MB-920 Practice Exam 59 — 20 Questions

Question 1

A company uses Dynamics 365 Project Operations to manage its consulting projects. They need to track project profitability by comparing actual costs against budgeted costs. Which module should they primarily use?

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

Accepted Answer

Project management and accounting. The Project management and accounting module in Dynamics 365 Project Operations is the primary module for tracking project profitability because it integrates budgeted costs, actual costs, and revenue recognition. It provides the cost control and variance analysis capabilities needed to compare actual costs against budgeted costs, enabling profitability tracking at the project level.

Answer

Expense management

Answer

Billing and invoicing

Answer

Timesheet entry

Question 2

Which TWO of the following are true about the general journal in Dynamics 365 Finance?

Accepted Answer

They can be used to post adjustments and accruals.. General journals are used for non-standard transactions such as adjustments and accruals. Option C is correct because general journals can be configured with approval workflows. Option B is incorrect because general journals post directly to the general ledger, not automatically to subledgers; subledger posting is handled through dedicated modules. Option D is incorrect because reversing entries are supported in general journals. Option E is incorrect because a single general journal can include multiple legal entities.

Answer

They automatically post to subledgers like Accounts Payable.

Answer

They cannot be reversed.

Answer

They can only be used for one legal entity at a time.

Question 3

A company using Dynamics 365 Finance needs to track the financial impact of a specific project across multiple dimensions such as cost center, department, and location. Which feature should they use to ensure that all financial transactions are automatically tagged with these dimensions?

Accepted Answer

Advanced rule structures for financial dimensions. Advanced rule structures allow you to set up rules that automatically default financial dimension values based on conditions such as main account or cost center. This ensures that transactions are automatically tagged with the required dimensions like cost center, department, and location. Option A is incorrect because account structures with main account segments define valid combinations of main accounts and financial dimensions, but they do not automatically default dimension values. Option C is incorrect because budget control configuration is used to enforce budget limits, not to tag transactions with dimensions. Option D is incorrect because project contracts with funding sources define how projects are funded and billed, but do not automatically assign dimensions to transactions.

Answer

Account structures with main account segments

Answer

Budget control configuration

Answer

Project contracts with funding sources

Question 4

Which TWO actions should you take to configure Dynamics 365 Supply Chain Management to support a lean manufacturing environment?

Accepted Answer

Configure production flows and activities.. Lean manufacturing uses kanban rules and production flows. Production orders and batch orders are for discrete and process manufacturing, not lean.

Answer

Enable batch order creation for process manufacturing.

Answer

Create production orders for each manufacturing step.

Answer

Define work cells for lean production.

Question 5

A retail company uses Dynamics 365 Commerce. They notice that the online store is not syncing inventory levels correctly from the warehouse management system. Which component should they troubleshoot first?

Accepted Answer

Commerce Data Exchange (CDX). Commerce Data Exchange (CDX) is the component responsible for synchronizing data between Dynamics 365 Commerce and the warehouse management system. Since inventory levels are not syncing correctly, CDX is the first component to troubleshoot because it handles the data transfer and transformation processes that keep inventory records consistent across channels.

Answer

Retail Cloud Scale Unit (RCSU)

Answer

Product catalog

Answer

Point of sale (POS) system

Question 6

A company uses Dynamics 365 Human Resources to manage employee leave. Employees in the sales department frequently submit leave requests that conflict with scheduled client meetings, causing operational disruptions. The HR manager wants to prevent such conflicts without restricting all leave during client meetings. What should the HR manager configure?

Accepted Answer

Create a leave blocking rule for the sales department position on days with client meetings.. Dynamics 365 Human Resources allows you to create leave blocking rules that are position-based. By configuring a blocking rule for the sales department position on days with client meetings, the system will automatically reject leave requests from sales employees on those specific dates, preventing operational disruptions without restricting leave on all days.

Answer

Disable employee self-service for leave requests in the sales department.

Answer

Configure calendar parameters to block leave on days when client meetings are scheduled.

Answer

Set a maximum leave balance for sales department employees.

