MB-920 Practice Test 45 — 15 Questions

Question 1

A company uses Dynamics 365 Project Operations. They want to track time and expenses against a project and invoice the customer based on actuals. Which billing method should they use?

Accepted Answer

Time and material. Time and material billing is the correct method because it invoices the customer based on actual time entries and expenses tracked against the project. In Dynamics 365 Project Operations, this billing method is designed for projects where the scope is uncertain and the customer agrees to pay for actual effort and costs incurred.

Answer

Cost plus

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Milestone billing

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Fixed price

Question 2

A company is configuring Dynamics 365 Finance for a new subsidiary. The subsidiary uses a different currency than the parent company. What must be set up to enable translation of the subsidiary's financial statements to the parent's reporting currency?

Accepted Answer

Exchange rates. Exchange rates are required for currency translation. Option A is wrong because currency revaluation is for adjusting balances, not for translation. Option C is wrong because a consolidation company is used to combine results, but translation requires exchange rates. Option D is wrong because intercompany accounting is for transactions between entities, not for translation.

Answer

Currency revaluation

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Consolidation company

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Intercompany accounting

Question 3

You are a functional consultant for a retail company deploying Dynamics 365 Finance and Operations. The client wants to manage their financial consolidation across multiple legal entities with different chart of accounts. They need to eliminate intercompany transactions automatically during consolidation. Which feature should you recommend?

Accepted Answer

Consolidation [Elimination]. The Consolidation [Elimination] feature in Dynamics 365 Finance is specifically designed to handle financial consolidation across multiple legal entities with different charts of accounts. It automatically generates elimination entries to remove intercompany transactions, ensuring that consolidated financial statements reflect only external activities. This directly meets the client's requirement for automated elimination during consolidation.

Answer

Financial reporting

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Intercompany accounting

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Budget planning

Question 4

A retailer using Dynamics 365 Commerce wants to implement a buy-one-get-one-free promotion. Which type of discount should be configured?

Accepted Answer

Multibuy discount. A buy-one-get-one-free (BOGO) promotion is a classic multibuy discount scenario where purchasing a specific quantity of an item triggers a free item. In Dynamics 365 Commerce, the Multibuy discount type is designed exactly for this: it applies a discount when a defined quantity of products is purchased, and it can be configured to give a percentage off or a fixed amount off, including making the second item free. This is distinct from simple discounts which apply to a single item, and total discounts which apply to the entire cart.

Answer

Total discount

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Simple discount

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Customer loyalty discount

Question 5

A company uses Dynamics 365 Supply Chain Management. They want to track the carbon footprint of each product throughout its lifecycle, from raw material to end-of-life disposal. Which module should they use?

Accepted Answer

Sustainability. The Sustainability module in Dynamics 365 Supply Chain Management is specifically designed to calculate and track carbon emissions across the entire product lifecycle, including raw material extraction, production, distribution, usage, and end-of-life disposal. It uses predefined emission factors and activity data to compute the carbon footprint per product, enabling organizations to meet environmental reporting requirements and identify reduction opportunities.

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Transportation management

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Warehouse management

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Product information management

Question 6

A company uses Dynamics 365 Supply Chain Management. The warehouse manager wants to use Copilot to improve inventory management. Which THREE tasks can Copilot assist with?

Accepted Answer

Suggest optimal inventory levels based on lead times and demand variability. Copilot in Dynamics 365 Supply Chain Management can analyze lead times and demand variability to suggest optimal inventory levels, helping the warehouse manager maintain appropriate stock without manual calculation. This leverages AI-driven insights within the system's inventory optimization capabilities.

Answer

Directly perform physical inventory counts using sensors

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Automatically reorder stock from suppliers without human intervention

Question 7

Which THREE are valid options for configuring product lifecycle states in Dynamics 365 Supply Chain Management? (Select exactly three.)

Accepted Answer

In development. 'In development' is a default lifecycle state in Dynamics 365 Supply Chain Management that indicates a product is being created and is not yet available for transactions. This state prevents the product from being used in sales, purchasing, or production processes until it is released.

Answer

Deleted

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Obsolete

Question 8

A company uses Dynamics 365 Project Operations. They need to track project costs and revenue. Which THREE components are essential?

Accepted Answer

Time and expense entry. Time and expense entry (B) is essential because Dynamics 365 Project Operations captures actual labor hours and material costs through time sheets and expense reports, which directly feed into project cost and revenue calculations. Without this component, the system cannot track the consumption of resources against project budgets or generate accurate billing data.

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Resource management

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Fixed asset management

Question 9

A company uses Dynamics 365 Finance and wants to improve the efficiency of their accounts payable team. They have enabled Copilot for Dynamics 365. Which Copilot capability should they use to help the team automatically match purchase orders, receipts, and invoices?

Accepted Answer

Copilot for vendor invoice automation. Copilot for vendor invoice automation is specifically designed to streamline the accounts payable process by automatically matching purchase orders, receipts, and invoices using predefined matching rules and AI. This capability reduces manual effort and accelerates invoice processing in Dynamics 365 Finance.

