MB-920 Practice Test 38 — 15 Questions

Question 1

A small business uses Dynamics 365 Supply Chain Management to manage inventory. They currently sell products from a single warehouse. The owner wants to start tracking the cost of goods sold (COGS) for each product using the standard costing method. You need to set up the system to calculate COGS correctly. You have the following options: A. Enable standard costing in the Inventory model group for each product and run the Inventory close process periodically. B. Use the FIFO costing method and run the Inventory recalculation. C. Use the Moving average costing method and rely on automatic posting to the general ledger. D. Configure the Product master to use the Purchase price as the cost price and post directly to COGS. Which option should you choose?

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

Accepted Answer

Enable standard costing in the Inventory model group for each product and run the Inventory close process periodically.. Standard costing requires setting the inventory model group to Standard cost and running the Inventory close process periodically to calculate variances and determine the actual COGS. Option A is incorrect because FIFO is a different costing method (first in, first out) and does not use standard costing. Option B is incorrect because using purchase price directly does not reflect standard costing methodology; standard costing uses predetermined costs. Option C is incorrect because moving average is a different costing method that calculates a weighted average cost after each receipt.

Answer

Use the FIFO costing method and run the Inventory recalculation.

Answer

Configure the Product master to use the Purchase price as the cost price and post directly to COGS.

Answer

Use the Moving average costing method and rely on automatic posting to the general ledger.

Question 2

A company uses Dynamics 365 Supply Chain Management and wants to implement a policy where a specific supplier must be used for a particular item. Which configuration enforces this?

Accepted Answer

Add the supplier to the approved supplier list for the item.. An approved supplier list (ASL) restricts which suppliers can be used for a specific item; if a supplier is not on the list, procurement cannot proceed. Option B is wrong because configuring a procurement category and assigning a supplier does not enforce exclusivity—it only associates the supplier with that category. Option C is wrong because a purchase agreement is a contract for pricing or terms but does not prevent using other suppliers for the item. Option D is wrong because setting the supplier as the default vendor on the item's vendor setup only determines the default, not an exclusive requirement.

Answer

Configure a procurement category and assign the supplier.

Answer

Create a purchase agreement with that supplier.

Answer

Set the supplier as the default vendor on the item's vendor setup.

Question 3

A multinational company uses Dynamics 365 Finance with multiple legal entities. They want to process intercompany transactions automatically. What should they configure?

Accepted Answer

Intercompany accounting. Intercompany accounting is the feature that automates intercompany transactions, making Option D correct. Option A (Elimination rules) is used to remove intercompany balances during consolidation, not for day-to-day transactions. Option B (Consolidations) combines financial statements of multiple entities, not for processing individual transactions. Option C (Transfer orders) are for inventory transfers between locations, not for general intercompany transactions.

Answer

Elimination rules

Answer

Consolidations

Answer

Transfer orders

Question 4

Drag and drop the steps to create a new customer record in Dynamics 365 Sales in the correct order.

Accepted Answer

Step 1: Open Dynamics 365 Sales app, Step 2: Navigate to customer list, Step 3: Click New to create a new customer record, Step 4: Fill in required fields, Step 5: Save the record.. Creating a customer record starts with opening the app, then navigating to the customer list, creating a new record, filling in details, and saving.

Answer

Step 1: Open Dynamics 365 Sales app, Step 2: Navigate to customer list, Step 3: Click New to create a new customer record, Step 4: Save the record, Step 5: Fill in required fields.

Answer

Step 1: Open Dynamics 365 Sales app, Step 2: Click New to create a new customer record, Step 3: Navigate to customer list, Step 4: Fill in required fields, Step 5: Save the record.

Answer

Step 1: Navigate to customer list, Step 2: Open Dynamics 365 Sales app, Step 3: Click New to create a new customer record, Step 4: Fill in required fields, Step 5: Save the record.

