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

Question 1

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.

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Organization hierarchy

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Shared parameter setup

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Global address book

Question 2

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. Purchase order approval in Dynamics 365 Finance and Operations is controlled by the Purchase order workflow, which supports conditional branching on the total amount. Configuring a condition such as 'Total amount < 1000' to auto-approve routes low-value POs directly to Approved without human intervention, while larger POs continue through the standard approval chain.

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Vendor invoice policy

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Budget control

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Purchase agreement

Question 3

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.

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Fixed asset management

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Project management

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Human resources

Question 4

Which THREE features are available in Dynamics 365 Finance and Operations to support financial reporting?

Accepted Answer

Default financial dimensions. Option A (Default financial dimensions) is correct because financial dimensions are the core building blocks that let transactions be tagged with cost centers, departments, projects, and other segments, and default dimensions automatically populate these segments on ledger entries so reports can slice balances by dimension. Option B (Budget control) is correct because it enforces spending limits against budget register entries and produces budget vs. actual reporting, which is a fundamental financial reporting capability in Dynamics 365 Finance and Operations. Option E (Financial reporting (management reporter)) is correct because it is the dedicated reporting tool that generates balance sheets, income statements, cash flow statements, and other financial statements from ledger and dimension data. Option C (Warehouse slotting) is incorrect because it is a supply chain management feature for optimizing warehouse storage locations, not a financial reporting feature. Option D (Production scheduling) is incorrect because it belongs to manufacturing and production control for sequencing jobs and operations, and has no role in financial reporting.

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Warehouse slotting

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Production scheduling

Question 5

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.

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Cash flow forecasting

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Fixed asset depreciation

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Inventory valuation

Question 6

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.. 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.

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Review the vendor quality scorecard for the raw material supplier.

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

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Verify that the work center capacity is correctly configured.

Question 7

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.

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The payment method selected by the customer is not supported.

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The pricing engine is disabled for the online store.

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The product in the cart is out of stock.

Question 8

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.

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Intercompany accounting

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Budget planning

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Financial reporting

Question 9

A project manager in a consulting firm uses Dynamics 365 Project Operations. The manager needs to track employee time against specific project tasks and ensure that overtime is approved by the project lead. Which time entry methodology should be used?

Accepted Answer

Use the project time entry and approval workflow.. In Dynamics 365 Project Operations, tracking employee time against specific project tasks with overtime approval requires the project time entry and approval workflow. This methodology allows time entries to be submitted against project tasks, and the workflow can enforce approval rules, such as requiring project lead approval for overtime hours. The other options do not support task-level time tracking with overtime approval.

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Use the absence registration feature.

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Use the resource scheduling board to log time.

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Use the expense report to record time.

Question 10

A warehouse manager notices that a purchase order receipt for 100 units of an item only updates the on-hand quantity by 80 units. The item is serial-controlled. The reception was recorded. What is the most likely reason for the discrepancy?

Accepted Answer

Not all serial numbers were registered during the receipt process.. When a purchase order receipt for 100 units of a serial-controlled item only updates on-hand quantity by 80, the most likely cause is that not all serial numbers were registered during the receipt process. In Dynamics 365 Supply Chain Management, serial-controlled items require each unit to have a unique serial number recorded at the time of receipt; if some serial numbers are missing or not scanned, the system only updates inventory for the registered serial numbers, leaving the receipt partially posted.

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The product dimensions (e.g., color) were not specified.

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A quality order was created for the received items.

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The items were partially reserved for a sales order.

Question 11

A company is implementing Dynamics 365 Supply Chain Management and wants to use AI-powered demand forecasting. The data scientist needs to include external factors like weather and economic indicators. Which feature should be enabled?

Accepted Answer

Demand Forecasting with Azure Machine Learning. Demand Forecasting with Azure Machine Learning is the specific feature in Dynamics 365 Supply Chain Management that allows data scientists to incorporate external factors such as weather and economic indicators into demand predictions. This feature leverages Azure Machine Learning to train custom models that can ingest external datasets alongside historical transaction data, enabling more accurate and context-aware forecasts.

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Asset Management

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Inventory Visibility Add-in

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Warehouse Management

Question 12

A finance manager needs to create a journal entry to record the monthly depreciation of fixed assets. The company uses Dynamics 365 Finance. Which journal type should be used?

Accepted Answer

Fixed assets journal. The Fixed assets journal is specifically designed to record fixed asset transactions such as acquisitions, disposals, and depreciation. In Dynamics 365 Finance, this journal type automatically posts to the correct fixed asset ledger accounts and updates the asset's net book value, making it the appropriate choice for monthly depreciation entries.

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Payment journal

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Inventory journal

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General journal

Question 13

Which TWO capabilities are provided by the Dynamics 365 Finance and Operations asset management module? (Choose two.)

Accepted Answer

Preventive maintenance scheduling. The Dynamics 365 Finance and Operations asset management module is specifically designed to manage physical assets throughout their lifecycle. Preventive maintenance scheduling (B) allows organizations to define and automate maintenance plans based on time or usage triggers, reducing unplanned downtime. Work order management (C) provides a structured process to create, assign, track, and close work orders for maintenance tasks, ensuring efficient resource allocation and completion tracking.

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Vendor collaboration portal

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Project cost accounting

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Sales order processing

Question 14

A data analyst is configuring data entities for export to Azure Data Lake in Dynamics 365 Finance and Operations. The analyst needs to export fiscal calendar period data and customer payment journal headers. Based on the PowerShell exhibit, what action must be taken?

Accepted Answer

Enable the CustomerPaymentJournalHeader data entity.. The PowerShell exhibit shows that the CustomerPaymentJournalHeader data entity is currently disabled, while the FiscalCalendarPeriod data entity is already enabled. To export customer payment journal headers to Azure Data Lake, the CustomerPaymentJournalHeader entity must be enabled. Since the FiscalCalendarPeriod entity is already enabled, no action is needed for it. Therefore, the correct action is to enable the CustomerPaymentJournalHeader data entity.

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Disable the VendorOpenTransactions data entity.

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Enable the FiscalCalendarPeriod data entity.

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Disable the GeneralJournalEntry data entity.

Question 15

You are the Dynamics 365 Finance and Operations administrator for a medium-sized manufacturing company. The company has two legal entities: a US entity (USMF) and a Canadian entity (CAN). The finance team in the US wants to view the Canadian entity's purchase order data in real-time from within the USMF environment. They do not want to log into a separate instance. The company has a single Dynamics 365 Finance and Operations environment with both legal entities configured. You need to configure the system to allow users in USMF to access purchase order data from CAN without duplicating data. The solution must maintain security so that only authorized users can view Canadian data. What should you do?

Accepted Answer

Configure Cross-company data sharing for purchase orders and assign appropriate security roles.. Cross-company data sharing allows real-time access to purchase order data from the CAN legal entity within the USMF environment without duplicating data. By configuring data sharing policies for the purchase order tables and assigning appropriate security roles, you ensure that only authorized users in USMF can view the Canadian data while maintaining data integrity and security.

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Use Data entities to export purchase order data from CAN and import it into USMF on a scheduled basis.

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Set up Data integration to sync purchase order data to Dataverse and then access it from USMF.

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Create an Organizational hierarchy to allow USMF users to view CAN data automatically.