MB-920 Practice Test 8 — 10 Questions

Question 1

A company uses Dynamics 365 Finance. They want to enable Copilot to assist with generating financial reports and answering questions about financial data. What must be configured first?

Accepted Answer

Copilot in Dynamics 365 Finance. B is correct because Copilot in Dynamics 365 Finance must be explicitly enabled and configured as a prerequisite before it can assist with generating financial reports or answering questions about financial data. This involves turning on the Copilot feature within the environment settings and ensuring the necessary permissions and data access are in place.

Answer

Data management framework

Answer

Power BI embedded

Answer

Finance Insights module

Question 2

Refer to the exhibit. An auditor runs this Kusto query in Microsoft Sentinel connected to Dynamics 365 Finance. What is the purpose of this query?

Accepted Answer

Find the top 5 users who posted the most vendor invoices in the past week. The Kusto query filters audit log entries for vendor invoice posting events (event ID 1050) from the past 7 days, groups them by user, counts the number of postings per user, and sorts descending to show the top 5 users. This directly identifies the users who posted the most vendor invoices in the past week, making option D correct.

Answer

Compare invoice posting rates between current and previous week

Answer

List all vendor invoices posted by system accounts

Answer

Identify users who have failed to post vendor invoices

Question 3

You are a Dynamics 365 consultant for a medium-sized manufacturing company that recently deployed Dynamics 365 Finance and Operations. The company uses the Production control module to manage manufacturing orders. They report that when a production order is started, the system does not automatically reserve raw materials from inventory, causing stockouts on the shop floor. The warehouse team manually reserves materials after the order is released. You need to configure the system so that raw materials are automatically reserved when a production order status is changed to 'Started'. The company uses standard cost inventory valuation. What should you do?

Accepted Answer

Set the 'Automatic reservation' field on the production order defaults to 'At start'.. The 'Automatic reservation' field on the production order defaults controls when raw materials are physically reserved. Setting it to 'At start' ensures that when a production order status changes to 'Started', the system automatically reserves the required raw materials from inventory, preventing stockouts on the shop floor. This is a standard configuration in Dynamics 365 Finance and Operations for production control.

Answer

Set the 'Reservation hierarchy' on the item model group to 'Single level'.

Answer

Set the 'Default financial dimensions' on the finished good item to include the warehouse dimension.

Answer

Enable 'Auto-report as finished' on the bill of materials (BOM).

Question 4

A manufacturing company is experiencing stockouts of a critical raw material despite maintaining high inventory levels. The procurement team places purchase orders based on historical usage, but demand has become erratic. Which action should the supply chain manager take to improve material availability without increasing inventory costs?

Accepted Answer

Set up a reorder point with dynamic safety stock calculation in Demand Planning.. Dynamics 365 Supply Chain Management's Demand Planning module can calculate dynamic safety stock based on forecasted demand variability and service level targets. This allows the system to automatically adjust reorder points in response to erratic demand patterns, improving material availability without simply increasing inventory levels across the board.

Answer

Increase safety stock percentages for all raw materials by 20%.

Answer

Switch from purchase orders to blanket purchase agreements with the supplier.

Answer

Negotiate with the supplier to reduce lead time by 50%.

Question 5

A purchase order with a total amount of $15,000 is submitted. Based on the exhibit, how many approvals are required?

Accepted Answer

2. The exhibit (not shown here) typically defines approval thresholds for purchase orders. A $15,000 PO exceeds a lower threshold (e.g., $10,000) but is below a higher threshold (e.g., $20,000), triggering two sequential approvals—one from a manager and one from a director—based on the workflow configuration in Dynamics 365 Finance and Operations.

Answer

3

Answer

1

Answer

0 (auto-approve)

Question 6

A batch job for master planning is configured as shown. The job runs daily at 2 AM. The planner notices that planned orders are not being firmed automatically. What is the likely reason?

Accepted Answer

The parameter FirmPlannedOrders is set to false.. The batch job for master planning is configured to run daily at 2 AM, but planned orders are not being firmed automatically. The most likely reason is that the parameter `FirmPlannedOrders` is set to `false`. In Dynamics 365 Supply Chain Management, this parameter controls whether planned orders are automatically firmed during master planning execution. When set to `false`, the system will generate planned orders but will not automatically convert them to firm planned orders or production/purchase orders, requiring manual intervention.

Answer

Safety stock is not included in the planning.

Answer

The recurrence is set to run daily, but the job should run hourly.

Answer

The job status shows an error.

Question 7

Which TWO features are available in Dynamics 365 Finance to support financial reporting and analysis?

Accepted Answer

Financial reporting. Financial reporting (Option B) is a core feature in Dynamics 365 Finance that provides out-of-the-box financial statements (e.g., balance sheet, income statement) using the Financial Reporting module, which leverages the financial dimensions and main accounts for customizable reporting. Business performance analytics (Option C) is a cloud-based, embedded analytics capability that offers pre-built KPIs, dashboards, and drill-through insights for real-time financial and operational analysis, directly supporting decision-making without requiring external tools.

Answer

Catalog management

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Production scheduling

Answer

Inventory valuation

Question 8

A manufacturing company wants to track the cost of raw materials used in production in real-time. Which costing method should they use in Dynamics 365 Supply Chain Management?

Accepted Answer

Standard costing. Standard costing is the correct method because it uses predetermined costs for raw materials, enabling real-time variance analysis against actual costs. This allows the manufacturing company to immediately identify and track cost deviations during production, which is essential for real-time cost monitoring in Dynamics 365 Supply Chain Management.

Answer

FIFO (First In, First Out)

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LIFO (Last In, First Out)

Answer

Moving average

Question 9

A company needs to generate financial statements that comply with local accounting standards in multiple countries. Which Dynamics 365 Finance module should be used to define and manage these reporting requirements?

Accepted Answer

Financial reporting. The Financial reporting module in Dynamics 365 Finance allows creation and management of financial statements for multiple reporting standards. Option A is wrong because Budgeting is for budget planning, not for local reporting standards. Option B is wrong because General ledger is the core ledger but does not directly manage local reporting requirements. Option D is wrong because Accounts payable is for vendor transactions.

Answer

Budgeting

Answer

General ledger

Answer

Accounts payable

Question 10

A store manager needs to process a return for a customer who purchased an item using a loyalty card. The manager wants to ensure that the loyalty points originally earned from that purchase are reversed. What should the manager do?

Accepted Answer

Process the return using the standard return function in POS.. In Dynamics 365 Commerce, the standard return function in POS automatically reverses any loyalty points that were earned on the original transaction. This ensures that the customer's loyalty balance is accurately adjusted without manual intervention or external requests.

Answer

Issue a store credit instead of a refund to keep the points.

Answer

Contact the head office to adjust the points.

Answer

Manually deduct the loyalty points from the customer's account.