MB-920 Practice Exam 53 — 20 Questions

Question 1

A manufacturing company uses Dynamics 365 Finance to manage its financial operations. The finance team reports that when they post a purchase invoice for raw materials, the system automatically updates the general ledger and the inventory valuation. However, the team wants to ensure that the purchase invoice posting also triggers a budget check against the remaining budget for the raw materials account. Which configuration should you enable?

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

Accepted Answer

Enable budget control in General ledger parameters and define budget check rules for purchase invoices.. Enabling budget control in General ledger parameters and defining budget check rules allows the system to perform a budget check when posting purchase invoices. Option B is incorrect because commitment accounting is used to track commitments for purchase orders, not to trigger budget checks during invoice posting. Option C is incorrect because budget planning workflows are for creating and approving budgets, not for checking them at transaction time. Option D is incorrect because creating budget register entries only records budget amounts; it does not enable automatic budget checks.

Answer

Activate commitment accounting for purchase orders.

Answer

Set up budget planning workflows to approve the budget.

Answer

Create budget register entries for the raw materials account.

Question 2

Contoso Ltd. is a global manufacturer of electronic components. They use Dynamics 365 Supply Chain Management with advanced warehouse management (WMS). The warehouse manager reports that during peak seasons, the picking process is slow because workers often have to travel long distances to pick items for multiple orders. Additionally, they want to improve the accuracy of shipments by ensuring that items are picked in the correct sequence. They have implemented barcode scanning on mobile devices. The IT team has configured location directives and work templates. However, the manager believes that the current setup does not optimize travel time or enforce a specific picking order. The company needs a solution that groups orders with similar items into a single picking trip and prioritizes picks based on the physical layout of the warehouse. They have considered using wave management but are unsure how to configure it. What should the administrator do?

Accepted Answer

Configure cluster picking in the wave template to group orders with similar items and create a single pick list for the cluster.. Cluster picking groups multiple orders into one picking trip, reducing travel. The 'FEFO' (first expiry first out) picking strategy is not about grouping. Cross-docking is for direct shipment. Zone sequencing defines work order but does not group orders. Cluster picking with wave management is the correct approach to batch orders and minimize travel.

Answer

Define zone sequencing in the work template to enforce a specific order of zones.

Answer

Set up cross-docking to move incoming items directly to outbound docks.

Answer

Enable 'FEFO' (first expiry, first out) picking strategy in the location directive to prioritize older stock.

Question 3

A food manufacturer uses Dynamics 365 Supply Chain Management. They need to ensure that raw materials are only used if they pass quality inspections. Which process should they implement?

Accepted Answer

Quality Management. D is correct because Dynamics 365 Supply Chain Management’s Quality Management module allows you to define quality orders and inspection criteria that block raw material consumption until the inspection is passed. By configuring item sampling, test instruments, and quality groups, the system ensures that inventory transactions (e.g., production picking) are prevented for materials that have not met the defined quality standards.

Answer

Batch Attributes

Answer

Nonconformance Management

Answer

Inventory Statuses

Question 4

A global company uses Dynamics 365 Finance and needs to comply with multiple tax regulations. They want to automatically apply the correct tax rate based on the customer's address. What should be configured?

Accepted Answer

Tax determination by address. To automatically apply the correct tax rate based on the customer's address in Dynamics 365 Finance, you configure 'Tax determination by address'. This feature uses the delivery address or primary address of the customer to determine the appropriate sales tax group and item sales tax group, enabling compliance with multiple tax regulations without manual intervention.

Answer

Tax exempt numbers

Answer

Tax reporting

Answer

Manual tax overrides

Question 5

A company uses Dynamics 365 Commerce and has set up a new online store. They notice that the product images are not displaying on the product detail pages. The images are stored in the media library in the headquarters. What is the most likely cause?

Accepted Answer

The images have not been published to the online store channel.. In Dynamics 365 Commerce, product images must be explicitly published to the online store channel after being uploaded to the headquarters media library. Simply storing images in the media library does not make them available on the product detail pages; they require a channel-level publication step to synchronize and render on the storefront. This ensures that only approved media is visible to customers.

Answer

The images lack alternative text.

Answer

Commerce Data Exchange is not configured for image synchronization.

Answer

The images are not uploaded to the media library.

Question 6

Which TWO features in Dynamics 365 Supply Chain Management help reduce inventory carrying costs?

Accepted Answer

Vendor-managed inventory. Vendor-managed inventory (VMI) shifts the responsibility for inventory replenishment to the supplier, allowing the supplier to monitor stock levels and trigger replenishment based on agreed targets. This reduces the need for the buying organization to hold safety stock, directly lowering inventory carrying costs such as storage, insurance, and obsolescence. Demand forecasting uses historical data and predictive analytics to align inventory levels with expected customer demand, minimizing overstock and stockouts, which also reduces carrying costs.

