MB-920 Describe the core capabilities of the finance and operations apps Practice Test 13 — 15 Questions

Question 1

Which TWO features are part of Dynamics 365 Commerce? (Select two.)

Accepted Answer

Loyalty programs. Loyalty programs are a core feature of Dynamics 365 Commerce, enabling retailers to create, manage, and execute customer loyalty schemes, including points accrual, rewards, and tier management. This functionality is tightly integrated with the omnichannel capabilities to provide a consistent loyalty experience across online and physical store channels.

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Production control

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Project accounting

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Fixed assets

Question 2

Refer to the exhibit. A Dynamics 365 Finance batch job configuration is shown. The job started on December 1, 2025 at 08:00 UTC and is recurring daily. It is currently December 2, 2025 at 10:00 UTC and the job status is 'Executing'. What does this indicate?

Accepted Answer

The job from December 1 is still running, exceeding the recurrence interval.. The batch job started on December 1 at 08:00 UTC with a daily recurrence, and as of December 2 at 10:00 UTC (26 hours later), its status is still 'Executing'. This means the first instance never completed, so the recurrence interval (24 hours) has been exceeded, and the system will not start a new instance until the current one finishes. In Dynamics 365 Finance, a batch job with a recurrence interval shorter than its actual runtime will remain in 'Executing' status and block subsequent scheduled runs.

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The job has encountered an error and is retrying.

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The job is scheduled for weekly recurrence, not daily.

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The job completed successfully on December 1 and is now running the December 2 instance.

Question 3

A Dynamics 365 Finance administrator configures a financial dimension called 'Department' with the following dimension values: 100 - Sales, 200 - Marketing, 300 - IT, 400 - HR. An accountant needs to post an expense to the Marketing department. Which dimension value should they use?

Accepted Answer

200. In Dynamics 365 Finance, financial dimensions use a code-value structure. The dimension value code for Marketing is 200. When posting transactions, the code is used, not the display name. Therefore, the accountant must use dimension value 200 to post an expense to the Marketing department.

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100

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300

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400

Question 4

A manufacturing company uses Dynamics 365 Finance and Operations. They want to automate the generation of purchase orders based on inventory levels falling below a reorder point. Which feature should they configure?

Accepted Answer

Safety stock and reorder point planning. The 'Safety stock and reorder point planning' feature in Dynamics 365 Finance and Operations uses item coverage settings to automatically generate planned purchase orders when projected inventory falls below the defined reorder point. This is part of master planning, which calculates replenishment proposals based on inventory levels, lead times, and demand forecasts.

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Inventory closing and adjustment

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Inventory cycle counting

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Purchase requisition workflow

Question 5

A company uses Dynamics 365 Finance and Operations for financial management. They need to ensure that all vendor invoices are approved before payment. Which module should they use?

Accepted Answer

Accounts payable. The Accounts payable module in Dynamics 365 Finance and Operations is specifically designed to manage vendor invoices, purchase orders, and payment approvals. It includes invoice matching, approval workflows, and payment holds to ensure invoices are validated and approved before payment is processed.

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Accounts receivable

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General ledger

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Budgeting

Question 6

A company uses Dynamics 365 Finance and Operations. They need to set up financial dimensions for cost centers and departments. Which TWO statements about financial dimensions are correct?

Accepted Answer

Financial dimensions are linked to main accounts.. Financial dimensions are linked to main accounts to provide additional segmentation and analytical capabilities in Dynamics 365 Finance and Operations. This linkage allows transactions to be tracked and reported across multiple dimensions, such as cost centers and departments, enabling detailed financial analysis and compliance.

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Financial dimensions are automatically derived from vendor master.

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Financial dimensions are used only in the chart of accounts.

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Financial dimensions cannot be used with advanced rules.

Question 7

A company uses Dynamics 365 Supply Chain Management. They want to implement warehouse management with advanced wave processing. Which THREE components are required for wave processing?

Accepted Answer

Work template. Work templates are required for wave processing because they define the sequence of warehouse work that must be performed, such as picking and staging, when a wave is released. Without a work template, the system cannot generate the actual work lines for warehouse workers to execute.

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Shipment template

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Load template

Question 8

Refer to the exhibit. A Dynamics 365 Finance and Operations administrator reviews a batch job configuration. The job is scheduled to run daily. What is the purpose of this batch job?

