MB-920 Practice Exam 51 — 20 Questions

Question 1

A distribution company uses Dynamics 365 Supply Chain Management. They want to reduce shipping costs by consolidating multiple sales orders that have the same ship-to address into a single shipment. The orders are currently created at different times. Which feature should they use?

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

Accepted Answer

Load planning workbench. The load planning workbench is designed to consolidate multiple sales order lines into a single load based on criteria like ship-to address and delivery date. This directly reduces shipping costs by combining shipments. Other features like transportation management and master planning serve different purposes and do not perform this cross-order consolidation.

Answer

Master planning

Answer

Warehouse work policies

Answer

Transportation management

Question 2

A retail company uses Dynamics 365 Supply Chain Management. They want to streamline the process of receiving goods from vendors by allowing warehouse workers to use a mobile device to scan barcodes and confirm quantities. Which module should they implement?

Accepted Answer

Warehouse management. Warehouse management provides the mobile app and barcode scanning capabilities needed for receiving, put-away, picking, and shipping. It allows workers to confirm quantities on mobile devices, improving accuracy and efficiency. Inventory management, procurement, and transportation management handle other aspects of the supply chain but do not offer the mobile receiving workflow described.

Answer

Procurement and sourcing

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Transportation management

Answer

Inventory management

Question 3

A company is implementing Dynamics 365 Finance. The controller wants to streamline the process of recording vendor invoices that are received without a corresponding purchase order, such as utility bills and professional fees. The invoices must be matched to the correct expense accounts and cost centers. Which capability should you recommend?

Accepted Answer

Use the Invoice register and Invoice approval journals in Accounts payable to record and post vendor invoices.. The Invoice register and Invoice approval journals are specifically designed to handle vendor invoices that are not associated with a purchase order. They allow the accounting team to enter invoice details, distribute amounts to the appropriate expense accounts and cost centers, and then post the invoice. This provides the control and accuracy the controller requires for non-PO invoices.

Answer

Use the Vendor invoice journal to record and post vendor invoices directly.

Answer

Use the Accounts payable payment proposal to generate payments for non-PO invoices.

Answer

Use the Purchase order invoice matching policy to automatically post non-PO invoices.

Question 4

A company is implementing Dynamics 365 Finance and needs to configure the general ledger to support multiple legal entities. The finance team wants to ensure that the chart of accounts is consistent across entities while allowing some flexibility for local reporting requirements. Which two features should they configure to achieve this? (Choose two.)

Accepted Answer

Shared chart of accounts across legal entities. A shared chart of accounts ensures consistency across legal entities, while financial dimensions with entity-specific hierarchies provide the flexibility needed for local reporting. Together, they allow the finance team to maintain a uniform account structure and adapt reporting to each entity's requirements, meeting both consistency and flexibility goals without duplicating the chart.

Answer

Separate chart of accounts for each legal entity

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Consolidation accounts with automatic elimination

Answer

Account structures that restrict main account usage per entity

Question 5

A company uses Dynamics 365 Finance. The finance team needs to generate financial reports that show the organization's financial position and performance. They want to use the default financial reporting tools available in Dynamics 365 Finance. Which two statements are true about Financial reporting in Dynamics 365 Finance? (Choose two.)

Accepted Answer

Financial reporting uses row definitions, column definitions, and reporting trees to build reports.. Financial reporting in Dynamics 365 Finance is a powerful tool that uses building blocks to create customizable financial statements. It supports multiple legal entities through reporting trees and does not require a separate SSRS server. The two true statements are that it uses row definitions, column definitions, and reporting trees, and that it can combine data from multiple legal entities.

Answer

Financial reporting can only be used with the default chart of accounts and cannot be customized.

Answer

Financial reporting automatically generates reports in real time without any user configuration.

Answer

Financial reporting requires a separate SQL Server Reporting Services (SSRS) server to generate reports.

Question 6

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. They need to ensure that inventory is stored in the most efficient locations based on demand and product characteristics. Which capability should they use?

Accepted Answer

Warehouse management. Warehouse management in Dynamics 365 Supply Chain Management includes tools like location directives, work templates, and slotting to optimize where inventory is stored. These features consider demand patterns and product attributes to assign the best locations, reducing travel time and improving operational efficiency.

Answer

Procurement and sourcing

Answer

Transportation management

Answer

Inventory management

Question 7

A company uses Dynamics 365 Finance. The accounts payable manager needs to generate payments for multiple vendor invoices at once, ensuring that all invoices due within the next 30 days are included. Which feature should the manager use?

