MB-920 Practice Test 5 — 10 Questions

Question 1

A company needs to calculate the cost of manufactured products including direct materials, labor, and overhead. Which costing methodology in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Standard costing. Standard costing is the correct methodology because it allows the company to define predetermined costs for direct materials, labor, and overhead, and then calculate variances against actual costs. In Dynamics 365 Supply Chain Management, standard costing is specifically designed for manufacturing scenarios where you need to value inventory and cost of goods sold based on expected costs, with variance tracking for deviations.

Answer

Weighted average

Answer

FIFO

Answer

Moving average

Question 2

A company is implementing Dynamics 365 Finance and needs to automate the reconciliation of bank transactions. Which feature should be used to match bank statement lines with open bank document lines based on rules?

Accepted Answer

Advanced bank reconciliation. Advanced bank reconciliation in Dynamics 365 Finance allows you to import bank statement lines and automatically match them to open bank document lines (such as checks, deposits, and transfers) using user-defined matching rules. This feature supports rule-based matching (e.g., by amount, date, or reference) and handles complex scenarios like partial matches or tolerance thresholds, making it the correct choice for automating bank transaction reconciliation.

Answer

Bank account reconciliation

Answer

Payment proposal

Answer

Automatic settlement

Question 3

A manufacturing company uses Dynamics 365 Supply Chain Management for process manufacturing. They produce a liquid chemical that requires a specific mixing time. Which feature should be used to enforce that the production step takes at least 30 minutes before the next step can begin?

Accepted Answer

Route operation with a 'Process time' set to 30 minutes. A route operation with a 'Process time' of 30 minutes will enforce that the operation takes at least that long. Option A is for discrete manufacturing, not process. Option C is for product configuration, not production steps. Option D is for quality management, not time enforcement.

Answer

Product configuration model

Answer

Production orders with a bill of materials (BOM)

Answer

Quality order with a test time

Question 4

A Dynamics 365 Finance administrator configures an AI Builder model for invoice processing with the above JSON. After deployment, the system correctly extracts data from 90% of invoices but sends 10% to manual review. What is the most likely reason for the manual review?

Accepted Answer

The confidence score for extracted fields is below the threshold of 0.8 for those invoices. The JSON configuration sets a confidence threshold of 0.8 for extracted fields. When the model's confidence in the extracted data falls below this threshold, the system automatically routes the invoice to manual review. This is the standard behavior for AI Builder invoice processing models to ensure accuracy and reduce errors from low-confidence predictions.

Answer

The invoice images are too blurry for the model to read

Answer

The model extracts all fields but with confidence below 0.9

Answer

The invoice contains multiple pages that need to be split

Question 5

You are a Dynamics 365 Finance consultant for a retail company that operates in multiple countries. The company uses Dynamics 365 Finance with the following configuration: The main legal entity is based in the United States (US), and there are subsidiary legal entities in Canada (CA) and the United Kingdom (UK). The finance team needs to generate consolidated financial reports that combine data from all three entities. Additionally, the company wants to automate the elimination of intercompany transactions during consolidation. The company also needs to comply with local tax reporting requirements in each country. The tax rates and rules change frequently, and the company wants to manage these changes without modifying the source code. You have set up the consolidation module and the tax engine. However, during the consolidation process, you notice that the intercompany transactions are not being eliminated, and the consolidated report shows double-counting. What should you do to automatically eliminate intercompany transactions during consolidation?

Accepted Answer

Configure elimination rules in the consolidation module to automatically generate elimination entries.. Elimination rules automate the removal of intercompany balances. Option A is wrong because manual journal entries are not automated. Option C is wrong because intercompany accounting is for transaction posting, not elimination. Option D is wrong because the consolidation online feature is for real-time consolidation but does not automatically eliminate.

Answer

Create manual journal entries to eliminate intercompany balances after consolidation.

Answer

Set up intercompany accounting to post elimination entries automatically.

Answer

Use the consolidation online feature to eliminate transactions in real time.

