MB-920 Practice Exam 56 — 20 Questions

Question 1

A company manufactures high-value equipment and needs to track each individual item's location, status, and service history throughout its lifecycle. Which capability should they use?

Accepted Answer

Asset Management. Asset Management (also known as Fixed Asset Management) is designed to track equipment lifecycle, location, and service history for individual high-value items. Option A is incorrect because Warehouse Management focuses on storage and picking of inventory, not asset lifecycle. Option B is incorrect because Batch tracking is intended for lot-controlled items, not individual equipment tracking. Option D is incorrect because Product configuration is used to define variants of a product, not to track service history.

Answer

Warehouse Management

Answer

Batch tracking

Answer

Product configuration

Question 2

Which TWO of the following are valid warehouse management processes in Dynamics 365 Supply Chain Management?

Accepted Answer

Receiving and putaway. Receiving and putaway, and picking and shipment are core warehouse processes. Production consumption and production reporting are manufacturing processes. Transfer order creation is inventory management. Vendor returns involve purchasing.

Answer

Vendor returns

Answer

Transfer order creation

Answer

Production consumption and production reporting

Question 3

A company uses Dynamics 365 Finance and needs to ensure that intercompany transactions are eliminated during consolidation. What must be set up?

Accepted Answer

Intercompany elimination rules. Intercompany elimination rules in Dynamics 365 Finance are specifically designed to automatically eliminate intercompany transactions during consolidation. Option A is incorrect because financial dimensions are used for reporting and analysis, not for eliminating transactions. Option B is incorrect because consolidation groups are used to group legal entities for consolidation, not to eliminate intercompany transactions. Option D is incorrect because intercompany accounting processes intercompany transactions but does not automatically eliminate them during consolidation.

Answer

Financial dimensions for intercompany

Answer

Consolidation groups

Answer

Intercompany accounting

Question 4

A company uses Dynamics 365 Supply Chain Management and wants to use AI to predict inventory shortages and suggest reorder quantities. Which feature should they enable?

Accepted Answer

Inventory Visibility Add-in with demand forecasting. The Inventory Visibility Add-in with demand forecasting uses AI and machine learning to analyze historical sales data, predict future demand, and identify potential inventory shortages. It then suggests optimal reorder quantities to maintain stock levels, directly addressing the scenario's need for AI-driven predictions and replenishment recommendations.

Answer

Product lifecycle management (PLM)

Answer

Master planning module

Answer

Warehouse management module

Question 5

A company using Dynamics 365 Finance needs to automate the calculation and posting of periodic transactions such as prepayments and accruals. Which feature should be used?

Accepted Answer

Periodic journal. The Periodic journal in Dynamics 365 Finance can be set up to automatically generate recurring journal entries for prepayments, accruals, and other periodic transactions. Option B is wrong because Financial Reporting is for reporting, not posting. Option C is wrong because Allocation journals allocate costs but do not handle prepayments/accruals automatically. Option D is wrong because the General journal is for manual entries.

Answer

Financial reporting

Answer

Allocation journal

Answer

General journal

Question 6

Which of the following are valid cost accounting methods in Dynamics 365 Supply Chain Management? (Select all that apply.)

Accepted Answer

Standard cost. All five options are valid cost accounting methods in Dynamics 365 Supply Chain Management. Standard cost, LIFO, moving average, weighted average, and FIFO are all supported inventory costing methods. Therefore, select all options.

Question 7

A distribution company is implementing Dynamics 365 Supply Chain Management and wants to optimize transportation costs. They have contracts with multiple carriers offering different rates based on weight, distance, and delivery speed. Which module should they use to automatically select the most cost-effective carrier for each shipment?

Accepted Answer

Transportation management. Transportation management (TMS) includes rate engines and routing guides to select carriers based on defined criteria such as weight, distance, and delivery speed, thereby optimizing transportation costs. Option A (Inventory management) is wrong because it focuses on stock levels and inventory control, not carrier selection. Option B (Warehouse management) is wrong because it handles inbound and outbound warehouse operations, not transportation planning. Option D (Procurement and sourcing) is wrong because it deals with purchasing and vendor selection, not shipping logistics.

Answer

Inventory management

Answer

Warehouse management

Answer

Procurement and sourcing

Question 8

A retail company uses Dynamics 365 Commerce integrated with Finance. They notice that store transactions are not appearing in the general ledger. What is the most likely cause?

