MB-920 Practice Test 40 — 15 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management and wants to automate the creation of purchase orders based on demand from sales orders. Which feature should they use?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management uses demand from sales orders to generate planned purchase orders, ensuring inventory levels meet requirements. It performs net requirements calculations, considering existing stock, lead times, and order quantities, to automate procurement suggestions. This directly addresses the need to create purchase orders based on sales order demand.

Answer

Purchase requisition

Answer

Consignment inventory

Answer

Vendor collaboration

Question 2

A company uses Dynamics 365 Commerce. They need to offer a promotion where customers get a 10% discount on a specific product line. Which pricing mechanism should they configure?

Accepted Answer

Retail discount. A retail discount is the correct pricing mechanism for a broad promotion offering a 10% discount on a product line to all customers. Retail discounts in Dynamics 365 Commerce are designed for promotional pricing that applies to a wide audience, such as percentage off on specific products or categories. Unlike trade agreements, which are for negotiated prices with specific customers or vendors, retail discounts are ideal for general promotions.

Answer

Trade agreement

Answer

Price adjustment

Answer

Coupon

Question 3

A company uses Dynamics 365 Finance and Operations. They need to ensure that all purchase orders over $10,000 require approval from a manager. What feature should they configure?

Accepted Answer

Workflows. Workflows in Dynamics 365 Finance and Operations allow you to define automated business processes that route documents, such as purchase orders, for approval based on conditions like amount thresholds. By configuring a purchase order workflow with a condition that triggers approval when the total exceeds $10,000, you ensure manager approval is required for high-value orders.

Answer

Budget control

Answer

Audit policies

Answer

Policy rules

Question 4

A company is implementing Dynamics 365 Finance and needs to track inventory costs using a standard costing method. Which inventory model should they select?

Accepted Answer

Standard cost. Standard cost is the correct inventory model because it values inventory at predetermined costs, which aligns with the requirement to track inventory costs using a standard costing method. In Dynamics 365 Finance, the standard cost model uses predefined item costs and variances to capture differences between actual and standard costs, enabling cost control and analysis.

Answer

LIFO

Answer

FIFO

Answer

Weighted average

Question 5

A distribution company uses Dynamics 365 Supply Chain Management and needs to set up a consignment inventory process where the supplier owns the inventory until it is consumed. Which inventory model should be used?

Accepted Answer

Consignment inventory. Consignment inventory is specifically designed for inventory owned by the supplier until use. Option A is for standard purchase orders. Option B is for customer returns. Option C is for products that are not stocked.

Answer

Purchase order

Answer

Return order

Answer

Non-stocked product

Question 6

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to ensure that raw materials are available for production without overstocking. Which feature should they use to calculate material requirements based on production schedules?

Accepted Answer

Master planning. Master planning calculates material and capacity requirements based on production schedules and demand, ensuring raw materials are available without overstocking. Option A (Master planning) is correct. Option B (Inventory on-hand report) only shows current stock levels and does not plan future needs. Option C (Asset management) focuses on equipment maintenance, not material planning. Option D (Quality management) ensures product quality, not material requirements.

Answer

Inventory on-hand report

Answer

Asset management

Answer

Quality management

Question 7

Contoso Ltd. is a manufacturing company with 1,200 employees across three legal entities: USMF (United States), FRRT (France), and GBSI (United Kingdom). They are implementing Dynamics 365 Human Resources. The HR director wants to set up a unified absence management system that complies with local regulations. In the US, employees accrue vacation based on years of service (0-5 years: 10 days; 5+ years: 15 days). In France, all employees receive 25 days annually, plus additional RTT days for managers. In the UK, statutory leave is 28 days, but the company offers 25 days base with 3 bank holidays. The system must automatically calculate accruals on the first day of each month for US and UK, and at the start of the leave year (January 1) for France. Additionally, employees in France must be able to request RTT days separately, and managers must approve them. The HR team is unsure how to configure this. Which approach should be recommended?

Accepted Answer

Create separate leave and absence plans for each legal entity, configuring accrual rules, frequencies, and leave types per country.. Dynamics 365 Human Resources allows you to create separate leave and absence plans per legal entity, each with its own accrual rules, frequencies, and leave types. This enables you to configure US vacation accruals based on years of service with monthly accrual, French annual leave with RTT days and yearly accrual, and UK statutory leave with bank holidays, all while complying with local regulations.

Answer

Create a single global leave plan with the maximum accrual (28 days) and then manually adjust balances for each employee based on their country.

Answer

Use compensation plans to handle leave entitlements because they are based on employee classification.

Answer

Use the same leave plan for all entities and rely on approval workflows to validate leave requests according to local rules.

Question 8

A company is implementing Dynamics 365 Business Central and wants to use Copilot for generating marketing text for product descriptions. However, the generated text often contains inaccuracies about product specifications. What should the administrator do to improve the accuracy of Copilot-generated content?

Accepted Answer

Provide high-quality, well-structured product data in the system. Copilot in Dynamics 365 Business Central generates marketing text by leveraging existing product data stored in the system. If the product specifications are inaccurate or incomplete, the generated content will reflect those flaws. Providing high-quality, well-structured product data ensures Copilot has accurate source information to work with, directly improving the reliability of its output.

