MB-920 Practice Test 42 — 15 Questions

Question 1

A food processing company uses Dynamics 365 Supply Chain Management. They need to track raw materials by lot number for quality control and recall management. The company purchases ingredients from multiple vendors, and each lot must be traceable from the vendor to the final product. The company also needs to ensure that when a product is produced, the system automatically consumes the raw materials based on the batch order. You need to configure the system to support lot tracking and automatic consumption. You have the following options: A. Enable lot tracking in the Product master for each raw material. Use the Batch order process with automatic consumption set to 'At start' or 'At completion'. B. Use the Warehouse Management module to configure location directives for lot-controlled items. C. Enable serial tracking for all raw materials and manually enter serial numbers during production. D. Use the Inventory Management module to create inventory adjustments for lot consumption. Which option should you choose?

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

Accepted Answer

Enable lot tracking in the Product master for each raw material. Use the Batch order process with automatic consumption set to 'At start' or 'At completion'.. Enabling lot tracking in the Product master for each raw material and using the batch order process with automatic consumption set to 'At start' or 'At completion' ensures full lot traceability from vendor to final product and automates raw material consumption during production. Option D is incorrect because inventory adjustments are not designed for production consumption; they are used for manual stock corrections, not for automatically consuming raw materials during production.

Answer

Use the Warehouse Management module to configure location directives for lot-controlled items.

Answer

Enable serial tracking for all raw materials and manually enter serial numbers during production.

Answer

Use the Inventory Management module to create inventory adjustments for lot consumption.

Question 2

A food and beverage company uses Dynamics 365 Supply Chain Management. They need to manage batch attributes such as shelf-life and allergen information for raw materials. Which feature should they configure?

Accepted Answer

Batch attributes. Batch attributes are specifically designed to manage characteristics like shelf-life and allergen information for raw materials. Option B is wrong because Quality orders are used for testing and quality control, not for managing batch attributes. Option C is wrong because Inventory dimension groups define tracking dimensions (e.g., site, warehouse), not specific batch attributes. Option D is wrong because Product variants are for different versions of a product, not for managing attributes like shelf-life or allergens.

Answer

Quality orders

Answer

Inventory dimension groups

Answer

Product variants

Question 3

A company wants to use Dynamics 365 Finance to automate the approval of purchase requisitions under $1,000. What feature should be configured?

Accepted Answer

Workflow automation. Workflow automation in Dynamics 365 Finance allows you to define business processes that route documents for approval. By configuring a purchase requisition workflow with a conditional decision (e.g., amount <= $1,000), the system can automatically approve the requisition without manual intervention. This feature is specifically designed to automate approval steps based on configurable rules.

Answer

Budget control

Answer

Vendor approval

Answer

Purchase policies

Question 4

Refer to the exhibit. A product has a tax group of 'WA' and a tax rate of 0.087. The price is set to 29.99. A customer in Washington state purchases this product. What will be the final price including tax?

Accepted Answer

$32.60. The final price including tax is calculated by adding the tax amount to the base price. The tax amount is $29.99 * 0.087 = $2.60913, which rounds to $2.61 (standard rounding to two decimal places). Adding this to $29.99 gives $32.60. Dynamics 365 Commerce applies tax rounding based on the system's tax calculation settings, typically rounding to the nearest cent.

Answer

$29.99

Answer

$32.59

Answer

$32.48

Question 5

Match each Dynamics 365 Supply Chain Management concept to its description.

Accepted Answer

Production control: Manage and schedule production orders. The correct matches are: Production control with managing production orders, Inventory management with tracking inventory, Warehouse management with warehousing processes, and Transportation management with shipments. The distractors swap descriptions between Production control and Inventory management.

Answer

Production control: Track inventory levels and transactions

Answer

Inventory management: Manage and schedule production orders

Question 6

A company uses Dynamics 365 Finance. They want to automatically generate and post vendor payments based on approved invoices. Which feature should they use?

Accepted Answer

Payment proposal. The Payment proposal feature in Dynamics 365 Finance allows users to automatically generate and post vendor payments based on approved invoices. It selects due invoices according to defined criteria (e.g., due date, discount date) and creates payment journal lines, which can then be posted. This directly meets the requirement of automating payment generation from approved invoices.

Answer

Electronic payment

Answer

Vendor invoice automation

Answer

Workflow

Question 7

A retail chain is implementing Dynamics 365 Commerce and wants to enforce that all stores use the same pricing structure. However, one store manager needs to offer a local discount to match a competitor. What is the best way to handle this?

Accepted Answer

Create a price adjustment for that specific store.. A price adjustment in Dynamics 365 Commerce allows you to apply a discount to a specific product for a specific store or channel without altering the global base price. This meets the requirement of maintaining a consistent pricing structure across all stores while enabling the local store manager to offer a targeted discount to match a competitor. Price adjustments are the standard mechanism for temporary or localized pricing changes in Commerce.

Answer

Have the store manager manually override the price at POS.

Answer

Change the base price for the product globally.

Answer

Create a new product assortment for that store.

Question 8

A manufacturing company uses Dynamics 365 Supply Chain Management. The production planner notices that work orders are not being automatically generated when raw material inventory falls below the reorder point. Which configuration should the administrator verify?