Accepted Answer

P-job distribution is failing. In Dynamics 365 Commerce integrated with Finance, store transactions are processed through a series of batch jobs. The P-job (Processing job) is responsible for pulling raw transaction data from the channel database into the headquarters (HQ) staging tables. If the P-job distribution is failing, transactions never reach HQ, and therefore cannot be posted to the general ledger, even if statement posting is run later.

Answer

Commerce scheduler is not configured

Answer

Statement posting is not run

Answer

Inventory update is not completed

Question 9

A retail company uses Dynamics 365 Supply Chain Management to manage its supply chain. The company has many stores that replenish inventory from a central distribution center. The company wants to use demand-driven replenishment to automatically generate purchase orders for the distribution center based on sales forecasts and current inventory levels. The company uses the Master Planning module. You need to configure the system to generate planned purchase orders for the distribution center. You have the following options: A. Set up a coverage group for the distribution center with the coverage code 'Min/Max' and run Master Planning. B. Set up intercompany orders between the stores and the distribution center. C. Use the Demand forecasting module to generate forecasts and manually create purchase orders. D. Configure the Product master with a reorder point and use inventory journals to create purchase orders. Which option should you choose?

Accepted Answer

Set up a coverage group for the distribution center with the coverage code 'Min/Max' and run Master Planning.. Setting up a coverage group for the distribution center with the coverage code 'Min/Max' and running Master Planning allows the system to automatically generate planned purchase orders based on minimum and maximum inventory levels, supporting demand-driven replenishment. Option A is incorrect because configuring the product master with a reorder point and using inventory journals requires manual intervention. Option B is incorrect because the Demand forecasting module generates forecasts but still requires manual creation of purchase orders. Option D is incorrect because intercompany orders are for transactions between legal entities, not for replenishment planning.

Answer

Configure the Product master with a reorder point and use inventory journals to create purchase orders.

Answer

Use the Demand forecasting module to generate forecasts and manually create purchase orders.

Answer

Set up intercompany orders between the stores and the distribution center.

Question 10

A company uses Dynamics 365 Project Operations for project-based work. They need to ensure that subcontractor expenses are billed to the customer at a markup. Which configuration should they set up?

Accepted Answer

Create an expense category with a sales price markup percentage. To bill subcontractor expenses to a customer at a markup, you must configure an expense category with a sales price markup percentage. This allows the system to automatically calculate the billable amount by applying the markup to the actual cost of the subcontractor expense, ensuring the customer is charged the marked-up price.

Answer

Define a project contract with a cost-plus pricing template

Answer

Configure billing rules on the project contract

Answer

Set up a fee schedule for subcontractor expenses

Question 11

Which THREE capabilities are provided by the Warehouse management module in Dynamics 365 Supply Chain Management?

Accepted Answer

Wave processing. Wave processing is a core warehouse management capability. Option D is correct because mobile device menu items enable warehouse workers to perform tasks. Option E is correct because location directives guide put-away and picking. Option B is incorrect because vendor collaboration portal is a procurement feature, not part of warehouse management. Option C is incorrect because route planning for outbound shipments belongs to Transportation management, not warehouse management.

Answer

Vendor collaboration portal

Answer

Route planning for outbound shipments

Question 12

Refer to the exhibit. A Dynamics 365 Supply Chain Management system returns the above JSON for on-hand inventory. For item A0001, what is the available physical quantity that is not reserved?

Accepted Answer

70. The available physical quantity that is not reserved is calculated as the on-hand inventory minus the physically reserved quantity. In the JSON, item A0001 has an on-hand quantity of 100 and a physical reservation of 30, so the available physical quantity not reserved is 100 - 30 = 70. This matches option C.

Answer

100

Answer

50

Answer

90

Question 13

Which TWO capabilities are core to Dynamics 365 Commerce?

Accepted Answer

Loyalty management. Loyalty management is a core capability of Dynamics 365 Commerce because it enables retailers to create, manage, and execute loyalty programs (e.g., points-based, tiered) directly within the omnichannel commerce platform. Product recommendations are also core, leveraging AI and machine learning to provide personalized product suggestions across e-commerce and point-of-sale (POS) channels, driving cross-sell and up-sell opportunities.

Answer

Project cost management

Answer

Transportation management

Answer

Budget control

Question 14

A company is implementing Dynamics 365 Finance and needs to ensure that all purchase orders over $10,000 require approval from a manager. What is the best approach to configure this?

