MB-920 Describe the core capabilities of the finance and operations apps — 40 Questions

Question 1

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager reports that the system is not automatically reserving raw materials when a production order is released. What is the most likely cause?

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

Accepted Answer

The reservation hierarchy is not configured for production. The reservation hierarchy in Dynamics 365 Supply Chain Management determines whether raw materials are automatically reserved when a production order is released. If the hierarchy is not configured for production (e.g., set to 'None' or only for sales orders), the system will not perform automatic reservation, leaving materials unreserved. This is a common setup issue that directly controls the reservation behavior at order release.

Answer

The default order settings for the item are incorrect

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The bom version is not approved

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The explosion date on the production order is set to a future date

Question 2

A retail company uses Dynamics 365 Commerce. The store manager notices that inventory levels are not updated in real-time after a point-of-sale (POS) transaction. What should be checked first?

Accepted Answer

The POS functionality profile setting for inventory processing. The POS functionality profile setting for inventory processing controls how inventory updates are handled at the register. If this setting is not configured to process inventory in real-time, the system will defer updates to a batch job, causing the observed delay. This is the first place to check because it directly governs the behavior of inventory updates during POS transactions.

Answer

The default inventory location for the store

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The assortment configuration for the store

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The Commerce Data Exchange (CDX) job schedule

Question 3

A company uses Dynamics 365 Human Resources. The HR manager wants to automate the process of sending onboarding tasks to new hires. Which feature should be used?

Accepted Answer

Checklists. Checklists in Dynamics 365 Human Resources allow HR managers to define a series of onboarding tasks (e.g., IT setup, benefits enrollment) that are automatically assigned to new hires upon hire date or status change. This feature directly supports automating the onboarding process without requiring custom development.

Answer

Workflow

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Performance journals

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Personnel actions

Question 4

A company uses Dynamics 365 Supply Chain Management. The warehouse manager wants to enable wave processing to automatically create work for outbound orders. Which setup is required?

Accepted Answer

Warehouse management parameters with wave processing enabled. Wave processing in Dynamics 365 Supply Chain Management automates the creation of picking work for outbound orders. To enable this, the warehouse management parameters must have wave processing turned on, which allows the system to automatically generate and process waves when outbound orders are released to the warehouse. Without this setting, waves must be created and processed manually, defeating the automation goal.

Answer

Inventory status for the items

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Location directives for picking

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Reservation hierarchy for the item

Question 5

A company uses Dynamics 365 Supply Chain Management. Which TWO configurations are required to enable the Warehouse Management module?

Accepted Answer

Assign a warehouse management item to each item. Each item that will be used in warehouse management processes must be assigned a 'warehouse management item' flag in the item model group. This flag enables the item to participate in advanced warehouse processes such as wave execution, location directives, and mobile device transactions. Option C is correct because the warehouse record itself must have the 'Use warehouse management processes' option enabled to activate the module for that specific warehouse.

Answer

Set up financial dimensions for inventory

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Configure the advanced warehouse management parameter

Answer

Enable the Warehouse Management feature in Feature Management

Question 6

A company uses Dynamics 365 Finance. The accounting team needs to create a financial report that shows actual vs. budgeted expenses by department. Which THREE components must be configured?

Accepted Answer

Financial dimension sets. Option A (Financial dimension sets) is correct because the report must break expenses down by department, and a financial dimension set defines which dimension(s) — such as Department — are used to filter and group the report rows/columns. Option B (Main accounts) is correct because expense amounts are posted to main accounts, and the report's rows must reference the main accounts that represent expenses to show actual and budget figures. Option C (Budget model) is correct because budgeted amounts in Dynamics 365 Finance are stored and tracked against a budget model, so the report needs a budget model to retrieve the budget side of the actual vs. budget comparison. Option D (Chart of accounts) is not required as a separate report component here because the main accounts already belong to the chart of accounts, and the report definition references main accounts directly rather than the chart of accounts structure. Option E (Fixed asset group) is not relevant because fixed asset groups relate to fixed asset transactions and depreciation, not to departmental expense actual-vs-budget reporting.