Question 7

Refer to the exhibit. A production order is in 'Estimated' status. The production scheduler needs to generate material requirements for the order. What should they do next?

Accepted Answer

Schedule the production order.. A production order in 'Estimated' status has not yet been scheduled. Scheduling the order (operations or job scheduling) will generate material requirements and update the status. Releasing the order would require scheduling first. Estimating is already done.

Answer

Post the picking list.

Answer

Start the production order.

Answer

Release the production order.

Question 8

A company uses Dynamics 365 Finance to manage its budget. The finance team wants to prevent users from posting expenses that exceed the available budget. Which budget control configuration is required?

Accepted Answer

Budget control configuration. Budget control configuration enables checking against budget. Budget plans are for planning. Budget register entries are for recording. Budget model is a structure.

Answer

Budget plan

Answer

Budget model

Answer

Budget register entry

Question 9

A company uses Dynamics 365 Finance to manage its fixed assets. The accountant needs to post a depreciation adjustment for a previous fiscal year that has already been closed. What should the accountant use?

Accepted Answer

Depreciation adjustment journal. The fixed asset journal is for routine transactions. Depreciation proposal posts planned depreciation. The depreciation adjustment journal is specifically for correcting prior year depreciation.

Answer

Fixed asset journal

Answer

General journal

Answer

Depreciation proposal

Question 10

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager notices that raw material inventory levels often drop below safety stock, causing production delays. Which feature should be configured to automatically generate purchase orders when inventory falls below the reorder point?

Accepted Answer

Replenishment strategies. Replenishment strategies in Dynamics 365 Supply Chain Management allow the system to automatically generate purchase orders when inventory levels fall below the defined reorder point. This ensures that raw material stock is replenished proactively, preventing production delays caused by stockouts.

Answer

Vendor collaboration

Answer

Warehouse management

Answer

Inventory blocking

Question 11

A company uses Dynamics 365 Finance. Which TWO types of financial dimensions can be created?

Accepted Answer

Entity-backed dimensions. Custom dimensions are user-defined. Entity-backed dimensions are based on system entities like Cost centers. Fixed dimensions are not a type; they are default dimension values. Main account is an account, not a dimension. Budget dimensions are a concept, not a type.

Answer

Main account

Answer

Fixed dimensions

Answer

Budget dimensions

Question 12

You are analyzing a master plan configuration. The company complains that the plan does not consider material availability when scheduling production orders. Which setting in the exhibit is causing this?

Accepted Answer

The 'FiniteMaterial' parameter is set to false.. The 'FiniteMaterial' parameter controls whether material availability is considered during master planning. When set to false, the system ignores material constraints and schedules production orders without checking if required materials are available, which directly matches the company's complaint.

Answer

The plan scope is limited to one site.

Answer

The scheduling method is 'Operations scheduling'.

Answer

The 'FiniteCapacity' parameter is set to true.

Question 13

A company uses Dynamics 365 Finance and needs to track expenses by department and project. Which feature should be configured to capture this information on all financial transactions?

Accepted Answer

Financial dimensions.. Financial dimensions allow tracking by department, project, and other dimensions. Option A is wrong because the chart of accounts structures the main accounts but does not capture additional dimensions. Option B is wrong because cost accounting is for internal cost management. Option D is wrong because budgeting is for planning.

Answer

Chart of accounts.

Answer

Cost accounting module.

Answer

Budget control.

Question 14

You are configuring master planning for item A0001 in Dynamics 365 Supply Chain Management. The exhibit shows a coverage group configuration. Based on the exhibit, what is the expected behavior when the on-hand quantity drops to 400 units?

Accepted Answer

A planned order is generated to replenish up to 2000 units.. With the MinMax reordering policy, when the on-hand quantity drops below the minimum (500), the system generates a planned order to replenish up to the maximum (2000). Option A is incorrect because the trigger is the minimum quantity, not safety stock. Option B is incorrect because the coverage period (30 days) does not delay the planned order generation; it only affects planning horizon. Option D is incorrect because the replenishment quantity brings inventory to the maximum, not just safety stock.