Question 5

An organization uses Dynamics 365 Supply Chain Management. They receive a large shipment of raw materials that have variable quality. They need to ensure that only materials meeting quality specifications are accepted into inventory. The process should include sampling and testing. Which feature should they use?

Accepted Answer

Quality management. Quality management in Dynamics 365 Supply Chain Management provides functionality for sampling, testing, and dispositioning items based on quality specifications, which is exactly what is needed to ensure only materials meeting quality standards are accepted. Option A is incorrect because Inventory management handles stock levels and storage, not quality checks. Option B is incorrect because Warehouse management focuses on movement and storage within warehouses, not quality testing. Option C is incorrect because Production control manages manufacturing processes, not inbound quality inspection.

Answer

Inventory management

Answer

Warehouse management

Answer

Production control

Question 6

A retailer using Dynamics 365 Commerce wants to offer a discount to customers who purchase a specific combination of items. The discount should be applied automatically at the point of sale. Which type of pricing rule should they configure?

Accepted Answer

Mix and match discount. A mix and match discount is the correct pricing rule because it is specifically designed for scenarios where a discount is applied when a customer purchases a predefined combination of distinct items. In Dynamics 365 Commerce, this rule automatically triggers at the point of sale when the qualifying product set is scanned, without requiring manual intervention.

Answer

Quantity discount

Answer

Simple discount

Answer

Threshold discount

Question 7

A company uses Dynamics 365 Commerce and wants to track inventory across multiple warehouses. They need to ensure that inventory levels are updated in real-time when a sale is made at the store. Which feature should they use?

Accepted Answer

Enable Real-time Service in the POS.. Real-time Service in the POS enables immediate inventory updates by sending transactions directly to the Dynamics 365 Commerce headquarters as they occur. This ensures that inventory levels across multiple warehouses are synchronized in real-time when a sale is made at the store, meeting the requirement for up-to-the-minute accuracy.

Answer

Configure the channel database to update inventory directly.

Answer

Use Commerce Data Exchange to sync inventory.

Answer

Schedule a batch job to update inventory every hour.

Question 8

Which THREE steps are required to set up a production order for a make-to-order scenario? (Choose three.)

Accepted Answer

Define a bill of materials and route for the item.. A bill of materials (BOM) and route are mandatory for any production order in Dynamics 365 Supply Chain Management. The BOM defines the components and quantities required, while the route specifies the operations and work centers needed to produce the item. Without these, the system cannot calculate material requirements or schedule production steps.

Answer

Run demand forecasting to estimate quantity.

Answer

Create a purchase order for the finished good.

Question 9

A retail company uses Dynamics 365 Supply Chain Management to manage inventory across multiple stores. They want to ensure that stock levels at stores are automatically replenished from the central warehouse when inventory drops below a defined threshold. Which planning method should they configure?

Accepted Answer

Replenishment (min/max). Replenishment (min/max) is the correct planning method because it automatically triggers replenishment orders from the central warehouse when inventory at a store falls below a defined minimum threshold, and it stops when stock reaches the maximum level. This method is specifically designed for location-based inventory replenishment in Dynamics 365 Supply Chain Management, ensuring that stores maintain optimal stock without manual intervention.

Answer

Inventory aging

Answer

Demand forecasting

Answer

Safety stock

Question 10

A project manager needs to create a project from a template that includes a predefined work breakdown structure (WBS) and resource assignments. The template should automatically create the project tasks and assign resources based on skill requirements. Which feature in Dynamics 365 Project Operations should the project manager use?

Accepted Answer

Project template. Project templates in Dynamics 365 Project Operations allow a project manager to create a new project that automatically includes a predefined work breakdown structure (WBS) and resource assignments. When the template is applied, it generates the project tasks and assigns resources based on the skill requirements defined in the template, streamlining project setup and ensuring consistency.

Answer

Project budget

Answer

Resource Reconciliation view

Answer

Scheduling assistant

Question 11

A Dynamics 365 administrator is configuring Copilot features for the sales team. Which TWO actions should the administrator take to ensure responsible AI usage?

