt confirmation before posting.

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Set up purchase agreements with price tolerance, and use invoice matching validation.

Question 11

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They experience slow performance when running the 'Release to warehouse' batch job for sales orders. The warehouse manager suspects that the location directives are inefficient. Which approach should they take to improve performance?

Accepted Answer

Analyze and optimize location directive queries and indexes. Slow performance in the 'Release to warehouse' batch job is often caused by inefficient location directive queries that scan large datasets without proper indexes. Analyzing and optimizing the location directive queries and their indexes directly addresses the root cause of the bottleneck.

Answer

Disable location directives

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Increase the number of batch servers

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Reduce the number of wave steps

Question 12

A company uses Dynamics 365 Finance. The controller wants to enforce that all purchase requisitions over $10,000 require CFO approval. Which configuration should be used?

Accepted Answer

Purchase requisition workflow. A purchase requisition workflow is the correct configuration because it allows the controller to define a conditional approval step that triggers CFO approval when the requisition total exceeds $10,000. Workflows in Dynamics 365 Finance are designed to route documents through approval processes based on configurable conditions, such as monetary thresholds. This directly meets the requirement without altering budget control or audit policies.

Answer

Budget control configuration

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Audit policy rule

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Configuration key

Question 13

A company uses Dynamics 365 Finance and wants to automate the approval of purchase orders under $10,000 while requiring manual approval for larger amounts. Which feature should they use?

Accepted Answer

Workflow automation. Workflow automation in Dynamics 365 Finance can be configured to automatically approve purchase orders under a specified amount and route larger ones for manual approval. Option B is incorrect because budget control enforces spending limits but does not automate approval workflows. Option C is incorrect because audit logging records user actions for compliance, not approval routing. Option D is incorrect because vendor collaboration is for communication with suppliers, not internal approval processes.

Answer

Budget control

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Audit logging

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Vendor collaboration

Question 14

A company uses Dynamics 365 Supply Chain Management. The warehouse manager wants to use Copilot to improve inventory management. Which THREE tasks can Copilot assist with?

Accepted Answer

Suggest optimal inventory levels based on lead times and demand variability. Copilot in Dynamics 365 Supply Chain Management is designed as an AI assistant that surfaces recommendations and insights rather than executing physical or autonomous actions. Option C is correct because Copilot can suggest optimal inventory levels by reasoning over lead times and demand variability to help planners set safety stock and reorder points. Option D is correct because Copilot can highlight slow-moving inventory and flag items at risk of write-offs, giving the warehouse manager actionable visibility into excess or obsolete stock. Option E is correct because Copilot can analyze historical demand patterns and generate forecasts of future inventory needs to support replenishment planning. Option A is not correct because Copilot is a software assistant and cannot directly perform physical inventory counts via sensors; that requires IoT or warehouse hardware and counting processes. Option B is not correct because Copilot does not autonomously place supplier orders without human intervention; reordering remains a controlled planning and approval workflow.

Answer

Directly perform physical inventory counts using sensors

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Automatically reorder stock from suppliers without human intervention

Question 15

You are the Dynamics 365 Finance administrator for a manufacturing company with multiple legal entities. The company uses intercompany transactions between Entity A (US) and Entity B (Germany). Entity A sells raw materials to Entity B. The transactions must be recorded in both entities' ledgers, and the intracompany trade must be eliminated during consolidation. Recently, the accounting team reported that intercompany transactions are not being eliminated correctly. Upon investigation, you find that the intercompany transactions were posted using separate purchase orders and sales orders, not through the intercompany module. The elimination process uses intercompany eliminations rules. What should you do to ensure proper elimination?

Accepted Answer

Recreate the transactions using the intercompany module and delete the original orders.. The intercompany module in Dynamics 365 Finance is specifically designed to automatically generate matching transactions in both legal entities and to flag those transactions for elimination during consolidation. By recreating the transactions through the intercompany module, you ensure that the intercompany eliminations rules can correctly identify and eliminate the intercompany trade. Deleting the original orders removes the manually created purchase and sales orders that were not linked to the elimination process.

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Reverse the existing transactions and repost them with the same method.

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Create manual elimination journal entries to correct the balances.

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Adjust the elimination rules to match the existing transactions.