MB-920 Practice Test 45 — 15 Questions

Question 1

A distribution company uses Dynamics 365 Supply Chain Management. The warehouse manager needs to ensure that inventory is reserved for specific sales orders so that the stock is not allocated to other orders. Which functionality should the manager use?

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

Accepted Answer

Inventory reservation. Inventory reservation is the correct functionality because it explicitly ties specific inventory to a sales order, preventing other orders from consuming that stock. This ensures that the warehouse can fulfill the designated orders without conflict, which is exactly what the manager needs.

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Inventory counting

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Inventory blocking

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Inventory tagging

Question 2

A company uses Dynamics 365 Finance to manage vendor invoices. They want to reduce manual data entry by automatically capturing invoice header and line details from PDF invoices received via email. Which feature should they configure?

Accepted Answer

Vendor invoice automation with Invoice capture. Invoice capture uses AI Builder to read PDF invoices and create pending vendor invoices with extracted header and line details, directly eliminating manual keying. Three-way matching validates data but does not capture it. Vendor collaboration requires vendor entry, and accrual schemes handle accounting accruals, not document ingestion. Only Invoice capture addresses the automated extraction requirement.

Answer

Vendor collaboration workspace

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Accounts payable accrual schemes

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Three-way matching policy

Question 3

A company uses Dynamics 365 Project Operations. The project manager needs to track costs and revenues for a fixed-price project. The project has multiple tasks, and the manager wants to recognize revenue based on the percentage of completion method. Which feature should the manager use?

Accepted Answer

Revenue recognition. Revenue recognition is the correct feature because it provides the functionality to recognize revenue using the percentage of completion method for fixed-price projects. It calculates revenue based on project progress, ensuring that financial statements reflect the appropriate revenue and costs.

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Project contract billing rules

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Project budget

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Cost templates

Question 4

A global distribution company uses Dynamics 365 Finance to manage its financial operations. The controller needs to close the books for a specific legal entity at the end of the fiscal period, ensuring that all subledger transactions are posted and the period is locked. Which feature should the controller use to accomplish this?

Accepted Answer

Period close workspace. The Period close workspace is designed specifically to manage the financial period close process. It provides checklists, tasks, and monitoring capabilities to ensure all subledger transactions are posted and periods are locked. Other features like financial dimensions, budgeting workflows, and cash flow forecasting serve different purposes and cannot accomplish the period close requirements.

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Budgeting workflows

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Financial dimensions configuration

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Cash flow forecasting

Question 5

A retail company uses Dynamics 365 Commerce. They want to enable customers to buy online and pick up their orders at a physical store. Which capability should they implement?

Accepted Answer

BOPIS (Buy Online, Pickup In Store). The scenario requires an omnichannel fulfillment option where customers buy online and collect in a store. BOPIS is the specific Dynamics 365 Commerce feature designed for this. It integrates e-commerce with store inventory and operations, allowing customers to choose a pickup location during online checkout. Other options address call center orders, store configuration, or loyalty, but none deliver the required online purchase with in-store pickup.

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Retail channel management

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Loyalty program setup

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Call center order processing

Question 6

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager wants to ensure that picking work is directed to the most efficient location for each item, minimizing travel time. Which feature should be configured to achieve this?

Accepted Answer

Location directives. Location directives are used to determine the picking and put-away locations based on configurable strategies. By setting up a location directive with a strategy that prioritizes the closest location or a specific picking path, the warehouse manager can ensure that picking work is directed efficiently, reducing travel time and improving productivity.

Answer

Work templates

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Inventory reservation hierarchies

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Wave templates

Question 7

A company uses Dynamics 365 Finance to manage its accounts payable processes. The accounts payable manager wants to streamline the approval of vendor invoices by automatically routing them to the appropriate approver based on the invoice amount. Which feature should be configured?

Accepted Answer

Workflow. Workflow in Dynamics 365 Finance is the appropriate feature for automating approval processes. By configuring a workflow for vendor invoices with conditional decisions based on the invoice amount, the system can automatically route invoices to the appropriate approver. This streamlines the approval process and ensures that invoices are reviewed by the correct person.

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Budget control

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Vendor collaboration workspace

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Accounts payable invoice matching

Question 8

A company uses Dynamics 365 Supply Chain Management. They need to plan material requirements for a new product launch, considering demand forecasts, current on-hand inventory, and open purchase orders. They want to generate planned purchase orders automatically. Which feature should they use?

Accepted Answer

Master planning. Master planning is the requirements planning engine that nets demand forecasts against on-hand inventory and open orders to produce planned purchase orders. Inventory forecasting only supplies demand data, warehouse management executes physical operations, and procurement processes orders but does not plan them. For automatic generation of planned purchase orders based on forecasts and inventory, master planning is the correct feature.

