MB-920 Practice Test 46 — 15 Questions

Question 1

Which TWO capabilities are part of Dynamics 365 Finance and Operations core capabilities? (Choose two.)

Accepted Answer

Supply chain management. Supply chain management is a core capability of Dynamics 365 Finance and Operations because it provides end-to-end visibility and control over procurement, inventory, warehousing, and logistics. This module integrates directly with financial management to ensure real-time cost tracking and compliance across the supply chain.

Answer

Customer relationship management

Answer

Human resources

Answer

Marketing

Question 2

A global company uses Dynamics 365 Finance and Operations with multiple legal entities. They need to consolidate financial data across entities for reporting, while allowing each entity to operate independently. What should they configure?

Accepted Answer

Consolidation module. The Consolidation module in Dynamics 365 Finance and Operations is specifically designed to aggregate financial data from multiple legal entities into a single consolidated view for reporting, while preserving each entity's independent operations. This module supports both periodic consolidation (e.g., monthly) and on-demand consolidation, handling currency translation, elimination entries, and intercompany transactions automatically. It is the correct tool for meeting the requirement of centralized reporting with decentralized entity autonomy.

Answer

Financial reporting

Answer

Intercompany accounting

Answer

Budget planning

Question 3

A company is implementing Dynamics 365 Project Operations and needs to define cost and sales price lists for a project. Which TWO actions should the administrator take to ensure accurate project budgeting?

Accepted Answer

Define sales price lists with effective dates to cover different project phases.. Sales price lists in Dynamics 365 Project Operations support effective dates, allowing the administrator to define different prices for different project phases (e.g., design, development, deployment). This ensures that cost and revenue are accurately tracked as rates change over the project lifecycle, which is essential for precise project budgeting.

Answer

Set up cost price lists to include markup percentages.

Answer

Configure discounts directly in the price list for bulk purchases.

Answer

Assign the same price list to all customers for consistency.

Question 4

An organization uses Dynamics 365 Supply Chain Management. They want to ensure that a vendor invoice cannot be posted if the purchase order has not been received. What feature should they enable?

Accepted Answer

Invoice matching validation. Invoice matching validation, is correct because it enforces a three-way matching policy where the vendor invoice cannot be posted unless the quantities and amounts match the corresponding purchase order receipt. This ensures that the invoice is validated against the received goods before posting, preventing payment for un-received items.

Answer

Invoice hold

Answer

Purchase order approval workflow

Answer

Budget control

Question 5

A retail company wants to track the cost of goods sold using a method that assumes the most recently purchased items are sold first. Which costing method should they configure?

Accepted Answer

LIFO. D is correct because LIFO (Last In, First Out) assumes the most recently purchased items are sold first, which matches the company's requirement to track cost of goods sold using that assumption. In Dynamics 365 Supply Chain Management, LIFO is an inventory costing method that can be configured in the item model group to calculate the cost of goods sold based on the cost of the latest received inventory.

Answer

Standard cost

Answer

FIFO

Answer

Weighted average

Question 6

Which TWO actions should be performed to set up a loyalty program in Dynamics 365 Commerce?

Accepted Answer

Create a loyalty program.. Option A is correct because the foundational step in Dynamics 365 Commerce is to create a loyalty program record, which defines the program's name, loyalty scheme type, and the date range during which the program is active. Option C is correct because, after the program exists, you must configure reward points (earn and redeem rates) and assign tiers (such as Silver, Gold, Platinum) that determine how members accrue and spend points. Together, creating the program and setting up its reward points and tiers are the two required configuration actions to make a loyalty program functional. Option B is not required because returns policies are configured separately under Retail and Commerce settings and are not a prerequisite for loyalty program setup. Option D is not required because loyalty point redemption is handled through the loyalty program's reward point configuration, not by creating a dedicated payment method. Option E is not required because publishing an online store is an e-commerce deployment task unrelated to the core loyalty program configuration.

Answer

Define the returns policy for loyalty purchases.

Answer

Configure payment methods for loyalty points redemption.

Answer

Publish the online store to enable loyalty sign-up.

Question 7

Refer to the exhibit. A batch job for inventory closing failed. The error indicates open inventory transactions for item A-100. What should the supply chain analyst do to resolve the issue and allow inventory closing to complete?

Accepted Answer

Post or cancel the open inventory transactions for item A-100.. Inventory closing cannot complete while there are open inventory transactions (e.g., sales orders, production orders, or transfer orders) that have not been posted or canceled. The correct action is to post or cancel those open transactions for item A-100, which clears the blocking records and allows the inventory closing batch job to finalize. This is a standard prerequisite in Dynamics 365 Supply Chain Management for inventory close processes.

Answer

Perform a physical inventory count for item A-100.

Answer

Change the batch job recurrence to run every hour.

Answer

Rerun the batch job immediately after the next scheduled run.

Question 8

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager notices that raw material inventory levels often drop below safety stock, causing production delays. Which feature should be configured to automatically generate purchase orders when inventory falls below the reorder point?

