MB-920 Practice Test 44 — 15 Questions

Question 1

A company is implementing Dynamics 365 Finance and needs to record transactions for multiple legal entities while maintaining a single, shared set of main accounts for reporting. What should the company configure to meet this requirement?

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

Accepted Answer

A chart of accounts shared across legal entities. A shared chart of accounts in Dynamics 365 Finance enables multiple legal entities to use the same main accounts, which simplifies financial reporting and consolidation. Each legal entity can still have its own account structures, currencies, and calendars. This is the standard approach for organizations that need consistent account numbering and centralized reporting across legal entities.

Answer

A chart of accounts that is copied to each legal entity after creation

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A single legal entity with multiple divisions

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Separate charts of accounts for each legal entity, linked by a consolidation account

Question 2

A company using Dynamics 365 Finance wants to streamline the month-end close process by automating the creation of recurring journal entries for rent expense of $5,000 on the first day of each month for the next year. What should they configure?

Accepted Answer

Set up a recurring journal with a template and assign a recurrence pattern.. Recurring journals are designed to automate repetitive journal entries. By setting up a template with the rent expense details and assigning a monthly recurrence pattern, the system will automatically create the journal entries on the specified schedule. This saves time and reduces errors during month-end close.

Answer

Create a ledger accrual scheme with a monthly frequency.

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Create a periodic journal with a recurring frequency.

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Configure an allocation journal to distribute rent expense monthly.

Question 3

A company uses Dynamics 365 Finance and needs to allocate rent expense across three departments based on square footage. The allocation must be recalculated automatically each month when the ledger is updated. Which feature should be configured?

Accepted Answer

Ledger allocation rules. Ledger allocation rules can distribute a source amount to destination accounts and dimensions using a defined basis and can be scheduled to run periodically. This matches the need to split rent expense across departments monthly based on square footage. Financial dimensions, accrual schemes, and budget control serve other purposes such as tagging, timing, and spending limits.

Answer

Financial dimensions

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Budget control configurations

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Accrual schemes

Question 4

A company is implementing Dynamics 365 Finance and needs to record transactions for multiple legal entities while maintaining a single, shared set of main accounts for reporting. What should the company configure to meet this requirement?

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

Accepted Answer

Use a shared chart of accounts across all legal entities.. A shared chart of accounts in Dynamics 365 Finance enables multiple legal entities to use the same account definitions, ensuring consistency and reducing maintenance. The controller's requirement to record every transaction in a legal entity is met because each transaction is posted within a legal entity. Sharing the chart of accounts across legal entities is a standard configuration for organizations with multiple legal entities.

Answer

Create a separate chart of accounts for each legal entity.

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Set up multiple charts of accounts and link them through consolidation accounts.

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Configure a single legal entity and use departments as separate entities.

Question 5

A company uses Dynamics 365 Finance. The accounting manager wants to ensure that the general ledger reflects the financial impact of inventory transactions only after all inventory movements for a period are finalized. They decide to run the inventory closing process. What is the primary purpose of inventory closing in Dynamics 365 Supply Chain Management?

Accepted Answer

To calculate the cost of goods sold and adjust inventory balances for the period.. Inventory closing is a periodic process that finalizes the cost of inventory transactions, ensuring that issues are matched with receipts and that the general ledger reflects accurate inventory values and cost of goods sold. It does not handle physical counts, replenishment, or transfers, which are separate operational tasks. The correct answer aligns with the manager's need to post financial adjustments after all movements are complete.

Answer

To automatically generate purchase orders for replenishing stock.

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To transfer inventory between warehouses based on demand forecasts.

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To perform a physical count of inventory and adjust quantities on hand.

Question 6

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager needs to configure the system to suggest the optimal picking route for warehouse workers based on the physical layout of the warehouse. Which feature should the manager use?

Accepted Answer

Route planning. Route planning is the feature that calculates the optimal sequence of locations for picking or putting away items, based on the warehouse layout. It helps reduce travel time and improve efficiency. While location directives and work templates are related, they do not provide route optimization based on physical layout.

Answer

Warehouse layout

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Location directives

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Work templates

Question 7

A distribution company uses Dynamics 365 Supply Chain Management. The warehouse manager wants to configure the system to automatically suggest replenishment of items from a main warehouse to a retail store when the store's inventory falls below a specified minimum. Which feature should the manager use to achieve this?

Accepted Answer

Master planning with coverage groups and minimum keys.. Master planning in Dynamics 365 Supply Chain Management analyzes current inventory and demand to generate planned orders, including transfer orders. By configuring coverage groups with minimum quantities for the retail store, the system will suggest replenishment from the main warehouse when stock falls below the minimum. This provides the automated suggestion the manager needs.

Answer

Vendor collaboration with purchase requisitions.

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Inventory blocking with quality orders.

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Warehouse management with work templates.

Question 8

A multinational organization uses Dynamics 365 Finance to manage its financial operations across multiple legal entities. The company needs to consolidate financial data from several subsidiaries into a single parent company for reporting purposes. The subsidiaries use different currencies and chart of accounts. Which feature in Dynamics 365 Finance should the company use to combine the financial results?

