MB-920 Practice Exam 51 — 20 Questions

Question 1

A multinational corporation uses Dynamics 365 Finance with multiple legal entities. The company needs to streamline the intercompany reconciliation process. They want to automatically generate balancing journal entries when transactions are posted between entities. Which configuration should be used to meet this requirement?

Accepted Answer

Configure intercompany accounting setup. Intercompany accounting setup allows automated balancing entries. Consolidation is for combining financial statements, not automatic balancing. Intercompany journal posting is a manual process. Intercompany transaction pairs are used for matching transactions but do not automatically generate balancing entries. Option A is correct.

Answer

Define intercompany transaction pairs

Answer

Use intercompany journal posting

Answer

Set up consolidation groups

Question 2

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.. Option A is correct because OCR can capture invoice data automatically. Option B is correct because purchase order matching automates invoice posting. Option C is correct because vendor collaboration allows vendors to submit invoices electronically. Option D is wrong because manual posting is what you want to reduce. Option E is wrong because the payment journal does not automate invoice posting.

Answer

Use the payment journal to record invoices.

Answer

Manually enter all invoices to ensure accuracy.

Question 3

A multinational organization uses Dynamics 365 Finance with multiple currencies. They need to comply with local accounting standards that require revaluation of foreign currency balances at month-end. Which THREE actions should be performed?

Accepted Answer

Run Accounts payable foreign currency revaluation. General ledger foreign currency revaluation adjusts account balances. Accounts payable and accounts receivable foreign currency revaluation adjust vendor and customer balances. Bank foreign currency revaluation adjusts bank account balances. Reporting currency is for translation, not revaluation. Exchange rate adjustment is not a standard term. Options A, B, and D are correct.

Answer

Run Reporting currency translation

Answer

Run Exchange rate adjustment

Question 4

You are a finance manager at Contoso Ltd. The company is implementing Dynamics 365 Finance and needs to set up the chart of accounts. Which TWO statements about the chart of accounts are correct?

Accepted Answer

The chart of accounts is the foundation for financial reporting.. Option A is correct because the chart of accounts defines the financial structure used for reporting. Option D is correct because main accounts can be shared across legal entities using shared main accounts. Option B is wrong because main accounts are not created automatically; they must be defined. Option C is wrong because the chart of accounts is not limited to 100 accounts; it can have many. Option E is wrong because posting profiles are required for transaction posting.

Answer

Posting profiles are optional for posting transactions.

Answer

A chart of accounts can contain a maximum of 100 main accounts.

Answer

Main accounts are automatically created when a legal entity is created.

Question 5

Refer to the exhibit. An auditor runs this Kusto query in Microsoft Sentinel connected to Dynamics 365 Finance. What is the purpose of this query?

Accepted Answer

Find the top 5 users who posted the most vendor invoices in the past week. The Kusto query filters audit log entries for vendor invoice posting events (event ID 1050) from the past 7 days, groups them by user, counts the number of postings per user, and sorts descending to show the top 5 users. This directly identifies the users who posted the most vendor invoices in the past week, making option D correct.

Answer

Compare invoice posting rates between current and previous week

Answer

List all vendor invoices posted by system accounts

Answer

Identify users who have failed to post vendor invoices

Question 6

Which TWO of the following are capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse management. Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, enabling advanced inbound and outbound processes, wave management, and mobile device-driven warehouse operations. Production control (C) is also a core capability, providing functionality for production orders, batch orders, and lean manufacturing, including BOM management and routing.

Answer

Project cost management

Answer

Budget control

Answer

Omni-channel commerce

Question 7

An organization uses Dynamics 365 Project Operations. A project manager needs to track the budget consumption and actual costs against the approved budget for a project. Which feature should they use?

Accepted Answer

Project budget and cost control. Project budget and cost control in Dynamics 365 Project Operations enables project managers to track budget consumption and actual costs against the approved budget. This feature provides real-time visibility into budget variances, cost overruns, and remaining budget, directly supporting the requirement to monitor financial performance against the plan.

Answer

Expense management

Answer

Time entry

Answer

Resource scheduling

Question 8

Drag and drop the steps to configure a new inventory item in Dynamics 365 Supply Chain Management in the correct order.

Question 9

A Dynamics 365 Commerce administrator reviews the Retail Server configuration exhibit. Customers report that the checkout page does not appear. Based on the exhibit, what is the most likely cause?

Accepted Answer

Checkout page is not configured.. The Retail Server configuration in Dynamics 365 Commerce includes a dedicated 'Checkout page' setting that must be explicitly linked to a valid page URL. If this field is empty or points to a non-existent or unpublished page, the checkout page will not render, causing the reported issue. The exhibit likely shows this field is blank or misconfigured, making 'Checkout page is not configured' the most direct cause.

Answer

Default customer is not set correctly.

Answer

Product search is disabled.

Answer

Guest checkout is disabled.

Question 10

Which TWO actions should be performed to set up a loyalty program in Dynamics 365 Commerce?

Accepted Answer

Create a loyalty program.. Option A is correct because creating a loyalty program is the foundational step in Dynamics 365 Commerce; you must define the loyalty program entity (including name, currency, and date range) before any rewards or tiers can be associated. Option C is correct because reward points (with earning and redemption rules) and loyalty tiers (with benefits and thresholds) are essential components that must be configured within the loyalty program to enable differentiated customer rewards.

Answer

Define the returns policy for loyalty purchases.

Answer

Configure payment methods for loyalty points redemption.

