MB-920 Practice Exam 56 — 20 Questions

Question 1

Refer to the exhibit. A Dynamics 365 Finance administrator configures a financial dimension called 'Department' with the values shown. An accountant needs to post an expense to the Marketing department. Which dimension value should they use?

Accepted Answer

200. The correct dimension value is 200 because the 'Department' financial dimension in Dynamics 365 Finance uses the dimension value code, not the display name or description. The accountant must select the value '200' to post an expense to the Marketing department, as '200' is the assigned code for Marketing in the exhibit.

Answer

100

Answer

300

Answer

400

Question 2

Which TWO capabilities are part of Dynamics 365 Supply Chain Management?

Accepted Answer

Transportation management. Transportation management (Option B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced features for inbound and outbound transportation planning, freight rating, routing, and shipment consolidation. It integrates with warehouse management to optimize logistics and reduce shipping costs.

Answer

Fixed asset management

Answer

Project management

Answer

Human resources

Question 3

A company uses Dynamics 365 Finance and wants to streamline the approval of purchase requisitions. They need to ensure that requisitions over $10,000 are approved by a manager, while those over $50,000 require director approval. What should they configure?

Accepted Answer

Workflow. A is correct because Dynamics 365 Finance uses workflows to automate and enforce approval processes based on configurable conditions. By setting up a purchase requisition workflow, you can define approval thresholds (e.g., over $10,000 requires manager approval, over $50,000 requires director approval) using conditional decisions within the workflow designer.

Answer

Audit policies

Answer

Role-based security

Answer

Business rules

Question 4

A manufacturing company wants to track the cost of raw materials used in production in real-time. Which costing method should they use in Dynamics 365 Supply Chain Management?

Accepted Answer

Standard costing. Standard costing is the correct method because it uses predetermined costs for raw materials, enabling real-time variance analysis against actual costs. This allows the manufacturing company to immediately identify and track cost deviations during production, which is essential for real-time cost monitoring in Dynamics 365 Supply Chain Management.

Answer

FIFO (First In, First Out)

Answer

LIFO (Last In, First Out)

Answer

Moving average

Question 5

Refer to the exhibit. An administrator runs a PowerShell script to list resources in an Azure resource group. The script returns no results. What is the most likely reason?

Accepted Answer

The resource type is incorrect.. The Get-AzResource cmdlet filters resources by type using the -ResourceType parameter. If the specified resource type does not match any resources in the resource group, the cmdlet returns no results. This is the most likely reason because the script explicitly targets a resource type that may not exist in the group, while the resource group itself exists and the user has permissions.

Answer

The resource group does not exist.

Answer

The user does not have read permissions.

Answer

The Get-AzResource cmdlet is not available.

Question 6

A retail company uses Dynamics 365 Commerce integrated with Finance and Operations. They want to ensure that inventory levels are updated in real-time when a sale is completed at the point of sale (POS). Which configuration should be enabled?

Accepted Answer

Use the Retail Server and channel data distribution with real-time service. Option A is correct because Dynamics 365 Commerce uses the Retail Server and channel data distribution framework with real-time service to synchronize inventory changes instantly from the POS to the Finance and Operations back office. This ensures that inventory levels are updated in real-time when a sale is completed, leveraging the Commerce Data Exchange (CDX) real-time service for immediate data flow.

Answer

Schedule a recurring Data management framework job to import sales transactions

Answer

Enable the asynchronous service (Async Service) for inventory updates

Answer

Configure the Inventory update service in Commerce headquarters

Question 7

Your organization is implementing Dynamics 365 Finance and needs to ensure that all financial transactions comply with local regulatory requirements for electronic invoicing in a specific country. Which feature should be configured?

Accepted Answer

Electronic reporting (ER). Electronic reporting (ER) is the correct feature because it provides a configurable tool for generating electronic documents in formats required by local regulations, such as electronic invoices. ER allows you to define the data model, mapping, and format for outbound documents, ensuring compliance with country-specific electronic invoicing requirements without custom code.

Answer

Data entities

Answer

Budget control

Answer

Audit policies

Question 8

Refer to the exhibit. A Dynamics 365 Finance and Operations administrator reviews a batch job configuration. The job is scheduled to run daily. What is the purpose of this batch job?

Accepted Answer

Post recurring invoices automatically. The batch job configuration shown is for the 'Recurring invoices' process in Dynamics 365 Finance and Operations. When a batch job is set to run daily with the action 'Post,' its purpose is to automatically post recurring invoices that have been previously set up in the recurring invoice template. This automates the posting step, eliminating the need for manual intervention each period.

Answer

Generate recurring invoices

Answer

Send invoice payment reminders

Answer

Print recurring invoices

Question 9

You are importing a general journal entry using the data entity. The JSON above represents a single line. Based on the data, what should be the credit entry to balance the journal?

Accepted Answer

MainAccount 201000 with Credit 1000.00. The general journal entry must balance with equal debits and credits. The JSON shows a debit of 1000.00 to MainAccount 110000 (Cash). To balance, the credit entry must be for the same amount, 1000.00, to a liability or equity account. MainAccount 201000 (Accounts Payable) is a typical credit-side account, making option A correct.

Answer

MainAccount 110000 with Credit 1000.00

Answer

MainAccount 601000 with Credit 1000.00

Answer

MainAccount 601000 with Debit 0.00 and Credit 0.00

Question 10

A company uses Dynamics 365 Supply Chain Management and wants to reduce stockouts. Which TWO strategies should they implement?

Accepted Answer

Reorder point. Reorder point is correct because it triggers a replenishment order when inventory falls to a predefined level, directly preventing stockouts by ensuring timely restocking. Safety stock is correct because it maintains an extra buffer of inventory above expected demand to absorb variability in supply or demand, reducing the risk of stockouts during lead time fluctuations.

