MB-920 Practice Exam 52 — 20 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management. They want to optimize inventory levels to reduce carrying costs while avoiding stockouts. They need a system that suggests replenishment quantities based on historical demand and lead times. Which feature should they use?

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

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management uses historical demand data, lead times, and on-hand inventory to calculate replenishment suggestions. It generates planned orders that optimize inventory levels, reducing carrying costs while preventing stockouts through time-phased requirements planning.

Answer

Bill of materials

Answer

Inventory valuation

Answer

Procurement and sourcing

Question 2

A company is configuring a main account for Cash in the legal entity USMF. Based on the exhibit, what is the main account type?

Accepted Answer

Asset. In the exhibit, the main account for Cash is configured with a main account type of 'Asset'. In Dynamics 365 Finance, the main account type determines how the account is used in financial reports and posting. Cash is a current asset, so it must be classified as an Asset account type to correctly represent the company's financial position on the balance sheet.

Answer

Liability

Answer

Expense

Answer

Equity

Question 3

An organization using Dynamics 365 Finance implements AI-driven cash flow forecasting. What data source does the feature primarily use?

Accepted Answer

Historical transaction data. The AI-driven cash flow forecasting feature in Dynamics 365 Finance primarily uses historical transaction data to predict future cash flows. Option B is incorrect because external bank account balances are not directly used; the feature relies on internal transaction history. Option C is incorrect because while vendor payment history is a component of historical transactions, the system primarily uses the broader set of historical transaction data, not just vendor payment history. Option D is incorrect because budget and forecast data are used for planning and analysis, not as the primary input for the AI-driven cash flow forecasting.

Answer

External bank account balances

Answer

Vendor payment history

Answer

Budget and forecast data

Question 4

A company uses Dynamics 365 Supply Chain Management. They want to optimize inventory levels to reduce carrying costs while avoiding stockouts. They need a system that suggests replenishment quantities based on historical demand and lead times. Which feature should they use?

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

Accepted Answer

Implement cycle counting based on ABC classification.. Cycle counting based on ABC classification allows the warehouse to count high-value or fast-moving items (A items) more frequently than low-value or slow-moving items (C items). This targeted approach improves inventory accuracy without the disruption of full physical counts, and Dynamics 365 Supply Chain Management supports ABC classification directly in the cycle counting setup.

Answer

Increase safety stock levels for fast-moving items.

Answer

Schedule full inventory counts at the end of each month.

Answer

Require daily counting of all inventory items.

Question 5

You are a Dynamics 365 Finance administrator for a small business that uses Dynamics 365 Finance for financial management. The company has a single legal entity and uses the cash basis accounting method for tax purposes. The company recently hired a new accountant who is unfamiliar with the system. The accountant needs to record a vendor invoice for office supplies. The invoice is from a vendor already set up in the system. The invoice amount is $500, and the applicable tax rate is 8%. The accountant wants to ensure that the invoice is posted correctly and that the tax amount is calculated automatically. Which steps should the accountant take to record the vendor invoice?

Accepted Answer

Open the vendor invoice journal, select the vendor, enter the invoice number, invoice date, amount, and post. The tax will be calculated automatically.. The vendor invoice journal is the standard method to record vendor invoices with automatic tax calculation. Option A is wrong because a purchase order is not required for a simple vendor invoice; it is typically used for procure-to-purchase processes. Option C is wrong because the general journal is for manual journal entries, not vendor invoices. Option D is wrong because the payment journal is used for recording payments, not invoices.

Answer

Create a purchase order for the supplies, then post a vendor invoice based on the purchase order.

Answer

Open the general journal, select the vendor account, enter the debit and credit entries manually, and post.

Answer

Open the payment journal, select the vendor, enter the invoice details, and post the payment.

Question 6

A company uses Dynamics 365 Supply Chain Management and wants to automate the generation of purchase orders when inventory falls below a certain level. Which feature should they use?

Accepted Answer

Use item coverage with a reorder point.. In Dynamics 365 Supply Chain Management, item coverage settings with a defined reorder point allow the system to automatically generate planned purchase orders when inventory falls below the reorder point during master planning. This is the standard method for automated procurement based on inventory levels. Replenishment rules, on the other hand, are used for warehouse location replenishment, not direct purchase order generation.

Answer

Set up safety stock levels for the items.

Answer

Configure replenishment rules with minimum and maximum inventory levels.

Answer

Create a recurring purchase order manually.

