MB-920 Practice Exam 55 — 20 Questions

Question 1

Refer to the exhibit. A purchase order has an amount of $15,000 and is pending approval. The workflow 'POApprovalWorkflow' has a condition that requires approval for amounts over $10,000. What will happen if a user tries to submit this purchase order?

Accepted Answer

The purchase order will be submitted for approval.. Option B is correct because the workflow 'POApprovalWorkflow' is configured with a condition that triggers approval for purchase orders exceeding $10,000. Since the purchase order amount is $15,000, it meets the condition and will be submitted to the approval workflow process, not automatically approved, skipped, or rejected.

Answer

The purchase order will be automatically approved.

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The purchase order will be skipped by the workflow.

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The purchase order will be rejected.

Question 2

A company uses Dynamics 365 Supply Chain Management. They need to track the serial numbers of products sold to customers for warranty management. Which inventory configuration should they use?

Accepted Answer

Serial number tracking. Serial number tracking is the correct inventory configuration because it allows the company to assign a unique identifier to each individual unit of a product. This enables precise tracking of which specific item was sold to which customer, which is essential for managing warranty claims, returns, and service history in Dynamics 365 Supply Chain Management.

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Batch tracking

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Location tracking

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Product dimensions

Question 3

Refer to the exhibit. An inventory adjustment is being posted for item A-001. The ReasonCode is 'CycleCount'. What is the most likely purpose of this adjustment?

Accepted Answer

To correct inventory after a physical count.. Option A is correct because in Dynamics 365 Supply Chain Management, a cycle count is a type of physical inventory count used to verify on-hand quantities. When the counted quantity differs from the system quantity, an inventory adjustment with the reason code 'CycleCount' is posted to correct the system's on-hand inventory to match the physical count. This ensures inventory accuracy without affecting other transactions like sales or production.

Answer

To record a sales order delivery.

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To adjust for production consumption.

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To receive a purchase order.

Question 4

A company uses Dynamics 365 Finance and Operations. They need to set up financial dimensions for cost centers and departments. Which TWO statements about financial dimensions are correct?

Accepted Answer

Financial dimensions are linked to main accounts.. Financial dimensions are linked to main accounts to provide additional segmentation and analytical capabilities in Dynamics 365 Finance and Operations. This linkage allows transactions to be tracked and reported across multiple dimensions, such as cost centers and departments, enabling detailed financial analysis and compliance.

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Financial dimensions are automatically derived from vendor master.

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Financial dimensions are used only in the chart of accounts.

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Financial dimensions cannot be used with advanced rules.

Question 5

Which TWO features are part of Dynamics 365 Supply Chain Management? (Select two.)

Accepted Answer

Transportation management. Transportation management is a core feature of Dynamics 365 Supply Chain Management that enables companies to manage inbound and outbound transportation, including route planning, carrier selection, freight reconciliation, and shipment tracking. It integrates with warehouse management to optimize logistics and reduce shipping costs.

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Commerce

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Human Resources

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Project Operations

Question 6

A company wants to use Dynamics 365 Finance to automatically recognize revenue over time for subscription-based services. Which feature should they configure?

Accepted Answer

Revenue recognition. Revenue recognition in Dynamics 365 Finance enables automatic scheduling and deferral of revenue based on contract terms, such as subscription services. It uses deferred revenue schedules and fair value allocation to recognize revenue over time, aligning with ASC 606 and IFRS 15 standards.

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Fixed assets management

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Accounts payable

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Budgeting

Question 7

Which TWO capabilities are part of Dynamics 365 Finance and Operations core financial management? (Choose two.)

Accepted Answer

Accounts payable. Accounts payable is a core financial management capability in Dynamics 365 Finance and Operations. It manages vendor invoices, payments, and expense tracking, ensuring accurate liability recording and timely disbursements. This module integrates directly with the general ledger to maintain financial integrity.

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Field service

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Project management

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Warehouse management

Question 8

A company is implementing Dynamics 365 Supply Chain Management to improve warehouse efficiency. Which TWO features can help optimize picking and packing processes?

Accepted Answer

Wave processing. Wave processing (B) is correct because it allows grouping of picking work into waves based on criteria such as shipment, route, or warehouse zone, enabling efficient batch release and optimized picking routes. Cluster picking (D) is correct because it enables a single picker to pick items for multiple orders simultaneously by grouping them into clusters, reducing travel time and increasing throughput in the packing process.

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Cycle counting

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Route planning

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Cross-docking

Question 9

A company wants to use AI capabilities to predict customer payment delays in Dynamics 365 Finance. Which feature should they enable?

Accepted Answer

Customer payment predictions. Customer payment predictions is the correct feature because it uses AI to analyze historical transaction data, customer payment patterns, and external signals to predict whether a customer will pay an invoice late. This capability is specifically designed to help companies proactively manage collections and reduce days sales outstanding (DSO) in Dynamics 365 Finance.

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Credit and collections management

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Budget control

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Cash flow forecasting

Question 10

A multinational company uses Dynamics 365 Finance. They need to generate financial statements that comply with both local GAAP and IFRS. What feature should they use?

Accepted Answer

Financial reporting with multiple reporting frameworks. Option D is correct because Dynamics 365 Finance includes a Financial reporting module that supports multiple reporting frameworks, such as local GAAP and IFRS, by allowing the creation of separate financial statements from the same underlying data using different accounting rules and configurations. This feature enables the company to meet dual reporting requirements without maintaining separate ledgers or manual adjustments.

