MB-920 Practice Test 49 — 15 Questions

Question 1

A company uses Dynamics 365 Finance and needs to track financial dimensions for their cost centers and departments across all transactions. They want to ensure that when a user enters a main account, only valid combinations of dimensions are allowed. Which feature should they configure?

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

Accepted Answer

Account structures. Account structures are the correct feature to define and enforce valid combinations of main accounts and financial dimensions. They ensure that only allowed dimension values are used when posting transactions, maintaining data integrity. Advanced rules can further refine the behavior but are not the primary mechanism for defining valid combinations.

Answer

Financial dimension sets

Answer

Advanced rules

Answer

Dimension hierarchies

Question 2

A company wants to use AI capabilities to automatically categorize thousands of vendor invoices. Which Dynamics 365 Finance feature should be used?

Accepted Answer

Invoice automation using AI Builder. Invoice automation using AI Builder (option D) is correct because AI Builder provides prebuilt AI models, including invoice processing, that extract and categorize data from vendor invoices in Dynamics 365 Finance, enabling automated categorization at scale. Budget planning (A) is for creating and managing budgets, not document categorization. Electronic reporting (B) is for configuring and generating regulatory and business documents, not AI-based invoice classification. Fixed assets (C) manages asset records and depreciation, which is unrelated to invoice categorization.

Answer

Budget planning

Answer

Electronic reporting

Answer

Fixed assets

Question 3

A company uses Dynamics 365 Finance. They need to allocate overhead costs to multiple departments based on square footage. Which feature should they configure?

Accepted Answer

Cost accounting allocation bases. The need is to allocate overhead costs to departments using square footage as the driver. Cost accounting provides allocation bases and policies to distribute costs automatically based on statistical measures. Financial dimensions are for tagging, budgeting is for planning, and general ledger journals are for manual entries. None of those provide the automated allocation capability required here.

Answer

Budgeting

Answer

General ledger journal

Answer

Financial dimensions

Question 4

A company uses Dynamics 365 Finance. They want to automatically generate vendor payments based on due dates and available cash discounts. Which payment proposal type should they use?

Accepted Answer

Due date proposal. The correct option is A, Due date proposal, because it generates vendor payment proposals by selecting open vendor transactions whose due dates fall within a specified date range, and it can factor in available cash discounts when the proposal is created. This matches the requirement to automatically generate payments based on due dates and cash discounts in Dynamics 365 Finance. The Discount proposal (B) focuses on transactions with cash discounts available, but it is not the standard proposal type used to drive payments primarily by due date. The Open transactions proposal (C) simply includes open transactions without the due-date-driven logic, and the Specific invoices proposal (D) requires manually selecting individual invoices rather than automating the process.

Answer

Discount proposal

Answer

Open transactions proposal

Answer

Specific invoices proposal

Question 5

A manufacturing company uses Dynamics 365 Supply Chain Management. They need to track the cost of producing a finished good, including raw materials, labor, and overhead. Which module provides this capability?

Accepted Answer

Cost accounting. Cost accounting is the module that enables tracking and analyzing production costs, including materials, labor, and overhead. It provides the necessary tools to calculate the cost of a finished good and perform variance analysis, making it the correct choice for this requirement.

Answer

Procurement and sourcing

Answer

Production control

Answer

Inventory management

Question 6

You review the batch job configuration for inventory closing. What is the expected outcome of this job?

Accepted Answer

Run inventory closing and update costs. The inventory closing batch job runs the inventory closing process and updates the cost prices of inventory transactions, which is exactly what is expected when reviewing the inventory closing batch job configuration. The job performs cost adjustments and closes the inventory period so that inventory values and related ledger postings are aligned. Option A is not the purpose of the closing job, as quantity recalculation is a separate inventory recalculation process. Option B describes ledger posting of inventory transactions, which is a different function than running inventory closing and updating costs. Option D is also incorrect because revaluing inventory items is a separate revaluation activity, not the outcome of the inventory closing batch job.

Answer

Recalculate inventory quantities

Answer

Post inventory transactions to the general ledger

Answer

Revalue inventory items

Question 7

A manufacturing company uses Dynamics 365 Supply Chain Management. The production scheduler notices that a critical raw material is frequently out of stock, causing delays. The procurement team manually places purchase orders only when stock reaches zero. Which feature should be configured to automatically trigger purchase orders based on demand forecasts and current inventory levels?

Accepted Answer

Master planning. Master planning (option C) is the correct feature because it automatically generates planned purchase orders by netting demand forecasts against current on-hand inventory and existing supply, exactly addressing the scenario where procurement reacts only when stock hits zero. It uses coverage settings, lead times, and forecast requirements to trigger replenishment before stockouts occur. Warehouse management (A) handles physical storage and movement of goods, not demand-driven order generation. Inventory closing (B) is a period-end cost settlement process, and Quality management (D) governs inspection and quality control, neither of which triggers purchase orders.

Answer

Warehouse management

Answer

Inventory closing

Answer

Quality management

Question 8

A company uses Dynamics 365 Supply Chain Management to manage warehouse operations. They want to ensure that when a sales order is released to the warehouse, the system automatically generates work to pick and pack the items for shipment. Which configuration should they set up?

