MB-920 Describe the core capabilities of the finance and operations apps Practice Test 19 — 15 Questions

Question 1

A Dynamics 365 Finance user needs to create a financial dimension that will be used to track expenses by department and cost center across all legal entities. Which feature should they use?

Accepted Answer

Financial dimensions. Financial dimensions are the correct feature for creating dimensions like Department and Cost center. They allow tracking of financial data across legal entities when configured with shared values. Account structures then use these dimensions to define valid account combinations. Main accounts and period allocation keys serve different purposes and do not create dimensions.

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Period allocation keys

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Main accounts

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Account structures

Question 2

A global company uses Dynamics 365 Commerce. They want to ensure that product pricing and promotions are consistent across all physical stores and the online store. Which feature should they configure?

Accepted Answer

Omnichannel pricing and promotions. Omnichannel pricing and promotions is the feature that enables consistent pricing and promotional offers across all sales channels. It allows centralized configuration in Commerce headquarters, which then distributes to stores and online. This ensures that customers see the same prices and promotions regardless of channel, directly satisfying the company's requirement.

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Retail channel navigation hierarchy

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Commerce Scale Unit (CSU)

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Channel database

Question 3

A company uses Dynamics 365 Finance to manage its financial operations. The accounting manager wants to configure a process that automatically posts intercompany transactions between two legal entities when a sales order is created in one entity and the items are shipped from another entity. Which feature should the manager use?

Accepted Answer

Intercompany accounting. Intercompany accounting is the correct feature because it automates the creation of corresponding transactions in multiple legal entities when a sales order is processed. It ensures that both the selling and shipping entities record the appropriate financial entries without manual intervention, maintaining accurate books across the organization.

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Financial dimensions

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Ledger settlement

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Consolidation accounts

Question 4

A company uses Dynamics 365 Supply Chain Management to manage its production operations. The production manager needs to schedule production jobs to meet customer demand while optimizing the use of resources. Which two capabilities are provided by master planning in Dynamics 365 Supply Chain Management? (Choose two.)

Accepted Answer

It automatically generates planned production orders based on demand and inventory levels.. Master planning in Dynamics 365 Supply Chain Management generates planned orders and calculates net requirements based on demand, supply, and inventory. These capabilities enable the production manager to plan production to meet demand while optimizing resources. Execution and detailed scheduling are handled by other modules.

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It automatically adjusts production routes based on machine availability.

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It directly executes production jobs on the shop floor.

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It provides a visual scheduling board for sequencing production jobs.

Question 5

A company uses Dynamics 365 Supply Chain Management. They want to ensure that when a sales order is confirmed, the system automatically creates a purchase order for a drop-ship item that is not stocked. Which configuration should they use?

Accepted Answer

Enable direct delivery on the sales order line and specify a vendor.. Direct delivery is the correct configuration for drop-shipping. By enabling direct delivery on a sales order line and specifying a vendor, the system automatically creates a purchase order when the sales order is confirmed. This ensures the vendor ships directly to the customer. Other options do not provide this automatic, drop-ship-specific behavior.

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Set the item's default order type to Purchase order and configure a vendor on the sales order line.

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Create a transfer order from the sales order and set the from warehouse to a vendor location.

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Use master planning to generate a planned purchase order and then firm it manually.

Question 6

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. They need to ensure that all outbound shipments are packed and labeled according to customer requirements before leaving the warehouse. Which feature should they use?

Accepted Answer

Outbound packing station. The outbound packing station is a dedicated feature within Dynamics 365 Supply Chain Management that enables warehouse workers to pack items into containers and generate labels for outbound shipments. It supports container packing, packing slip generation, and label printing, ensuring that shipments meet customer requirements. Other features like warehouse management, transportation management, and inventory management do not provide the specific packing and labeling capabilities required.

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Inventory management

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Transportation management

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Warehouse management

Question 7

A distribution company uses Dynamics 365 Supply Chain Management. The warehouse manager needs to ensure that inventory is reserved for specific sales orders so that the stock is not allocated to other orders. Which functionality should the manager use?

Accepted Answer

Inventory reservation. Inventory reservation is the correct functionality because it explicitly ties specific inventory to a sales order, preventing other orders from consuming that stock. This ensures that the warehouse can fulfill the designated orders without conflict, which is exactly what the manager needs.

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Inventory counting

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Inventory blocking

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Inventory tagging

Question 8

A Dynamics 365 Finance user needs to ensure that all purchase orders over $10,000 are approved by the CFO before they can be confirmed. Which feature should they configure?

