MB-920 Practice Test 6 — 10 Questions

Question 1

A multinational organization wants to consolidate financial data from multiple legal entities into a single reporting entity for quarterly financial statements. Which Dynamics 365 Finance feature should they use?

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

Accepted Answer

Consolidations. Consolidations in Dynamics 365 Finance is the dedicated feature for aggregating financial data from multiple legal entities into a single reporting entity. It supports both periodic and online consolidation processes, allowing organizations to combine trial balances, eliminate intercompany transactions, and generate consolidated financial statements for quarterly reporting.

Answer

Budgeting

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Cash flow forecasting

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Intercompany accounting

Question 2

A company uses Dynamics 365 Supply Chain Management. They need to track a batch of raw material from receipt to finished goods shipment for quality compliance. Which supply chain process should they use?

Accepted Answer

Batch tracking. Batch tracking in Dynamics 365 Supply Chain Management enables the assignment of unique batch numbers to raw materials and finished goods, allowing the system to trace the material from receipt through production to shipment. This process is essential for quality compliance, as it supports recall management, expiry date monitoring, and detailed genealogy reports that track the entire lifecycle of a batch.

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Transfer orders

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Consignment inventory

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Inventory counting

Question 3

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.

Answer

Compensation management

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Performance management

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Recruitment management

Question 4

A manufacturing company uses Dynamics 365 Finance to manage its inventory. The company wants to ensure that the cost of raw materials is updated automatically when purchase orders are invoiced. Which costing method should the company use?

Accepted Answer

Moving average. Standard costing updates costs based on predetermined standards, not automatically from purchase invoices. Weighted average and moving average can update on invoice posting. FIFO tracks actual cost layers. Moving average is commonly used for real-time cost updates.

Answer

FIFO

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Standard costing

Answer

Weighted average

Question 5

Refer to the exhibit. The JSON shows the configuration for a currency exchange rate in Dynamics 365 Finance. A user reports that when posting a sales invoice in EUR, the system does not automatically convert to USD using the rate shown. What is the most likely reason?

Accepted Answer

The ExchangeRateType is set to Average, which is not used for automatic conversion. The exchange rate type 'Average' is designed for reporting and is not used for automatic conversion during document posting. Dynamics 365 Finance requires a rate type such as 'Spot' or 'Daily' to trigger automatic currency conversion. Option B is incorrect because the CurrencyCode is set correctly to USD (the target currency). Option C is incorrect; a future date does not prevent the rate from being used—it would simply apply when that date becomes current. Option D is incorrect; tolerance settings control rate variance checks, not whether a rate is applied at all.

Answer

The CurrencyCode is set to USD instead of EUR

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The ExchangeRateDate is in the future

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The ExchangeRate is not within the allowed tolerance

Question 6

Refer to the exhibit. A company has configured budget control as shown. A user attempts to create a purchase order for $12,000. The system currently issues a warning but allows the transaction to proceed. The company wants to prevent any transaction exceeding the threshold from being posted. What should the budget controller change in the configuration?

Accepted Answer

Change the ActionOnExceed to Block.. Changing the ActionOnExceed to 'Block' will prevent any transaction exceeding the threshold from being posted. Currently, the action is set to 'Warn', which allows the transaction to proceed with a warning. Option A is incorrect because removing VendorInvoice from the Documents list would disable budget control for that document type, not change the behavior on exceed. Option B is incorrect because changing the BudgetModel to Revised Budget would affect which budget amounts are used for comparison, but not the action when exceeded. Option C is incorrect because changing the BudgetThreshold to $12,000 would match the exact amount, but the system would still issue a warning for amounts exceeding that threshold unless the action is changed to Block.

Answer

Remove VendorInvoice from the Documents list.

Answer

Change the BudgetModel to Revised Budget.

Answer

Change the BudgetThreshold to 12000.

Question 7

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

Accepted Answer

Shipping. Options A, C, and D are correct: Receiving, Picking, and Shipping are core warehouse processes. Option B is incorrect because Budgeting is a financial process, not a warehouse management process. Option E is incorrect because Invoicing is part of Accounts receivable, which is also a financial process.

Answer

Budgeting

Answer

Invoicing

Question 8

A company is configuring fixed assets in Dynamics 365 Finance. They need to ensure that asset depreciation is calculated differently for tax reporting and financial reporting. Which TWO actions must be taken?

Accepted Answer

Create multiple value models for the same asset.. In Dynamics 365 Finance, to calculate depreciation differently for tax and financial reporting, you must create multiple value models for the same asset. Each value model can then be assigned a separate depreciation profile, allowing distinct depreciation calculations for each reporting purpose.

Answer

Use a single depreciation book for both tax and financial.

Answer

Enable the 'Derived value models' feature.

Answer

Use a single value model with multiple depreciation profiles.

Question 9

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to use AI to forecast demand for raw materials based on historical sales and external factors like weather. Which feature should they enable?

Accepted Answer

Enable Demand Forecasting with Azure Machine Learning integration.. The scenario explicitly requires AI-driven demand forecasting that incorporates external factors like weather. Dynamics 365 Supply Chain Management's Demand Forecasting feature integrates with Azure Machine Learning to apply advanced algorithms that analyze historical sales data alongside external variables, producing more accurate predictions than traditional methods.

Answer

Use the Forecasting setup in Master planning to generate baseline forecasts.

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Configure Material Requirements Planning (MRP) to run nightly.

Answer

Implement Inventory Forecasting with Power BI dashboards.

Question 10

A company uses Dynamics 365 Finance to manage intercompany transactions. They need to automate the elimination of intercompany sales and purchases during consolidation. What feature should they configure?

Accepted Answer

Intercompany elimination rules. Intercompany elimination rules in Dynamics 365 Finance are specifically designed to automate the removal of intercompany sales and purchase transactions during the consolidation process. These rules define matching criteria (e.g., intercompany trade agreements, dimensions) and generate elimination entries that offset the intercompany revenue and expense, ensuring the consolidated financial statements reflect only external transactions.

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Fixed asset management

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Budget control

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Vendor collaboration