Question 7

An organization is implementing Dynamics 365 Finance and must configure a fiscal calendar that aligns with a 4-4-5 retail calendar. Which approach should they use?

Accepted Answer

Create a custom period template based on the 4-4-5 pattern.. Dynamics 365 Finance supports custom period templates like 4-4-5. Option A is wrong because fiscal year date intervals define date ranges, not period patterns. Option B is wrong because the standard calendar is 12 months and does not support a 4-4-5 pattern. Option C is wrong because the period close template manages closing processes.

Answer

Define fiscal year date intervals.

Answer

Use the standard calendar and manually adjust periods each year.

Answer

Use the period close template.

Question 8

Which THREE of the following are valid configuration options for posting profiles in Dynamics 365 Finance? (Choose three.)

Accepted Answer

Customer posting profile. The correct answers are A, C, and E. In Dynamics 365 Finance, posting profiles define how transactions from subledgers are posted to the general ledger. Customer posting profile (A) manages accounts receivable transactions, Vendor posting profile (C) manages accounts payable transactions, and Inventory posting profile (E) manages inventory transactions. Sales tax posting group (D) is a sales tax configuration, not a posting profile. Ledger posting setup (B) is a general ledger setup, not a posting profile.

Answer

Ledger posting setup

Answer

Sales tax posting group

Question 9

A multinational corporation uses Dynamics 365 Finance and needs to report in both local GAAP and IFRS. What is the recommended approach?

Accepted Answer

Use multiple ledgers with different accounting frameworks.. Dynamics 365 Finance allows multiple ledgers to be attached to the same legal entity, each with a different accounting framework (e.g., local GAAP and IFRS). Option B is wrong because using two separate instances would require duplicate data entry and is not necessary. Option C is wrong because the consolidation module is used to consolidate financial results from multiple entities, not for dual reporting within one entity. Option D is wrong because financial dimensions are for segmenting financial data, not for applying different accounting standards.

Answer

Set up two separate instances of Dynamics 365 Finance.

Answer

Use the consolidation module to convert IFRS to local GAAP.

Answer

Configure financial dimensions to differentiate GAAPs.

Question 10

Which TWO are valid options for posting vendor invoices in Dynamics 365 Finance? (Select TWO.)

Accepted Answer

Vendor invoice journal. The vendor invoice journal allows direct entry and posting of vendor invoices that are not linked to purchase orders. Option B is correct because the purchase order invoice posting process posts invoices that are linked to purchase orders after receipt. Option C is wrong because sales order invoices are for customer invoices, not vendor invoices. Option D is wrong because the vendor payment journal is used for recording payments to vendors, not invoices. Option E is wrong because production orders are for manufacturing processes, not vendor invoicing.

Answer

Sales order invoice

Answer

Vendor payment journal

Answer

Production order

Question 11

A company is implementing Dynamics 365 Human Resources and needs to configure benefit plans. Which THREE actions are required to set up a new benefit plan?

Accepted Answer

Assign the benefit plan to employees.. Assigning the benefit plan to employees (Option A) is required because it links the configured plan to specific workers, enabling them to enroll and receive benefits. Without this assignment, the plan exists in the system but has no effect on any employee record. This step finalizes the benefit setup by applying the plan to the intended workforce.

Answer

Define benefit eligibility rules.

Answer

Integrate with payroll for deductions.

Question 12

A company uses Dynamics 365 Commerce. They notice that product recommendations are not appearing on the e-commerce site. What must be enabled?

Accepted Answer

Recommendations service. Product recommendations in Dynamics 365 Commerce require the Recommendations service to be enabled and configured. This service uses AI and machine learning to generate personalized product suggestions based on user behavior, catalog data, and transaction history. Without it, the e-commerce site cannot display recommendation widgets, even if other services like search or content delivery are operational.

Answer

Customer insights

Answer

Content delivery network

Answer

Search service

Question 13

A company uses Dynamics 365 Finance. They need to configure intercompany accounting. Which TWO actions are required?

Accepted Answer

Set up intercompany relationships. Required because intercompany relationships must be defined in Dynamics 365 Finance to establish the legal entities that will transact with each other. This setup is the foundational step that enables the system to recognize and process transactions between related companies, such as sales orders or purchase orders, and ensures proper accounting entries are generated.

Answer

Set up consolidation accounts

Answer

Set up budget models

Answer

Configure financial reporting

Question 14

Refer to the exhibit. A Dynamics 365 Finance administrator runs the PowerShell command shown. What is the expected output?

