MB-920 Practice Test 47 — 15 Questions

Question 1

A company uses Dynamics 365 Human Resources to manage employee information. They need to ensure that only authorized HR staff can view sensitive personal data. Which feature should they configure?

Accepted Answer

Role-based security. Role-based security (option C) is the correct feature because Dynamics 365 Human Resources uses role-based security to control access to sensitive personal data. By assigning HR staff to specific security roles (e.g., HR Manager, HR Assistant), administrators can grant or deny permissions to view, edit, or delete sensitive fields like Social Security numbers or bank account details. This ensures that only authorized users with the appropriate role can access protected data, aligning with data privacy requirements.

Answer

Employee self-service

Answer

Audit logging

Answer

Workflow automation

Question 2

A company uses Dynamics 365 Supply Chain Management and wants to automate the generation of purchase orders from sales orders through direct delivery. Which setup is required?

Accepted Answer

Set up the item with a default order type of 'Direct delivery'. Setting the default order type to 'Direct delivery' on the item or customer enables automatic creation of purchase orders from sales orders when direct delivery is used. Option A is wrong because demand forecasting is used for predicting future demand, not for automating purchase order generation from sales orders. Option C is wrong because intercompany orders are for transactions between legal entities within the same organization, not for direct delivery with external vendors. Option D is wrong because purchase agreements are for long-term contracts with vendors but do not automatically generate purchase orders from sales orders.

Answer

Set up demand forecasting

Answer

Set up an intercompany order

Answer

Set up a purchase agreement

Question 3

A company uses Dynamics 365 Finance and needs to generate financial statements that comply with both local GAAP and IFRS. They want to avoid maintaining separate sets of books. Which feature should they use?

Accepted Answer

Financial reporting. Financial reporting in Dynamics 365 Finance allows organizations to create, maintain, and deploy financial statements that comply with multiple accounting standards (e.g., local GAAP and IFRS) from a single set of financial data. It uses reporting trees and row/column definitions to generate different report formats without requiring separate ledger structures, thus avoiding the need for duplicate books.

Answer

Dual ledger

Answer

Consolidation

Answer

Intercompany accounting

Question 4

A logistics company uses Dynamics 365 Supply Chain Management. They want to optimize delivery routes to reduce fuel costs and improve on-time delivery. Which capability should they use?

Accepted Answer

Transportation management. Transportation management in Dynamics 365 Supply Chain Management provides route planning, rate shopping, and shipment consolidation capabilities. It uses real-time data and constraints (e.g., traffic, delivery windows) to optimize delivery routes, directly reducing fuel costs and improving on-time delivery.

Answer

Production control

Answer

Warehouse management

Answer

Asset management

Question 5

A company uses Dynamics 365 Supply Chain Management with the Warehouse Management module. They need to configure wave processing to automatically create work for outbound shipments. Which THREE components are required for wave processing?

Accepted Answer

Work template. Wave processing requires a wave template to define the wave steps, a work template to define how work is created, and location directives to determine pick locations. Option B (Containerization) is optional for wave processing. Option D (Mobile device menu item) is used to execute work, not to create it during wave processing.

Answer

Containerization

Answer

Mobile device menu item

Question 6

A company uses Dynamics 365 Supply Chain Management with the Process Manufacturing module. They produce a batch of paint and need to adjust the recipe based on the actual concentration of a raw material. What should they use?

Accepted Answer

Potency management.. Potency management (Option C) is correct because it allows adjusting the recipe based on the actual concentration of a raw material in process manufacturing. Option A is incorrect because catch weight functionality is for handling weight variance in items, not for adjusting recipes based on potency. Option B is incorrect because co-product and by-product planning is for managing multiple outputs from a single process. Option D is incorrect because a batch order is the production order itself and does not provide recipe adjustment based on raw material potency.

Answer

Catch weight functionality.

Answer

Co-product and by-product planning.

Answer

Batch order for the paint.

Question 7

Refer to the exhibit. A warehouse manager wants to store high-volume items in location A-01-01. They notice the location type is 'Bulk'. What is the primary purpose of a Bulk location type?

Accepted Answer

To store large quantities of items. Bulk location types are designed for storing large quantities of items, typically on pallets, and are used for high-volume storage. Option A is incorrect because quarantine locations are used for defective items. Option B is incorrect because staging locations are for temporary storage before outbound shipment. Option C is incorrect because picking locations are for items that are picked for orders, not for bulk storage.

Answer

To quarantine defective items

Answer

To stage outbound shipments

Answer

To store items for order picking

Question 8

A company uses Dynamics 365 Supply Chain Management and wants to implement a process where suppliers can monitor inventory levels and automatically replenish stock. Which feature should they enable?

