MB-920 Practice Test 47 — 15 Questions

Question 1

A logistics company wants to use Dynamics 365 Supply Chain Management to track transportation costs and optimize routing. Which module should they implement?

Accepted Answer

Transportation management. Transportation management in Dynamics 365 Supply Chain Management is the module purpose-built for planning, executing, and tracking inbound and outbound shipments, including carrier rate shopping, route optimization, and freight cost tracking. It directly addresses the logistics company's need to track transportation costs and optimize routing.

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Sales and marketing

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Warehouse management

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Procurement and sourcing

Question 2

A retail company uses Dynamics 365 Commerce to manage its online store. Customers complain that they cannot apply a promotional coupon code during checkout. The coupon code is active and has no usage limits. What is the most likely cause?

Accepted Answer

The coupon is not associated with a discount that is configured for the online store channel.. In Dynamics 365 Commerce, a coupon code is a specific discount mechanism that must be linked to a discount entity, and that discount must be explicitly configured for the online store channel. Even if the coupon is active and has no usage limits, it will not apply during checkout if the underlying discount is not associated with the online store's channel. This is because the pricing engine validates channel-level discount assignments before applying any coupon.

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The payment method selected by the customer is not supported.

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The pricing engine is disabled for the online store.

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The product in the cart is out of stock.

Question 3

A retail chain is implementing Dynamics 365 Commerce and wants to enforce that all stores use the same pricing structure. However, one store manager needs to offer a local discount to match a competitor. What is the best way to handle this?

Accepted Answer

Create a price adjustment for that specific store.. A price adjustment in Dynamics 365 Commerce allows you to apply a discount to a specific product for a specific store or channel without altering the global base price. This meets the requirement of maintaining a consistent pricing structure across all stores while enabling the local store manager to offer a targeted discount to match a competitor. Price adjustments are the standard mechanism for temporary or localized pricing changes in Commerce.

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Have the store manager manually override the price at POS.

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Change the base price for the product globally.

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Create a new product assortment for that store.

Question 4

A multinational company uses Dynamics 365 Finance and needs to report financial results in both the local currency (EUR) and the reporting currency (USD). The exchange rates fluctuate daily. What is the recommended approach to handle currency translation for financial reporting?

Accepted Answer

Define a reporting currency in the ledger setup and use translation methods.. The recommended approach is to define a reporting currency in the ledger setup and use translation methods, as Dynamics 365 Finance supports dual-currency accounting where transactions are recorded in both the accounting currency and an additional reporting currency. This allows automatic translation of financial statements using defined exchange rate types and methods (e.g., current rate, average rate, historical rate) without manual adjustments. This ensures compliance with accounting standards and simplifies reporting.

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Create a separate ledger for USD and manually adjust entries.

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Set up two legal entities, one for EUR and one for USD.

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Use the periodic exchange rate adjustment to update currency values.

Question 5

During a month-end close, a Dynamics 365 Finance user encounters an error when trying to post a vendor invoice. The invoice has been approved but the system shows 'Invoice posting failed due to account validation'. What is the most likely cause?

Accepted Answer

The account combination used is not valid in the chart of accounts.. The error message 'Invoice posting failed due to account validation' points directly to the ledger account combination being invalid — for example, a missing main account, an inactive dimension, or a combination blocked in the chart of accounts. Dynamics 365 Finance validates the account structure before posting, so an invalid combination halts posting even if the invoice is approved.

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The vendor is on hold in accounts payable.

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The invoice has not been approved by the workflow.

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The general ledger journal for the invoice is not yet posted.

Question 6

A furniture manufacturer uses Dynamics 365 Supply Chain Management. They need to ensure that raw materials are replenished automatically when inventory falls below a certain level. Which feature should be configured?

Accepted Answer

Reorder point. The reorder point feature in Dynamics 365 Supply Chain Management triggers automatic replenishment when inventory levels drop to a predefined threshold. This ensures raw materials are reordered without manual intervention, directly addressing the requirement for automatic replenishment when inventory falls below a certain level.

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Vendor collaboration

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Safety stock

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Master planning

Question 7

A company uses Dynamics 365 Supply Chain Management to manage multi-site operations. They need to transfer inventory between two warehouses in different legal entities. What is the correct approach?

Accepted Answer

Use intercompany order processing to create a purchase order and sales order.. Intercompany order processing is the correct approach for transferring inventory between warehouses in different legal entities. It creates a purchase order in the receiving company and a sales order in the sending company, properly recording the transaction across legal entities. Option A is incorrect because inventory adjustment journals do not track intercompany transfers and are meant for internal adjustments. Option B is incorrect because transfer orders are only valid within a single legal entity. Option C is incorrect because a purchase order alone does not create the corresponding sales order needed for intercompany accounting.

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Use an inventory adjustment journal to reduce stock in one warehouse and increase in the other.

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Create a transfer order between the two warehouses.

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Create a purchase order from the receiving warehouse to the sending warehouse.

Question 8

Which TWO planning methods are available in Dynamics 365 Supply Chain Management for master planning?

