MB-920 Practice Exam 57 — 20 Questions

Question 1

You are a Dynamics 365 Finance functional consultant for a global retail chain that operates in multiple countries. The company uses Dynamics 365 Finance with a shared service center for accounts payable. They have a requirement to automatically route vendor invoices for approval based on the invoice amount and the vendor's credit limit. Invoices below $10,000 should be automatically approved if the vendor's credit limit is sufficient. Invoices above $10,000 must be approved by a manager. Additionally, invoices from new vendors must always be reviewed by the procurement team. The company uses the Vendor invoice automation feature. Requirements: 1) Automate invoice processing to reduce manual effort. 2) Ensure compliance with approval policies. 3) Use standard Dynamics 365 Finance configurations. Which configuration should you implement?

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

Accepted Answer

Create a vendor invoice workflow with conditional approvals based on amount and vendor status.. A vendor invoice workflow supports conditional approvals based on invoice amount and vendor status (e.g., credit limit, new vendor). This meets the requirement to automatically approve low amounts when credit is sufficient, route high amounts to a manager, and send new vendor invoices to procurement. Option A is incorrect because the Vendor invoice automation policy only auto-posts invoices without approval logic, which does not handle the conditional routing required. Option B is incorrect because the vendor invoice policy in Procurement and sourcing is used for defining approval thresholds but not for dynamic routing based on vendor status. Option C is incorrect because a payment hold rule only prevents payment, not invoice approval, and does not address amount-based routing. Therefore, D is the only option that fully satisfies the requirements using standard Dynamics 365 Finance configurations.

Answer

Use the Vendor invoice automation policy to automatically post invoices under $10,000 without approval.

Answer

Configure a vendor invoice policy in the Procurement and sourcing module.

Answer

Set up a payment hold rule for invoices from new vendors.

Question 2

A company uses Dynamics 365 Finance and Operations. They need to generate a report that shows the financial performance of each department for the current fiscal year. Which tool should they use?

Accepted Answer

Financial reports. Financial reports in Dynamics 365 Finance and Operations are the correct tool for generating departmental financial performance reports for the current fiscal year. They are specifically designed to create GAAP/IFRS-compliant financial statements, such as income statements by department, using the built-in financial dimensions and row/column definitions. This tool directly leverages the general ledger data and supports hierarchical reporting structures without requiring external data sources or custom development.

Answer

Power BI

Answer

Management reporter

Answer

Excel integration via OData

Question 3

A company is implementing Dynamics 365 Finance and needs to comply with the Sarbanes-Oxley (SOX) act. Which feature should they use to enforce separation of duties?

Accepted Answer

Security roles and duties. To comply with the Sarbanes-Oxley (SOX) act, segregation of duties is enforced through security roles and duties in Dynamics 365 Finance. Option D is correct. Option A (Electronic reporting) is used for generating and processing electronic documents, not for separation of duties. Option B (Audit trail) tracks changes made to the system but does not enforce separation of duties. Option C (Batch job) is used for automated background processing, unrelated to security.

Answer

Electronic reporting

Answer

Audit trail

Answer

Batch job

Question 4

Your organization is a medium-sized manufacturing company that has recently implemented Dynamics 365 Finance. The company has two legal entities: Contoso Ltd. (the main company) and Contoso Manufacturing (a subsidiary). The finance department needs to process intercompany transactions where Contoso Ltd. sells raw materials to Contoso Manufacturing. The transaction must automatically create accounting entries in both legal entities: a sale in Contoso Ltd. and a purchase in Contoso Manufacturing. Additionally, the intercompany transactions must be tracked using a specific financial dimension called "IntercompanyPartner". You have set up the legal entities and the chart of accounts. The intercompany accounting setup has been configured with the appropriate due-to and due-from accounts. However, when you post a sales invoice from Contoso Ltd. to Contoso Manufacturing, no accounting entries are generated in Contoso Manufacturing. What should you do to ensure the intercompany accounting entries are created automatically?

Accepted Answer

Set up intercompany accounting rules that map the sales invoice to the purchase transaction.. Intercompany accounting rules must be set up to automatically map a sales invoice in one legal entity to a purchase transaction in another legal entity. These rules define the offset accounts and ensure that posting a sales invoice in Contoso Ltd. generates corresponding accounting entries in Contoso Manufacturing. Option A is incorrect because an intercompany journal is a manual process and would not trigger automatic postings. Option B is incorrect because a general journal entry in Contoso Manufacturing is also manual. Option C is incorrect because adding the IntercompanyPartner dimension to the sales invoice ensures the dimension is tracked, but without intercompany accounting rules, the automatic creation of entries in the subsidiary will not occur.

Answer

Create an intercompany journal in Contoso Ltd. to record the transaction.

Answer

Post a general journal entry in Contoso Manufacturing to record the purchase.

Answer

Add the IntercompanyPartner dimension to the sales invoice.