Accepted Answer

Vendor-managed inventory (VMI). Vendor-managed inventory (VMI) allows suppliers to monitor inventory levels and automatically replenish stock, which matches the requirement. Option A (Consignment inventory) is incorrect because it is about ownership, not supplier-managed replenishment. Option B (Purchase requisition) is an internal request, not supplier-facing. Option C (Blanket purchase orders) are long-term agreements but do not enable automatic replenishment by the supplier.

Answer

Consignment inventory

Answer

Purchase requisition

Answer

Blanket purchase orders

Question 9

A company uses Dynamics 365 Supply Chain Management to plan production. They need to ensure that materials are available to meet production schedules without overstocking. Which module would they use to balance supply and demand?

Accepted Answer

Master Planning. Master Planning. Master Planning is used to balance supply and demand by calculating material requirements based on production schedules, ensuring materials are available without overstocking. Option A (Production Control) is incorrect because it focuses on executing and managing production orders, not planning material availability. Option B (Inventory Management) is incorrect because it tracks and manages stock levels, but does not perform supply-demand balancing calculations. Option C (Warehouse Management) is incorrect because it handles physical storage and movement of goods, not supply planning.

Answer

Production Control

Answer

Inventory Management

Answer

Warehouse Management

Question 10

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They need to enforce that workers scan a license plate when completing a transfer order receipt. Which configuration should be used?

Accepted Answer

Modify the mobile device menu item for receipt. Modifying the mobile device menu item for receipt allows configuration to enforce license plate scanning when completing a transfer order receipt. Option A (mobile device display settings) controls the look and feel, not scanning requirements. Option C (cycle counting thresholds) is used for inventory counting, not transfer order receipts. Option D (work templates) defines how work is created, not the scanning behavior at receipt.

Answer

Configure the mobile device display settings

Answer

Set up cycle counting thresholds

Answer

Define work templates for transfer orders

Question 11

A company uses Dynamics 365 Supply Chain Management and notices that inventory costs are increasing due to high carrying costs for slow-moving items. They want to automate the classification of items based on usage value. Which feature should they use?

Accepted Answer

ABC classification. ABC classification categorizes items based on usage value, helping prioritize management of slow-moving items. Option A is incorrect because Cycle counting is for inventory accuracy, not classification. Option B is incorrect because Inventory turnover is a metric, not a classification method. Option C is incorrect because Product lifecycle management deals with product stages, not value-based classification.

Answer

Cycle counting

Answer

Inventory turnover

Answer

Product lifecycle management

Question 12

Which TWO actions should a supply chain manager take to set up vendor collaboration in Dynamics 365 Supply Chain Management?

Accepted Answer

Enable the vendor for collaboration in the vendor master record. Enabling the vendor for collaboration in the vendor master record is a necessary step to allow that vendor to participate in collaboration. Option E is correct because adding vendor users as external contacts in the system is required to give them access to the vendor collaboration portal. Option A is incorrect because configuring the vendor collaboration portal is typically an IT or administrative task and not the primary action for a supply chain manager. Option B is incorrect because vendor collaboration does not require a separate Microsoft Entra ID tenant; vendors use their own credentials. Option D is incorrect because publishing the procurement catalog is an optional step and not required to set up vendor collaboration.

Answer

Configure the vendor collaboration portal in the Dynamics 365 Finance and Operations app

Answer

Set up a separate Microsoft Entra ID tenant for vendors

Answer

Publish the procurement catalog to the vendor portal

Question 13

Which TWO are valid document types in Dynamics 365 Finance for budget control?

Accepted Answer

Purchase requisitions. Purchase requisitions and purchase orders are valid document types that can be subject to budget control in Dynamics 365 Finance. Sales orders are not typically subject to budget control directly. General journals can be used for budget control but are not considered document types in this context; budget control is often applied to subledger documents. Vendor invoices are also not typically subject to budget control directly.

Answer

Sales orders

Answer

General journals

Answer

Vendor invoices

Question 14

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 15

Which TWO features in Dynamics 365 Supply Chain Management can be used to improve warehouse picking efficiency?

Accepted Answer

Mobile device menu configuration for scanning. Mobile device menu configuration enables efficient scanning and picking by allowing workers to use handheld scanners. Cluster picking allows picking multiple orders in one trip, reducing travel time. Cycle counting is for inventory accuracy, not picking efficiency. Wave processing groups orders for shipping, not directly for picking. Location profiles manage storage configurations, not picking. Therefore, the correct options are A and E.

Answer

Cycle counting

Answer

Wave processing

Answer

Location profiles