Answer

Vendor managed inventory

Answer

ABC classification

Answer

Cycle counting

Question 11

A company uses Dynamics 365 Commerce and wants to implement a buy-online-pick-up-in-store (BOPIS) scenario. The inventory must be reserved in real-time when the customer places the order. Which configuration is required?

Accepted Answer

Enable real-time inventory reservation at the store warehouse.. Option C is correct because Dynamics 365 Commerce requires the 'Enable real-time inventory reservation at the store warehouse' configuration to ensure that when a customer places a BOPIS order, the inventory is immediately reserved from the store’s warehouse. This setting triggers a real-time service call to the Commerce Scale Unit (CSU) to check and reserve stock, preventing overselling and ensuring the item is available for pickup.

Answer

Use the Inventory Visibility Add-in for external systems.

Answer

Configure the warehouse management process for the store.

Answer

Set up cross-docking for store replenishment.

Question 12

A company uses Dynamics 365 Supply Chain Management. They need to improve the accuracy of demand forecasting by incorporating external data such as weather forecasts and economic indicators. Which THREE features should they consider?

Accepted Answer

Demand forecasting. Demand forecasting in Dynamics 365 Supply Chain Management uses historical transaction data and can be extended with external data sources like weather and economic indicators through Azure Machine Learning. This integration improves forecast accuracy by applying machine learning models that correlate external factors with demand patterns.

Answer

Inventory visibility

Answer

Master planning

Question 13

A multinational corporation needs to support multiple currencies, languages, and regulatory reports in Dynamics 365 Finance. Which configuration should they use?

Accepted Answer

Legal entity configuration. A legal entity configuration is required in Dynamics 365 Finance to support multiple currencies, languages, and regulatory reports because each legal entity can be set up with its own currency, language, and reporting requirements. This allows the system to generate country-specific regulatory reports (e.g., VAT, tax filings) and handle multi-currency transactions independently per entity, which is essential for a multinational corporation.

Answer

Organization hierarchy

Answer

Shared parameter setup

Answer

Global address book

Question 14

A retail company plans to use Dynamics 365 Commerce for both online and physical store operations. They need to ensure that inventory across all channels is synchronized in near real-time. Which feature should they leverage?

Accepted Answer

Distributed Order Management (DOM). Distributed Order Management (DOM) is the correct feature because it enables near real-time inventory synchronization across online and physical store channels by intelligently routing orders to the optimal fulfillment location based on current stock levels. This ensures that inventory data is consistently updated across all sales channels, preventing overselling and enabling seamless omnichannel operations.

Answer

Loyalty programs

Answer

Product recommendations

Answer

Call center functionality

Question 15

A warehouse manager notices that a purchase order receipt for 100 units of an item only updates the on-hand quantity by 80 units. The item is serial-controlled. The reception was recorded. What is the most likely reason for the discrepancy?

Accepted Answer

Not all serial numbers were registered during the receipt process.. When a purchase order receipt for 100 units of a serial-controlled item only updates on-hand quantity by 80, the most likely cause is that not all serial numbers were registered during the receipt process. In Dynamics 365 Supply Chain Management, serial-controlled items require each unit to have a unique serial number recorded at the time of receipt; if some serial numbers are missing or not scanned, the system only updates inventory for the registered serial numbers, leaving the receipt partially posted.

Answer

The product dimensions (e.g., color) were not specified.

Answer

A quality order was created for the received items.

Answer

The items were partially reserved for a sales order.

Question 16

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. Option D is correct because 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 17

A company wants to optimize inventory levels by analyzing historical sales data and predicting future demand. Which module in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Demand forecasting. Demand forecasting in Dynamics 365 Supply Chain Management uses historical sales data and machine learning models to predict future demand, enabling optimized inventory levels. It integrates with the master planning module to generate replenishment suggestions, directly addressing the scenario's need to analyze past data and forecast demand.

Answer

Warehouse management

Answer

Production control

Answer

Transportation management

Question 18

Which TWO capabilities are included in Dynamics 365 Project Operations?

Accepted Answer

Project planning. Dynamics 365 Project Operations is designed to manage the end-to-end lifecycle of projects, from planning to invoicing. Project planning (Option B) is a core capability that allows users to create work breakdown structures, define tasks, and set timelines. Resource management (Option E) is another core capability that enables the allocation and scheduling of resources (people, equipment, materials) across projects, ensuring optimal utilization.

Answer

Cash flow forecasting

Answer

Fixed asset depreciation

Answer

Inventory valuation

Question 19

Which THREE features are available in Dynamics 365 Finance and Operations to support financial reporting?

Accepted Answer

Default financial dimensions. Default financial dimensions (A) are a core feature in Dynamics 365 Finance and Operations that allow organizations to tag transactions with attributes like department, cost center, or project. These dimensions are automatically integrated into the financial reporting framework, enabling detailed analysis and drill-down in reports without manual data manipulation.

Answer

Warehouse slotting

Answer

Production scheduling

Question 20

A company uses Dynamics 365 Finance and Operations. They want to provide employees with a self-service portal to view their pay slips, update personal information, and request time off. Which module should they use?

Accepted Answer

Employee self-service. The Employee self-service module in Dynamics 365 Finance and Operations is specifically designed to provide employees with a web-based portal where they can view pay slips, update personal information, and request time off. This module empowers employees to manage their own HR-related tasks without requiring intervention from HR or payroll administrators, directly matching the scenario described.

Answer

Project management and accounting

Answer

Payroll

Answer

Time and attendance

MB-920 Practice Exam 56 — 20 Questions

Exhibit

MB-920 Practice Exam 56 — 20 Questions

Exhibit