MB-920 Practice Test 48 — 15 Questions

Question 1

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

Accepted Answer

Master planning. Master planning calculates demand from sales orders and generates planned purchase orders to fulfill that demand. Option B is wrong because Inventory management tracks stock levels but does not automatically create purchase orders. Option C is wrong because Sales order processing handles sales orders, not purchase orders. Option D is wrong because Procurement and sourcing processes purchase orders, but the automation of creation is done by master planning.

Answer

Inventory management

Answer

Sales order processing

Answer

Procurement and sourcing

Question 2

A company uses Dynamics 365 Supply Chain Management. Which TWO configurations are required to enable the Warehouse Management module?

Accepted Answer

Assign a warehouse management item to each item. Each item that will be used in warehouse management processes must be assigned a 'warehouse management item' flag in the item model group. This flag enables the item to participate in advanced warehouse processes such as wave execution, location directives, and mobile device transactions. Option C is correct because the warehouse record itself must have the 'Use warehouse management processes' option enabled to activate the module for that specific warehouse.

Answer

Set up financial dimensions for inventory

Answer

Configure the advanced warehouse management parameter

Answer

Enable the Warehouse Management feature in Feature Management

Question 3

A company uses Dynamics 365 Supply Chain Management and needs to ensure that all inbound shipments from a specific vendor are inspected before being put away. Which feature should be configured?

Accepted Answer

Quality management with quality orders. Quality management in Dynamics 365 Supply Chain Management allows automatic creation of quality orders upon inbound receipt through quality associations, enabling inspection of shipments from specific vendors. Option A (Production control) is for manufacturing processes, not inbound inspection. Option C (Outbound load planning) relates to outbound shipments. Option D (Work creation policies) controls warehouse work generation, not quality inspection.

Answer

Production control

Answer

Outbound load planning

Answer

Work creation policies

Question 4

A company uses Dynamics 365 Supply Chain Management and wants to use AI to predict potential supply chain disruptions, such as supplier delays, and suggest alternative actions. Which Copilot feature should they use?

Accepted Answer

Copilot in Supply Chain Management. Copilot in Supply Chain Management is specifically designed to leverage AI to predict potential supply chain disruptions, such as supplier delays, and suggest alternative actions. Option B (Copilot for sales orders) focuses on order management and does not provide disruption prediction. Option C (Inventory optimization) is aimed at optimizing inventory levels, not at predicting disruptions. Option D (Production scheduling) deals with scheduling production runs, not supply chain risk prediction.

Answer

Copilot for sales orders

Answer

Inventory optimization

Answer

Production scheduling

Question 5

Which TWO of the following are features of Dynamics 365 Supply Chain Management that enable real-time visibility into inventory across multiple warehouses?

Accepted Answer

Inventory Visibility Service add-in. The Inventory Visibility Service add-in (C) provides real-time visibility into inventory across multiple warehouses, enabling soft reservations and multi-warehouse sourcing. The Power BI content pack for Dynamics 365 Supply Chain Management (D) offers real-time dashboards for inventory analysis across locations. The Inventory aging report (A) is a historical view, not real-time. The Procurement and Sourcing module (B) focuses on purchasing processes, not cross-warehouse visibility. The Warehouse Management mobile app (E) is used for scanning and operational tasks within a single warehouse, not for visibility across warehouses.

Answer

Inventory aging report

Answer

Procurement and Sourcing module

Answer

Warehouse Management mobile app

Question 6

Which THREE of the following are valid configurations in the Warehouse Management module for controlling the movement of inventory?

Accepted Answer

Location directives. Options A, C, and D are correct. Location directives determine where to put or pick items, controlling movement. Work templates define the work processes for moving inventory. Mobile device menu items configure the interface for warehouse workers to execute movements. Option B (Inventory statuses) controls availability, not movement. Option E (Product filters) filter product attributes, not movement.

Answer

Inventory statuses

Answer

Product filters

Question 7

Your organization needs to automate the process of sending payment remittance advice to vendors after payments are made. Which Dynamics 365 Finance feature should be configured?

Accepted Answer

Vendor payment journal. The vendor payment journal in Dynamics 365 Finance provides the functionality to automatically send payment remittance advice to vendors when payments are processed. This feature allows you to define payment formats and remittance settings that trigger the generation and transmission of remittance advice. Option B is incorrect because the purchase order is used for ordering goods, not for payment remittance. Option C is incorrect because the vendor invoice journal is for recording invoices, not for payments. Option D is incorrect because payment format is a configuration component within the vendor payment journal, not a standalone feature for sending advice.

Answer

Purchase order

Answer

Vendor invoice journal

Answer

Payment format

Question 8

Which THREE of the following are valid methods to reduce the number of vendor invoices posted manually in Dynamics 365 Finance?

Accepted Answer

Enable vendor collaboration for electronic invoice submission.. Vendor collaboration enables vendors to submit invoices electronically, reducing manual data entry. Option C is correct because optical character recognition (OCR) digitizes paper invoices and automates data capture. Option D is correct because configuring purchase order matching allows automatic posting of invoices that match purchase orders, reducing manual effort. Option B is incorrect because the payment journal is used for recording payments, not for automating invoice posting. Option E is incorrect because manually entering all invoices increases manual effort, which is the opposite of the goal.