Accepted Answer

Master planning setup. Master planning generates planned orders (including work orders) based on inventory levels and reorder points. Option A is incorrect because product configuration models are used for configurable products, not for automatic replenishment. Option B is incorrect because production control parameters manage how work orders are executed, not their automatic creation. Option C is incorrect because quality management configuration handles inspections and nonconformance, not inventory replenishment.

Answer

Product configuration model

Answer

Production control parameters

Answer

Quality management configuration

Question 9

Refer to the exhibit. A budget transfer has been proposed in Dynamics 365 Finance for the Sales department, cost center CC001. The budget manager receives an error that the transfer exceeds the available budget. What is the most likely cause?

Accepted Answer

The budget amount exceeds the available budget for the combination of dimensions. The error message indicates that the proposed budget transfer would cause the budget balance for the specific combination of financial dimensions (Sales department, cost center CC001) to go negative. In Dynamics 365 Finance, budget control checks are performed against the available budget balance for each dimension combination; if the transfer amount exceeds the remaining budget, the system blocks the transaction.

Answer

The main account is not valid

Answer

The fiscal year 2024 is not open for budget

Answer

The budget model ORIGINAL is not defined

Question 10

Northwind Traders uses Dynamics 365 Finance for financial operations. They have a high volume of vendor invoices (5000 per month). Currently, invoices are manually entered into the system. The AP team is overwhelmed and making errors. The company wants to implement automation using AI to capture invoice data from PDFs and emails, and automatically match them to purchase orders. They also want to set up approval workflows for invoices that do not match. You are the Dynamics 365 consultant. What should you recommend?

Accepted Answer

Implement Microsoft Dynamics 365 Invoice capture to automatically extract invoice data and use PO matching with approval workflows.. The Dynamics 365 Invoice capture add-in uses AI to extract data from PDFs and emails, and can be integrated with Dynamics 365 Finance. It supports PO matching and approval workflows for unmatched invoices. Option A is wrong because hiring temporary staff does not address automation. Option B is wrong because vendor collaboration allows vendors to enter invoices but does not automate extraction from PDFs/emails. Option D is wrong because Power Automate alone cannot perform OCR/AI invoice capture and still requires manual entry.

Answer

Hire temporary staff to enter invoices and use a batch posting job.

Answer

Enable vendor collaboration so vendors can enter invoices directly.

Answer

Use Microsoft Power Automate to process invoices and send them to the AP team for manual entry.

Question 11

A warehouse receives a shipment and needs to put items away based on their velocity (fast-movers near shipping). Which warehouse strategy should they configure?

Accepted Answer

Directed Put-away. Irected Put-away (Option C). Directed Put-away uses location directives to automatically assign storage locations to incoming items based on criteria such as item velocity, with fast-moving items placed near shipping areas. Replenishment (Option A) is used to move items from bulk storage to picking locations, not for initial put-away. Cycle Counting (Option B) is an inventory accuracy process, not a put-away strategy. Cross-docking (Option D) bypasses put-away entirely by sending items directly from receiving to outbound shipping.

Answer

Replenishment

Answer

Cycle Counting

Answer

Cross-docking

Question 12

A company wants to automate the generation of purchase orders when inventory levels fall below a predefined threshold. Which capability in Dynamics 365 Finance and Operations should be configured?

Accepted Answer

Replenishment. Replenishment in Dynamics 365 Finance and Operations is the correct capability because it directly supports automated purchase order generation based on inventory levels falling below a predefined reorder point. This feature uses inventory replenishment rules, such as minimum/maximum stocking levels or reorder point calculations, to trigger purchase orders without manual intervention, ensuring stock availability aligns with demand.

Answer

Demand forecasting

Answer

Vendor collaboration

Answer

Procurement catalogs

Question 13

Refer to the exhibit. A Power BI report configuration for Dynamics 365 Finance and Operations shows a data source, measure, filter, and visual. What does this configuration produce?

Accepted Answer

A bar chart of total sales for 2025. The configuration shows a filter set to 'Year = 2025', a measure for 'Total Sales', and a visual type set to 'Bar chart'. This means the report will display a bar chart of total sales specifically for the year 2025, not any other year or a line chart over time.

Answer

A bar chart of total sales for 2024

Answer

A table showing total sales by year

Answer

A line chart of total sales over time

Question 14

A finance team in Dynamics 365 Finance needs to automate the generation of vendor payments based on due dates and available cash discounts. Which feature should they use?

Accepted Answer

Payment proposals. Payment proposals in Dynamics 365 Finance allow the finance team to automatically generate vendor payments by filtering invoices based on due dates and cash discount terms. This feature evaluates vendor invoices against configured payment schedules and discount periods, then proposes payments for approval or direct processing, eliminating manual selection.

Answer

Vendor invoices

Answer

Vendor collaboration workspace

Answer

Purchase orders

Question 15

A retail company uses Dynamics 365 Finance and Operations for financial reporting. They need to ensure that intercompany transactions are eliminated in consolidated financial statements. Which module should they use?

Accepted Answer

Consolidations. The Consolidations module in Dynamics 365 Finance and Operations is specifically designed to combine financial data from multiple legal entities into a single set of consolidated financial statements. It includes built-in functionality to automatically eliminate intercompany transactions and balances, ensuring that the consolidated reports reflect only external financial activity.

Answer

Budgeting

Answer

Accounts payable

Answer

Fixed assets