Question 5

You are the Dynamics 365 Commerce administrator for a retail chain with 50 stores. The company recently deployed the Commerce Scale Unit (CSU) with an onsite database for each store to support offline operations. During a routine check, you notice that one store's CSU database has not synchronized with the headquarters for the past 24 hours, and the store manager reports that some transactions are failing with a 'database connection error'. You verify that the store's internet connection is active and the CSU service is running. However, the Async Client service shows a status of 'Stopped' on the store's POS server. What should you do first to resolve the issue?

Accepted Answer

Restart the Async Client service on the store's POS server. The Async Client service is responsible for synchronizing data between the store's Commerce Scale Unit (CSU) and the headquarters. When this service is in a 'Stopped' state, it cannot process the Commerce Data Exchange (CDX) jobs that push transactions and pull master data, causing the database to fall out of sync and leading to transaction failures due to stale or missing data. Restarting the Async Client service is the immediate corrective action because it re-establishes the communication channel without requiring reconfiguration or reinstallation.

Answer

Create a new Commerce Data Exchange session in the back office

Answer

Reconfigure the Async Client endpoint URLs in the CSU configuration

Answer

Reinstall the Commerce Scale Unit on the store's server

Question 6

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to improve inventory accuracy and reduce stockouts. Which TWO actions should they take?

Accepted Answer

Use cycle counting to regularly verify inventory.. Cycle counting (A) is a continuous inventory verification method that allows frequent, focused counts of specific items without disrupting operations. This directly improves inventory accuracy by identifying and correcting discrepancies in real time, which helps prevent stockouts by ensuring system records match physical stock. Setting safety stock levels (C) provides a buffer of inventory for critical items, reducing the risk of stockouts during demand fluctuations or supply delays.

Answer

Implement ABC classification for all items.

Answer

Enable sales forecasting for all products.

Answer

Conduct annual physical inventory counts.

Question 7

An organization uses Dynamics 365 Supply Chain Management. They want to ensure that a vendor invoice cannot be posted if the purchase order has not been received. What feature should they enable?

Accepted Answer

Invoice matching validation. Invoice matching validation, is correct because it enforces a three-way matching policy where the vendor invoice cannot be posted unless the quantities and amounts match the corresponding purchase order receipt. This ensures that the invoice is validated against the received goods before posting, preventing payment for un-received items.

Answer

Invoice hold

Answer

Purchase order approval workflow

Answer

Budget control

Question 8

A company uses Dynamics 365 Finance and Operations. They need to create a new vendor record and ensure that the vendor is automatically assigned to a specific vendor group based on the vendor's country/region. Which feature should they use?

Accepted Answer

Data entities with business rules. Data entities with business rules allow you to define logic that automatically assigns a vendor to a specific vendor group based on the vendor's country/region during data import or record creation. This feature leverages the business rules framework within data entities to enforce conditional assignments without custom code.

Answer

Vendor workflow

Answer

Vendor groups

Answer

Address books

Question 9

Refer to the exhibit. A company is setting up Dynamics 365 Commerce. They have configured the payment connector as shown. However, online payments are failing. What is the most likely cause?

Accepted Answer

The retailServer API version is incompatible. The payment connector configuration requires the retailServer API version to match the version of the Commerce Scale Unit (CSU) that processes the payment. An incompatible API version causes the connector to fail when communicating with the payment gateway, leading to online payment failures. This is the most likely cause because the exhibit shows a retailServer API version that does not align with the deployed CSU version.

Answer

The retailServer URL is missing

Answer

The merchantId is incorrect

Answer

The channel list does not include Online

Question 10

An organization uses Dynamics 365 Finance and Operations with dual-write integration to Dataverse. They notice that some financial dimension values are not syncing correctly. What should they verify first?

Accepted Answer

Dual-write mapping configurations. Dual-write mapping configurations define how financial dimension values are synchronized between Dynamics 365 Finance and Operations and Dataverse. If the mappings are incorrect or incomplete, specific dimension values will not sync properly. Verifying these mappings is the first logical step before investigating other integration components.

Answer

Microsoft Entra ID application registration

Answer

Power Automate flows

Answer

Data management framework export settings

Question 11

Which TWO are components of Dynamics 365 Finance? (Choose two.)

Accepted Answer

Accounts payable. Accounts payable is a core component of Dynamics 365 Finance that manages vendor invoices, payments, and purchase transactions. It integrates with the general ledger to ensure accurate financial reporting and supports automated payment processing and vendor reconciliation.

Answer

Production control

Answer

Sales order management

Answer

Inventory management

Question 12

A manufacturing company uses Dynamics 365 Finance to manage its financial operations. The company wants to automate the process of creating purchase orders when inventory levels fall below a predefined threshold. Which feature should they use?

Accepted Answer

Replenishment rules. Replenishment rules in Dynamics 365 Supply Chain Management allow you to define minimum and maximum inventory levels for items. When the inventory level falls below the defined minimum, the system automatically generates purchase orders to replenish stock, directly addressing the requirement for automated PO creation based on inventory thresholds.