Accepted Answer

Enable the feedback mechanism to allow users to report inaccurate responses. Enabling the feedback mechanism allows users to report inaccurate or inappropriate Copilot responses, which is a core requirement for responsible AI usage. This feedback loop helps administrators identify and correct issues, ensuring the AI system remains trustworthy and compliant with Microsoft's responsible AI principles. Without this mechanism, the organization would lack visibility into potential harms or inaccuracies generated by the AI.

Answer

Disable access to all customer data to prevent Copilot from using it

Answer

Restrict Copilot to only respond in English

Answer

Encrypt all data at rest and in transit

Question 12

A Dynamics 365 Commerce administrator reviews the Retail Server configuration exhibit. Customers report that the checkout page does not appear. Based on the exhibit, what is the most likely cause?

Accepted Answer

Checkout page is not configured.. The Retail Server configuration in Dynamics 365 Commerce includes a dedicated 'Checkout page' setting that must be explicitly linked to a valid page URL. If this field is empty or points to a non-existent or unpublished page, the checkout page will not render, causing the reported issue. The exhibit likely shows this field is blank or misconfigured, making 'Checkout page is not configured' the most direct cause.

Answer

Default customer is not set correctly.

Answer

Product search is disabled.

Answer

Guest checkout is disabled.

Question 13

You are a business analyst at Northwind Traders, a wholesale distribution company using Dynamics 365 Finance. The company processes a high volume of customer invoices daily. The accounts receivable team is spending too much time manually applying customer payments to open invoices. The CFO wants to automate the payment application process to reduce manual effort. You are evaluating the use of payment journal templates and payment proposals. What should you configure?

Accepted Answer

Set up payment proposals in the customer payment journal to automatically apply payments to open invoices.. Payment proposals in Dynamics 365 Finance can automatically apply customer payments to open invoices based on matching criteria, such as invoice number or amount, reducing manual effort. Option A is incorrect: settlement priority only determines the order in which invoices are settled when multiple invoices are selected, but it does not automate the application process. Option B is incorrect: payment journal templates define default values for payment journals but do not automate the application of payments. Option C is incorrect: the 'Apply payments' button requires manual selection of invoices, which is not automated.

Answer

Configure settlement priority so that payments are automatically applied to the oldest invoice first.

Answer

Create payment journal templates that automatically post payments to the ledger.

Answer

Use the 'Apply payments' button on the customer payment journal to manually select invoices for each payment.

Question 14

Which TWO planning methods are available in Dynamics 365 Supply Chain Management for master planning?

Accepted Answer

Net change. Options B and C are correct. Net change and regenerative are the two master planning methods in Dynamics 365 Supply Chain Management. Option A (coverage planning) is a type of planning, not a method. Option D (intercompany planning) is a scenario. Option E (demand planning) is a separate module, not a master planning method.

Answer

Coverage planning

Answer

Intercompany planning

Answer

Demand planning

Question 15

You are a system administrator for a food and beverage company using Dynamics 365 Supply Chain Management. The company produces perishable goods with expiration dates. They currently track inventory by batch, but they need to enforce a first-expiry-first-out (FEFO) picking strategy in their warehouse. When a sales order is picked, the system should automatically suggest the batch with the earliest expiration date. Additionally, if a batch has expired, the system should prevent it from being picked and should quarantine it. What configuration steps should you perform to meet these requirements?

Accepted Answer

Use batch disposition codes and set the reservation hierarchy to batch-above-location.. Batch disposition codes are used to control inventory availability by blocking expired batches, and setting the reservation hierarchy to batch-above-location ensures that the system reserves batches with the earliest expiration date first (FEFO). Option D is incorrect because location-above-batch prioritizes location over batch, which does not enforce FEFO.

Answer

Set up product flavors to categorize batches by expiration date.

Answer

Create quality orders to inspect batches before picking.

Answer

Use batch disposition codes and set the reservation hierarchy to location-above-batch.