MB-920 Practice Exam 52 — 20 Questions

Question 1

A company uses Dynamics 365 Finance and needs to create a vendor payment that includes a discount of $50 if paid within 10 days. The invoice is for $1,000. The payment is made on day 8. What should the payment amount be?

Accepted Answer

$950. Option C is correct because the vendor payment is made within the 10-day discount period, so the $50 discount applies to the $1,000 invoice. The payment amount is $1,000 - $50 = $950. In Dynamics 365 Finance, this is handled through the cash discount setup on the vendor payment terms, which automatically calculates the discounted amount when the payment date falls within the discount window.

Answer

$1,000

Answer

$900

Answer

$1,050

Question 2

A company is implementing Dynamics 365 Finance and needs to configure a chart of accounts that supports multiple legal entities with different fiscal requirements. Which structure should be used?

Accepted Answer

Use a shared chart of accounts with separate fiscal calendars per legal entity.. A shared chart of accounts is the recommended approach in Dynamics 365 Finance when multiple legal entities must operate under different fiscal requirements. By sharing the chart of accounts but assigning separate fiscal calendars per legal entity, the organization maintains a consistent account structure across entities while allowing each entity to comply with its own fiscal year, period definitions, and closing schedules. This balances standardization with regulatory flexibility.

Answer

Use a single shared chart of accounts with one shared fiscal calendar.

Answer

Use main accounts only without dimensions.

Answer

Create a separate chart of accounts for each legal entity.

Question 3

A company is configuring fixed assets in Dynamics 365 Finance. They need to ensure that asset depreciation is calculated differently for tax reporting and financial reporting. Which TWO actions must be taken?

Accepted Answer

Create multiple value models for the same asset.. In Dynamics 365 Finance, to calculate depreciation differently for tax and financial reporting, you must create multiple value models for the same asset. Each value model can then be assigned a separate depreciation profile, allowing distinct depreciation calculations for each reporting purpose.

Answer

Use a single depreciation book for both tax and financial.

Answer

Enable the 'Derived value models' feature.

Answer

Use a single value model with multiple depreciation profiles.

Question 4

An organization is implementing Dynamics 365 Human Resources. They need to store employee certifications and track expiration dates. Which TWO actions can be performed using standard functionality?

Accepted Answer

Set up alerts to notify managers when certifications are about to expire. Option A is correct because Dynamics 365 Human Resources includes built-in alert functionality that can be configured to notify managers when employee certifications are approaching their expiration dates. This is part of the standard certification tracking feature, which allows setting up notification rules based on date fields.

Answer

Configure automatic renewal of certifications before expiration

Answer

Link certifications to worker skills for gap analysis

Answer

Automatically attach certifications to positions when hiring

Question 5

A company uses Dynamics 365 Human Resources to manage employee leave. Employees in the sales department frequently submit leave requests that conflict with scheduled client meetings, causing operational disruptions. The HR manager wants to prevent such conflicts without restricting all leave during client meetings. What should the HR manager configure?

Accepted Answer

Create a leave blocking rule for the sales department position on days with client meetings.. Option D is correct because Dynamics 365 Human Resources allows you to create leave blocking rules that are position-based. By configuring a blocking rule for the sales department position on days with client meetings, the system will automatically reject leave requests from sales employees on those specific dates, preventing operational disruptions without restricting leave on all days.

Answer

Disable employee self-service for leave requests in the sales department.

Answer

Configure calendar parameters to block leave on days when client meetings are scheduled.

Answer

Set a maximum leave balance for sales department employees.

Question 6

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 7

A company uses Dynamics 365 Human Resources. The HR manager wants to set up a new position that reports to an existing position, but the system does not allow the reporting relationship to be established. What should the system administrator verify?

Accepted Answer

That the position hierarchy feature is enabled in the shared parameters. The position hierarchy feature must be enabled in the shared parameters of Dynamics 365 Human Resources to allow reporting relationships between positions. Without this feature turned on, the system blocks the creation of parent-child position links, regardless of other configuration details.

Answer

That the compensation plan for the new position is active

Answer

That the organization type is set to 'Legal entity'

Answer

That the position details for the existing position are fully defined

Question 8

Match each Dynamics 365 Project Operations component to its function.

Question 9

A project manager notices that resource bookings in a project are not reflecting in the schedule. The project uses Dynamics 365 Project Operations with a hybrid resource management approach. What is the most likely cause?

Accepted Answer

The project uses generic resources that have not been replaced with named resources.. In Dynamics 365 Project Operations with a hybrid resource management approach, generic resources are placeholders that do not have actual availability or booking details. When generic resources are used without being replaced by named resources, their bookings do not reflect in the schedule because the system cannot map them to real resource calendars or capacity. This is the most likely cause of the issue described.

Answer

The resource bookings are set to 'Soft Book' mode.

Answer

The resource calendar has been modified after booking.

Answer

The project status is not updated to 'In Progress'.

Question 10

A company is implementing Dynamics 365 Project Operations and needs to define cost and sales price lists for a project. Which TWO actions should the administrator take to ensure accurate project budgeting?

Accepted Answer

Define sales price lists with effective dates to cover different project phases.. Option C is correct because sales price lists in Dynamics 365 Project Operations support effective dates, allowing the administrator to define different prices for different project phases (e.g., design, development, deployment). This ensures that cost and revenue are accurately tracked as rates change over the project lifecycle, which is essential for precise project budgeting.

Answer

Set up cost price lists to include markup percentages.