Accepted Answer

Financial consolidation. Financial consolidation is the correct feature because it is specifically designed to aggregate financial data from multiple legal entities into a single consolidated entity. It supports currency translation and account mapping, which are essential when subsidiaries use different currencies and charts of accounts. This enables the organization to produce consolidated financial statements for reporting.

Answer

Advanced ledger entries

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Intercompany accounting

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Budgeting

Question 9

A global company uses Dynamics 365 Commerce. They want to ensure that product pricing and promotions are consistent across all physical stores and the online store. Which feature should they configure?

Accepted Answer

Omnichannel pricing and promotions. Omnichannel pricing and promotions is the feature that enables consistent pricing and promotional offers across all sales channels. It allows centralized configuration in Commerce headquarters, which then distributes to stores and online. This ensures that customers see the same prices and promotions regardless of channel, directly satisfying the company's requirement.

Answer

Retail channel navigation hierarchy

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Commerce Scale Unit (CSU)

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Channel database

Question 10

A company uses Dynamics 365 Finance. The finance team needs to perform period-end close activities. Which TWO tasks can be performed by using the Financial period close workspace? (Choose two.)

Accepted Answer

Define and track close tasks across legal entities. The Financial period close workspace is designed to define, assign, and track period-end close tasks, including their dependencies, across legal entities. It provides visibility into task status and helps coordinate the close process. It does not automatically post invoices, generate statutory statements, or recalculate inventory costs, as those are handled by other modules or reporting tools.

Answer

Generate statutory financial statements for tax authorities

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Recalculate inventory cost valuations for the period

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Automatically post all pending vendor invoices

Question 11

A company uses Dynamics 365 Finance with budget control enabled at the legal entity level. The budget manager reports that a purchase order was created and confirmed, but the budget check did not reduce the available budget for the specified budget account. The budget control configuration is active, and the purchase order line has a valid budget account. What is the most likely cause of the budget not being consumed?

Accepted Answer

The budget control rule for purchase orders is not enabled or the budget check is bypassed. The most likely cause is that the budget control rule for purchase orders is not enabled or the budget check is bypassed. Even with legal entity-level budget control active, each document type must have a budget control rule configured to trigger budget checks. If the rule is missing or set to not check, the purchase order will not consume budget, explaining the manager's observation.

Answer

The purchase order was created in a different legal entity than the budget

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The budget account is not included in the budget register entry

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The budget control interval is set to 'Fiscal year' instead of 'Fiscal period'

Question 12

A company is implementing Dynamics 365 Finance and needs to record transactions for multiple legal entities while maintaining a single, shared set of main accounts for reporting. What should the company configure to meet this requirement?

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

Accepted Answer

Creation and management of chart of accounts and financial dimensions. The General ledger module in Dynamics 365 Finance provides the foundational financial structure, including the chart of accounts, financial dimensions, and the ability to create and post journal entries with accounting distributions. These capabilities are essential for recording and reporting financial transactions. Other functions like vendor payments, sales tax setup, and fixed asset management are handled by dedicated modules, not the General ledger.

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Processing of vendor payments and management of vendor master records

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Management of fixed asset acquisitions, depreciation, and disposal

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Configuration of sales tax codes and sales tax groups for indirect taxation

Question 13

A Dynamics 365 Finance user needs to ensure that all purchase orders over $10,000 are approved by the CFO before they can be confirmed. Which feature should they configure?

Accepted Answer

Purchase order workflow. Purchase order workflows are designed to enforce approval processes based on conditions like total amount. Configuring a workflow with a condition that triggers approval by the CFO for purchase orders over $10,000 ensures compliance. Budget control, procurement categories, and vendor collaboration serve different purposes and do not provide the required approval routing.

Answer

Vendor collaboration

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Budget control

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Procurement categories

Question 14

A company uses Dynamics 365 Supply Chain Management to manage its production operations. The production manager needs to schedule production jobs to meet customer demand while optimizing the use of resources. Which two capabilities are provided by master planning in Dynamics 365 Supply Chain Management? (Choose two.)

Accepted Answer

It automatically generates planned production orders based on demand and inventory levels.. Master planning in Dynamics 365 Supply Chain Management generates planned orders and calculates net requirements based on demand, supply, and inventory. These capabilities enable the production manager to plan production to meet demand while optimizing resources. Execution and detailed scheduling are handled by other modules.

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It automatically adjusts production routes based on machine availability.

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It directly executes production jobs on the shop floor.

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It provides a visual scheduling board for sequencing production jobs.

Question 15

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. They need to ensure that all outbound shipments are packed and labeled according to customer requirements before leaving the warehouse. Which feature should they use?

Accepted Answer

Outbound packing station. The outbound packing station is a dedicated feature within Dynamics 365 Supply Chain Management that enables warehouse workers to pack items into containers and generate labels for outbound shipments. It supports container packing, packing slip generation, and label printing, ensuring that shipments meet customer requirements. Other features like warehouse management, transportation management, and inventory management do not provide the specific packing and labeling capabilities required.

Answer

Inventory management

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Transportation management

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Warehouse management