MB-920 Practice Exam 61 — 20 Questions

Question 1

A manufacturing company uses Dynamics 365 Supply Chain Management and wants to automate the creation of production orders when a sales order is received for a make-to-order item. What should they configure?

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

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management can automatically generate planned production orders when a sales order is created for a make-to-order (MTO) item. By setting the item's coverage group to 'Make-to-order' and running master planning, the system creates a production order to fulfill the exact sales order quantity, enabling automated order-driven manufacturing.

Answer

Route management

Answer

Kanban rules

Answer

Bill of materials

Question 2

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 3

Which TWO of the following are valid methods to handle product returns in Dynamics 365 Commerce?

Accepted Answer

Process a return through the online store's customer portal.. Dynamics 365 Commerce allows customers to initiate returns through the online store's customer portal, which integrates with the return order process in the system. This self-service capability enables customers to select items from their order history and submit a return request without needing to contact a call center or visit a physical store.

Answer

Allow customers to return items via the call center without an order reference.

Answer

Use the vendor returns functionality for customer returns.

Answer

Use the Inventory management module to create a return order.

Question 4

A retail company uses Dynamics 365 Commerce to manage its online store. Customers complain that they cannot apply a promotional coupon code during checkout. The coupon code is active and has no usage limits. What is the most likely cause?

Accepted Answer

The coupon is not associated with a discount that is configured for the online store channel.. In Dynamics 365 Commerce, a coupon code is a specific discount mechanism that must be linked to a discount entity, and that discount must be explicitly configured for the online store channel. Even if the coupon is active and has no usage limits, it will not apply during checkout if the underlying discount is not associated with the online store's channel. This is because the pricing engine validates channel-level discount assignments before applying any coupon.

Answer

The payment method selected by the customer is not supported.

Answer

The pricing engine is disabled for the online store.

Answer

The product in the cart is out of stock.

Question 5

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 6

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 7

A company uses Dynamics 365 Supply Chain Management. They need to track the movement of inventory items using barcodes and RFID tags. Which module should they use?

Accepted Answer

Warehouse management. Warehouse management (B) is correct because it provides dedicated functionality for tracking inventory movement using barcodes and RFID tags through its mobile device integration and wave processing. This module enables real-time scanning of items during receiving, picking, packing, and shipping operations, leveraging GS1-128 barcode standards and RFID reader integration for automated data capture.

Answer

Inventory management

Answer

Transportation management

Answer

Production control

Question 8

You are configuring transfer order policies in Dynamics 365 Supply Chain Management. A transfer order from WH01 to WH03 shows an expected transit time of 5 days. However, the business requires that transfers between these warehouses take no more than 3 days. What should you modify?

Accepted Answer

Modify the existing rule for WH01 to WH03, setting AllowedTransitDays to 3.. In Dynamics 365 Supply Chain Management, transfer order policies use transit time rules to define allowed transit days between warehouses. The existing rule for WH01 to WH03 specifies a transit time of 5 days, but the business requires 3 days. Modifying the existing rule's AllowedTransitDays to 3 directly updates the transit time for that specific warehouse pair, ensuring compliance without creating conflicts or relying on defaults.

Answer

Remove the rule and rely on default transit days.

Answer

Add a new rule with higher priority for WH01 to WH03 with AllowedTransitDays: 3.

Answer

Change the Priority of the WH01 to WH03 rule to 1.

Question 9

A company uses Dynamics 365 Supply Chain Management with process manufacturing. They need to manage byproducts and co-products in a production order. Which functionality should they use?

Accepted Answer

Formula with co-products and by-products. In process manufacturing, co-products and by-products are managed using a formula, not a bill of materials (BOM). The formula defines the production recipe, including the main output, co-products (intended secondary outputs), and by-products (unavoidable secondary outputs). This allows the system to automatically credit or cost these outputs during production order processing.

Answer

Bill of materials (BOM)

Answer

Location directives

Answer

Transfer orders

Question 10

Which TWO of the following are capabilities of the General ledger in Dynamics 365 Finance?

Accepted Answer

Chart of accounts management. The General ledger in Dynamics 365 Finance is the central repository for financial data, and its core capabilities include managing the Chart of accounts (D) and supporting Multi-currency accounting (E). The Chart of accounts defines the financial structure of an organization, allowing for the creation and maintenance of main accounts, dimensions, and account structures. Multi-currency accounting enables transactions to be recorded and reported in multiple currencies, with automatic exchange rate calculations and revaluation, which is fundamental to the General ledger's role.

Answer

Asset depreciation calculation

Answer

Invoice matching

Answer

Budget cycle management

Question 11

Which TWO features are part of Dynamics 365 Supply Chain Management's inventory management capabilities?

Accepted Answer

Quality management. Quality management (C) is a core inventory management feature in Dynamics 365 Supply Chain Management that enables tracking and controlling product quality through inspections, nonconformance handling, and quality orders. Inventory valuation (E) is also a fundamental inventory management capability, providing methods like FIFO, LIFO, and weighted average to calculate and report inventory costs accurately.

