MB-920 Practice Test 39 — 15 Questions

Question 1

Which TWO features are part of Dynamics 365 Finance shared financial management? (Select exactly two.)

Accepted Answer

Accounts payable. Accounts payable (Option C) is a core component of Dynamics 365 Finance shared financial management, handling vendor invoices, payments, and expense tracking across legal entities. It is part of the shared financial management module that provides centralized processing of payables, ensuring consistency and compliance in multi-company environments.

Answer

Fixed assets

Answer

Budget control

Answer

Cash flow forecasting

Question 2

You are implementing Dynamics 365 Finance for a multinational company that must comply with local tax regulations in multiple countries. The company plans to use electronic invoicing for all customer invoices. The finance team needs to configure tax codes, tax groups, and item tax groups to ensure correct tax calculation. Additionally, the company wants to use tax reporting codes to generate tax returns automatically. You need to design the tax setup. What should you do?

Accepted Answer

Create tax codes, tax groups, and item tax groups. Assign tax groups to customers and item tax groups to items. Configure tax reporting codes for tax authorities.. Tax codes define rates and rules, tax groups combine taxes for different jurisdictions, item tax groups define item-level tax, and tax reporting codes map to tax return boxes. Option A is wrong because it misses item tax groups. Option B is wrong because tax groups are not for item-level. Option C is wrong because tax reporting codes are needed for returns.

Answer

Create tax codes and tax groups. Assign tax groups to customers and set up item sales tax groups on items. Tax reporting codes are optional.

Answer

Create tax codes, then assign tax codes directly to customers and items. Use tax reporting codes for returns.

Answer

Create tax codes and tax groups. Assign tax groups to customers and item tax groups to items. Tax reporting codes are not required.

Question 3

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They need to ensure that when a purchase order is received, the system automatically creates work to put away the items in a specific location based on the product's storage dimension group. Which configuration is required?

Accepted Answer

Configure a location directive and a work template for purchase order put-away. Location directives define the specific locations where items should be put away based on criteria such as storage dimension groups, and work templates generate the work needed to perform the put-away. Option A is incorrect because mobile device menu items are used to execute warehouse work on a scanner, not to configure the put-away logic. Option C is incorrect because wave templates are typically used for outbound processes like picking and shipping, not for inbound put-away. Option D is incorrect because replenishment templates are used to replenish locations, not to assign put-away locations for incoming purchase orders.

Answer

Create a mobile device menu item for put-away

Answer

Set up a wave template for inbound waves

Answer

Configure a replenishment template

Question 4

A retail company uses Dynamics 365 Finance. They want to automatically post revenue and cost of goods sold (COGS) when a sales order is invoiced. Which posting setup is required?

Accepted Answer

Inventory posting. Inventory posting is used to define accounts for revenue, COGS, and inventory when items are sold. Option A is incorrect because Procurement and sourcing posting handles purchase-related transactions, not sales. Option B is incorrect because Accounts receivable posting manages customer balances and payments, not revenue/COGS. Option D is incorrect because General ledger posting defines main accounts but does not specify the posting setup for sales orders; that is done in Inventory posting.

Answer

Procurement and sourcing posting

Answer

Accounts receivable posting

Answer

General ledger posting

Question 5

A company uses Dynamics 365 Finance and Operations with dual-write integration to Dataverse. They notice that some purchase order headers are not syncing to Dataverse. What should they check first to resolve the issue?

Accepted Answer

Check the Dual-write application orchestration form to view synchronization logs and errors. The Dual-write application orchestration form in Dynamics 365 Finance and Operations provides a dedicated interface to view synchronization logs and errors for dual-write mappings. When purchase order headers fail to sync to Dataverse, this form shows the specific error messages, retry status, and mapping details, making it the first place to diagnose the issue directly within the dual-write infrastructure.

Answer

Examine the System administration > User operations log for errors

Answer

Review Power Automate flow run history for the purchase order sync flow

Answer

Run the Data management framework’s data project to force sync

Question 6

Refer to the exhibit. An inventory adjustment is being posted for item A-001. The ReasonCode is 'CycleCount'. What is the most likely purpose of this adjustment?

Accepted Answer

To correct inventory after a physical count.. In Dynamics 365 Supply Chain Management, a cycle count is a type of physical inventory count used to verify on-hand quantities. When the counted quantity differs from the system quantity, an inventory adjustment with the reason code 'CycleCount' is posted to correct the system's on-hand inventory to match the physical count. This ensures inventory accuracy without affecting other transactions like sales or production.

Answer

To record a sales order delivery.

Answer

To adjust for production consumption.

Answer

To receive a purchase order.

Question 7

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?

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.

Answer

Position-based hierarchies

Answer

Approval workflows for leave requests

Answer

Compensation plans

Question 8

A manufacturer wants to implement a pull-based production system where work cells signal upstream processes when they need more parts. Which Dynamics 365 Supply Chain Management feature should they use?