Answer

Disable Copilot for marketing text and rely on manual descriptions

Answer

Change the Copilot language model to a more specialized one

Answer

Regularly review and edit the generated text so Copilot learns from corrections

Question 9

You are a project administrator for a consulting company that uses Dynamics 365 Project Operations. The company has a team of 50 consultants who work on multiple projects simultaneously. The company uses time and material billing for most projects. You receive a complaint from a project manager that a consultant, John Doe, has not submitted his time entries for the past two weeks. The project manager needs to bill the client this week and John's time is critical for the invoice. You need to resolve this issue as quickly as possible. What should you do?

Accepted Answer

Contact John directly and ask him to submit his time entries immediately.. The most direct and efficient way to resolve the immediate billing issue is to contact John directly and ask him to submit his time entries. In Dynamics 365 Project Operations, time entry submission is a user-driven process; there is no automated mechanism for a project administrator or system administrator to force-submit or manually enter time on behalf of a consultant without proper permissions or data integrity risks. Direct communication ensures the fastest resolution without bypassing system controls or introducing inaccurate data.

Answer

Manually enter the time entries for John based on his project schedule.

Answer

Escalate to the system administrator to force-submit the time entries.

Answer

Send an automatic reminder from the system and wait for John to submit.

Question 10

A company using Dynamics 365 Finance and Operations wants to implement a new policy that requires all purchase orders over $10,000 to be approved by a manager before being submitted to the vendor. They need a flexible approval process that can be modified without developer intervention. What should they configure?

Accepted Answer

Procurement and sourcing workflows. The 'Procurement and sourcing workflows' in Dynamics 365 Finance allow no-code approval workflows for purchase orders, which can be configured by business users. Option A is incorrect because 'Vendor collaboration' is for supplier communication, not approvals. Option C is incorrect because 'Purchase agreements' are contracts, not approval processes. Option D is incorrect because 'Procurement catalogs' are for product selection, not approvals.

Answer

Vendor collaboration

Answer

Procurement catalogs

Answer

Purchase agreements

Question 11

An HR administrator is reviewing the absence setup. John Doe has submitted a 1-day absence request for next Wednesday. The system shows an error that the absence duration cannot be calculated. What is the most likely cause?

Accepted Answer

The work calendar is not assigned to John's position.. The absence duration cannot be calculated because the system requires a valid work calendar assigned to the employee's position to determine working days and hours. Without a calendar, the system cannot compute the duration of a 1-day absence. Option C correctly identifies this as the most likely cause.

Answer

The absence request requires manager approval first.

Answer

The leave type is not configured for the USMF legal entity.

Answer

The exhibit shows a time zone mismatch.

Question 12

A retail company uses Dynamics 365 Supply Chain Management to manage its distribution network. They have a central warehouse in Chicago and five regional distribution centers (RDCs) across the United States. The company wants to ensure that when a sales order is created for a customer in a specific region, the system automatically suggests fulfillment from the nearest RDC to minimize shipping costs and delivery time. Currently, sales order processing requires manual selection of the warehouse. Which feature should you configure to automate this process?

Accepted Answer

Warehouse assignment. The 'Warehouse assignment' feature in Dynamics 365 Supply Chain Management allows you to define rules that automatically assign a warehouse based on criteria such as customer location or shipping address. Option A is wrong because Transportation management handles freight rates and routes, not warehouse assignment. Option B is wrong because Inventory allocation is for reserving inventory, not for automatically assigning a warehouse. Option C is wrong because Demand forecasting predicts future demand, not fulfillment location.

Answer

Transportation management

Answer

Inventory allocation

Answer

Demand forecasting

Question 13

A warehouse uses Warehouse Management. The exhibit shows an inventory record. Which process would update the location for this license plate?

Accepted Answer

Warehouse Transfer. A Warehouse Transfer moves inventory from one location to another, updating the location for the license plate. Option A is wrong because Sales Order Picking changes quantity, not necessarily the location. Option B is wrong because Cycle Counting corrects quantity discrepancies, not location. Option C is wrong because Purchase Order Receipt creates inventory, which may assign a location but does not move existing inventory.

Answer

Sales Order Picking

Answer

Cycle Counting

Answer

Purchase Order Receipt

Question 14

Which THREE are core capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse management. Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced inbound and outbound processes, wave execution, and location directives to optimize inventory movement and storage. It integrates with barcode scanning and mobile device workflows to enable real-time warehouse operations.

Answer

Budgeting

Answer

Sales order processing

Question 15

A small business uses Dynamics 365 Finance for the first time. They have one legal entity, one currency (USD), and simple financial needs. They want to record daily sales, pay vendors, reconcile bank accounts, and generate financial statements. They have no intercompany transactions or complex manufacturing. You are setting up the system. What should you do to minimize configuration overhead?

Accepted Answer

Use the standard default configurations and only customize essential modules.. For a small business with one legal entity, one currency, and simple financial needs, using the standard default configurations in Dynamics 365 Finance minimizes configuration overhead while still allowing recording of daily sales, vendor payments, bank reconciliations, and financial statements. Option A is wrong because creating a detailed chart of accounts with many segments adds unnecessary complexity for a simple setup. Option C is wrong because setting up multiple legal entities would increase overhead and is not needed for a single legal entity. Option D is wrong because intercompany accounting is not required and would add unnecessary configuration; it can be implemented later if expansion occurs.

Answer

Create a detailed chart of accounts with many segments for future expansion.

Answer

Set up multiple legal entities to separate financial data.

Answer

Configure intercompany accounting in case they expand later.