MB-920 Describe the core capabilities of the finance and operations apps Practice Test 14 — 15 Questions

Question 1

An organization uses Dynamics 365 Supply Chain Management. They have a requirement to automatically generate purchase orders when inventory for a specific item falls below a defined level, but only if the item is not already on order. Which method should they use?

Accepted Answer

Configure coverage groups and item coverage settings with a reorder point and Min/Max coverage code. Option C is correct because Dynamics 365 Supply Chain Management uses coverage groups and item coverage settings to automate replenishment. By configuring a reorder point with a Min/Max coverage code, the system generates purchase orders when inventory falls below the defined level, but only if the item is not already on order, as the system checks existing open orders before creating new ones.

Answer

Implement the vendor self-service portal for purchase order creation

Answer

Set up vendor collaboration to allow vendors to manage inventory replenishment

Answer

Create a procurement catalog and enable automatic requisition approval

Question 2

A company uses Dynamics 365 Finance and Operations with dual-write integration to Dataverse. They notice that some purchase order headers are not syncing to Dataverse. What should they check first to resolve the issue?

Accepted Answer

Check the Dual-write application orchestration form to view synchronization logs and errors. Option D is correct because the Dual-write application orchestration form in Dynamics 365 Finance and Operations provides a dedicated interface to view synchronization logs and errors for dual-write mappings. When purchase order headers fail to sync to Dataverse, this form shows the specific error messages, retry status, and mapping details, making it the first place to diagnose the issue directly within the dual-write infrastructure.

Answer

Examine the System administration > User operations log for errors

Answer

Review Power Automate flow run history for the purchase order sync flow

Answer

Run the Data management framework’s data project to force sync

Question 3

A company uses Dynamics 365 Human Resources (HR) and wants to ensure that new employees are automatically assigned to the correct compensation plan based on their job and department. What must be configured?

Accepted Answer

Define eligibility rules in the compensation plan to automatically assign based on job and department. In Dynamics 365 Human Resources, eligibility rules within a compensation plan define the criteria (such as job and department) that automatically assign employees to the correct plan upon hire. This ensures that the system evaluates the employee's attributes and applies the appropriate compensation structure without manual intervention, leveraging the built-in eligibility engine.

Answer

Implement a hiring workflow that triggers an email to HR to manually assign the compensation plan

Answer

Set up a compensation structure for each position individually

Answer

Configure the employee self-service portal to allow managers to assign compensation plans

Question 4

A company uses Dynamics 365 Finance and Operations. The finance team wants to post a vendor invoice that has a discount of 2% if paid within 10 days, otherwise net 30. How should this be configured?

Accepted Answer

Define a Terms of payment with a cash discount code that specifies 2% discount within 10 days. In Dynamics 365 Finance and Operations, a cash discount for early payment is configured by defining a Terms of payment record that includes a cash discount code. The cash discount code specifies the discount percentage (2%) and the discount period (10 days), while the Terms of payment record defines the net due date (30 days). This setup ensures the discount is automatically applied when the vendor invoice is posted and the payment is made within the discount period, without requiring manual entry or per-invoice adjustments.

Answer

Enter the discount manually on each vendor invoice

Answer

Set up the discount in the Purchase order form

Answer

Configure the cash discount in the Vendor invoice journal

Question 5

A company uses Dynamics 365 Supply Chain Management and wants to use AI to predict inventory shortages and suggest reorder quantities. Which feature should they enable?

Accepted Answer

Inventory Visibility Add-in with demand forecasting. The Inventory Visibility Add-in with demand forecasting uses AI and machine learning to analyze historical sales data, predict future demand, and identify potential inventory shortages. It then suggests optimal reorder quantities to maintain stock levels, directly addressing the scenario's need for AI-driven predictions and replenishment recommendations.

Answer

Product lifecycle management (PLM)

Answer

Master planning module

Answer

Warehouse management module

Question 6

A project-based organization uses Dynamics 365 Project Operations. They need to track time and materials against a project and invoice the customer based on actuals. Which project contract billing method should they use?

Accepted Answer

Time and material. A is correct because the Time and Material billing method in Dynamics 365 Project Operations allows the organization to track actual hours and expenses against a project and invoice the customer based on those actuals. This method is designed for projects where the scope is not fully defined upfront, and billing is directly tied to the recorded time and material consumption.

Answer

Cost plus

Answer

Fixed price

Answer

Milestone billing

Question 7

A manufacturing company uses Dynamics 365 Finance and Operations. They need to automate the process of creating purchase orders when inventory for a critical raw material drops below a predefined level. The solution must minimize manual intervention and ensure that purchase orders are created only during business hours. Which feature should they configure?

Accepted Answer

Define reorder point and coverage group for the item, and schedule the master planning batch job to run during business hours.. Option C is correct because the Reorder point functionality with coverage groups can automatically generate purchase orders when inventory falls below the reorder point, and it can be scheduled to run during specific times using batch jobs. Option A is incorrect because Safety stock only triggers replenishment suggestions, not automatic purchase order creation. Option B is incorrect because Item coverage manually sets parameters but doesn't automate order creation. Option D is incorrect because Purchase requisition requires manual approval steps.