Accepted Answer

Replenishment strategies. Replenishment strategies in Dynamics 365 Supply Chain Management allow the system to automatically generate purchase orders when inventory levels fall below the defined reorder point. This ensures that raw material stock is replenished proactively, preventing production delays caused by stockouts.

Answer

Vendor collaboration

Answer

Warehouse management

Answer

Inventory blocking

Question 9

Which TWO actions should you take to configure Dynamics 365 Supply Chain Management to support a lean manufacturing environment?

Accepted Answer

Configure production flows and activities.. In Dynamics 365 Supply Chain Management, a lean manufacturing environment is modeled through production flows, which define the sequence of activities and the products or services produced, so option B (Configure production flows and activities) is correct because production flows are the foundational lean artifact that replaces traditional production orders. Option D (Set up kanban rules for material replenishment) is also correct because kanban rules drive the pull-based replenishment signals (for example, fixed-quantity, scheduled, or event kanbans) that keep lean work cells supplied without overproduction. Option A is incorrect because batch order creation is a process manufacturing capability, not a lean-specific configuration. Option C is incorrect because creating a production order for each manufacturing step is a push-based, discrete execution approach that contradicts lean principles and is not how lean is configured. Option E is incorrect because, although work cells are a lean concept, in Dynamics 365 they are represented through production flow activities and resources rather than a separate 'define work cells' configuration step.

Answer

Enable batch order creation for process manufacturing.

Answer

Create production orders for each manufacturing step.

Answer

Define work cells for lean production.

Question 10

A company needs to ensure that when a sales order is created, the system automatically checks if the customer's credit limit is sufficient. If not, the order should be placed on hold. Which setup is required?

Accepted Answer

Credit management. Credit management in Dynamics 365 Supply Chain Management is the dedicated module that enforces credit limits during sales order processing. When a sales order is created, the system evaluates the customer's credit limit against the order total; if the limit is exceeded, the order is automatically placed on hold. This behavior is controlled by credit limit rules and blocking configurations within the Credit management module.

Answer

Accounts receivable parameters

Answer

Collections management

Answer

Customer payment settlement

Question 11

A company uses Dynamics 365 Supply Chain Management. They want to implement warehouse management with advanced wave processing. Which THREE components are required for wave processing?

Accepted Answer

Work template. Work templates are required for wave processing because they define the sequence of warehouse work that must be performed, such as picking and staging, when a wave is released. Without a work template, the system cannot generate the actual work lines for warehouse workers to execute.

Answer

Shipment template

Answer

Load template

Question 12

An organization uses Dynamics 365 Finance. The finance team notices that purchase invoices are taking too long to process manually. They want to use Copilot to streamline the invoice processing workflow. What is the most efficient way to achieve this?

Accepted Answer

Use Copilot to extract invoice data and suggest matching to purchase orders. Copilot in Dynamics 365 Finance can intelligently extract key data from purchase invoices (such as vendor, amounts, and line items) and then suggest matching to existing purchase orders. This significantly reduces manual data entry and speeds up the invoice processing workflow while still allowing human review for exceptions.

Answer

Use Copilot to detect duplicate invoices only

Answer

Set up Copilot to fully automate invoice approval without human review

Answer

Configure Copilot to automatically create a new workflow for each invoice

Question 13

A company uses Dynamics 365 Supply Chain Management and wants to automate the creation of purchase orders based on demand from sales orders. Which feature should they use?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management uses demand from sales orders to generate planned purchase orders, ensuring inventory levels meet requirements. It performs net requirements calculations, considering existing stock, lead times, and order quantities, to automate procurement suggestions. This directly addresses the need to create purchase orders based on sales order demand.

Answer

Purchase requisition

Answer

Consignment inventory

Answer

Vendor collaboration

Question 14

A company uses Dynamics 365 Commerce. They need to offer a promotion where customers get a 10% discount on a specific product line. Which pricing mechanism should they configure?

Accepted Answer

Retail discount. A retail discount is the correct pricing mechanism for a broad promotion offering a 10% discount on a product line to all customers. Retail discounts in Dynamics 365 Commerce are designed for promotional pricing that applies to a wide audience, such as percentage off on specific products or categories. Unlike trade agreements, which are for negotiated prices with specific customers or vendors, retail discounts are ideal for general promotions.

Answer

Trade agreement

Answer

Price adjustment

Answer

Coupon

Question 15

A company using Dynamics 365 Supply Chain Management notices that inventory accuracy is low due to manual data entry errors. Which feature can help automate data capture and improve accuracy?

Accepted Answer

Warehouse mobile devices. Warehouse mobile devices allow barcode scanning to automate data entry, reducing manual errors and improving inventory accuracy. Option B is wrong because Quality management is used for inspections, not automated data capture. Option C is wrong because Inventory counting is a manual process that does not inherently automate data capture. Option D is wrong because Vendor collaboration involves external communication, not automated data capture.

Answer

Quality management

Answer

Inventory counting

Answer

Vendor collaboration