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Currency revaluation

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Intercompany accounting

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Budgeting

Question 11

A company wants to automate the generation of purchase orders when inventory levels fall below a predefined threshold. Which capability in Dynamics 365 Finance and Operations should be configured?

Accepted Answer

Replenishment. Replenishment in Dynamics 365 Finance and Operations is the correct capability because it directly supports automated purchase order generation based on inventory levels falling below a predefined reorder point. This feature uses inventory replenishment rules, such as minimum/maximum stocking levels or reorder point calculations, to trigger purchase orders without manual intervention, ensuring stock availability aligns with demand.

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Demand forecasting

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Vendor collaboration

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Procurement catalogs

Question 12

A multinational corporation uses Dynamics 365 Finance and Operations with multiple legal entities. The finance team needs to generate a consolidated financial statement that eliminates intercompany transactions automatically. Which feature should they use?

Accepted Answer

Consolidation. Consolidation in Dynamics 365 Finance and Operations is specifically designed to combine financial data from multiple legal entities into a single set of consolidated financial statements. It includes built-in functionality to automatically eliminate intercompany transactions and balances, ensuring that the consolidated report reflects only external financial activity. This directly meets the requirement for generating a consolidated financial statement with automatic intercompany elimination.

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Intercompany accounting

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Budget planning

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Financial reporting

Question 13

Which THREE capabilities are provided by Dynamics 365 Finance? (Select three.)

Accepted Answer

General ledger. The General ledger is the core of Dynamics 365 Finance, providing a centralized chart of accounts, journal entries, and financial reporting. It enables organizations to track all financial transactions and maintain a complete audit trail, which is fundamental to the application's finance capabilities.

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Warehouse management

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Asset management

Question 14

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

Accepted Answer

Set up intercompany relationships. Option D is 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.

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Set up consolidation accounts

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Set up budget models

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Configure financial reporting

Question 15

A company uses Dynamics 365 Finance and Operations. They need to configure financial dimensions for reporting. Which TWO statements about financial dimensions are correct?

Accepted Answer

Financial dimensions can be used to segment financial data for reporting.. Option A is correct because financial dimensions in Dynamics 365 Finance and Operations are specifically designed to segment financial data, such as splitting revenue by region or product line, enabling granular reporting and analysis. This segmentation allows organizations to create detailed financial statements and pivot on dimensions like cost center or department for deeper insights.

Answer

Financial dimensions cannot be used in budget control.

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Financial dimensions are only applicable to the main account.

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Financial dimensions can only be used in one account structure at a time.

Question 16

A company uses Dynamics 365 Human Resources. They want to automate the process of assigning training courses to employees based on their job role and completion of prerequisite courses. Which feature should they use?

Accepted Answer

Training management. Training management in Dynamics 365 Human Resources is the correct feature because it is specifically designed to handle course assignments, prerequisites, and automated training workflows based on job roles. This module allows administrators to define training plans, link them to job positions, and enforce prerequisite completion before enrolling employees, directly meeting the stated requirement.

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Compensation management

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Performance management

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Recruitment management

Question 17

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They notice that during wave processing, pick work is not being created for some sales orders. What should they check first?

Accepted Answer

Wave template and its criteria. Wave templates define the criteria and actions for processing waves, including the creation of pick work. If pick work is not being generated for certain sales orders, the wave template's query filters (e.g., shipping method, warehouse, or item criteria) may be excluding those orders. Checking the wave template and its criteria is the first logical step because it directly controls which orders are processed and how work is created.

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Release to warehouse status

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Reservation hierarchy

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Inventory status of the items

Question 18

A retail company using Dynamics 365 Commerce wants to implement a loyalty program that rewards customers based on purchase frequency and total spend. They need to assign different point multipliers for specific product categories. Which configuration should they use?

Accepted Answer

Loyalty program rules. Loyalty program rules in Dynamics 365 Commerce allow you to define earning and redemption rules, including point multipliers based on product categories. This configuration directly supports rewarding customers based on purchase frequency and total spend while assigning different multipliers for specific categories, making it the correct choice.

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Category hierarchy rules

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Assortment management

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Channel navigation hierarchy

Question 19

Which TWO features are part of Dynamics 365 Commerce? (Select two.)

Accepted Answer

Loyalty programs. Loyalty programs are a core feature of Dynamics 365 Commerce, enabling retailers to create, manage, and execute customer loyalty schemes, including points accrual, rewards, and tier management. This functionality is tightly integrated with the omnichannel capabilities to provide a consistent loyalty experience across online and physical store channels.

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Production control

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Project accounting

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Fixed assets

Question 20

A company uses Dynamics 365 Supply Chain Management. They want to implement a lean manufacturing process. Which THREE features should they configure?

Accepted Answer

Production flows. Production flows are the core modeling element for lean manufacturing in Dynamics 365 Supply Chain Management, defining the sequence of activities and the movement of materials through a value stream. They are required to set up a lean production environment and are the foundation for kanban rules and work cells.

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Bill of materials

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Route operations

MB-920 Practice Exam 55 — 20 Questions

Exhibit

MB-920 Practice Exam 55 — 20 Questions

Exhibit