MB-920 Practice Test 44 — 15 Questions

Question 1

A company uses Dynamics 365 Finance. The accounting manager needs to automatically match bank statement lines to open invoices and payments. Which feature should be used?

Accepted Answer

Bank reconciliation automation. Bank reconciliation automation in Dynamics 365 Finance automatically matches bank statement lines to open invoices and payments using predefined matching rules and algorithms. This feature reduces manual effort by identifying and reconciling transactions based on criteria such as amounts, dates, and reference numbers, which directly addresses the accounting manager's need.

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Advanced ledger entries

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Payment proposals

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Cash flow forecast

Question 2

A company using Dynamics 365 Supply Chain Management is experiencing delays in order fulfillment because the picking process is not optimized. The warehouse manager wants to implement a system that directs pickers to the most efficient route based on current warehouse layout. Which feature should be configured to achieve this?

Accepted Answer

Location directives with wave processing. Location directives with wave processing are designed to optimize warehouse picking by directing pickers to the most efficient route based on the current warehouse layout. They use predefined criteria (e.g., zone, location rank, or FEFO) to generate pick work during wave execution, ensuring minimal travel time. This directly addresses the delay caused by an unoptimized picking process.

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RFID (Radio-Frequency Identification)

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Mobile device menu items

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Product filters

Question 3

A retailer uses Dynamics 365 Supply Chain Management to manage inventory across multiple stores. They need to ensure that store managers can only see inventory for their own store. What configuration should they use?

Accepted Answer

Data security policies. Data security policies in Dynamics 365 Supply Chain Management allow administrators to restrict record-level access based on user roles and context, such as limiting inventory visibility to a specific store. By configuring a data security policy that filters inventory records by the store dimension, store managers will only see data relevant to their assigned store. This is the correct approach because it enforces row-level security without customizing forms or reports.

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Product filters

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Inventory Visibility add-in

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Warehouse management parameters

Question 4

Match each Dynamics 365 Commerce channel type to its description.

Accepted Answer

Online store: A virtual storefront accessible via web browsers.. Dynamics 365 Commerce supports multiple channel types including online store, retail store, call center, and mobile store. Correct matches pair each channel with its typical description. Common confusions involve swapping online and retail stores.

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Online store: A physical location where customers can browse and purchase products.

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Retail store: A virtual storefront accessible via web browsers.

Question 5

A company using Dynamics 365 Finance notices that the 'General ledger' trial balance does not match the subledger balances for accounts payable. The discrepancy appears only for a specific vendor. What is the most likely cause?

Accepted Answer

An invoice for the vendor is in 'Pending' status and has not been posted.. An invoice in 'Pending' status is recorded in the subledger (Accounts Payable) but has not yet been posted to the General Ledger. This creates a discrepancy where the subledger shows the vendor balance including the pending invoice, while the General Ledger trial balance does not include it. Option A is wrong because a posted payment journal cannot be deleted; reversing entries are used instead. Option B is wrong because placing a vendor on hold prevents new transactions but does not affect existing recorded balances. Option D is wrong because currency differences are handled through revaluation and affect all transactions for that vendor, not just a single discrepancy.

Answer

A payment journal was deleted after posting.

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The vendor account is on hold.

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The vendor's currency is different from the company's accounting currency.

Question 6

Which TWO features in Dynamics 365 Supply Chain Management can be used to manage inventory accuracy?

Accepted Answer

Inventory blocking. Inventory blocking (Option D) is correct because it allows users to physically or financially block inventory that is damaged, on hold for quality inspection, or reserved for a specific purpose, preventing it from being picked or shipped. This directly maintains inventory accuracy by ensuring that only available, unblocked stock is counted in available quantities. Cycle counting (Option E) is correct because it is a perpetual inventory audit method where a subset of items is counted on a recurring schedule, enabling continuous validation of on-hand quantities against system records without requiring a full physical inventory shutdown.

Answer

Wave templates

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Location directives

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Transportation management

Question 7

A small manufacturing company recently implemented Dynamics 365 Supply Chain Management to manage their production. They produce custom furniture and want to use production orders to track costs and materials. The production manager creates a production order for a new chair design. However, when they try to estimate the production order, they receive an error: 'No active bill of materials (BOM) version exists for the item.' The item (chair) has a BOM, but the BOM version is set to 'Draft' status. The manager needs to proceed with the production order as soon as possible. What should the administrator do to resolve this issue?

Accepted Answer

Change the BOM version status from 'Draft' to 'Approved' and then 'Active'.. The BOM version must be approved and activated before it can be used on production orders. Setting to 'Active' status makes it usable. Deleting and recreating would waste time. Copying from another item may introduce errors. Changing the production order to use the route only bypasses the BOM requirement but materials won't be tracked.

Answer

Copy the BOM from a similar item and assign it to the chair.

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Delete the existing BOM version and create a new one with 'Active' status directly.

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Set the production order to not require a BOM by clearing the BOM field.