Answer

Use the payment journal to record invoices.

Answer

Manually enter all invoices to ensure accuracy.

Question 9

Which TWO features in Dynamics 365 Finance can help automate accounts payable processes?

Accepted Answer

Vendor invoice automation. Options C and E are correct. Vendor invoice automation automatically processes invoices, reducing manual effort in accounts payable. Payment proposal generates payments based on due dates and vendor terms, streamlining payment processes. Option A is wrong because collections management is for accounts receivable, not accounts payable. Option B is wrong because bank reconciliation is a cash management function, not directly related to accounts payable automation. Option D is wrong because customer payment predictions is for accounts receivable.

Answer

Collections management

Answer

Bank reconciliation

Answer

Customer payment predictions

Question 10

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to configure settings for transportation management. Which TWO parameters are typically defined?

Accepted Answer

Rate masters. Options A and B are correct because shipping carriers and rate masters are core transportation management parameters. Option C is incorrect because production routes are manufacturing. Option D is incorrect because warehouse setups are warehouse management. Option E is incorrect because vendor catalogs are procurement.

Answer

Production routes

Answer

Warehouse locations

Answer

Vendor catalogs

Question 11

Refer to the exhibit. A user in the USMF legal entity tries to post a journal entry in the General ledger for fiscal year 2025 but receives an error. What is the most likely cause based on the exhibit?

Accepted Answer

The period status for 2025 is set to Closed. Correct: The period status for fiscal year 2025 is set to 'Closed', which prevents any new postings. Option A correctly identifies this. Option B is incorrect because the module setting does not affect journal posting in General ledger. Option C is incorrect because USMF is a valid legal entity for general ledger posting. Option D is incorrect because the fiscal calendar year 2025 is opened, but the period status itself is closed.

Answer

The module is set to GeneralLedger instead of AccountsPayable

Answer

The legal entity USMF is not configured for general ledger posting

Answer

The fiscal calendar year 2025 is not yet opened

Question 12

A company using Dynamics 365 Finance is experiencing performance issues when running month-end close processes. The finance team suspects that the issue is related to the number of open transactions. Which strategy should be used to improve performance?

Accepted Answer

Archive historical transactions and reduce the data volume.. Archiving historical transactions reduces the data volume, which directly addresses the performance issue caused by a high number of open transactions during month-end close. Option A is incorrect because increasing concurrent users would place more load on the system, likely worsening performance. Option B is incorrect because modifying financial reporting to use summary data might improve report generation but does not reduce the volume of open transactions. Option C is incorrect because running processes in batch mode can help with scheduling but does not reduce data volume.

Answer

Increase the number of concurrent users during close.

Answer

Modify the financial reporting to use summary data.

Answer

Run all close processes in batch mode.

Question 13

A company is implementing Dynamics 365 Finance and needs to support multiple legal entities with different fiscal calendars. Which feature should be used to manage this requirement?

Accepted Answer

Individual fiscal calendars assigned to each legal entity.. Dynamics 365 Finance allows each legal entity to have its own fiscal calendar, enabling support for different fiscal years and period configurations across entities. Option A is incorrect because fiscal year templates define standard period patterns but are applied within a calendar, not directly to entities. Option B is incorrect because shared fiscal calendars would enforce the same fiscal year across entities, conflicting with the requirement for different calendars. Option C is incorrect because ledger period configurations determine period statuses (e.g., open/close) within a calendar, not the calendar itself.

Answer

Fiscal year templates applied to all entities.

Answer

Shared fiscal calendars across all legal entities.

Answer

Ledger period configurations in the general ledger.

Question 14

A company is implementing Dynamics 365 Finance and needs to configure a chart of accounts that supports multiple legal entities with different fiscal year requirements. What should the administrator do to ensure each legal entity can have its own fiscal calendar while sharing the main accounts?

Accepted Answer

Configure shared main accounts and assign a separate fiscal calendar to each legal entity.. Dynamics 365 Finance enables sharing main accounts across multiple legal entities while each legal entity can have its own fiscal calendar. This is accomplished by using a shared chart of accounts with shared main accounts, and then in the Ledger setup for each legal entity, assigning a separate fiscal calendar. Option A is incorrect because fiscal calendars are defined per legal entity, not per main account. Option C is incorrect because a single fiscal calendar cannot accommodate different fiscal year requirements across entities. Option D is incorrect because separate charts of accounts are unnecessary; main accounts can be shared while fiscal calendars differ.

Answer

Assign a fiscal calendar to each main account.

Answer

Create a single fiscal calendar and share it across all legal entities.

Answer

Create a separate chart of accounts for each legal entity.

Question 15

A company using Dynamics 365 Finance needs to ensure that purchase orders exceed a certain amount require additional approval from a director. Which feature should be configured?

Accepted Answer

Purchase order workflow. Purchase order workflow in Dynamics 365 Finance allows configuration of conditional approval rules, such as requiring director approval for purchase orders exceeding a certain amount. Option A is incorrect because an approval journal is not a standard concept in Dynamics 365 Finance for this purpose. Option B is incorrect because procurement and sourcing parameters cover general settings but not specific approval workflows. Option C is incorrect because the budget manager role is related to budget control, not purchase order approval.

Answer

Approval journal

Answer

Procurement and sourcing parameters

Answer

Budget manager role