Answer

Inventory forecasting

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Procurement and sourcing

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Warehouse management

Question 9

A company uses Dynamics 365 Finance to manage its accounts payable processes. The AP manager needs to configure the system to automatically match vendor invoices to purchase orders and product receipts, and to handle discrepancies according to predefined tolerances. Which TWO features should the manager configure? (Choose two.)

Accepted Answer

Invoice tolerances. Invoice matching and invoice tolerances work together to automatically compare vendor invoices to purchase orders and product receipts, and to handle discrepancies based on predefined rules. Vendor collaboration, payment terms, and posting profiles serve different purposes. Only invoice matching and invoice tolerances directly enable the required automation and discrepancy management.

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Vendor collaboration

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Payment terms

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Posting profiles

Question 10

A company uses Dynamics 365 Supply Chain Management. They need to plan production based on demand forecasts and automatically generate planned production orders. Which feature should they use?

Accepted Answer

Master planning. The requirement is to plan production from demand forecasts and automatically generate planned production orders. Master planning is the planning engine in Dynamics 365 Supply Chain Management that performs net requirements calculation, considers forecasts and existing supply/demand, and creates planned orders. Production control, inventory management, and warehouse management are execution or tracking features that do not generate planned orders from forecasts.

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Warehouse management

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Production control

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Inventory management

Question 11

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager wants to ensure that when workers pick items for outbound sales orders, the system suggests the most efficient picking route and validates that the correct items and quantities are picked. Which feature should the manager configure to meet these requirements?

Accepted Answer

Warehouse management only (WMS) with work templates and location directives. Work templates and location directives in advanced warehouse management define the picking process, including the order in which locations are visited and the validation of item and quantity during picking. They are essential for generating efficient picking routes and ensuring accuracy for outbound sales orders, making them the correct configuration for the warehouse manager's goals.

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Procurement and sourcing with purchase order workflows

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Master planning with coverage groups

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Inventory management with item model groups

Question 12

A company uses Dynamics 365 Finance. The accounts payable team needs to process a vendor invoice that includes a retention amount. The retention should be withheld from the vendor payment and paid later upon approval. Which feature should be configured to handle this requirement?

Accepted Answer

Vendor retention terms. The correct feature is vendor retention terms. This functionality allows a company to withhold a percentage of a vendor invoice and pay it upon completion of conditions. It is specifically designed for retention scenarios in accounts payable, ensuring that the withheld amount is tracked and later released appropriately.

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Payment schedule

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Posting profile

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Cash discount

Question 13

A manufacturing company wants to track the cost of raw materials from purchase to finished goods. Which module in Dynamics 365 Finance should they primarily use?

Accepted Answer

Inventory management. Inventory management is the primary module for tracking raw material costs from purchase through production to finished goods. It integrates with production control to calculate actual costs. Accounts payable handles vendor invoices, not cost tracking. Budgeting is for financial planning, not operational cost tracking. General ledger provides high-level financial reporting, not detailed cost tracking.

Answer

Accounts payable

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Budgeting

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General ledger

Question 14

Which TWO of the following are capabilities of the General ledger in Dynamics 365 Finance?

Accepted Answer

Chart of accounts management. The General ledger in Dynamics 365 Finance is the core module that owns the chart of accounts, so option D (Chart of accounts management) is correct: you create and maintain the Chart of accounts, main accounts, account structures, and advanced rules there, and every posting references these accounts. Option E (Multi-currency accounting) is also correct because the General ledger defines the accounting currency, reporting currency, and additional currencies, and it handles exchange rate types, currency revaluation, and translation so transactions in foreign currencies post correctly. Option A (Asset depreciation calculation) belongs to Fixed assets, which uses depreciation profiles, books, and the depreciation proposal/calculation routines rather than the General ledger. Option B (Invoice matching) is an Accounts payable (and Procurement) capability performed via two-way, three-way, or four-way matching of invoice, PO, and product receipt. Option C (Budget cycle management) is handled by Budgeting (Budgeting > Setup > Budget cycles), not by the General ledger itself.

Answer

Asset depreciation calculation

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Invoice matching

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Budget cycle management

Question 15

A retail chain uses Dynamics 365 Finance and Operations. They are planning to expand to a new country and need to comply with local tax regulations, including VAT reporting and electronic invoicing. They want to leverage built-in capabilities rather than custom development. What should they configure?

Accepted Answer

Tax engine and Electronic reporting. The Tax engine and Electronic reporting (ER) are the built-in capabilities in Dynamics 365 Finance and Operations designed to handle complex tax regulations like VAT reporting and electronic invoicing. The Tax engine allows configuration of tax codes, rates, and rules for different jurisdictions, while Electronic reporting enables the generation of legally required electronic invoice formats (e.g., XML, EDI) without custom code. This directly addresses the need to comply with local tax regulations in a new country using out-of-the-box features.

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Accounts payable

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General ledger

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Cash and bank management