Accepted Answer

A list of configuration parameters for the General ledger module. The command retrieves configuration parameters for the General ledger module, specifically the "Ledger" configuration. Option A is wrong because it retrieves a single setting, not all. Option C is wrong because it doesn't return module list. Option D is wrong because it doesn't run diagnostics.

Answer

The current value of the Ledger configuration setting

Answer

A list of all modules in Dynamics 365 Finance

Answer

An error because the command is invalid

Question 15

A company configured the warehouse management parameters as shown in the exhibit. What is the purpose of this configuration?

Accepted Answer

To automatically replenish picking locations when the quantity falls below the minimum of 10 units. The configuration sets a minimum replenishment quantity of 10 units, which triggers automatic replenishment during wave processing when the picking location falls below that threshold. Option A is incorrect because the configuration does not adjust min/max during picking; it defines a fixed threshold. Option C is incorrect because location directives are still used; the wave step is for replenishment, not to disable directives. Option D is incorrect because replenishment is automatic, not manual.

Answer

To adjust the minimum and maximum replenishment quantities during picking

Answer

To disable location directives and use wave-based processing

Answer

To manually trigger replenishment when inventory drops below 10 units

Question 16

A company uses Dynamics 365 Supply Chain Management. They want to optimize inventory levels to reduce carrying costs while avoiding stockouts. They need a system that suggests replenishment quantities based on historical demand and lead times. Which feature should they use?

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

Accepted Answer

Gantt chart scheduling on the production floor control board.. The Gantt chart on the production floor control board provides a visual, interactive timeline that allows the planner to simulate the insertion of a rush order and immediately see its effect on existing production orders, including potential delays or resource conflicts. This feature supports 'what-if' analysis before committing the order, which directly matches the requirement to assess impact on existing orders.

Answer

Finite scheduling on the resource group.

Answer

Production order details form.

Answer

Capacity planning workspace.

Question 17

A company uses Dynamics 365 Finance and Operations with multiple legal entities. They need to eliminate intercompany transactions during consolidation. What should they configure?

Accepted Answer

Elimination rules in consolidation. Elimination rules in consolidation are specifically designed to remove intercompany transactions when consolidating financial data from multiple legal entities. In Dynamics 365 Finance, these rules automatically generate reversing entries to eliminate balances between entities, ensuring the consolidated financial statements reflect only external transactions. This is the correct configuration for eliminating intercompany activity during the consolidation process.

Answer

Consolidation groups

Answer

Financial dimensions

Answer

Intercompany accounting setup

Question 18

Which THREE of the following are components of the Dynamics 365 Commerce architecture?

Accepted Answer

Retail Server. Retail Server is a core component of Dynamics 365 Commerce architecture that acts as the middleware between the channel database and client devices (such as POS terminals and e-commerce front ends). It exposes OData RESTful endpoints to handle business logic, transactions, and data retrieval, ensuring offline-capable and real-time operations across channels.

Answer

Azure Data Lake

Answer

Power BI

Question 19

A company uses Dynamics 365 Supply Chain Management. The warehouse manager wants to enable wave processing to automatically create work for outbound orders. Which setup is required?

Accepted Answer

Warehouse management parameters with wave processing enabled. Wave processing in Dynamics 365 Supply Chain Management automates the creation of picking work for outbound orders. To enable this, the warehouse management parameters must have wave processing turned on, which allows the system to automatically generate and process waves when outbound orders are released to the warehouse. Without this setting, waves must be created and processed manually, defeating the automation goal.

Answer

Inventory status for the items

Answer

Location directives for picking

Answer

Reservation hierarchy for the item

Question 20

Refer to the exhibit. A sales order requires 80 units of ITEM001 from warehouse WH01. What is the immediate effect on the available quantity?

Accepted Answer

The available quantity becomes 0. When a sales order is created for 80 units of ITEM001 from warehouse WH01, the system checks the available quantity. The available quantity is 70, which is insufficient to cover the full order. In Dynamics 365 Supply Chain Management, the immediate effect is that the available quantity becomes 0 because the system reserves the entire available quantity against the sales order, even if the order cannot be fully fulfilled. This reflects the on-hand inventory being committed to the order, leaving no remaining available quantity.

Answer

The available quantity remains 70

Answer

The available quantity becomes 20

Answer

The available quantity becomes -10