Answer

Chart of accounts

Answer

Fixed asset group

Question 7

Refer to the exhibit. A budget transfer is being submitted in Dynamics 365 Finance. Based on the JSON, which dimension combination is used for the budget transfer?

Accepted Answer

Department 100 and Cost center CC001. The budget transfer JSON specifies a dimension combination of Department 100 and Cost center CC001, which is the account structure combination used to post the transfer. Only those two dimensions are present in the transfer entry, so the correct answer reflects exactly that pair. Location and Project dimensions are not part of the submitted combination.

Answer

Department 100, CostCenter CC001, and Location LOC01

Answer

Department 100 only

Answer

Department 100 and Project P001

Question 8

Refer to the exhibit. A purchase order line shows a LineDiscount of 10.0 and LineAmount of 225.00. If the discount is applied as a percentage, what is the correct interpretation?

Accepted Answer

The line discount is a 10% discount on the line total. The LineDiscount of 10.0 is interpreted as a percentage (10%) when the discount method is set to percentage. This means the line discount is calculated as 10% of the line total, resulting in a LineAmount of 225.00 after the discount is applied. In Dynamics 365 Finance and Operations, the LineDiscount field stores the discount value, and its interpretation depends on the discount method selected on the purchase order line.

Answer

The line discount is applied after line amount calculation

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The line discount is a flat $10.00 reduction

Answer

The line discount is 10% of the unit price

Question 9

A company implements Dynamics 365 Finance and needs to comply with international accounting standards. They must ensure that all financial transactions are recorded in two ledgers: one for legal reporting and one for internal management. Which feature should they configure?

Accepted Answer

Dual ledger. Dual ledger is the correct feature because it allows an organization to maintain two separate accounting ledgers within the same legal entity: one for legal reporting (typically based on local GAAP or IFRS) and one for internal management reporting (e.g., based on a different accounting standard or internal adjustments). This is achieved through the use of main accounts and financial dimensions, where the legal ledger uses the primary main account structure and the management ledger can use an extended or alternative account structure, ensuring both sets of books are updated simultaneously from a single transaction entry.

Answer

Intercompany accounting

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Single ledger

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Consolidation

Question 10

A global company uses Dynamics 365 Commerce and wants to provide a consistent shopping experience across online and physical stores. They need to ensure that product prices are synchronized in real-time between channels. Which capability should they leverage?

Accepted Answer

Price synchronization. Dynamics 365 Commerce provides a Price synchronization capability that ensures product prices are updated in real-time across all channels, including online and physical stores. This feature leverages the Retail Server and channel database to propagate price changes instantly, maintaining consistency without manual intervention.

Answer

Inventory visibility

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Customer engagement

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Omnichannel order management

Question 11

A company uses Dynamics 365 Project Operations to manage projects. They need to track project budgets and actual costs in real-time. Which core capability should they use?

Accepted Answer

Project cost management. Project cost management in Dynamics 365 Project Operations provides real-time tracking of budgets versus actual costs by integrating cost estimates, actual transactions, and budget controls. This capability enables project managers to monitor cost performance continuously and receive alerts when costs exceed thresholds, ensuring financial control throughout the project lifecycle.

Answer

Resource management

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Time and expense management

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Project accounting

Question 12

A company uses Dynamics 365 Finance and needs to generate financial statements that comply with both local GAAP and IFRS. They want to avoid maintaining separate sets of books. Which feature should they use?

Accepted Answer

Financial reporting. Financial reporting in Dynamics 365 Finance allows organizations to create, maintain, and deploy financial statements that comply with multiple accounting standards (e.g., local GAAP and IFRS) from a single set of financial data. It uses reporting trees and row/column definitions to generate different report formats without requiring separate ledger structures, thus avoiding the need for duplicate books.

Answer

Dual ledger

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Consolidation

Answer

Intercompany accounting

Question 13

Which THREE capabilities are core to Dynamics 365 Finance?