Answer

Configure item coverage settings and run the master planning batch job during business hours.

Answer

Create a purchase requisition workflow that triggers when inventory falls below a certain level.

Answer

Set up safety stock levels for the raw material.

Question 8

A retail company is implementing Dynamics 365 Finance and Operations. They need to track the financial performance of each store as a separate profit center. Which configuration should they use?

Accepted Answer

Assign financial dimensions to each store and configure the store as a profit center.. Option D is correct because financial dimensions in Dynamics 365 Finance and Operations allow you to segment financial data for reporting and analysis. By assigning a financial dimension to each store and configuring it as a profit center, the company can track revenue, costs, and profitability at the store level without creating separate legal entities.

Answer

Use the Budget control feature to monitor store spending.

Answer

Set up cost centers for each store.

Answer

Create a separate legal entity for each store.

Question 9

An organization uses Dynamics 365 Supply Chain Management. They receive a large shipment of raw materials that have variable quality. They need to ensure that only materials meeting quality specifications are accepted into inventory. The process should include sampling and testing. Which feature should they use?

Accepted Answer

Quality management. Option B is correct because Quality management in Dynamics 365 Supply Chain Management allows for sampling, testing, and disposition of items based on quality specifications. Option A is incorrect because Inventory management handles storage, not quality checks. Option C is incorrect because Warehouse management deals with movement, not quality. Option D is incorrect because Production control manages manufacturing, not inbound quality.

Answer

Inventory management

Answer

Warehouse management

Answer

Production control

Question 10

A company uses Dynamics 365 Finance and Operations. They need to create a new vendor record and ensure that the vendor is automatically assigned to a specific vendor group based on the vendor's country/region. Which feature should they use?

Accepted Answer

Data entities with business rules. Data entities with business rules allow you to define logic that automatically assigns a vendor to a specific vendor group based on the vendor's country/region during data import or record creation. This feature leverages the business rules framework within data entities to enforce conditional assignments without custom code.

Answer

Vendor workflow

Answer

Vendor groups

Answer

Address books

Question 11

A company uses Dynamics 365 Finance and Operations. They want to provide employees with a self-service portal to view their pay slips, update personal information, and request time off. Which module should they use?

Accepted Answer

Employee self-service. The Employee self-service module in Dynamics 365 Finance and Operations is specifically designed to provide employees with a web-based portal where they can view pay slips, update personal information, and request time off. This module empowers employees to manage their own HR-related tasks without requiring intervention from HR or payroll administrators, directly matching the scenario described.

Answer

Project management and accounting

Answer

Payroll

Answer

Time and attendance

Question 12

A company uses Dynamics 365 Finance and Operations. They are experiencing slow performance in the general ledger module when generating financial statements. The database administrator notices that the general journal table has grown significantly. Which action should they take to improve performance?

Accepted Answer

Use the Data archiving feature to archive old journal entries.. Option C is correct because Archiving old journal entries reduces table size and improves query performance. Option A is incorrect because indexing is already in place; adding more indexes may not help and could degrade write performance. Option B is incorrect because partitioning may help but archiving is a best practice. Option D is incorrect because purging without archiving would delete data permanently.

Answer

Partition the general journal table by fiscal year.

Answer

Add additional indexes to the general journal table.

Answer

Purge all journal entries older than two years.

Question 13

A company uses Dynamics 365 Supply Chain Management. They need to track the movement of inventory items using barcodes and RFID tags. Which module should they use?

Accepted Answer

Warehouse management. Warehouse management (B) is correct because it provides dedicated functionality for tracking inventory movement using barcodes and RFID tags through its mobile device integration and wave processing. This module enables real-time scanning of items during receiving, picking, packing, and shipping operations, leveraging GS1-128 barcode standards and RFID reader integration for automated data capture.

Answer

Inventory management

Answer

Transportation management

Answer

Production control

Question 14

A company uses Dynamics 365 Finance and Operations. They need to generate a report that shows the financial performance of each department for the current fiscal year. Which tool should they use?

Accepted Answer

Financial reports. Financial reports in Dynamics 365 Finance and Operations are the correct tool for generating departmental financial performance reports for the current fiscal year. They are specifically designed to create GAAP/IFRS-compliant financial statements, such as income statements by department, using the built-in financial dimensions and row/column definitions. This tool directly leverages the general ledger data and supports hierarchical reporting structures without requiring external data sources or custom development.

Answer

Power BI

Answer

Management reporter

Answer

Excel integration via OData

Question 15

A company uses Dynamics 365 Supply Chain Management. They want to optimize inventory levels to reduce carrying costs while avoiding stockouts. They need a system that suggests replenishment quantities based on historical demand and lead times. Which feature should they use?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management uses historical demand data, lead times, and on-hand inventory to calculate replenishment suggestions. It generates planned orders that optimize inventory levels, reducing carrying costs while preventing stockouts through time-phased requirements planning.

Answer

Bill of materials

Answer

Inventory valuation

Answer

Procurement and sourcing