MB-920 Practice Exam 60 — 20 Questions

Question 1

An organization uses Dynamics 365 Finance to manage its cash and bank accounts. The treasurer needs to reconcile a bank statement with the system's bank transactions. Which module should the treasurer use?

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

Accepted Answer

Cash and bank management. Cash and bank management handles bank reconciliation. Accounts payable and Accounts receivable are for vendor and customer transactions. General ledger is for the chart of accounts.

Answer

Accounts payable

Answer

General ledger

Answer

Accounts receivable

Question 2

A company uses Dynamics 365 Finance for intercompany transactions. Which THREE components are required to enable intercompany accounting?

Accepted Answer

Intercompany agreements. Options A, C, and D are correct. Intercompany accounting requires defining intercompany relationships, setting up intercompany parameters, and creating intercompany agreements. Option B is wrong because intercompany journals are a result, not a prerequisite. Option E is wrong because consolidation is a separate process.

Answer

Intercompany journals for posting

Answer

Consolidation setup

Question 3

A manufacturing company uses Dynamics 365 Finance to manage its financial operations. The finance team needs to automate the reconciliation of bank transactions with general ledger entries. Which feature should they use?

Accepted Answer

Advanced bank reconciliation. Advanced bank reconciliation allows automatic matching of bank statements with ledger transactions. Option A is wrong because budget control manages budgets, not reconciliation. Option B is wrong because intercompany accounting handles transactions between legal entities. Option D is wrong because cash flow forecasting predicts future cash positions.

Answer

Budget control

Answer

Intercompany accounting

Answer

Cash flow forecasting

Question 4

Refer to the exhibit. You are implementing Dynamics 365 Finance for Contoso. The configuration JSON includes a list of modules. Which module is missing to ensure full financial management capabilities?

Accepted Answer

Cash and bank management. Cash and bank management is a core financial module in Dynamics 365 Finance that handles bank accounts, checks, deposits, and reconciliations. Without it, the system cannot manage cash flow, bank transactions, or financial reconciliation, which are essential for full financial management capabilities.

Answer

Project management

Answer

Inventory management

Answer

Procurement

Question 5

A financial analyst runs the above export job but notices that the exported file contains entries from 2024 as well. What is the most likely cause?

Accepted Answer

The filter field name 'AccountingDate' does not match the source data field name. The filter uses 'AccountingDate ge 2025-01-01' which should filter from Jan 1, 2025, but the filter might not be applied correctly due to the source data format being CSV, which may cause date format interpretation issues. However, the exhibit shows the filter is set correctly. The most likely cause is that the filter is not applied because the data source format is CSV and the filter may use a different date format. But among options, the filter expression is case-sensitive and 'ge' is correct. Actually, the filter should work. The issue might be that the filter is not being applied because the job was run without filter. But the exhibit shows filter present. Option C is most plausible: the filter uses 'AccountingDate' but the field might be 'TransactionDate' in the source. Option D is also possible. However, the typical mistake is that the filter field name does not match. I'll go with C: The filter field name is incorrect.

Answer

The filter condition is case-sensitive and should be 'GE'

Answer

The export format should be XML instead of CSV

Answer

The export job needs to be run with the 'Apply filter' option enabled

Question 6

A company wants to track products throughout the supply chain using unique identifiers. Which configuration should they enable?

Accepted Answer

Batch Attributes. Batch Attributes allow companies to define unique identifiers (such as lot numbers or batch numbers) and assign them to products, enabling end-to-end traceability through the supply chain. When configured, each batch can be tracked from receipt through production and delivery, providing the visibility needed for recalls and compliance.

Answer

Product Variants

Answer

Global Inventory Tracking

Answer

Catch Weight

Question 7

A manufacturing company wants to track the cost of raw materials from purchase to finished goods. Which module in Dynamics 365 Finance should they primarily use?

Accepted Answer

Inventory management. Inventory management is the primary module for tracking raw material costs from purchase through production to finished goods. It integrates with production control to calculate actual costs. Accounts payable handles vendor invoices, not cost tracking. Budgeting is for financial planning, not operational cost tracking. General ledger provides high-level financial reporting, not detailed cost tracking.

Answer

Accounts payable

Answer

Budgeting

Answer

General ledger

Question 8

A warehouse manager wants to optimize picking routes by grouping orders that are located in the same aisle. Which feature in Dynamics 365 Supply Chain Management should be configured?

Accepted Answer

Wave management. Wave management in Dynamics 365 Supply Chain Management is the correct feature because it allows grouping of orders into waves based on criteria such as location or aisle, enabling optimized picking routes. By configuring wave templates and methods, the system can automatically consolidate orders from the same aisle into a single wave, reducing travel time and improving warehouse efficiency.