Accepted Answer

General ledger. General ledger is a core capability of Dynamics 365 Finance because it serves as the central repository for all financial transactions, providing the foundation for financial reporting, account structures, and fiscal period management. It enables organizations to maintain a complete audit trail and comply with accounting standards such as GAAP and IFRS.

Answer

Production control

Answer

Warehouse management

Question 14

Refer to the exhibit. This JSON snippet represents a budget record in Dynamics 365 Finance. Which core capability is being configured?

Accepted Answer

Budget control. The JSON snippet defines budget control parameters such as 'BudgetControlConfiguration', 'BudgetCycle', and 'BudgetInterval', which are used to enforce budget checks during financial transactions. This directly configures the Budget Control module in Dynamics 365 Finance, enabling organizations to monitor and restrict expenditures against approved budgets.

Answer

Fixed asset management

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Project accounting

Answer

General ledger

Question 15

Refer to the exhibit. This XML snippet shows a workflow configuration in Dynamics 365 Finance. What is the purpose of this workflow?

Accepted Answer

To automate purchase order approval based on amount. The workflow configuration in Dynamics 365 Finance uses a condition based on the purchase order amount to trigger an approval step. This is the core purpose of a purchase order approval workflow: to automatically route purchase orders for approval when they exceed a defined monetary threshold, ensuring proper authorization before the order is processed.

Answer

To enforce budget control on purchase orders

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To facilitate vendor collaboration

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To match purchase orders with invoices

Question 16

Refer to the exhibit. This data represents a product record in Dynamics 365 Commerce. Which core capability is demonstrated by applying a 10% discount from a promotion?

Accepted Answer

Customer engagement and loyalty management. Applying a 10% discount from a promotion directly demonstrates the customer engagement and loyalty management capability in Dynamics 365 Commerce. This feature allows businesses to create and manage promotional pricing rules, such as percentage discounts, to incentivize purchases and reward customer loyalty. The discount is applied at the point of sale or online checkout based on configured promotion logic, not through inventory or order management processes.

Answer

Omnichannel order management

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Inventory visibility

Answer

Price synchronization

Question 17

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 18

A company uses Dynamics 365 Supply Chain Management. They are experiencing delays in production because the system does not automatically order raw materials when inventory drops below a certain level. Which master planning parameter should be configured to address this?

Accepted Answer

Reorder point. The reorder point is the inventory level that triggers a replenishment order in Dynamics 365 Supply Chain Management. When inventory drops to or below this point, the system automatically creates a planned order for the required quantity, preventing production delays due to material shortages. This directly addresses the need to automatically order raw materials when inventory falls below a certain threshold. Coverage groups, safety stock, and forecasts influence planning but do not by themselves trigger automatic orders at a specific inventory level.

Answer

Coverage group

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Safety stock

Answer

Forecast

Question 19

A company uses Dynamics 365 Human Resources. They want to streamline the employee onboarding process by automating document collection and task assignments. Which feature should they use?

Accepted Answer

Personnel management. Personnel management in Dynamics 365 Human Resources provides the 'Hire' and 'Onboard' workflows that automate document collection (e.g., tax forms, employment agreements) and task assignments (e.g., IT setup, training) during employee onboarding. This feature uses configurable checklists and document templates to streamline the process, directly addressing the requirement.

Answer

Benefits management

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Time and attendance

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Compensation management

Question 20

A company uses Dynamics 365 Finance. They want to automatically generate and post vendor payments based on approved invoices. Which feature should they use?

Accepted Answer

Payment proposal. The Payment proposal feature in Dynamics 365 Finance allows users to automatically generate and post vendor payments based on approved invoices. It selects due invoices according to defined criteria (e.g., due date, discount date) and creates payment journal lines, which can then be posted. This directly meets the requirement of automating payment generation from approved invoices.

Answer

Electronic payment

Answer

Vendor invoice automation

Answer

Workflow