MB-920 Practice Test 40 — 15 Questions

Question 1

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?

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

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 2

A company uses Dynamics 365 Commerce and has multiple stores. They want to implement a loyalty program where customers earn points based on purchase amounts, and the points can be redeemed at any store. The program should also allow for tiered rewards. Which component should be used to define the loyalty program rules?

Accepted Answer

Loyalty module in Dynamics 365 headquarters. The Loyalty module in Dynamics 365 headquarters is the correct component because it is the centralized back-office tool where loyalty program rules—such as earning rates, redemption rules, and tier definitions—are configured. This module allows you to define program-wide settings that apply across all stores, ensuring consistent point accrual and redemption behavior regardless of where the customer shops.

Answer

Channel database

Answer

Point of Sale (POS)

Answer

Retail Server

Question 3

A company is setting up a new store in Dynamics 365 Commerce. They want to ensure that prices for products are automatically updated across all channels when changed in the head office. Which configuration should they use?

Accepted Answer

Set up a Commerce Data Exchange (CDE) schedule for price updates.. Commerce Data Exchange (CDE) is the dedicated Dynamics 365 Commerce component for synchronizing data between the head office (HQ) and channel databases. A CDE schedule specifically handles the distribution of master data changes, such as price updates, ensuring that all channels (e.g., online stores, POS terminals) receive the updated prices automatically and consistently. This is the correct configuration for automated, scheduled price propagation across channels.

Answer

Use the Point of Sale (POS) to update prices directly.

Answer

Configure Retail Server to push price changes.

Answer

Enable real-time service for the channel database.

Question 4

Which THREE capabilities are provided by the Warehouse management module in Dynamics 365 Supply Chain Management?

Accepted Answer

Wave processing. Wave processing (A) is a core Warehouse management capability that groups work into waves to coordinate picking, replenishment, and shipping across the warehouse. Mobile device menu items (D) are provided by the Warehouse management module to configure the Warehouse Management mobile app, letting workers perform tasks such as receiving, picking, and counting via scanners. Location directives (E) are also part of Warehouse management, defining rules that determine where inventory is put away, picked, or staged based on work order type, item, and location criteria. Vendor collaboration portal (B) belongs to the Procurement and sourcing module, not Warehouse management. Route planning for outbound shipments (C) is a Transportation management capability, so it is not provided by the Warehouse management module.

Answer

Vendor collaboration portal

Answer

Route planning for outbound shipments

Question 5

Refer to the exhibit. A batch job for inventory replenishment is in 'Waiting' status. The last run failed due to insufficient inventory. What should you do to resolve the issue?

Accepted Answer

Manually adjust inventory levels for item A0001.. The batch job failed due to insufficient inventory for item A0001. Manually adjusting the inventory levels resolves the root cause—lack of available stock—allowing the batch job to succeed on its next run without requiring a new job or schedule change. In Dynamics 365 Supply Chain Management, inventory adjustments update the on-hand quantity directly, which the replenishment logic uses to determine if a replenishment is needed.

Answer

Change the recurrence to run every hour.

Answer

Cancel the batch job and create a new one.

Answer

Set the batch job to 'Withhold' to prevent future runs.

Question 6

A company manufactures high-value equipment and needs to track each individual item's location, status, and service history throughout its lifecycle. Which capability should they use?

Accepted Answer

Asset Management. Asset Management (also known as Fixed Asset Management) is designed to track equipment lifecycle, location, and service history for individual high-value items. Option A is incorrect because Warehouse Management focuses on storage and picking of inventory, not asset lifecycle. Option B is incorrect because Batch tracking is intended for lot-controlled items, not individual equipment tracking. Option D is incorrect because Product configuration is used to define variants of a product, not to track service history.

Answer

Warehouse Management

Answer

Batch tracking

Answer

Product configuration

Question 7

A manufacturer uses Dynamics 365 Supply Chain Management. They produce items using a bill of materials (BOM) and want to automatically consume raw materials when production is reported as finished. Which production parameter should be set?

Accepted Answer

Auto BOM consumption. The 'Auto BOM consumption' parameter determines whether materials are automatically consumed when a production order is reported as finished. Option A is wrong because 'Auto report as finished' controls automatic reporting, not material consumption. Option C is wrong because 'Auto start production order' controls starting, not consumption. Option D is wrong because 'Auto generate picking work' creates pick work, not consumption.

Answer

Auto report as finished

Answer

Auto start production order

Answer

Auto generate picking work

Question 8

Which THREE components are typically part of the general ledger setup in Dynamics 365 Finance? (Select THREE.)

Accepted Answer

Chart of accounts. The general ledger setup in Dynamics 365 Finance is built around the chart of accounts (A), which defines the structure and organization of all ledger accounts used by the legal entity. Main accounts (B) are the individual accounts within that chart of accounts where transactions are posted and balances are tracked. Financial dimensions (E) are also core to the general ledger setup because they provide the additional segmentation (such as department, cost center, or purpose) used to classify and analyze ledger postings. Payment schedules (C) belong to Accounts payable/payment configuration rather than the general ledger setup, and the customer payment journal (D) is an Accounts receivable journal used for processing customer payments, not a general ledger setup component.

Answer

Payment schedule

Answer

Customer payment journal

Question 9

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to configure settings for transportation management. Which TWO parameters are typically defined?

Accepted Answer

Rate masters. In Dynamics 365 Supply Chain Management, transportation management configuration requires defining Rate masters (Option A), which are used to set up rate bases, rate engines, and rate breaks so the system can calculate freight charges for shipments. It also requires defining Shipping carriers (Option B), which represent the vendors or logistics providers that transport goods and are linked to modes, rate masters, and carrier services for load planning and rating. Production routes (Option C) belong to production control for defining operations and resource requirements, not transportation setup. Warehouse locations (Option D) are configured under warehouse management for storage and inventory placement, not as a transportation management parameter. Vendor catalogs (Option E) relate to procurement and vendor collaboration for item sourcing, not to transportation rating or carrier setup.