Accepted Answer

Post recurring invoices automatically. The batch job configuration shown is for the 'Recurring invoices' process in Dynamics 365 Finance and Operations. When a batch job is set to run daily with the action 'Post,' its purpose is to automatically post recurring invoices that have been previously set up in the recurring invoice template. This automates the posting step, eliminating the need for manual intervention each period.

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Generate recurring invoices

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Send invoice payment reminders

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Print recurring invoices

Question 9

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They notice that during wave processing, pick work is not being created for some sales orders. What should they check first?

Accepted Answer

Wave template and its criteria. Wave templates define the criteria and actions for processing waves, including the creation of pick work. If pick work is not being generated for certain sales orders, the wave template's query filters (e.g., shipping method, warehouse, or item criteria) may be excluding those orders. Checking the wave template and its criteria is the first logical step because it directly controls which orders are processed and how work is created.

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Release to warehouse status

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Reservation hierarchy

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Inventory status of the items

Question 10

A company uses Dynamics 365 Finance. They need to create a new fiscal year and close the previous year. Which module should they use?

Accepted Answer

General ledger. The General ledger module is the correct choice because fiscal year creation and year-end closing are core General ledger processes. In Dynamics 365 Finance, the General ledger module contains the fiscal calendar setup and the year-end close process, which transfers balances from the closing fiscal year to the new fiscal year's opening balances.

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Budgeting

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Accounts payable

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Accounts receivable

Question 11

A company uses Dynamics 365 Human Resources. They need to track employee training and certifications. Which module should they use?

Accepted Answer

Learning management. The Learning management module in Dynamics 365 Human Resources is specifically designed to track employee training, certifications, and skill development. It allows administrators to define courses, assign them to employees, record completion, and manage expiration dates for certifications, directly meeting the requirement.

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Benefits management

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Organization administration

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Leave and absence

Question 12

A company uses Dynamics 365 Project Operations. They need to track project costs and revenue. Which THREE components are essential?

Accepted Answer

Time and expense entry. Time and expense entry (B) is essential because Project Operations captures actual labor and non-labor costs through timesheets and expense reports, which feed the project's cost and revenue actuals. Revenue recognition (C) is essential because Project Operations must recognize revenue for projects, supporting both time-and-materials and fixed-price billing methods to correctly reflect earned revenue. Project cost tracking (D) is essential because the core requirement is to monitor project costs against budgets, including actuals from time, expenses, and materials, enabling profitability analysis. Resource management (A) is not among the marked correct answers, and while useful for staffing, it is not strictly essential to tracking costs and revenue. Fixed asset management (E) is unrelated to project cost and revenue tracking, as it concerns depreciating capital assets rather than project financials.

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Resource management

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Fixed asset management

Question 13

A company uses Dynamics 365 Supply Chain Management. They want to implement vendor collaboration to allow vendors to view purchase orders and confirm delivery dates. Which feature should they enable?

Accepted Answer

Vendor portal. The Vendor portal (also known as the Vendor collaboration workspace) in Dynamics 365 Supply Chain Management enables external vendors to access specific purchase orders, confirm delivery dates, and respond to order changes directly through a secure web interface. This feature is designed specifically for collaborative scenarios where vendors need to view and update order-related information without requiring full system access.

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Vendor invoice automation

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Vendor bidding

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Procurement and sourcing

Question 14

A company wants to automate the generation of purchase orders when inventory levels fall below a predefined threshold. Which capability in Dynamics 365 Finance and Operations should be configured?

Accepted Answer

Replenishment. Replenishment in Dynamics 365 Finance and Operations is the correct capability because it directly supports automated purchase order generation based on inventory levels falling below a predefined reorder point. This feature uses inventory replenishment rules, such as minimum/maximum stocking levels or reorder point calculations, to trigger purchase orders without manual intervention, ensuring stock availability aligns with demand.

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Demand forecasting

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Vendor collaboration

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Procurement catalogs

Question 15

Your organization is implementing Dynamics 365 Finance and needs to ensure that all financial transactions comply with local regulatory requirements for electronic invoicing in a specific country. Which feature should be configured?

Accepted Answer

Electronic reporting (ER). Electronic reporting (ER) is the correct feature because it provides a configurable tool for generating electronic documents in formats required by local regulations, such as electronic invoices. ER allows you to define the data model, mapping, and format for outbound documents, ensuring compliance with country-specific electronic invoicing requirements without custom code.

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Data entities

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Budget control

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Audit policies