Answer

Intercompany planning

Answer

Product variants

Answer

RFID tracking

Question 7

A company uses Dynamics 365 Supply Chain Management. The warehouse manager reports that inventory counts are consistently inaccurate. Which feature should be used to improve inventory accuracy?

Accepted Answer

Cycle counting. Cycle counting is a periodic inventory auditing process where a subset of items is counted on a regular schedule, allowing discrepancies to be identified and corrected without a full physical inventory. In Dynamics 365 Supply Chain Management, cycle counting helps maintain accurate on-hand inventory by systematically validating counts against system records, which directly addresses the warehouse manager's issue of consistently inaccurate counts.

Answer

Picking

Answer

Receiving

Answer

Location directives

Question 8

A procurement manager reviews a purchase order. How many units of item M-100 are still due to be received?

Accepted Answer

50. The purchase order for item M-100 has a quantity of 100 units ordered. The receipt history shows 50 units have already been received. Therefore, the remaining quantity due to be received is 100 - 50 = 50 units. In Dynamics 365 Supply Chain Management, the 'Open order quantity' or 'Remaining delivery' field on the purchase order line reflects this calculation.

Answer

100

Answer

150

Answer

50

Question 9

A manufacturing company uses Dynamics 365 Finance. They need to automate the process of reordering raw materials when inventory falls below a predefined level. Which core capability should they use?

Accepted Answer

Replenishment rules. Replenishment rules in Dynamics 365 Finance allow you to define automatic reordering logic based on predefined inventory levels, such as minimum and maximum stock quantities. This capability directly addresses the requirement to trigger purchase orders or transfer orders when raw materials fall below a threshold, without manual intervention.

Answer

Inventory counting

Answer

Demand forecasting

Answer

Vendor collaboration

Question 10

A company uses Dynamics 365 Supply Chain Management with the Warehouse Management module. They receive goods from multiple vendors and need to put them away efficiently. The warehouse uses a directed putaway strategy based on location profiles and unit load constraints. The warehouse manager wants to optimize putaway by grouping similar items together in the same zone. You need to configure the system to automatically direct putaway to appropriate locations based on location profile and unit load. You have the following options: A. Configure location directives for putaway with appropriate query criteria for location profiles and unit load constraints. Set up work templates to create work for putaway. B. Use the mobile device menu items to manually select locations for each item. C. Use the Inventory management module to set up location groups and manually assign items to locations. D. Use the Product master to assign a default location for each item. Which option should you choose?

Accepted Answer

Configure location directives for putaway with appropriate query criteria for location profiles and unit load constraints. Set up work templates to create work for putaway.. Location directives and work templates automate the putaway process based on location profiles and constraints. Configuring location directives with appropriate query criteria allows the system to direct putaway to locations that match the location profile and unit load constraints, enabling grouping of similar items in the same zone. Work templates then create the putaway work automatically. Option A is incorrect because assigning a default location per product does not use directed putaway logic. Option B is incorrect because manually assigning items to locations is not automated. Option C is incorrect because mobile device menu items can be used for execution but not for configuring the directed putaway strategy.

Answer

Use the Product master to assign a default location for each item.

Answer

Use the Inventory management module to set up location groups and manually assign items to locations.

Answer

Use the mobile device menu items to manually select locations for each item.

Question 11

A company uses Dynamics 365 Sales. A sales representative wants to quickly get a summary of a customer's recent interactions without manually searching through emails, meetings, and notes. Which Copilot capability should the representative use?

Accepted Answer

Summarize conversations and activities. The Copilot capability to summarize conversations and activities directly addresses the sales representative's need to quickly view a customer's recent interactions without manual searching. This feature uses AI to aggregate and condense emails, meetings, and notes into a concise summary, leveraging Dynamics 365 Sales' Copilot integration with Microsoft 365 data.

Answer

Update the customer's contact details

Answer

Generate a sales forecast

Answer

Automatically create a follow-up task

Question 12

A company uses Dynamics 365 Project Operations. The project manager needs to create a project budget and track actuals against it. Which feature should be used?

Accepted Answer

Project budget management. Project budget management in Dynamics 365 Project Operations allows the project manager to create a detailed budget for a project and then track actual costs and revenues against that budget. This feature provides real-time variance analysis and integrates with the financial dimensions to ensure accurate budget control.

Answer

Resource utilization

Answer

Expense reports

Answer

Project invoices

Question 13

Which THREE components are essential for setting up a production process in Dynamics 365 Supply Chain Management?