Answer

Publish the online store to enable loyalty sign-up.

Question 11

A clothing retailer wants to implement a buy online, return in store (BORIS) process using Dynamics 365 Commerce. The retailer has multiple stores with different tax rates. Which configuration is essential to ensure that returns are processed correctly with the appropriate tax?

Accepted Answer

Configure tax settings for each physical store.. Option B is correct because in Dynamics 365 Commerce, each physical store can have its own tax settings, including tax groups and tax rates. When a return is processed in-store for an online purchase, the system uses the store's tax configuration to calculate the correct tax for the return transaction. This ensures compliance with local tax regulations, which vary by store location.

Answer

Assign tax groups to customer profiles based on their home address.

Answer

Ensure the online store's tax settings match the headquarters location.

Answer

Set the tax override option for all return transactions in the online store.

Question 12

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 13

A retail company uses Dynamics 365 Commerce to manage its online store. Customers report that they can add items to the cart, but when they proceed to checkout, the checkout page fails to load. The IT team has verified that the payment connector is configured correctly. What is the most likely cause of this issue?

Accepted Answer

The online store's channel publishing is not complete.. In Dynamics 365 Commerce, the checkout page is part of the online store's channel publishing process. If the channel publishing is not complete, the checkout page may not be available to customers even though other parts of the store (like product browsing and cart addition) function correctly. The IT team has confirmed the payment connector is configured correctly, so the issue is likely that the channel publishing job has not fully propagated the checkout page to the storefront.

Answer

The customer's CRM integration is not set up.

Answer

The payment connector is not configured for the online store.

Answer

The inventory levels for the items in the cart are not synchronized.

Question 14

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 15

A manufacturing company is implementing Dynamics 365 Finance and wants to streamline its procure-to-pay process. They need to automatically generate purchase orders when inventory falls below a predefined level. Which feature should they configure?

Accepted Answer

Set up reorder point planning and coverage groups. Option A is correct because reorder point planning in Dynamics 365 Finance automatically creates planned purchase orders when inventory reaches the reorder point. Option B is incorrect because vendor collaboration is for communication, not automated PO generation. Option C is incorrect because purchase requisition workflow requires manual approval steps. Option D is incorrect because procurement catalogs are for indirect procurement, not automated inventory replenishment.

Answer

Use procurement catalogs with punch-out to vendor

Answer

Configure purchase requisition workflow with auto-release

Answer

Enable vendor collaboration for automatic ordering

Question 16

A company's finance team reports that in the general ledger, the balance for the 'Office Supplies' account shows a credit balance of $500, but they expected a debit balance. What is the most likely cause of this discrepancy?

Accepted Answer

A voucher was posted with the wrong debit/credit sign. In Dynamics 365 Finance, the general ledger account for 'Office Supplies' is an expense account, which normally carries a debit balance. A credit balance indicates that a voucher was posted with the wrong debit/credit sign, such as entering a negative amount or selecting the wrong account type during transaction entry. This is the most common cause of a balance sign reversal in an expense account.

Answer

The period close process was run without finalizing

Answer

A reversing entry was posted incorrectly

Answer

A financial dimension was incorrectly assigned

Question 17

A company uses Dynamics 365 Finance and needs to ensure that all vendor invoices are approved by the department manager before payment. Which feature should they use?

Accepted Answer

Configure vendor invoice workflows. Vendor invoice workflows in Dynamics 365 Finance allow you to define a business process that routes invoices for approval based on specific conditions, such as department manager approval. This feature ensures that invoices are reviewed and approved before payment is processed, meeting the requirement for managerial approval.

Answer

Set up payment schedules

Answer

Enable invoice matching validation

Answer

Create purchase order approval workflows

Question 18

A company using Dynamics 365 Finance notices that the trial balance does not balance because the 'Accounts Payable' account has a negative balance. What could be the reason?

Accepted Answer

A vendor payment was posted to the wrong vendor account. A negative balance in the Accounts Payable account typically indicates that credits (payments) exceed debits (invoices) for a vendor. Posting a vendor payment to the wrong vendor account creates a credit balance in the intended vendor's subledger without a corresponding invoice, causing the trial balance to be out of balance because the general ledger account reflects the payment but the subledger detail is misaligned.

Answer

A prepayment invoice was posted without a purchase order

Answer

Intercompany transactions were posted incorrectly

Answer

A bank reconciliation was not performed

Question 19

A company uses Dynamics 365 Finance. The CFO wants to analyze actuals vs budget across multiple departments and cost centers. Which THREE components must be set up?

Accepted Answer

Budget model. The budget model is a required component because it defines the structure for how budget data is organized and calculated, such as by department or cost center. Without a budget model, the system cannot aggregate or compare actuals against budgeted amounts across different financial dimensions. It serves as the foundational framework for budget planning and analysis.

Answer

Budget control configuration

Answer

Budget register entries

Question 20

A company needs to ensure that purchase orders cannot be created without an approved vendor. Which configuration should be used?

Accepted Answer

Set 'Require approval for vendor' to Yes in Procurement and sourcing parameters. Setting 'Require approval for vendor' to Yes in Procurement and sourcing parameters ensures that a purchase order cannot be created unless the vendor is in an approved status. This configuration enforces a prerequisite check at the time of purchase order creation, preventing unapproved vendors from being used.

Answer

Create a purchase order approval workflow

Answer

Enable 'Invoice matching validation'

Answer

Set vendor status to Active