MB-920 Practice Test 43 — 15 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They want to ensure that they have enough inventory to meet customer demand without holding excessive stock. Which feature should they use to calculate the optimal order quantity and timing?

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

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the core feature for calculating optimal order quantities and timing. It evaluates demand, supply, and inventory parameters to generate planned orders that balance service levels with inventory costs. By using master planning, the company can ensure they meet customer demand without holding excessive stock, achieving efficient inventory management.

Answer

Safety stock management

Answer

Inventory forecasting

Answer

Reorder point planning

Question 2

A global manufacturing company uses Dynamics 365 Finance. The controller must ensure that all intercompany transactions between two legal entities in the same organization are automatically recorded in both entities without manual duplicate entry. Which feature should be configured to meet this requirement?

Accepted Answer

Intercompany accounting. Intercompany accounting is designed to automatically create reciprocal entries in multiple legal entities when a single transaction is posted. It supports automatic balancing, reduces manual effort, and ensures both entities' books are accurate. Consolidation, dimensions, and shared charts of accounts serve other purposes and do not automate dual-entity recording, making intercompany accounting the correct feature for this scenario.

Answer

Chart of accounts shared across entities

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Financial dimensions

Answer

Consolidation accounts

Question 3

A company uses Dynamics 365 Finance. The accounting manager is configuring the general ledger and needs to ensure that when a user enters a transaction, the system automatically validates that the combination of main account and financial dimensions is valid according to the chart of accounts. Which component should the manager configure to achieve this?

Accepted Answer

Account structure. Account structures define which main accounts and financial dimensions can be combined and are used to validate transactions during entry. They are the primary mechanism for ensuring that only valid account and dimension combinations are posted. Advanced rules, financial dimensions, and the chart of accounts are related but do not perform this validation on their own.

Answer

Advanced rule

Answer

Financial dimension

Answer

Chart of accounts

Question 4

A company uses Dynamics 365 Finance and has a legal entity in the United States and another in the United Kingdom. They need to ensure that intercompany transactions between the two entities are automatically recorded in both entities' ledgers with the correct due to/due from entries. Which feature should they configure?

Accepted Answer

Intercompany accounting. Intercompany accounting is the correct feature because it automates the creation of offsetting entries in multiple legal entities. By setting up intercompany relationships and accounts, the system ensures that when a transaction is entered in one entity, the corresponding due to/due from entries are generated in the other entity. This reduces manual effort and errors.

Answer

Consolidation

Answer

Financial dimensions

Answer

Ledger calendar

Question 5

A company uses Dynamics 365 Finance. The accounting manager needs to ensure that when users enter journal entries, the system automatically validates that the total debits equal total credits before posting. Which feature should the manager configure?

Accepted Answer

Set up a journal name with a 'Balance' control type.. The correct answer is to set up a journal name with a 'Balance' control type. Journal names in Dynamics 365 Finance define critical validation settings, including whether a journal must balance. The Balance control ensures that total debits equal total credits before posting is allowed, directly meeting the manager's need for automatic validation during journal entry.

Answer

Set up a workflow for journal approval.

Answer

Enable 'Budget control' on the main account.

Answer

Configure a posting restriction on the legal entity.

Question 6

A company uses Dynamics 365 Finance. The accounting manager needs to reverse a posted general ledger journal that incorrectly recorded an expense. The reversal must occur in the same period and use the same date. Which reversal method should the manager use?

Accepted Answer

Reversing entry with the original date. Dynamics 365 Finance allows reversing a posted journal by creating a reversing entry with the original date, which keeps the reversal in the same period. Reversing with a new date or in the next period changes the accounting period. A credit note journal is for customer credits, not general ledger reversals. Thus, reversing with the original date is the correct method.

Answer

Reversing entry with a new date in the current period

Answer

Credit note journal

Answer

Reversing entry with a date in the next period

Question 7

A Dynamics 365 Finance user needs to post a general journal that includes a line for a main account that is set up with a posting type of 'Balance sheet' and another line for a main account with a posting type of 'Profit and loss'. The user also wants to use a financial dimension to track the transaction by department. Which statement correctly describes the posting behavior?

Accepted Answer

The journal will post successfully if total debits equal total credits, regardless of account types.. The fundamental rule for posting a general journal in Dynamics 365 Finance is that total debits must equal total credits. Mixing balance sheet and profit and loss accounts is permitted. Financial dimensions do not require balancing unless explicitly configured on the main account. Therefore, the statement that the journal posts when debits equal credits is correct, while the others add invalid conditions.

Answer

The journal will post only if the financial dimension is balanced across all lines.

Answer

The journal will fail because balance sheet and profit and loss accounts cannot be mixed in the same journal.

Answer

The journal will post only if the balance sheet and profit and loss accounts balance by main account and financial dimension.

Question 8

A consulting firm uses Dynamics 365 Finance to manage multiple legal entities. The finance manager needs to allocate shared overhead costs from a central cost center to several regional cost centers at the end of each month. The allocation must be based on fixed percentages. Which feature should the consultant use?