Question 8

A company is implementing Dynamics 365 Supply Chain Management and wants to use AI-powered demand forecasting. The data scientist needs to include external factors like weather and economic indicators. Which feature should be enabled?

Accepted Answer

Demand Forecasting with Azure Machine Learning. Demand Forecasting with Azure Machine Learning is the specific feature in Dynamics 365 Supply Chain Management that allows data scientists to incorporate external factors such as weather and economic indicators into demand predictions. This feature leverages Azure Machine Learning to train custom models that can ingest external datasets alongside historical transaction data, enabling more accurate and context-aware forecasts.

Answer

Asset Management

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Inventory Visibility Add-in

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Warehouse Management

Question 9

A project manager needs to approve time entries submitted by team members. Where in Dynamics 365 Project Operations can the manager approve these time entries?

Accepted Answer

Project Manager Time Approval workspace. The Project Manager Time Approval workspace in Dynamics 365 Project Operations is the dedicated area where project managers can review, approve, or reject time entries submitted by team members. This workspace provides a filtered view of pending time entries and integrates with the project's approval workflow, ensuring that only authorized managers can process time submissions.

Answer

Resource Manager dashboard

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Sales entity

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Project Contract

Question 10

Which TWO capabilities are core to 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 warehouse operations, wave processing, and location directives. Transportation management (E) is also core, offering freight rating, routing, and shipment consolidation to optimize logistics. Together, they directly support the end-to-end supply chain processes within the application.

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Project cost management

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Omnichannel order management

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Financial reporting

Question 11

Which TWO of the following are valid project types in Dynamics 365 Project Operations? (Choose two.)

Accepted Answer

Time and Material. In Dynamics 365 Project Operations, 'Time and Material' (Option B) is a valid project type that invoices customers based on actual hours worked and expenses incurred, making it suitable for projects where scope is not fully defined. This type allows for flexible billing and is commonly used in consulting or agile engagements.

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External

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Internal

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Investment

Question 12

A company using Dynamics 365 Finance notices that some purchase orders are being created with incorrect tax codes. The tax codes are determined by the vendor and item. What should they configure to enforce correct tax codes?

Accepted Answer

Assign appropriate Sales tax groups and Item sales tax groups. The combination of Sales tax group (assigned to customer/vendor) and Item sales tax group (assigned to item) determines the tax code applied to a purchase order. By configuring these groups appropriately, Dynamics 365 Finance automatically selects the correct tax code. Option B is incorrect because tax authorities and reporting codes manage tax reporting, not tax code assignment. Option C is incorrect because tax codes are assigned to groups (Sales tax group and Item sales tax group), not directly to each vendor/item. Option D is incorrect because tax exemption numbers apply to customers, not to enforcing correct tax codes on purchase orders.

Answer

Set up tax authorities and reporting codes

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Define tax codes for each vendor and each item

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Configure tax exemption numbers for vendors

Question 13

A company uses Dynamics 365 Supply Chain Management. They receive a shipment of raw materials, but the quantity received is less than the purchase order. They want to update inventory with the actual received quantity and create a backorder for the remaining. What should they do?

Accepted Answer

Register the received quantity in the receiving journal and mark the open order line as backorder.. Dynamics 365 Supply Chain Management allows partial receipt of a purchase order by registering the actual received quantity in a receiving journal. The remaining quantity can be marked as a backorder on the open order line, which automatically creates a backorder for the outstanding amount without canceling the original purchase order. This ensures inventory is updated accurately with the received quantity while the system tracks the backordered quantity for future fulfillment.

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Cancel the purchase order and create a new one for the received quantity.

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Use the 'Receive against order' option to post the full quantity.

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Record the received quantity as an inventory adjustment.

Question 14

A company uses Dynamics 365 Supply Chain Management and wants to track the entire lifecycle of a product from raw material to finished good, including all transformations and movements. Which feature should they enable?

Accepted Answer

Serial number and batch tracking. Serial number and batch tracking enables end-to-end traceability from raw material to finished good, capturing all transformations and movements. Option A is wrong because inventory dimensions like location or pallet track storage locations but not the full lifecycle. Option B is wrong because a bill of materials defines the product structure (components) but does not track movement or transformations. Option D is wrong because production orders manage manufacturing steps but lack the granular tracking of individual items or batches through the entire supply chain.

Answer

Inventory dimensions (location, pallet)

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Bill of materials

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Production orders

Question 15

A company uses Dynamics 365 Human Resources. The HR manager wants to set up a new position that reports to an existing position, but the system does not allow the reporting relationship to be established. What should the system administrator verify?

Accepted Answer

That the position hierarchy feature is enabled in the shared parameters. The position hierarchy feature must be enabled in the shared parameters of Dynamics 365 Human Resources to allow reporting relationships between positions. Without this feature turned on, the system blocks the creation of parent-child position links, regardless of other configuration details.

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That the compensation plan for the new position is active

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That the organization type is set to 'Legal entity'

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That the position details for the existing position are fully defined