Accepted Answer

Payment proposal. A payment proposal is the correct feature for generating payments for multiple vendor invoices based on criteria such as due date. It allows the user to define selection criteria, review the proposed payments, and then create the payments. The vendor payment journal is for manual entry, the vendor invoice journal is for recording invoices, and settlement is for matching payments to invoices after payment.

Answer

Settlement

Answer

Vendor payment journal

Answer

Vendor invoice journal

Question 8

A company uses Dynamics 365 Finance and has a legal entity in the United States and another in the United Kingdom. The US entity needs to report in US dollars (USD), and the UK entity in British pounds (GBP). They want to consolidate the financial results into a single report in USD. What must be configured to support this?

Accepted Answer

Configure a consolidation legal entity with USD as its accounting currency and include both entities. To consolidate financial results from multiple legal entities with different accounting currencies into a single reporting currency, you must configure a consolidation legal entity. This entity uses the desired reporting currency (USD) and includes the source legal entities. During consolidation, the system translates amounts from each entity's accounting currency to the consolidation currency using exchange rates. This is the standard method in Dynamics 365 Finance.

Answer

Use financial dimensions to separate the entities and report in USD

Answer

Set up the UK legal entity with USD as its accounting currency

Answer

Set up exchange rates between USD and GBP and manually revalue accounts

Question 9

A furniture manufacturer uses Dynamics 365 Supply Chain Management. Production planners need to see a time-phased view of net requirements for each component over the next 90 days, netting existing on-hand, open purchase orders, and open production orders against demand. Which feature should they use?

Accepted Answer

Master planning. Master planning is the engine that nets demand against supply and produces time-phased planned orders, coverage messages, and action messages. Because the planners need net component requirements over a rolling 90-day horizon that accounts for on-hand, open purchase orders, and open production orders, master planning is the only listed feature designed for that calculation.

Answer

Warehouse work creation

Answer

Cost accounting variance analysis

Answer

Inventory aging report

Question 10

A company using Dynamics 365 Finance wants to ensure that all vendor invoices above $10,000 are automatically routed to the controller for approval before posting. The controller must also be able to see the invoice details and approve or reject it from within Dynamics 365. What should you configure?

Accepted Answer

Configure a workflow for Vendor invoice with an approval step and a condition for invoice total > 10000.. The Vendor invoice workflow is specifically designed to route pending vendor invoices for approval before posting. By adding a condition on the invoice total, only invoices exceeding $10,000 are routed to the controller. This ensures proper authorization and provides the controller with the ability to review and approve directly in Dynamics 365 Finance.

Answer

Set up a workflow for Vendor invoice journal with an approval step and a condition for invoice total > 10000.

Answer

Create a purchase order workflow with an approval step for purchase order total > 10000.

Answer

Set up a manual journal approval workflow for General journal entries with a condition for amount > 10000.

Question 11

A company uses Dynamics 365 Finance and needs to allocate rent expenses across multiple departments based on each department's square footage. The allocation must be recalculated monthly. Which feature should they use?

Accepted Answer

Ledger allocation rules. Ledger allocation rules are designed to distribute amounts from one or more source accounts to destination accounts based on a definable basis. By using a statistical account that holds square footage per department, the rule can calculate each department's share. The rule can be run monthly to recalculate and post the allocations, ensuring accurate expense distribution.

Answer

Budget control

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Accrual schemes

Answer

Financial dimensions

Question 12

A distribution company uses Dynamics 365 Supply Chain Management. They want to track the cost of goods sold for each sales order line and compare it with the revenue to analyze profitability. Which feature should they use?

Accepted Answer

Sales order > Line details > Cost and profit. Dynamics 365 Supply Chain Management provides order-line-level cost and profit analysis directly in the sales order line details. The 'Cost and profit' tab shows estimated and actual costs, revenue, and margin for each line, enabling profitability analysis without custom reports. Other features like inventory valuation or cost control workspace offer broader or different perspectives but not the specific per-line comparison needed here.

Answer

Inventory and warehouse management > Inventory transactions

Answer

Cost accounting > Cost control workspace

Answer

Inventory valuation report

Question 13

A company uses Dynamics 365 Supply Chain Management to manage its production operations. The production manager needs to schedule production jobs and ensure that capacity is efficiently utilized across multiple work centers. The manager wants to use the built-in scheduling capabilities. Which two scheduling options are available in Dynamics 365 Supply Chain Management? (Choose two.)

Accepted Answer

Operations scheduling. Operations scheduling and job scheduling are the two built-in scheduling methods in Dynamics 365 Supply Chain Management for production orders. Operations scheduling schedules at the operation level, while job scheduling schedules individual jobs based on resource capacity. Both are used to optimize work center capacity and are directly relevant to the production manager's needs.