Answer

Copilot for cash flow forecasting

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Copilot for sales order processing

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Copilot for expense report management

Question 10

The exhibit shows a configuration for a new legal entity in Dynamics 365 Finance. The chart of accounts is shared, but the fiscal calendar is set to 'Standard'. What is a potential issue?

Accepted Answer

The currency list must include all currencies used. When a chart of accounts is shared across multiple legal entities in Dynamics 365 Finance, the currency list for each legal entity must include all currencies used by that entity for transactions and reporting. If the currency list does not include a currency used by any entity sharing the chart of accounts, it can cause posting errors or prevent transactions in that currency. Option B is incorrect because fiscal calendars can be specific to each legal entity even with a shared chart of accounts; they do not need to be the same across entities. Options C and D are not specifically related to the shared chart of accounts scenario.

Answer

The fiscal calendar must be the same across all entities using the shared chart of accounts

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The exchange rate type must be set to 'Daily'

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The legal entity name must be unique

Question 11

The exhibit shows an XML request to create a sales order via the Dynamics 365 Finance data service. The request fails with an error 'Customer account not found'. What is the most likely cause?

Accepted Answer

The CustomerAccount value is incorrect or missing. The error 'Customer account not found' indicates that the value provided in the <CustomerAccount> element of the XML request does not match any existing customer record in Dynamics 365 Finance. The data service validates the customer account against the CustTable before creating the sales order, so an incorrect or missing CustomerAccount value directly triggers this error.

Answer

The quantity exceeds inventory

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The action URL is incorrect

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The XML is malformed

Question 12

A manufacturing company is implementing Dynamics 365 Finance and wants to streamline its procure-to-pay process. They need to automatically generate purchase orders when inventory falls below a predefined level. Which feature should they configure?

Accepted Answer

Set up reorder point planning and coverage groups. Reorder point planning and coverage groups in Dynamics 365 Finance automatically generate planned purchase orders when inventory falls to the reorder point. Option A is incorrect because procurement catalogs with punch-out to vendor are for indirect procurement, not automated inventory replenishment. Option B is incorrect because purchase requisition workflow with auto-release requires manual initiation and approval, not automatic generation based on inventory levels. Option D is incorrect because vendor collaboration facilitates communication with suppliers but does not automatically create purchase orders.

Answer

Use procurement catalogs with punch-out to vendor

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Configure purchase requisition workflow with auto-release

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Enable vendor collaboration for automatic ordering

Question 13

You are the supply chain manager at a manufacturing company using Dynamics 365 Supply Chain Management. The company operates three warehouses: WH01 (finished goods), WH02 (raw materials), and WH03 (work-in-process). You need to configure inventory visibility for real-time demand planning. The company requires that inventory levels from all three warehouses be viewable in a single dashboard, with the ability to allocate stock to sales orders before physical pick. Additionally, you must ensure that the system can handle soft reservations across warehouses without impacting the physical inventory counts. You have the following options: A. Configure the Inventory Visibility Service add-in and set up soft reservations using the Allocation API. B. Use the standard Inventory On-hand report and manually reserve stock per warehouse. C. Implement Warehouse Management System (WMS) and use the wave execution to allocate stock. D. Set up Product Information Management with transfer orders to move stock between warehouses. Which option should you choose?

Accepted Answer

Configure the Inventory Visibility Service add-in and set up soft reservations using the Allocation API.. The Inventory Visibility Service add-in provides real-time multi-warehouse visibility and supports soft reservations via the Allocation API, which does not affect physical inventory. Option B is incorrect because manual reservation per warehouse is not real-time and doesn't offer a unified dashboard. Option C is incorrect because WMS wave execution is for physical warehouse operations, not for soft reservations across warehouses. Option D is incorrect because transfer orders are for physical movement, not for soft reservation visibility.

Answer

Use the standard Inventory On-hand report and manually reserve stock per warehouse.

Answer

Implement Warehouse Management System (WMS) and use the wave execution to allocate stock.

Answer

Set up Product Information Management with transfer orders to move stock between warehouses.

Question 14

A company uses Dynamics 365 Supply Chain Management. They need to track the carbon footprint of their products throughout the supply chain. Which module should they use?

Accepted Answer

Sustainability Manager. Sustainability Manager is the correct module because it is specifically designed to help organizations measure, track, and reduce their carbon footprint and other environmental impacts across operations and supply chains. It integrates with Dynamics 365 Supply Chain Management to capture emissions data from procurement, production, and logistics activities, enabling end-to-end carbon accounting.

Answer

Product information management

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Asset management

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Inventory management

Question 15

Drag and drop the steps to configure a new inventory item in Dynamics 365 Supply Chain Management in the correct order.

Accepted Answer

1. Create a new product, 2. Select product type, 3. Enter product details, 4. Release product to legal entities. Inventory item setup requires creating a product, selecting type, entering details, and releasing.

Answer

1. Select product type, 2. Create a new product, 3. Enter product details, 4. Release product to legal entities

Answer

1. Create a new product, 2. Enter product details, 3. Select product type, 4. Release product to legal entities

Answer

1. Release product to legal entities, 2. Create a new product, 3. Select product type, 4. Enter product details