Answer

Transportation management

Answer

Production orders

Answer

Vendor collaboration

Question 12

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They want to ensure that workers picking sales orders are directed to the nearest location with available inventory. Which configuration should they use?

Accepted Answer

Configure a location directive with a 'Nearest' strategy.. Location directives in Dynamics 365 Supply Chain Management with advanced warehouse management can be configured with a 'Nearest' strategy. This strategy directs the system to calculate the shortest distance from the worker's current location to the nearest location containing available inventory, ensuring efficient picking routes for sales orders.

Answer

Set up a work template that assigns the nearest work user.

Answer

Define a mobile device menu item for 'Location Inquiry'.

Answer

Create a wave template that prioritizes proximity.

Question 13

A distribution company uses Dynamics 365 Supply Chain Management. They notice that warehouse workers are scanning incorrect items during picking, leading to shipment errors. Which feature should they implement to reduce errors?

Accepted Answer

License plate tracking. License plate tracking (LPT) enables warehouse workers to scan a unique barcode on each pallet or container, which is linked to the exact inventory items and quantities in the system. By requiring a license plate scan during picking, the system validates that the correct item is being picked, preventing incorrect item selection and reducing shipment errors.

Answer

Cycle counting

Answer

RFID scanning

Answer

Wave processing

Question 14

A company that produces perishable goods needs to enforce strict lot control and first-expiry-first-out (FEFO) picking. Which configuration in Dynamics 365 Supply Chain Management is essential?

Accepted Answer

Lot control and FEFO picking criteria. Enforcing strict lot control and first-expiry-first-out (FEFO) picking criteria in Dynamics 365 Supply Chain Management requires enabling lot control on the product (via tracking dimension groups) and then setting the FEFO picking criteria on the warehouse location directive. This configuration ensures that items with the nearest expiry date are picked first, which is critical for perishable goods to minimize waste and comply with regulatory requirements.

Answer

Product dimension groups

Answer

Batch attributes

Answer

Serial number control

Question 15

A production manager needs to see the real-time status of all production orders on the shop floor. Which workspace in Dynamics 365 Supply Chain Management should be used?

Accepted Answer

Production floor management. The Production floor management workspace is specifically designed to provide production managers with a real-time, aggregated view of all production orders and their status on the shop floor. It includes key performance indicators, job statuses, and actionable insights for managing production operations directly from a single dashboard.

Answer

Master planning

Answer

Warehouse management

Answer

Inventory management

Question 16

Refer to the exhibit. A production scheduler reviews a scheduled production order. Operation 10 on CNC-MACHINE is scheduled from 8:00 to 11:00, and Operation 20 on ASSEMBLY-LINE starts at 11:30. The scheduler notices that operation 20 starts 30 minutes after operation 10 ends. What is the most likely reason for this gap?

Accepted Answer

Setup time for operation 20 is included in the schedule as a separate activity. In Dynamics 365 Supply Chain Management, setup time can be modeled as a separate activity in the route or production order. The 30-minute gap between Operation 10 (CNC-MACHINE) ending at 11:00 and Operation 20 (ASSEMBLY-LINE) starting at 11:30 is most likely the scheduled setup time for Operation 20, which is explicitly represented as a distinct operation or activity in the scheduling engine. This allows the system to allocate time for machine or line preparation without conflating it with run time.

Answer

Buffer time is configured between operations

Answer

The system automatically adds a break for the operator

Answer

Transportation time between resources is configured

Question 17

A retail company wants to track the cost of goods sold using a method that assumes the most recently purchased items are sold first. Which costing method should they configure?

Accepted Answer

LIFO. D is correct because LIFO (Last In, First Out) assumes the most recently purchased items are sold first, which matches the company's requirement to track cost of goods sold using that assumption. In Dynamics 365 Supply Chain Management, LIFO is an inventory costing method that can be configured in the item model group to calculate the cost of goods sold based on the cost of the latest received inventory.

Answer

Standard cost

Answer

FIFO

Answer

Weighted average

Question 18

A company wants to automate the replenishment of raw materials to production lines based on actual consumption. Which capability in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Kanban rules. Kanban rules in Dynamics 365 Supply Chain Management are specifically designed to automate material replenishment based on actual consumption signals (e.g., from production line scans or barcode reads). They implement a pull-based system where a kanban card triggers a replenishment event only when material is consumed, aligning directly with the requirement for consumption-driven automation.

Answer

Master planning

Answer

Quality management

Answer

Vendor collaboration

Question 19

Refer to the exhibit. A company has configured the General ledger parameters as shown. A user attempts to post a purchase order that exceeds the remaining budget for the current fiscal year. What will happen?

Accepted Answer

The purchase order will be blocked and an error message will appear.. BudgetControl is enabled and AllowOverbudget is false, so the system will block the transaction and show a budget control error. Option A is wrong because the system will not allow posting; it will generate an error. Option B is wrong because there is no automatic approval workflow triggered by budget control. Option D is wrong because the system will not create a warning without blocking; it blocks by default when AllowOverbudget is false.

Answer

The purchase order will be posted and the budget will be adjusted automatically.

Answer

The purchase order will be placed on hold for manager approval.

Answer

The purchase order will be posted successfully but with a warning.

Question 20

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