Answer

Demand forecasting

Answer

Vendor collaboration

Answer

Procurement and sourcing categories

Question 13

You are a Dynamics 365 Finance consultant for a company that is implementing Dynamics 365 Finance. The company has a requirement to track expenses by project and by department. They plan to use financial dimensions. However, the finance team is unsure how to set up the dimensions to meet both reporting needs. They want to ensure that all transactions can be analyzed by both project and department. The company has 50 departments and 200 active projects. Which configuration should you recommend?

Accepted Answer

Create separate financial dimensions for Project and Department. Assign both dimensions to all transactions.. Financial dimensions in Dynamics 365 Finance are designed to track multiple analytical categories independently. By creating separate dimensions for Project and Department and assigning both to all transactions, the company can report on expenses by either dimension or a combination of both, meeting the requirement without forcing a hierarchical or concatenated structure.

Answer

Use default dimensions on legal entity and override on each transaction.

Answer

Use account structures to embed department and project in the main account.

Answer

Create one financial dimension that combines project and department as a single value.

Question 14

A distribution company uses Dynamics 365 Supply Chain Management. They need to ensure that a specific item is only sold to customers in Europe due to regulatory restrictions. What should they configure?

Accepted Answer

Configure product compliance settings to restrict the item to Europe.. Dynamics 365 Supply Chain Management uses product compliance settings to enforce regulatory restrictions on where an item can be sold. By configuring the 'Country of Origin' and 'Restricted for Sales' fields within the product compliance module, you can limit the item to specific geographic regions, such as Europe, ensuring that sales orders for non-European customers are blocked or flagged.

Answer

Create a trade agreement journal for that item.

Answer

Assign the item to a restricted item group.

Answer

Set up a customer approval process in the sales order.

Question 15

A company uses Dynamics 365 Commerce. Which TWO features are available to enhance the customer shopping experience online?

Accepted Answer

Product recommendations powered by AI. Dynamics 365 Commerce includes AI-powered product recommendations that analyze customer behavior, purchase history, and browsing patterns to suggest relevant items, directly enhancing the online shopping experience. Option B is correct because the customer loyalty program feature allows retailers to create and manage loyalty schemes, points, and rewards, which increases customer engagement and repeat purchases online.

Answer

Purchase order management

Answer

Inventory counting

Answer

Vendor invoice processing

Question 16

A company needs to track the cost of raw materials from the moment they are received until the finished goods are sold. Which costing method should they use to ensure that each unit's cost is individually tracked?

Accepted Answer

Specific identification. Specific identification tracks each unit individually. FIFO assumes first-in-first-out. Weighted average uses average cost. Standard cost uses predetermined cost.

Answer

FIFO (first in, first out)

Answer

Standard cost

Answer

Weighted average

Question 17

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items from a central warehouse to regional distribution centers based on real-time sales data. Which concept should they use?

Accepted Answer

Replenishment strategies (e.g., min/max). Replenishment strategies such as min/max are designed to automate inventory replenishment based on predefined thresholds and real-time demand signals. In Dynamics 365 Supply Chain Management, these strategies calculate when stock at a regional distribution center falls below a minimum level and automatically generate replenishment orders from the central warehouse, making them the correct choice for this scenario.

Answer

Transfer orders

Answer

Bill of materials

Answer

Kanban signals

Question 18

A production supervisor needs to see which production orders are currently running and their status. Which workspace should they use?

Accepted Answer

Production floor management workspace. The Production floor management workspace is specifically designed for production supervisors to monitor and manage production orders in real time. It provides a consolidated view of all production orders, their current status (e.g., started, reported as finished), and key performance indicators, enabling immediate action on the shop floor.

Answer

Procurement and sourcing workspace

Answer

Cost management workspace

Answer

Warehouse management workspace

Question 19

Refer to the exhibit. A company configures Dynamics 365 Supply Chain Management with the parameters shown. They notice that material requirements planning (MRP) is recalculating every time a sales order is entered, causing performance issues. Which parameter should be changed?

Accepted Answer

ExplosionMode. The 'ExplosionMode' parameter controls when MRP recalculates demand. Setting it to 'Always' causes MRP to regenerate every time a sales order is entered, leading to performance degradation. Changing it to 'Never' or 'MinMax' prevents unnecessary recalculations and improves system responsiveness.

Answer

DynamicPlan

Answer

RouteNetwork

Answer

FrozenPlan

Question 20

Which TWO of the following are capabilities of Dynamics 365 Commerce?

Accepted Answer

Online store management. Dynamics 365 Commerce is a unified commerce solution that covers omnichannel retail operations. Online store management (Option B) is a core capability, enabling businesses to create and manage e-commerce sites with product catalogs, pricing, and promotions. Call center management (Option C) is also a key capability, providing order processing, customer service, and fulfillment features for phone-based sales channels.

Answer

Budget planning

Answer

Master planning

Answer

Employee self-service