Accepted Answer

Purchase order workflow. Purchase order workflows are designed to enforce approval processes based on conditions like total amount. Configuring a workflow with a condition that triggers approval by the CFO for purchase orders over $10,000 ensures compliance. Budget control, procurement categories, and vendor collaboration serve different purposes and do not provide the required approval routing.

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Vendor collaboration

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Budget control

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Procurement categories

Question 9

A company uses Dynamics 365 Finance to manage its accounts payable processes. They want to automate the approval of vendor invoices based on predefined rules and thresholds. Which feature should they use?

Accepted Answer

Vendor invoice workflow. Vendor invoice workflow is the feature that automates the approval of vendor invoices based on predefined rules and thresholds. It allows you to define conditions and route invoices to approvers. Invoice matching validates invoices but does not approve them. Payment proposal generates payments, and vendor groups categorize vendors. Only vendor invoice workflow provides the required approval automation.

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Vendor groups

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Payment proposal

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Invoice matching

Question 10

A global distribution company uses Dynamics 365 Finance to manage its financial operations. The controller needs to close the books for a specific legal entity at the end of the fiscal period, ensuring that all subledger transactions are posted and the period is locked. Which feature should the controller use to accomplish this?

Accepted Answer

Period close workspace. The Period close workspace is designed specifically to manage the financial period close process. It provides checklists, tasks, and monitoring capabilities to ensure all subledger transactions are posted and periods are locked. Other features like financial dimensions, budgeting workflows, and cash flow forecasting serve different purposes and cannot accomplish the period close requirements.

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Budgeting workflows

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Financial dimensions configuration

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Cash flow forecasting

Question 11

A company uses Dynamics 365 Project Operations. The project manager needs to track costs and revenues for a fixed-price project. The project has multiple tasks, and the manager wants to recognize revenue based on the percentage of completion method. Which feature should the manager use?

Accepted Answer

Revenue recognition. Revenue recognition is the correct feature because it provides the functionality to recognize revenue using the percentage of completion method for fixed-price projects. It calculates revenue based on project progress, ensuring that financial statements reflect the appropriate revenue and costs.

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Project contract billing rules

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Project budget

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Cost templates

Question 12

A company uses Dynamics 365 Finance. They need to perform period-end closing activities for the general ledger. Which two tasks are part of the general ledger period-end close process? (Choose two.)

Accepted Answer

Allocate costs across departments using allocation rules.. General ledger period-end close involves tasks such as posting adjusting journal entries for accruals and deferrals, and allocating costs across departments using allocation rules. These activities ensure accurate financial reporting for the period. Bank reconciliation, master planning, and inventory closing are handled in other modules and are not core general ledger close tasks.

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Run master planning to generate planned orders.

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Calculate inventory cost and perform inventory closing.

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Reconcile bank statements with bank transactions.

Question 13

A company uses Dynamics 365 Supply Chain Management to manage its production processes. They need to schedule production jobs to minimize changeover time and optimize the sequence of operations on machines. Which scheduling method should they use?

Accepted Answer

Schedule optimization. Schedule optimization is the feature that uses optimization algorithms to sequence production jobs, considering constraints like changeover times, to minimize setup and improve efficiency. Operations scheduling and job scheduling provide detailed schedules but do not optimize sequences. Lean scheduling is for lean environments. Only schedule optimization delivers the required changeover minimization.

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Lean scheduling

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Job scheduling

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Operations scheduling

Question 14

A company uses Dynamics 365 Finance to manage vendor invoices. They want to reduce manual data entry by automatically capturing invoice header and line details from PDF invoices received via email. Which feature should they configure?

Accepted Answer

Vendor invoice automation with Invoice capture. Invoice capture uses AI Builder to read PDF invoices and create pending vendor invoices with extracted header and line details, directly eliminating manual keying. Three-way matching validates data but does not capture it. Vendor collaboration requires vendor entry, and accrual schemes handle accounting accruals, not document ingestion. Only Invoice capture addresses the automated extraction requirement.

Answer

Vendor collaboration workspace

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Accounts payable accrual schemes

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Three-way matching policy

Question 15

A company uses Dynamics 365 Finance. The controller wants to ensure that all vendor invoices above $10,000 require approval before payment. Which feature should you configure?

Accepted Answer

Accounts payable invoice workflow. The requirement is to enforce approval for vendor invoices above a specified amount. Accounts payable invoice workflows are designed exactly for this: they apply conditional routing so that invoices meeting the $10,000 threshold are sent for approval before posting or payment. Other features address payment generation, procurement confirmation, or budget checking but do not provide amount-based approval routing for invoices.

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Purchase order confirmation

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Budget control configuration

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Vendor payment proposal