Question 6

A company implements Dynamics 365 Finance and needs to comply with international accounting standards. They must ensure that all financial transactions are recorded in two ledgers: one for legal reporting and one for internal management. Which feature should they configure?

Accepted Answer

Dual ledger. Dual ledger is the correct feature because it allows an organization to maintain two separate accounting ledgers within the same legal entity: one for legal reporting (typically based on local GAAP or IFRS) and one for internal management reporting (e.g., based on a different accounting standard or internal adjustments). This is achieved through the use of main accounts and financial dimensions, where the legal ledger uses the primary main account structure and the management ledger can use an extended or alternative account structure, ensuring both sets of books are updated simultaneously from a single transaction entry.

Answer

Intercompany accounting

Answer

Single ledger

Answer

Consolidation

Question 7

You are the system administrator for a global retail company using Dynamics 365 Commerce. The company operates multiple stores across different countries, each with its own currency and tax rules. The finance team needs to generate a consolidated financial report that includes sales data from all stores in a single currency (USD). The current setup uses separate legal entities for each country. You need to configure a solution that automatically consolidates financial data from all legal entities into a single reporting entity without manual data entry. The consolidation must include intercompany eliminations. What should you do?

Accepted Answer

Set up a consolidation company and run the consolidation process from the Consolidations module.. Dynamics 365 Finance provides a dedicated Consolidations module that allows you to create a consolidation company and run the consolidation process to automatically combine financial data from multiple legal entities into a single reporting entity. This process supports intercompany eliminations and currency translation to USD, eliminating manual data entry.

Answer

Use Microsoft Power BI to connect to each legal entity's database and create a consolidated report.

Answer

Use the Excel add-in to pull data from each legal entity and consolidate manually.

Answer

Export data from each legal entity using Data management and import into a single legal entity.

Question 8

A company uses Dynamics 365 Supply Chain Management and wants to use AI to predict potential stockouts and suggest replenishment orders. Which feature should they enable?

Accepted Answer

Inventory Visibility Add-in with AI-powered demand forecasting. The Inventory Visibility Add-in with AI capabilities provides demand forecasting and stockout predictions. The Product Insights feature is for product performance. The Asset Management module is for maintenance. The Commerce module is for retail.

Answer

Asset Management

Answer

Product Insights

Answer

Commerce module

Question 9

A company is planning to use Dynamics 365 Commerce to manage its omnichannel retail operations. Which of the following best describes a key benefit of using Dynamics 365 Commerce?

Accepted Answer

It offers a unified commerce platform that integrates online and physical store operations.. Dynamics 365 Commerce provides a unified commerce platform that seamlessly integrates online (e-commerce) and physical store operations, enabling consistent inventory, pricing, and customer experiences across all channels. This omnichannel capability is a core differentiator, as it connects point-of-sale (POS), call center, and e-commerce data into a single back-end system, eliminating silos and enabling real-time synchronization.

Answer

It focuses solely on supply chain management for retail.

Answer

It is designed only for customer loyalty programs.

Answer

It provides a standalone e-commerce platform without integration to physical stores.

Question 10

You are a Dynamics 365 Finance functional consultant for a company that operates in a country where tax regulations require the use of tax codes with different rates for various goods and services. The company needs to ensure that sales invoices automatically calculate tax based on the item's tax group and the customer's tax exemption status. They also need to generate tax reports for authorities. Requirements: 1) Configure tax codes and groups for automated tax calculation. 2) Handle tax exemptions. 3) Use standard Dynamics 365 Finance features. Which configuration should you set up?

Accepted Answer

Create sales tax codes, sales tax groups, and item sales tax groups. Assign tax exemption certificates to customers as needed.. Setting up sales tax codes, sales tax groups, and item sales tax groups, and assigning tax exemption certificates to customers, allows automatic tax calculation and reporting. Option A is correct.

Answer

Use the 'Tax calculation' service in Dynamics 365 Finance.

Answer

Configure the 'General ledger parameters' to apply a default tax rate to all transactions.

Answer

Set up a custom workflow for tax approval on each invoice.