MB-920 Describe the core capabilities of the finance and operations apps Practice Test 10 — 15 Questions

Question 1

A company implements Dynamics 365 Finance and Operations. They want to ensure that only authorized users can access the system from external networks. What should they configure?

Accepted Answer

Conditional Access policies in Microsoft Entra ID. Conditional Access policies in Microsoft Entra ID (formerly Azure AD) allow administrators to enforce access controls based on conditions such as user location, device compliance, and network context. For external network access, you can configure policies to require multi-factor authentication or block access from untrusted IP ranges, ensuring only authorized users can connect to Dynamics 365 Finance and Operations from outside the corporate network.

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Mobile device management in Microsoft Intune

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Role-based security in Finance and Operations

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Data loss prevention policies in Microsoft Purview

Question 2

A global company uses Dynamics 365 Finance and Operations with multiple legal entities. They need to consolidate financial data across entities for reporting, while allowing each entity to operate independently. What should they configure?

Accepted Answer

Consolidation module. The Consolidation module in Dynamics 365 Finance and Operations is specifically designed to aggregate financial data from multiple legal entities into a single consolidated view for reporting, while preserving each entity's independent operations. This module supports both periodic consolidation (e.g., monthly) and on-demand consolidation, handling currency translation, elimination entries, and intercompany transactions automatically. It is the correct tool for meeting the requirement of centralized reporting with decentralized entity autonomy.

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Financial reporting

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Intercompany accounting

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Budget planning

Question 3

A company uses Dynamics 365 Supply Chain Management. They need to automatically reorder inventory when stock falls below a certain level. Which feature should they use?

Accepted Answer

Reorder point and replenishment. Reorder point and replenishment in Dynamics 365 Supply Chain Management automatically triggers purchase orders or transfer orders when on-hand inventory falls below a configured minimum. It is the native feature for automated replenishment and integrates with master planning. Safety stock, cycle counting, and inventory blocking serve different purposes.

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Inventory blocking

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Cycle counting

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Safety stock levels

Question 4

A company uses Dynamics 365 Project Operations. They want to track time and expenses against a project and invoice the customer based on actuals. Which billing method should they use?

Accepted Answer

Time and material. Time and material billing is the correct method because it invoices the customer based on actual time entries and expenses tracked against the project. In Dynamics 365 Project Operations, this billing method is designed for projects where the scope is uncertain and the customer agrees to pay for actual effort and costs incurred.

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Cost plus

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Milestone billing

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Fixed price

Question 5

A company uses Dynamics 365 Supply Chain Management. They need to track the location of items in the warehouse using barcodes. Which feature should they use?

Accepted Answer

Warehouse management. Warehouse management in Dynamics 365 Supply Chain Management provides barcode-based scanning, mobile device support, and location tracking for items within the warehouse. It includes features like license plate tracking, work execution on mobile devices, and location directives that specifically enable barcode-driven item movement and tracking. This is the purpose-built module for warehouse-level item location tracking.

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Quality management

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Inventory management

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Transportation management

Question 6

A company uses Dynamics 365 Finance and Operations. They want to automate the approval of purchase orders based on the total amount. What should they configure?

Accepted Answer

Workflow for purchase orders. Workflows in Dynamics 365 Finance and Operations allow you to define automated business processes, such as approval of purchase orders based on conditions like total amount. By configuring a workflow for purchase orders, you can set up conditional approval rules (e.g., if amount > $5,000, route to manager; if > $20,000, route to director) without custom code. This directly addresses the requirement to automate approval based on the total amount.

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Procurement catalog

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Vendor master

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Purchase order form configuration

Question 7

A company uses Dynamics 365 Finance and Operations with multiple legal entities. They need to eliminate intercompany transactions during consolidation. What should they configure?

Accepted Answer

Elimination rules in consolidation. Elimination rules in consolidation are specifically designed to remove intercompany transactions when consolidating financial data from multiple legal entities. In Dynamics 365 Finance, these rules automatically generate reversing entries to eliminate balances between entities, ensuring the consolidated financial statements reflect only external transactions. This is the correct configuration for eliminating intercompany activity during the consolidation process.

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Consolidation groups

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Financial dimensions

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Intercompany accounting setup

Question 8

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

Accepted Answer

Accounts payable. Accounts payable is a core financial management capability in Dynamics 365 Finance and Operations. It manages vendor invoices, payments, and expense tracking, ensuring accurate liability recording and timely disbursements. This module integrates directly with the general ledger to maintain financial integrity.

