MB-920 Describe the core capabilities of the finance and operations apps Practice Test 12 — 15 Questions

Question 1

A manufacturing company uses Dynamics 365 Finance and Operations. They need to automatically adjust raw material orders when production schedules change. Which feature should they configure?

Accepted Answer

Master planning. Planned production orders automatically regenerate material requirements when schedules change, ensuring inventory is adjusted without manual intervention.

Answer

Fixed asset management

Answer

Vendor collaboration

Answer

Inventory journal posting

Question 2

A company experiences slow ledger posting during month-end close. They suspect the General journal batch posting is causing contention. What is the best practice to improve performance?

Accepted Answer

Increase the number of batch tasks per batch job. Using batch processing with multiple tasks per batch reduces contention by running postings in parallel, improving throughput.

Answer

Increase the batch server's memory allocation

Answer

Disable all workflows during month-end

Answer

Post journals manually one by one

Question 3

A retail company uses Dynamics 365 Finance and Operations for financial reporting. They need to ensure that intercompany transactions are eliminated in consolidated financial statements. Which module should they use?

Accepted Answer

Consolidations. The Consolidations module in Dynamics 365 Finance and Operations is specifically designed to combine financial data from multiple legal entities into a single set of consolidated financial statements. It includes built-in functionality to automatically eliminate intercompany transactions and balances, ensuring that the consolidated reports reflect only external financial activity.

Answer

Budgeting

Answer

Accounts payable

Answer

Fixed assets

Question 4

A food processing company needs to track raw materials by batch and expiration date to comply with regulations. Which capability in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Batch and shelf life management. Option D is correct because Dynamics 365 Supply Chain Management includes a dedicated 'Batch and shelf life management' capability that allows companies to assign batch numbers and track expiration dates for raw materials and finished goods. This feature is specifically designed to meet regulatory compliance requirements, such as those in food and pharmaceutical industries, by enabling traceability and shelf-life monitoring throughout the supply chain.

Answer

Warehouse management

Answer

Quality management

Answer

Product configuration

Question 5

An organization uses Dynamics 365 Finance and Operations with dual-write integration to Dataverse. They notice that some financial dimension values are not syncing correctly. What should they verify first?

Accepted Answer

Dual-write mapping configurations. Option C is correct because dual-write mapping configurations define how financial dimension values are synchronized between Dynamics 365 Finance and Operations and Dataverse. If the mappings are incorrect or incomplete, specific dimension values will not sync properly. Verifying these mappings is the first logical step before investigating other integration components.

Answer

Microsoft Entra ID application registration

Answer

Power Automate flows

Answer

Data management framework export settings

Question 6

A company wants to use AI capabilities to predict customer payment delays in Dynamics 365 Finance. Which feature should they enable?

Accepted Answer

Customer payment predictions. Customer payment predictions is the correct feature because it uses AI to analyze historical transaction data, customer payment patterns, and external signals to predict whether a customer will pay an invoice late. This capability is specifically designed to help companies proactively manage collections and reduce days sales outstanding (DSO) in Dynamics 365 Finance.

Answer

Credit and collections management

Answer

Budget control

Answer

Cash flow forecasting

Question 7

A company using Dynamics 365 Supply Chain Management wants to optimize warehouse picking routes to reduce travel time. Which feature should they implement?

Accepted Answer

Wave management. Wave management in Dynamics 365 Supply Chain Management allows you to create and process waves for picking, packing, and shipping. By using wave templates and wave steps, you can optimize picking routes by grouping work into efficient sequences, reducing travel time across the warehouse.

Answer

Inventory counting

Answer

Vendor returns

Answer

Product master data

Question 8

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

Question 9

A company wants to automate the approval of purchase orders under $1,000 in Dynamics 365 Finance and Operations. What should they configure?

Accepted Answer

Workflow for purchase orders. Workflow in Dynamics 365 allows automation of approval processes based on conditions like PO amount.

Answer

Vendor invoice policy

Answer

Budget control

Answer

Purchase agreement

Question 10

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

Question 11

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 12

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 13

A manufacturing company uses Dynamics 365 Finance and Operations to manage its production orders. The production manager notices that the actual material consumption for a batch is significantly higher than the expected consumption. The system is configured for automatic posting of consumption. What should the production scheduler check first to troubleshoot the discrepancy?

Accepted Answer

Check the BOM consumption method (e.g., backflush) and ensure it matches the production process.. Option C is correct because the BOM consumption method (e.g., backflush, manual, or at operation) directly controls how and when material consumption is recorded against a production order. If the system is set to automatic posting but the method (e.g., backflush at start or finish) does not match the actual production process, the system may consume materials incorrectly, leading to discrepancies between expected and actual consumption. Checking this setting is the logical first step before investigating other potential causes.

Answer

Review the vendor quality scorecard for the raw material supplier.

Answer

Ensure the financial dimensions on the production order are correctly assigned.

Answer

Verify that the work center capacity is correctly configured.

Question 14

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 15

A multinational corporation uses Dynamics 365 Finance and Operations with multiple legal entities. The finance team needs to generate a consolidated financial statement that eliminates intercompany transactions automatically. Which feature should they use?

Accepted Answer

Consolidation. Consolidation in Dynamics 365 Finance and Operations is specifically designed to combine financial data from multiple legal entities into a single set of consolidated financial statements. It includes built-in functionality to automatically eliminate intercompany transactions and balances, ensuring that the consolidated report reflects only external financial activity. This directly meets the requirement for generating a consolidated financial statement with automatic intercompany elimination.

Answer

Intercompany accounting

Answer

Budget planning

Answer

Financial reporting