Answer

No action is taken because safety stock is 100 and on-hand is above that.

Answer

The system waits for the next period (30 days) before generating a planned order.

Answer

A planned order is generated to replenish only 100 units to meet safety stock.

Question 15

A manufacturing company uses Dynamics 365 Finance and wants to automate the recognition of revenue for long-term contracts. Which module should they configure?

Accepted Answer

Revenue recognition. The Revenue recognition module in Dynamics 365 Finance is specifically designed for automating revenue recognition under standards like ASC 606 and IFRS 15. Option A is incorrect because Project management and accounting handles project-based costing but not revenue recognition by default. Option C is incorrect because Accounts receivable manages invoices and payments. Option D is incorrect because General ledger is the core accounting but lacks specialized revenue recognition features.

Answer

Project management and accounting

Answer

Accounts receivable

Answer

General ledger

Question 16

Refer to the exhibit. A finance manager reviews the budget control configuration in Dynamics 365 Finance. The OverBudgetOption is set to 'WarnOnly'. What will happen when a user attempts to post an expense that exceeds the remaining budget?

Accepted Answer

The user will receive a warning but can still post the expense.. The OverBudgetOption 'WarnOnly' allows posting with a warning. 'Block' prevents posting. 'None' disables control. The configuration shows BudgetControlEnabled=true, so control is active.

Answer

The expense will be posted without any warning.

Answer

The expense will be blocked and cannot be posted.

Answer

The budget control will be ignored because OverBudgetOption is set.

Question 17

Your organization uses Dynamics 365 Finance and wants to automate the reconciliation of bank transactions with general ledger entries. The bank sends a monthly statement in CSV format. What is the recommended approach?

Accepted Answer

Use the bank reconciliation workspace to import the CSV and match transactions.. The bank reconciliation module imports bank statements and automates matching. Option B is wrong because the general journal is for manual entries. Option C is wrong because the cash and bank management module is broader but the specific feature is bank reconciliation. Option D is wrong because data import/export is a utility, not a reconciliation tool.

Answer

Manually post the bank statement lines as general journal entries.

Answer

Set up the cash and bank management module to automatically reconcile.

Answer

Use the data management framework to import the CSV and create a custom reconciliation process.

Question 18

A company is implementing Dynamics 365 Finance and needs to manage vendor payments efficiently. Which TWO features should be used to automate payment processing and reduce manual effort?

Accepted Answer

Electronic payment formats. Payment proposals automate the selection of invoices for payment. Electronic payment formats enable automated payment files for banks. Vendor hold prevents payment but does not automate. Payment calendar is for scheduling. Vendor invoice pool is for holding invoices, not automation. Options A and D are correct.

Answer

Vendor invoice pool

Answer

Vendor hold

Answer

Payment calendar

Question 19

A multinational corporation uses Dynamics 365 Finance with multiple legal entities. The controller wants to consolidate financial data from all subsidiaries into a single reporting entity. Which feature should be used to perform the consolidation?

Accepted Answer

Consolidate [Online]. Consolidate [Eliminate] is for intercompany eliminations. Consolidate [Inquire] is for viewing. Consolidate [Transfer] only moves data. Consolidate [Online] performs the actual consolidation.

Answer

Consolidate [Transfer]

Answer

Consolidate [Eliminate]

Answer

Consolidate [Inquire]

Question 20

You are troubleshooting a purchase order import in Dynamics 365 Finance. The exhibit shows an XML snippet for a purchase order. The import fails with an error stating that the purchase order line is missing a required field. Which field is missing?

Accepted Answer

LineNumber. The error indicates that a required field is missing from the purchase order line. In Dynamics 365 Finance, the LineNumber field is mandatory for each purchase order line because it uniquely identifies the line within the import process and is used for sequencing and reference. Without LineNumber, the system cannot process the line, causing the import to fail.

Answer

TaxGroup

Answer

ReceiptDateRequested

Answer

LineDescription