Accepted Answer

Bill of materials (BOM). A is correct because the Bill of Materials (BOM) defines the list of components and raw materials required to produce a finished product. In Dynamics 365 Supply Chain Management, the BOM is a foundational data entity that specifies quantities, items, and their relationships, enabling the system to calculate material requirements and costs for production orders.

Answer

Purchase order

Answer

Sales order

Question 14

A company uses Dynamics 365 Supply Chain Management to manage its inventory across multiple warehouses. They want to transfer items between warehouses using a transfer order. Which process should they use to physically move the inventory?

Accepted Answer

Ship the transfer order from the source warehouse and receive it at the destination warehouse. To physically move inventory between warehouses in Dynamics 365 Supply Chain Management, the correct process is to ship the transfer order from the source warehouse and then receive it at the destination warehouse. This two-step process updates inventory quantities in both locations and creates the necessary inventory transactions to reflect the movement. Simply creating a transfer order without shipping and receiving does not change physical stock levels.

Answer

Perform an inventory counting journal

Answer

Create an inventory adjustment journal

Answer

Post a production consumption journal

Question 15

A company uses Dynamics 365 Supply Chain Management. Which TWO features are used to manage the quality of incoming materials?

Accepted Answer

Item sampling. Item sampling is correct because it defines the quantity of items to be inspected from a shipment or production batch, enabling statistical quality control without testing every unit. Quality orders are correct because they are the primary mechanism in Dynamics 365 Supply Chain Management to document and execute inspection tasks, capturing test results against predefined quality specifications.

Answer

Nonconformance management

Answer

Quarantine zones

Answer

Batch attributes

Question 16

Which TWO of the following are features of the Cash and bank management module in Dynamics 365 Finance?

Accepted Answer

Cash flow forecasting. Options B and D are correct. Cash flow forecasting (option B) is a feature of the Cash and bank management module. Bank reconciliation (option D) is also a core feature of the Cash and bank management module. Option A (Credit management) is incorrect; credit management is handled in the Accounts receivable module. Option C (Budget control) is incorrect; budget control is part of the Budgeting module. Option E (Fixed asset depreciation) is incorrect; fixed asset depreciation is managed in the Fixed assets module.

Answer

Credit management

Answer

Budget control

Answer

Fixed asset depreciation

Question 17

A company uses the master plan configuration shown in the exhibit. What is the effect of setting IncludeDemandForecast to true?

Accepted Answer

The master plan will consider both forecasted demand and existing sales orders. When IncludeDemandForecast is set to true in the master plan configuration, the master planning engine in Dynamics 365 Supply Chain Management combines forecasted demand with existing sales orders to generate a comprehensive supply plan. This ensures that both confirmed customer orders and predicted future demand are considered, preventing under- or over-stocking.

Answer

The master plan will calculate capacity requirements based on forecast

Answer

The master plan will only consider forecasted demand and ignore sales orders

Answer

The master plan will require manual input of forecast data

Question 18

A manufacturing company uses Dynamics 365 Supply Chain Management. Which THREE components are required to set up a production process for a discrete manufacturing scenario?

Accepted Answer

Bill of materials. In a discrete manufacturing scenario, the bill of materials (BOM) is required because it defines the list of components and raw materials needed to produce a finished product. The production order is the core document that authorizes and tracks the manufacturing execution, while the route specifies the sequence of operations and work centers. Together, these three elements form the foundation for planning and executing production in Dynamics 365 Supply Chain Management.

Answer

Kanban rules

Answer

Costing sheet

Question 19

Match each Dynamics 365 Supply Chain Management process to its purpose.

Accepted Answer

Procurement: Source and purchase materials from suppliers.. These processes cover the supply chain lifecycle: Procurement sources materials, Production transforms them, Warehouse Management handles storage, Inventory Management tracks stock, and Transportation Management delivers goods. Common confusions arise between Inventory/Transportation and similar definitions.

Answer

Inventory Management: Plan and execute shipments of goods.

Answer

Transportation Management: Track and control stock levels across locations.

Question 20

Refer to the exhibit. A company uses the 'Process inventory reservation' job to manage inventory reservations for online orders. The job is scheduled to run every 5 minutes. At 12:30 PM, a customer places an order but the inventory reservation is not created until 12:50 PM. What is the most likely cause of this delay?

Accepted Answer

The job is set to run every 5 minutes but it takes 20 minutes to process.. The 'Process inventory reservation' job is scheduled to run every 5 minutes, but if a single run takes 20 minutes to complete, the job will not start its next run until the current run finishes. Therefore, an order placed at 12:30 will be queued and processed only after the current run finishes at 12:50, resulting in a 20-minute delay.

Answer

The job is not configured to process reservations for online orders.

Answer

The job failed during the last run.

Answer

The job only processes reservations at its scheduled times, so the order will be processed at 12:50 PM.