Answer

Configure discounts directly in the price list for bulk purchases.

Answer

Assign the same price list to all customers for consistency.

Question 11

A project manager creates a project with a budget of $60,000 in Draft status, but the workflow does not trigger the Senior Manager Approval step. What is the most likely reason?

Accepted Answer

The workflow is not activated for the project.. In Dynamics 365 Project Operations, workflows must be explicitly activated to run automatically when a project is created or updated. A workflow in Draft status is not active, so it will not trigger any approval steps regardless of the project's budget or status. Activating the workflow enables the system to evaluate conditions and initiate the Senior Manager Approval step as designed.

Answer

The project budget is too low.

Answer

The approver email is incorrect.

Answer

The project status is not 'Draft' after approval.

Question 12

Which TWO features are available in Dynamics 365 Project Operations to help manage project profitability?

Accepted Answer

Resource cost rates and billing rates. A is correct because Dynamics 365 Project Operations uses resource cost rates and billing rates to calculate project costs and revenue, directly enabling profitability tracking. By defining cost rates for resources (e.g., hourly wages) and billing rates for customers, the system computes margins and supports profitability analysis.

Answer

Vendor contract management

Answer

Inventory costing methods

Answer

Sales tax calculation

Question 13

Refer to the exhibit. A batch job for inventory closing failed. The error indicates open inventory transactions for item A-100. What should the supply chain analyst do to resolve the issue and allow inventory closing to complete?

Accepted Answer

Post or cancel the open inventory transactions for item A-100.. Inventory closing cannot complete while there are open inventory transactions (e.g., sales orders, production orders, or transfer orders) that have not been posted or canceled. The correct action is to post or cancel those open transactions for item A-100, which clears the blocking records and allows the inventory closing batch job to finalize. This is a standard prerequisite in Dynamics 365 Supply Chain Management for inventory close processes.

Answer

Perform a physical inventory count for item A-100.

Answer

Change the batch job recurrence to run every hour.

Answer

Rerun the batch job immediately after the next scheduled run.

Question 14

A distribution company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager reports that during peak hours, order picking is slow because pickers frequently travel long distances to retrieve items. The warehouse layout is fixed. Which feature should the company use to optimize picking routes without changing the physical layout?

Accepted Answer

Configure wave processing with location-based wave filters.. Wave processing with location-based wave filters allows the system to group work into waves based on criteria such as location, enabling the creation of efficient picking routes that minimize travel distance. This feature optimizes the sequence of picks within a wave without requiring any physical changes to the warehouse layout, directly addressing the manager's need to reduce travel time during peak hours.

Answer

Enable replenishment to ensure pick locations are fully stocked.

Answer

Use location directives to direct putaway to random locations.

Answer

Implement cluster picking to group orders by customer.

Question 15

A manufacturing company is experiencing stockouts of a critical raw material despite maintaining high inventory levels. The procurement team places purchase orders based on historical usage, but demand has become erratic. Which action should the supply chain manager take to improve material availability without increasing inventory costs?

Accepted Answer

Set up a reorder point with dynamic safety stock calculation in Demand Planning.. Option B is correct because Dynamics 365 Supply Chain Management's Demand Planning module can calculate dynamic safety stock based on forecasted demand variability and service level targets. This allows the system to automatically adjust reorder points in response to erratic demand patterns, improving material availability without simply increasing inventory levels across the board.

Answer

Increase safety stock percentages for all raw materials by 20%.

Answer

Switch from purchase orders to blanket purchase agreements with the supplier.

Answer

Negotiate with the supplier to reduce lead time by 50%.

Question 16

Match each Dynamics 365 Supply Chain Management concept to its description.

Question 17

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. The procurement manager notices that purchase requisitions are not being converted to purchase orders automatically as expected. The workflow for purchase requisitions is set to auto-approve for amounts under $1,000. Upon investigation, the manager finds that a requisition for $950 is stuck in 'Draft' status. What is the most likely cause?

Accepted Answer

The purchase requisition has not been submitted for review.. Option D is correct because in Dynamics 365 Supply Chain Management, a purchase requisition must be explicitly submitted to trigger the workflow. Even if the workflow is configured for auto-approval, the requisition remains in 'Draft' status until the user clicks 'Submit'. The $950 requisition was never submitted, so the auto-approval process never started.

Answer

The workflow requires budget approval for all requisitions.

Answer

The purchase requisition was rejected by the workflow.

Answer

The dollar limit for auto-approval is set to $900.

Question 18

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager wants to reduce setup time on a bottleneck machine. Which THREE actions should the manager take?

Accepted Answer

Define operation properties to sequence orders by setup similarity.. Option A is correct because defining operation properties allows the system to sequence production orders on a bottleneck resource based on setup similarity, reducing changeover time. In Dynamics 365 Supply Chain Management, operation properties are attributes assigned to operations that the scheduling engine uses to group similar setups together, minimizing the number and duration of setup changes.

Answer

Increase the batch size for all production orders on that machine.

Answer

Implement external setup procedures that run while the machine is running.

Question 19

A company uses Dynamics 365 Supply Chain Management for warehouse operations. The warehouse manager wants to improve inventory accuracy and reduce the time spent on physical inventory counts. Which TWO actions should the manager take?

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 20

A company uses Dynamics 365 Supply Chain Management to manage production orders. A production planner needs to schedule a rush order for a high-priority customer. The planner wants to see the impact on existing orders before committing. Which feature should the planner use?

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.