Answer

Production routes

Answer

Warehouse locations

Answer

Vendor catalogs

Question 10

Which TWO of the following are benefits of using the General ledger module in Dynamics 365 Finance?

Accepted Answer

Provides a chart of accounts to categorize financial transactions. Option C is correct because the General ledger module is the core of Dynamics 365 Finance and its central function is to define and maintain the chart of accounts, which provides the account structure used to categorize and post every financial transaction. Option D is correct because General ledger delivers real-time financial insights and reporting through tools such as financial dimensions, period close, and built-in reports and inquiries that reflect posted transactions immediately. The other options belong to different modules: A (vendor payments and invoices) is handled by Accounts payable, B (customer invoicing and collections) by Accounts receivable, and E (inventory valuation) by Inventory management/costing, so they are not benefits of the General ledger module.

Answer

Manages vendor payments and invoices

Answer

Handles customer invoicing and collections

Answer

Manages inventory valuation

Question 11

Refer to the exhibit. A pick work template has a location profile of 'BULK'. However, workers are being directed to a location with profile 'FLOOR' instead. What is the most likely cause?

Accepted Answer

The location directive for picking does not restrict to location profile 'BULK'.. The location directive determines which locations are searched for picking work. If the directive does not restrict the search to location profile 'BULK', it may return locations with profile 'FLOOR' that match other criteria (e.g., zone, warehouse). Since the work template specifies 'BULK' as the location profile, but the directive is not filtering by that profile, workers are directed to 'FLOOR' locations instead.

Answer

The work class ID 'Picking' is not authorized for 'BULK' locations.

Answer

The work template priority is too low, causing a higher priority template to override.

Answer

The item 'ITEM002' has a default storage location with profile 'FLOOR'.

Question 12

You are configuring a reservation hierarchy for a warehouse in Dynamics 365 Supply Chain Management. Based on the exhibit, what is the primary criterion for picking inventory?

Accepted Answer

Location. (Location). The reservation hierarchy shows dimensions in order of priority: location (priority 1), lot number (priority 2), expiration date (priority 3). The primary criterion for picking inventory is the dimension with the highest priority (priority 1), which is location. Option A (Expiration date) is wrong because it is priority 3, not the primary. Option B (Lot number) is wrong because it is priority 2. Option D (FIFO) is the name of the reservation hierarchy method, not a picking dimension.

Answer

Expiration date

Answer

Lot number

Answer

FIFO

Question 13

Which TWO actions can you perform using the Financial Reporting tool in Dynamics 365 Finance?

Accepted Answer

Combine data from multiple legal entities in a single report. Option A is correct because the Financial Reporting tool (formerly Management Reporter) is specifically designed to aggregate and consolidate financial data across multiple legal entities into a single report by using row, column, and tree definitions with the reporting entity hierarchy. Option E is correct because Financial Reporting provides built-in report templates for core financial statements such as the balance sheet and income statement, which can be generated directly from general ledger account balances. Option B is incorrect because vendor payment terms are configured in Accounts payable setup (Payment terms form), not in the Financial Reporting tool. Option C is incorrect because budget control rules are configured in Budgeting > Setup > Budget control, not in Financial Reporting. Option D is incorrect because journal entries are posted to the general ledger through General ledger journals, not through the Financial Reporting tool, which is read-only for reporting purposes.

Answer

Configure payment terms for vendors

Answer

Configure budget control rules

Answer

Post journal entries to the general ledger

Question 14

Which TWO Dynamics 365 Supply Chain Management features are used to manage quality control?

Accepted Answer

Nonconformance management. Nonconformance management (A) is correct because it is the Dynamics 365 Supply Chain Management capability used to record, track, investigate, and resolve items or processes that fail to meet quality standards, including quarantining and dispositioning nonconforming material. Quality management (D) is correct because it provides the core quality control functionality in Supply Chain Management, including defining quality associations, tests, test variables, and quality orders that trigger inspections for items, processes, or production. Together these two features cover the full quality control lifecycle from inspection setup to handling failures. Inventory counting (B) is incorrect because it is an inventory accuracy and cycle counting function, not a quality control feature. Product configuration (C) is incorrect because it defines how products are built or customized, not how quality is inspected or enforced. Vendor collaboration (E) is incorrect because it supports supplier interaction and procurement processes, not quality control management.

Answer

Inventory counting

Answer

Product configuration

Answer

Vendor collaboration

Question 15

A company uses Dynamics 365 Supply Chain Management. They want to use the Landed Cost module to manage the total cost of imported goods. Which TWO cost types can be tracked using Landed Cost?

Accepted Answer

Freight charges. Landed Cost in Dynamics 365 Supply Chain Management is designed to capture the additional costs incurred to bring purchased goods to their final destination, so option A (Freight charges) is correct because transportation costs are a core landed-cost component that can be allocated to items via cost types and allocation methods. Option B (Insurance) is also correct because insurance premiums incurred during shipment are a classic landed-cost element that the module supports as a cost type and allocates across the received goods. Option C (Manufacturing overhead) is not tracked by Landed Cost because it relates to production costing rather than inbound logistics. Option D (Storage fees) is not a standard landed-cost component in this module, as it concerns warehousing rather than bringing goods to their destination. Option E (Raw material cost) is not a landed cost because it is the base item or purchase price captured on the purchase order line, not an additional landed-cost charge.

Answer

Manufacturing overhead

Answer

Storage fees

Answer

Raw material cost