Accepted Answer

Kanban boards. Kanban boards in Dynamics 365 Supply Chain Management enable a pull-based production system where downstream work cells signal upstream processes when they need more parts, aligning with lean manufacturing principles. Option A (Production orders) is incorrect because they are typically used in push-based discrete manufacturing. Option B (Master planning) is incorrect as it is a push-based planning approach. Option C (Batch orders) is incorrect because they are designed for process manufacturing, not pull signaling.

Answer

Production orders

Answer

Master planning

Answer

Batch orders

Question 9

A company uses Dynamics 365 Finance and Operations and wants to extend the system to handle a unique business process that is not supported out of the box. What is the recommended approach?

Accepted Answer

Create a custom module using the extensibility framework. Dynamics 365 Finance and Operations provides an official extensibility framework that allows developers to create custom modules and extend the system without modifying the source code. This approach ensures that customizations remain upgrade-safe and supported by Microsoft, unlike direct source code modifications which break the application lifecycle.

Answer

Purchase a third-party ISV solution

Answer

Use Power Apps and Power Automate

Answer

Modify the source code of Finance and Operations

Question 10

Refer to the exhibit. A company uses demand forecasting with ARIMA method and a historical horizon of 12 months. What is the primary advantage of using ARIMA for forecasting?

Accepted Answer

It models trends and seasonality in time series data. ARIMA (AutoRegressive Integrated Moving Average) is a statistical time series forecasting method that models trends and seasonality in historical data. Option A is wrong because machine learning pattern recognition is not inherent to ARIMA; ARIMA is a statistical method, not a machine learning algorithm. Option B is wrong because ARIMA does not inherently allow real-time forecast updates; it relies on historical data and requires model refitting. Option D is wrong because ARIMA does not incorporate external factors like weather; it only uses the past values of the time series itself.

Answer

It uses machine learning for pattern recognition

Answer

It allows real-time forecast updates

Answer

It incorporates external factors like weather

Question 11

A project manager needs to track time spent on a project in Dynamics 365 Project Operations. Which feature allows employees to submit time entries that can be approved and billed?

Accepted Answer

Time entry. Time entry in Dynamics 365 Project Operations is the dedicated feature for recording hours worked on projects. These entries can be submitted for approval and then used to bill customers, directly linking time capture to the project billing lifecycle.

Answer

Expense management

Answer

Resource scheduling

Answer

Project budget control

Question 12

A company uses Dynamics 365 Supply Chain Management and wants to implement a quality check process for incoming raw materials. The quality inspector must receive a notification when a purchase order receipt is registered, and the system must block the inventory until the inspection is passed. Which module should be configured?

Accepted Answer

Quality management. The Quality management module in Dynamics 365 Supply Chain Management is specifically designed to handle quality inspections, including the ability to automatically generate quality orders upon purchase order receipt. It can block inventory transactions (e.g., put-away or consumption) until the inspection passes, and trigger notifications to quality inspectors via workflows or alerts.

Answer

Production control

Answer

Warehouse management

Answer

Inventory management

Question 13

Which THREE are features of Dynamics 365 Supply Chain Management for quality control?

Accepted Answer

Nonconformance Management. Nonconformance Management (B) is a core feature of Dynamics 365 Supply Chain Management that allows organizations to document, track, and resolve quality issues such as defective materials or process deviations. It integrates with quality orders and associations to enforce corrective actions and ensure compliance with quality standards.

Answer

Costing Sheets

Answer

Inventory Statuses

Question 14

A company uses Dynamics 365 Supply Chain Management to manage vendor collaboration. They want vendors to view and respond to purchase orders directly in the system. Which portal or workspace should they enable?

Accepted Answer

Vendor collaboration workspace. The 'Vendor collaboration workspace' allows vendors to view purchase orders, confirm deliveries, and submit invoices directly in Dynamics 365 Supply Chain Management. Option B (Employee self-service) is for HR-related tasks, not vendor collaboration. Option C (Customer portal) is for customers, not vendors. Option D (Self-service portal) is a generic term and not specific to vendor collaboration in this context.

Answer

Employee self-service

Answer

Customer portal

Answer

Self-service portal

Question 15

A company uses Dynamics 365 Finance and needs to set up a new fiscal year. Which THREE steps are required to open the new fiscal year?

Accepted Answer

Run the opening transactions process to bring forward balances.. Running the opening transactions process is required to bring forward the ending balances from the previous fiscal year into the new fiscal year as opening balances. In Dynamics 365 Finance, this step ensures that general ledger accounts, such as balance sheet accounts, carry forward their balances so the new year starts with accurate financial data.

Answer

Configure financial dimensions for the new year.

Answer

Set up budget control for the new fiscal year.