Accepted Answer

Ledger allocation rules. Ledger allocation rules are specifically designed to distribute amounts from a source account to destination accounts based on a basis such as fixed percentages, quantities, or amounts. They support periodic allocations and can be run on a schedule. This makes them the correct choice for allocating shared overhead costs from a central cost center to regional cost centers.

Answer

Budget control

Answer

Financial dimensions

Answer

Intercompany accounting

Question 9

A company uses Dynamics 365 Finance. The controller needs to see a real-time summary of outstanding customer balances by aging period, without running a report. Which workspace should the controller use?

Accepted Answer

Customer credit and collections workspace. The Customer credit and collections workspace provides real-time visibility into customer balances, aging periods, and collection status. It is purpose-built for monitoring receivables, so the controller can review outstanding customer balances without running a separate report. The other workspaces target different processes such as period close, vendor collaboration, or electronic reporting formats.

Answer

Vendor collaboration workspace

Answer

General ledger workspace

Answer

Electronic reporting workspace

Question 10

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They want to ensure that they have enough inventory to meet customer demand without holding excessive stock. Which feature should they use to calculate the optimal order quantity and timing?

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

Accepted Answer

Create a vendor qualification questionnaire and require suppliers to complete it before they can be invited to an RFQ.. Vendor qualification questionnaires and RFQ scoring methods are integral to the RFQ process in Dynamics 365 Supply Chain Management. Questionnaires assess supplier eligibility, while scoring methods provide objective evaluation based on weighted criteria. Together, they ensure that only qualified suppliers participate and that quotes are evaluated consistently. Purchase agreements, vendor collaboration, and purchase requisitions serve different purposes and do not fulfill the qualification and scoring needs.

Answer

Enable the vendor collaboration portal for all suppliers to submit quotes.

Answer

Create a purchase requisition for each supplier to initiate the RFQ process.

Answer

Configure a purchase agreement with a minimum quantity commitment for each supplier.

Question 11

A company uses Dynamics 365 Finance. The finance team needs to track the financial impact of a new product line across multiple dimensions, including department, cost center, and region. They want to ensure that when a journal entry is posted, the system validates that the combination of dimensions is allowed. Which feature should be configured?

Accepted Answer

Account structures. Account structures define the valid combinations of main accounts and financial dimensions. They are used to enforce data entry validation, ensuring that only allowed dimension combinations are posted. By setting up an account structure that includes department, cost center, and region, the finance team can validate that these dimensions are used correctly for the new product line.

Answer

Dimension value translations

Answer

Financial dimension sets

Answer

Advanced rules

Question 12

A company uses Dynamics 365 Finance. The accounts payable manager needs to ensure that vendor payments are automatically generated for invoices that are due within the next 30 days, and that the payments are created in a batch job that runs nightly. Which feature should be configured to achieve this?

Accepted Answer

Vendor payment proposal. The vendor payment proposal feature allows you to select invoices based on criteria such as due date and generate payments. It can be configured to include invoices due within a specified number of days and can be run as a batch job. This automates the payment generation process, ensuring timely payments without manual intervention.

Answer

Vendor invoice workflow

Answer

Vendor groups

Answer

Payment schedule

Question 13

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They want to ensure that they have enough inventory to meet customer demand without holding excessive stock. Which feature should they use to calculate the optimal order quantity and timing?

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

Accepted Answer

Coverage groups with Min/Max planning. Coverage groups in master planning determine how an item is replenished. When you set up a coverage group with Min/Max planning, you specify minimum and maximum inventory levels. Master planning then creates planned orders to replenish stock when it drops below the minimum, up to the maximum. This automates the replenishment process as required.

Answer

Item coverage groups with period coverage

Answer

Warehouse work policies

Answer

Safety stock journals

Question 14

A company uses Dynamics 365 Finance and has a legal entity that requires intercompany transactions to be automatically recorded in both the originating and destination legal entities. They want to ensure that the due-to and due-from accounts are balanced. Which feature should they configure?

Accepted Answer

Intercompany accounting. Intercompany accounting is the feature that automates transactions between legal entities, using due-to and due-from accounts to ensure balance. It allows a single transaction to be recorded in multiple entities, simplifying reconciliation. Other features like dimensions or consolidation do not provide this automatic cross-entity posting.

Answer

Accounts payable workflows

Answer

Financial dimensions

Answer

Ledger consolidation

Question 15

A company uses Dynamics 365 Finance to manage its financial operations. The controller wants to understand how the system ensures that all financial transactions are recorded in a balanced way. Which core capability of Dynamics 365 Finance supports this requirement?

Accepted Answer

General ledger. The general ledger is the central repository for all financial transactions in Dynamics 365 Finance. It uses double-entry accounting to ensure that every transaction is balanced, meaning total debits equal total credits. This capability is fundamental for accurate financial reporting and compliance.

Answer

Accounts payable

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Budgeting

Answer

Fixed assets