Answer

Inventory status

Answer

Location directives

Answer

Mobile device menu items

Question 9

A company uses Dynamics 365 Commerce and has multiple stores. They want to implement a loyalty program where customers earn points based on purchase amounts, and the points can be redeemed at any store. The program should also allow for tiered rewards. Which component should be used to define the loyalty program rules?

Accepted Answer

Loyalty module in Dynamics 365 headquarters. The Loyalty module in Dynamics 365 headquarters is the correct component because it is the centralized back-office tool where loyalty program rules—such as earning rates, redemption rules, and tier definitions—are configured. This module allows you to define program-wide settings that apply across all stores, ensuring consistent point accrual and redemption behavior regardless of where the customer shops.

Answer

Channel database

Answer

Point of Sale (POS)

Answer

Retail Server

Question 10

A company needs to ensure that purchase orders cannot be created without an approved vendor. Which configuration should be used?

Accepted Answer

Set 'Require approval for vendor' to Yes in Procurement and sourcing parameters. Setting 'Require approval for vendor' to Yes in Procurement and sourcing parameters ensures that a purchase order cannot be created unless the vendor is in an approved status. This configuration enforces a prerequisite check at the time of purchase order creation, preventing unapproved vendors from being used.

Answer

Create a purchase order approval workflow

Answer

Enable 'Invoice matching validation'

Answer

Set vendor status to Active

Question 11

Match each Dynamics 365 Project Operations component to its function.

Accepted Answer

Project Planning: Create project schedules, tasks, and milestones.. The correct matches: Project Planning schedules tasks, Resource Management allocates resources, Time and Expense Tracking logs hours/costs, and Project Billing handles invoices/revenue. Common confusions include swapping these definitions.

Answer

Project Planning: Assign and manage resources across projects.

Answer

Resource Management: Record time and expenses for projects.

Question 12

Refer to the exhibit. A batch job for inventory closing failed. The error indicates open inventory transactions for item A-100. What should the supply chain analyst do to resolve the issue and allow inventory closing to complete?

Accepted Answer

Post or cancel the open inventory transactions for item A-100.. Inventory closing cannot complete while there are open inventory transactions (e.g., sales orders, production orders, or transfer orders) that have not been posted or canceled. The correct action is to post or cancel those open transactions for item A-100, which clears the blocking records and allows the inventory closing batch job to finalize. This is a standard prerequisite in Dynamics 365 Supply Chain Management for inventory close processes.

Answer

Perform a physical inventory count for item A-100.

Answer

Change the batch job recurrence to run every hour.

Answer

Rerun the batch job immediately after the next scheduled run.

Question 13

Which TWO capabilities are part of Dynamics 365 Finance and Operations core capabilities? (Choose two.)

Accepted Answer

Supply chain management. Supply chain management is a core capability of Dynamics 365 Finance and Operations because it provides end-to-end visibility and control over procurement, inventory, warehousing, and logistics. This module integrates directly with financial management to ensure real-time cost tracking and compliance across the supply chain.

Answer

Customer relationship management

Answer

Human resources

Answer

Marketing

Question 14

A company is implementing Dynamics 365 Supply Chain Management to improve warehouse efficiency. Which TWO features can help optimize picking and packing processes?

Accepted Answer

Wave processing. Wave processing (B) is correct because it allows grouping of picking work into waves based on criteria such as shipment, route, or warehouse zone, enabling efficient batch release and optimized picking routes. Cluster picking (D) is correct because it enables a single picker to pick items for multiple orders simultaneously by grouping them into clusters, reducing travel time and increasing throughput in the packing process.

Answer

Cycle counting

Answer

Route planning

Answer

Cross-docking

Question 15

An organization uses Dynamics 365 Project Operations. They need to track employee time against a project and automatically bill the customer based on the time entries. Which module should they configure?

Accepted Answer

Project management and accounting. In Dynamics 365 Project Operations, the Project management and accounting module is specifically designed to track employee time against projects and automatically generate customer invoices based on time entries. This module integrates time recording with billing rules, enabling automated invoicing from approved timesheets. The other modules lack the project-specific time-to-bill workflow.

Answer

Human resources

Answer

Accounts receivable

Answer

Expense management

Question 16

A multinational company uses Dynamics 365 Finance. They need to generate financial statements that comply with both local GAAP and IFRS. What feature should they use?

Accepted Answer

Financial reporting with multiple reporting frameworks. Dynamics 365 Finance includes a Financial reporting module that supports multiple reporting frameworks, such as local GAAP and IFRS, by allowing the creation of separate financial statements from the same underlying data using different accounting rules and configurations. This feature enables the company to meet dual reporting requirements without maintaining separate ledgers or manual adjustments.

Answer

Currency revaluation

Answer

Intercompany accounting

Answer

Budgeting

Question 17

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 18

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 19

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 20

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