Accepted Answer

Wave template. A wave template automates the creation of waves and work when sales orders are released to the warehouse. It defines the steps for generating work, such as picking and packing, and can be configured to run automatically. Location directives, work templates, and inventory reservation are all part of the overall process but do not themselves trigger work creation from a sales order release.

Answer

Work template

Answer

Location directive

Answer

Inventory reservation

Question 9

A manufacturing company uses Dynamics 365 Supply Chain Management. They need to track the cost of raw materials as they move through production and report the total cost of goods sold for each production order. Which module or feature should they use?

Accepted Answer

Cost management. Cost management in Dynamics 365 Supply Chain Management provides the tools to track and report the cost of goods sold for production orders, including raw material consumption. It integrates with inventory and production to calculate actual costs. The other modules handle operational or analytical aspects but do not directly produce the per-order cost totals required.

Answer

Cost accounting

Answer

Production control

Answer

Inventory management

Question 10

A new accounting clerk in a company using Dynamics 365 Finance needs to record a vendor invoice that has already been approved and is ready for payment. The clerk asks which module in Dynamics 365 Finance is used to manage vendor invoices and payments. What should you tell the clerk?

Accepted Answer

Accounts payable. Accounts payable is the module in Dynamics 365 Finance dedicated to managing vendor invoices and payments. It allows users to record invoices, match them to purchase orders, and process payments. The other modules serve different purposes: accounts receivable handles customer billing, general ledger handles posting and reporting, and procurement and sourcing handles purchasing activities.

Answer

Accounts receivable

Answer

Procurement and sourcing

Answer

General ledger

Question 11

A company uses Dynamics 365 Human Resources. The HR manager needs to track employee skills and competencies to identify training needs and support career development. Which feature should the HR manager use?

Accepted Answer

Skills and competencies. The Skills and competencies feature in Dynamics 365 Human Resources is designed to catalog employee skills, competencies, and certifications. It enables HR to identify skill gaps, plan training interventions, and support career progression. This feature provides the necessary tools to track and manage skills data effectively, aligning with the HR manager's goal.

Answer

Position management

Answer

Performance management

Answer

Compensation management

Question 12

A company uses Dynamics 365 Supply Chain Management to manage discrete manufacturing. Production planners report that the system does not automatically create planned production orders for items with a coverage group set to 'Manual'. They want the system to generate planned orders automatically for these items. What should you do?

Accepted Answer

Change the coverage code on the item's coverage group to 'Period' or 'Requirement'.. Master planning generates planned orders based on the coverage code assigned to an item. When the coverage code is Manual, the system does not create planned orders automatically; planners must create them manually. Changing the coverage code to Period or Requirement allows the planning engine to generate planned orders according to net requirements. The default order type and planning regeneration mode do not override the Manual coverage setting.

Answer

Set the item's default order type to 'Production' and enable the 'Auto-create' flag on the item.

Answer

Run master planning with the 'Regeneration' option instead of 'Net change'.

Answer

Enable the 'Automatic firming' parameter in the master plan and set the firming time fence to zero.

Question 13

A company uses Dynamics 365 Supply Chain Management to manage their warehouse. They want to ensure that when a worker scans an item during picking, the system validates that the item is correct and that the quantity matches the picking list. Which feature should they implement?

Accepted Answer

Product confirmation in the warehouse management mobile app. Product confirmation in the warehouse management mobile app requires the worker to scan the item, and the system verifies it against the expected item. This, along with quantity confirmation, ensures the correct item and quantity are picked. Other features like work confirmation, inventory blocking, or cycle counting do not provide the real-time item validation needed.

Answer

Inventory blocking on the item

Answer

Cycle counting

Answer

Warehouse management mobile app with work confirmation

Question 14

A distribution company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to track the cost of items using a method that calculates an average cost based on all purchases and adjusts it with each transaction. Which inventory costing method should they use?

Accepted Answer

Moving average. Moving average is the inventory costing method that recalculates an item's average cost with each transaction, based on total purchases and on-hand quantity. It provides a dynamic average cost that reflects current market conditions. Standard cost uses fixed costs, while FIFO and LIFO are based on specific layers of inventory and do not produce an average cost that adjusts automatically.

Answer

FIFO (First In, First Out)

Answer

Standard cost

Answer

LIFO (Last In, First Out)

Question 15

A company uses Dynamics 365 Finance to manage its accounts payable process. The accounting manager wants to ensure that all vendor invoices above $10,000 are automatically routed to the CFO for approval before payment. The company also needs to maintain an audit trail of who approved each invoice and when. What should the manager configure?

Accepted Answer

Set up a vendor invoice workflow with a conditional approval step based on the invoice total.. The requirement is to automatically route vendor invoices over $10,000 to the CFO for approval and keep an audit trail. This is achieved by configuring a vendor invoice workflow with a conditional approval step that evaluates the invoice total. The workflow ensures that only invoices meeting the condition are sent to the CFO, and it logs each approval action, satisfying both the approval and audit needs.

Answer

Create a purchase order workflow that includes an approval task for the CFO.

Answer

Configure a ledger accrual scheme to hold invoices above $10,000 until manually released.

Answer

Set up a vendor posting profile to restrict posting of large invoices.