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Field service

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Project management

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Warehouse management

Question 9

Which THREE features are part of Dynamics 365 Supply Chain Management? (Choose three.)

Accepted Answer

Transportation management. Transportation management is a core feature of Dynamics 365 Supply Chain Management that handles inbound and outbound shipping, freight rating, routing, and carrier selection. It integrates with warehouse management to optimize delivery schedules and costs, making it a key supply chain capability.

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Human resources

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Budgeting

Question 10

Which TWO benefits does using Lifecycle Services (LCS) provide for Dynamics 365 Finance and Operations implementations? (Choose two.)

Accepted Answer

Providing implementation methodology guidance. Option B is correct because LCS (Lifecycle Services) includes Business Process Modeler (BPM) and the Sure Step-derived implementation methodology, giving teams prescriptive guidance, task libraries, and phase-based project templates for Dynamics 365 Finance and Operations rollouts. Option C is correct because LCS provides the Cloud-hosted environments tool, which lets partners and customers deploy Microsoft-managed, Azure-hosted Dynamics 365 F&O sandbox and development VMs (Tier 1 through Tier 5) directly from the LCS portal. Option A is not a benefit of LCS itself, since custom code is written in Visual Studio with X++ and version-controlled in Azure DevOps or Team Foundation Version Control, not authored in LCS. Option D is incorrect because user subscriptions and licensing are managed through the Microsoft 365 admin center and Microsoft Entra ID, not LCS. Option E is incorrect because AI-powered insights come from tools such as Dynamics 365 Customer Insights or Power Platform AI Builder, not from LCS's core project and environment management capabilities.

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Writing custom code

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Managing user subscriptions

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Providing AI-powered insights

Question 11

Refer to the exhibit. A configuration snippet from Dynamics 365 Finance and Operations defines a workflow. What does this workflow do?

Accepted Answer

Require manager approval for purchase orders over $10,000. The workflow configuration in Dynamics 365 Finance and Operations defines a conditional approval step: when a purchase order exceeds $10,000, it is routed to the user's manager for approval. This is a standard workflow condition that triggers a specific approval step based on a monetary threshold, ensuring that high-value orders receive managerial oversight before proceeding.

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Reject purchase orders over $10,000

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Automatically approve all purchase orders under $10,000

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Send all purchase orders to the VP for approval

Question 12

Refer to the exhibit. A Power BI report configuration for Dynamics 365 Finance and Operations shows a data source, measure, filter, and visual. What does this configuration produce?

Accepted Answer

A bar chart of total sales for 2025. The configuration shows a filter set to 'Year = 2025', a measure for 'Total Sales', and a visual type set to 'Bar chart'. This means the report will display a bar chart of total sales specifically for the year 2025, not any other year or a line chart over time.

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A bar chart of total sales for 2024

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A table showing total sales by year

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A line chart of total sales over time

Question 13

A manufacturing company uses Dynamics 365 Finance and Operations. They want to automatically post a purchase order once it is approved by a manager. What feature should they configure?

Accepted Answer

Workflow. Workflow in Dynamics 365 Finance and Operations is the correct feature because it allows you to define a business process that automatically triggers an action—such as posting a purchase order—once a specific condition (e.g., manager approval) is met. Workflows can be configured to run without manual intervention, enabling the automatic posting of the purchase order immediately after the approval step completes.

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Electronic reporting

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Batch job

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Budget control

Question 14

A company is implementing Dynamics 365 Finance and needs to track inventory costs using a standard costing method. Which inventory model should they select?

Accepted Answer

Standard cost. Standard cost is the correct inventory model because it values inventory at predetermined costs, which aligns with the requirement to track inventory costs using a standard costing method. In Dynamics 365 Finance, the standard cost model uses predefined item costs and variances to capture differences between actual and standard costs, enabling cost control and analysis.

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LIFO

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FIFO

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Weighted average

Question 15

A retail company uses Dynamics 365 Commerce integrated with Finance. They notice that store transactions are not appearing in the general ledger. What is the most likely cause?

Accepted Answer

P-job distribution is failing. In Dynamics 365 Commerce integrated with Finance, store transactions are processed through a series of batch jobs. The P-job (Processing job) is responsible for pulling raw transaction data from the channel database into the headquarters (HQ) staging tables. If the P-job distribution is failing, transactions never reach HQ, and therefore cannot be posted to the general ledger, even if statement posting is run later.

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Commerce scheduler is not configured

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Statement posting is not run

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Inventory update is not completed