Accepted Answer

Create a purchase order approval workflow. Correct: A purchase order approval workflow can be configured to require approval based on thresholds such as amount. Option B is wrong because procurement policies govern vendor selection and procurement processes, not approval thresholds. Option C is wrong because budget control rules enforce budget limits but do not trigger approvals for specific amounts. Option D is wrong because security roles control access to features, not approval processes.

Answer

Configure a procurement policy

Answer

Set up a budget control rule

Answer

Assign a security role to managers

Question 15

A global company uses Dynamics 365 Finance and Operations with multiple legal entities. They need to consolidate financial data across entities for reporting, while allowing each entity to operate independently. What should they configure?

Accepted Answer

Consolidation module. The Consolidation module in Dynamics 365 Finance and Operations is specifically designed to aggregate financial data from multiple legal entities into a single consolidated view for reporting, while preserving each entity's independent operations. This module supports both periodic consolidation (e.g., monthly) and on-demand consolidation, handling currency translation, elimination entries, and intercompany transactions automatically. It is the correct tool for meeting the requirement of centralized reporting with decentralized entity autonomy.

Answer

Financial reporting

Answer

Intercompany accounting

Answer

Budget planning

Question 16

A manufacturing company uses Dynamics 365 Finance and Operations. They want to streamline their procurement process and improve supplier collaboration. Which TWO capabilities should they consider?

Accepted Answer

Procurement catalogs. Procurement catalogs (A) allow companies to define and manage a structured list of approved products and services that employees can order from, streamlining the procurement process by enforcing compliance and reducing maverick spending. Vendor collaboration (E) enables suppliers to interact directly with purchase orders, invoices, and inventory data through a secure portal, improving communication and reducing manual effort. Together, these capabilities directly address the need to streamline procurement and enhance supplier collaboration.

Answer

Project accounting

Answer

Fixed asset management

Answer

Demand forecasting

Question 17

A data analyst is configuring data entities for export to Azure Data Lake in Dynamics 365 Finance and Operations. The analyst needs to export fiscal calendar period data and customer payment journal headers. Based on the PowerShell exhibit, what action must be taken?

Accepted Answer

Enable the CustomerPaymentJournalHeader data entity.. The PowerShell exhibit shows that the CustomerPaymentJournalHeader data entity is currently disabled, while the FiscalCalendarPeriod data entity is already enabled. To export customer payment journal headers to Azure Data Lake, the CustomerPaymentJournalHeader entity must be enabled. Since the FiscalCalendarPeriod entity is already enabled, no action is needed for it. Therefore, the correct action is to enable the CustomerPaymentJournalHeader data entity.

Answer

Disable the VendorOpenTransactions data entity.

Answer

Enable the FiscalCalendarPeriod data entity.

Answer

Disable the GeneralJournalEntry data entity.

Question 18

A manufacturing company uses Dynamics 365 Supply Chain Management. The warehouse manager notices that a critical raw material is frequently out of stock, causing production delays. The planner wants to ensure that the material is reordered before stock hits zero. Which inventory planning feature should be configured to automatically generate replenishment orders based on forecasted demand and current inventory levels?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the correct feature because it uses forecasted demand, current inventory levels, and lead times to automatically generate replenishment orders (purchase orders or transfer orders) before stock hits zero. This prevents stockouts by planning net requirements and creating planned orders that can be firmed into actual orders.

Answer

Inventory adjustment journal

Answer

Cycle counting

Answer

Quality order

Question 19

A food processing company needs to track raw materials by batch and expiration date to comply with regulations. Which capability in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Batch and shelf life management. Dynamics 365 Supply Chain Management includes a dedicated 'Batch and shelf life management' capability that allows companies to assign batch numbers and track expiration dates for raw materials and finished goods. This feature is specifically designed to meet regulatory compliance requirements, such as those in food and pharmaceutical industries, by enabling traceability and shelf-life monitoring throughout the supply chain.

Answer

Warehouse management

Answer

Quality management

Answer

Product configuration

Question 20

A manufacturing company is implementing Dynamics 365 Supply Chain Management. They need to track raw material consumption and finished goods output in real time. Which module should they configure to achieve this?

Accepted Answer

Production control. Production control is the correct module because it is specifically designed to manage and track manufacturing processes, including real-time consumption of raw materials and output of finished goods through production orders, batch orders, and kanban jobs. It integrates with inventory to automatically post material consumption and finished goods receipt as production operations are reported.

Answer

Inventory management

Answer

Warehouse management

Answer

Procurement and sourcing