Answer

Capacity scheduling

Answer

Master scheduling

Answer

Lean scheduling

Question 14

A company uses Dynamics 365 Finance. The finance team needs to record a transaction that will reverse automatically in the next period. The transaction is for an accrual of $5,000 that should be reversed on the first day of the next month. Which feature should the team use?

Accepted Answer

General journal with a reversing entry. A general journal with a reversing entry is the correct feature for recording an accrual that automatically reverses in the next period. Dynamics 365 Finance allows you to set a reversal date when creating the journal, and the system will generate the reversing entry on that date. This ensures that the accrual is properly reversed without manual intervention.

Answer

Periodic journal

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Ledger accrual scheme

Answer

Allocation journal

Question 15

A company uses Dynamics 365 Finance. The accounting manager needs to view a real-time summary of account balances across all legal entities to which they have access, without running a report. Which workspace or inquiry page provides this information?

Accepted Answer

Account balances inquiry. The Account balances inquiry offers a real-time, cross-legal-entity view of general ledger account balances. It allows filtering by legal entity, account, and dimensions, and is accessible from the General ledger module. Unlike reports, it provides immediate insight, making it ideal for the accounting manager's requirement to see balances across all accessible entities.

Answer

Trial balance inquiry

Answer

Chart of accounts page

Answer

Financial dimension details

Question 16

A pharmaceutical company uses Dynamics 365 Supply Chain Management. They need to ensure that all vendors supplying active ingredients are evaluated and approved before any purchase order can be created. Which feature should they configure?

Accepted Answer

Vendor approval workflow. A vendor approval workflow ensures that vendors are evaluated and approved before they can be referenced on purchase orders. It can block purchase order creation for vendors that are not in an approved state. Vendor collaboration, purchase order workflows, and the vendor portal do not enforce vendor qualification; they handle post-approval collaboration or purchase order authorization.

Answer

Vendor collaboration

Answer

Purchase order workflow

Answer

Vendor portal

Question 17

A company is implementing Dynamics 365 Finance and needs to streamline its month-end close process. They want to automate the creation of recurring journal entries and ensure that certain accounts are revalued for foreign currency fluctuations. Which two features should they use? (Choose two.)

Accepted Answer

Foreign currency revaluation. Recurring journals automate the creation of repetitive entries, such as monthly accruals or allocations, saving time and reducing errors. Foreign currency revaluation adjusts open foreign currency transactions to current exchange rates, posting unrealized gains/losses. Together, they streamline the month-end close by automating entries and ensuring accurate currency valuation.

Answer

Ledger calendar

Answer

Allocation rules

Answer

Financial dimensions

Question 18

A specialty chemical producer uses Dynamics 365 Supply Chain Management. They need to plan production for a product that is measured in liters and has a formula with multiple ingredients that can vary slightly in concentration. Which production type should they use?

Accepted Answer

Process manufacturing. Process manufacturing is designed for formula-based production with units like liters and for handling variable concentrations through batch attributes. It supports co-products and by-products common in chemical manufacturing. Discrete, lean, and project approaches lack the formula and batch-attribute model needed for this scenario, so process manufacturing is the correct production type.

Answer

Lean manufacturing

Answer

Discrete manufacturing

Answer

Project manufacturing

Question 19

A company uses Dynamics 365 Supply Chain Management. They need to ensure that when a sales order is confirmed, the system automatically creates a purchase order for a drop-ship item directly from the vendor to the customer. Which configuration is required?

Accepted Answer

Set the item's default order type to 'Purchase' and enable direct delivery on the sales order line.. For drop-shipment, the item must have a default order type of 'Purchase' so that demand generates a purchase order. Additionally, direct delivery must be enabled on the sales order line to instruct the system to create the purchase order directly from the vendor to the customer. This combination ensures the vendor ships directly to the customer without the company handling inventory.

Answer

Set the item's default order type to 'Production' and enable direct delivery.

Answer

Set the item's default order type to 'Transfer' and enable direct delivery.

Answer

Set the item's default order type to 'Kanban' and enable direct delivery.

Question 20

A company uses Dynamics 365 Supply Chain Management to manage production. They need to schedule production jobs so that they are sequenced based on the due date of the parent production order, and they want the system to consider capacity constraints on work centers. Which scheduling method should they use?

Accepted Answer

Job scheduling. Job scheduling in Dynamics 365 Supply Chain Management sequences production jobs according to the due date of the parent production order and takes into account capacity constraints on work centers. It provides detailed scheduling at the job level, which is necessary to meet due dates while respecting resource availability. This method aligns with the company's requirement for due-date-driven sequencing with capacity consideration.

Answer

Operations scheduling

Answer

Master planning

Answer

Lean production flow