Accepted Answer

Net change. In Dynamics 365 Supply Chain Management, master planning can be run using two planning methods: Net change (option B) and Regenerative (option C). Net change planning only recalculates the items and requirements that have changed since the last planning run, which makes it faster and is typically used for frequent, incremental planning. Regenerative planning recalculates all items and their requirements according to the master plan, ensuring a complete and consistent plan, and is typically used for periodic full replanning. Coverage planning (option A) is a coverage/grouping concept used within item coverage settings, not a master planning method. Intercompany planning (option D) refers to planning across legal entities and is a scenario/feature, not one of the two master planning run methods. Demand planning (option E) is a separate forecasting capability (often via Demand Planning app), not a master planning method.

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Coverage planning

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Intercompany planning

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Demand planning

Question 9

A company uses Dynamics 365 Finance and wants to automate the generation of financial statements like balance sheets and income statements. Which tool should they use?

Accepted Answer

Financial reporting. Financial reporting is the built-in Dynamics 365 Finance tool (formerly Management Reporter) used to design and generate statutory financial statements such as balance sheets, income statements, and cash flow statements from ledger data. It provides row/column/reporting-tree definitions that map directly to the chart of accounts and dimensions, so it is the correct choice for automating financial statement generation.

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Management reporter

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Power BI

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Excel integration

Question 10

A company uses Dynamics 365 Supply Chain Management with lot-controlled items. The quality team needs to block a specific lot from being used in production or sales until testing is complete. Which action should they take?

Accepted Answer

Apply an inventory blocking to the lot. Applying an inventory blocking to the lot prevents it from being reserved, picked, or consumed in production or sales orders until the block is removed. This directly addresses the quality team's need to quarantine the lot pending testing. Inventory blocking is the standard Dynamics 365 SCM mechanism for holding stock.

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Create a non-conformance for the lot

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Move the lot to a quarantine zone

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Create a quality order for the lot

Question 11

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 in Dynamics 365 Supply Chain Management is specifically designed to handle variations in the concentration or strength of raw materials in process manufacturing. When producing a batch of paint, the actual concentration of a raw material may differ from the standard, requiring the recipe to be adjusted to achieve the desired final product specifications. Potency management allows you to define potency ranges and automatically adjust ingredient quantities based on the actual potency of the raw material, ensuring product consistency and quality.

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Catch weight functionality.

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Co-product and by-product planning.

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Batch order for the paint.

Question 12

A distribution company uses Dynamics 365 Supply Chain Management. They want to improve picking efficiency in the warehouse by grouping multiple orders into a single pick run. Which warehouse process should they configure?

Accepted Answer

Wave processing. Wave processing in Dynamics 365 Supply Chain Management is the correct warehouse process for grouping multiple orders into a single pick run. It allows you to create waves that consolidate multiple sales orders or transfer orders based on criteria such as warehouse, shipping method, or inventory availability, and then release them together for efficient picking.

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Batch balancing

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Inbound shipment management

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Load planning

Question 13

Which TWO are benefits of using Copilot in Dynamics 365 Finance?

Accepted Answer

Automated data entry suggestions. Option A (Automated data entry suggestions) is correct because Copilot in Dynamics 365 Finance uses AI to help users complete forms and fields faster by suggesting values and reducing repetitive manual input, which improves efficiency and accuracy. Option C (Natural language query for financial reports) is correct because Copilot enables users to ask questions in plain language and receive generated insights or report summaries, making financial data more accessible without deep report-building expertise. Option B (Automatic tax calculation) is not a Copilot benefit; tax determination is handled by the Tax module and configuration, not by Copilot. Option D (Elimination of manual journal entries) is incorrect because Copilot assists with creating or suggesting entries but does not remove the need for human journal entry work. Option E (Direct ledger postings without approval) is incorrect because posting to the ledger still follows configured accounting rules, workflows, and approval controls.

Answer

Automatic tax calculation

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Elimination of manual journal entries

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Direct ledger postings without approval

Question 14

A company uses Dynamics 365 Supply Chain Management. They need to track a batch of raw material from receipt to finished goods shipment for quality compliance. Which supply chain process should they use?

Accepted Answer

Batch tracking. Batch tracking in Dynamics 365 Supply Chain Management enables the assignment of unique batch numbers to raw materials and finished goods, allowing the system to trace the material from receipt through production to shipment. This process is essential for quality compliance, as it supports recall management, expiry date monitoring, and detailed genealogy reports that track the entire lifecycle of a batch.

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Transfer orders

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Consignment inventory

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Inventory counting

Question 15

A distribution company uses Dynamics 365 Supply Chain Management. They want to optimize warehouse picking routes to reduce travel time. Which module should they configure?

Accepted Answer

Warehouse management. Warehouse management includes wave processing and route optimization for picking. Option A is wrong because transportation management is for inbound/outbound freight. Option C is wrong because inventory management handles stock levels, not picking routes. Option D is wrong because procurement and sourcing is for purchasing.

Answer

Transportation management

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Inventory management

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Procurement and sourcing