MB-920 Describe the core capabilities of the finance and operations apps Practice Test 2 — 15 Questions

Question 1

A manufacturing company uses Dynamics 365 Finance. They need to automate the process of reordering raw materials when inventory falls below a predefined level. Which core capability should they use?

Accepted Answer

Replenishment rules. Replenishment rules in Dynamics 365 Finance allow you to define automatic reordering logic based on predefined inventory levels, such as minimum and maximum stock quantities. This capability directly addresses the requirement to trigger purchase orders or transfer orders when raw materials fall below a threshold, without manual intervention.

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Inventory counting

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Demand forecasting

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Vendor collaboration

Question 2

A retail company wants to use Dynamics 365 Commerce to manage online and in-store sales from a single platform. Which core capability should they leverage to unify their sales data?

Accepted Answer

Omnichannel order management. Omnichannel order management is the core capability in Dynamics 365 Commerce that unifies sales data from online and in-store channels into a single order lifecycle. It enables centralized processing, fulfillment, and returns across all channels, ensuring consistent inventory and customer data without silos.

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Loyalty management

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Product recommendations

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Inventory visibility

Question 3

A company implements Dynamics 365 Finance and needs to comply with international accounting standards. They must ensure that all financial transactions are recorded in two ledgers: one for legal reporting and one for internal management. Which feature should they configure?

Accepted Answer

Dual ledger. Dual ledger is the correct feature because it allows an organization to maintain two separate accounting ledgers within the same legal entity: one for legal reporting (typically based on local GAAP or IFRS) and one for internal management reporting (e.g., based on a different accounting standard or internal adjustments). This is achieved through the use of main accounts and financial dimensions, where the legal ledger uses the primary main account structure and the management ledger can use an extended or alternative account structure, ensuring both sets of books are updated simultaneously from a single transaction entry.

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Intercompany accounting

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Single ledger

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Consolidation

Question 4

A logistics company uses Dynamics 365 Supply Chain Management. They want to optimize delivery routes to reduce fuel costs and improve on-time delivery. Which capability should they use?

Accepted Answer

Transportation management. Transportation management in Dynamics 365 Supply Chain Management provides route planning, rate shopping, and shipment consolidation capabilities. It uses real-time data and constraints (e.g., traffic, delivery windows) to optimize delivery routes, directly reducing fuel costs and improving on-time delivery.

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Production control

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Warehouse management

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Asset management

Question 5

A company uses Dynamics 365 Human Resources to manage employee information. They need to ensure that only authorized HR staff can view sensitive personal data. Which feature should they configure?

Accepted Answer

Role-based security. Role-based security (option C) is the correct feature because Dynamics 365 Human Resources uses role-based security to control access to sensitive personal data. By assigning HR staff to specific security roles (e.g., HR Manager, HR Assistant), administrators can grant or deny permissions to view, edit, or delete sensitive fields like Social Security numbers or bank account details. This ensures that only authorized users with the appropriate role can access protected data, aligning with data privacy requirements.

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Employee self-service

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Audit logging

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Workflow automation

Question 6

A company uses Dynamics 365 Finance and wants to automate the approval of purchase orders under $10,000 while requiring manual approval for larger amounts. Which feature should they use?

Accepted Answer

Workflow automation. Option B is correct because workflow automation in Dynamics 365 Finance can be configured to automatically approve purchase orders under a specified amount and route others for manual approval. Option A is wrong because budget control enforces budget limits but does not automate approval processes. Option C is wrong because vendor collaboration facilitates communication with suppliers, not internal approvals. Option D is wrong because audit logging records actions but does not automate approvals.

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Budget control

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Audit logging

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Vendor collaboration

Question 7

A global company uses Dynamics 365 Commerce and wants to provide a consistent shopping experience across online and physical stores. They need to ensure that product prices are synchronized in real-time between channels. Which capability should they leverage?

Accepted Answer

Price synchronization. Dynamics 365 Commerce provides a Price synchronization capability that ensures product prices are updated in real-time across all channels, including online and physical stores. This feature leverages the Retail Server and channel database to propagate price changes instantly, maintaining consistency without manual intervention.

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Inventory visibility

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Customer engagement

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Omnichannel order management

Question 8

A company uses Dynamics 365 Project Operations to manage projects. They need to track project budgets and actual costs in real-time. Which core capability should they use?

Accepted Answer

Project cost management. Project cost management in Dynamics 365 Project Operations provides real-time tracking of budgets versus actual costs by integrating cost estimates, actual transactions, and budget controls. This capability enables project managers to monitor cost performance continuously and receive alerts when costs exceed thresholds, ensuring financial control throughout the project lifecycle.

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Resource management

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Time and expense management

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Project accounting

Question 9

A company uses Dynamics 365 Finance and needs to generate financial statements that comply with both local GAAP and IFRS. They want to avoid maintaining separate sets of books. Which feature should they use?

Accepted Answer

Financial reporting. Financial reporting in Dynamics 365 Finance allows organizations to create, maintain, and deploy financial statements that comply with multiple accounting standards (e.g., local GAAP and IFRS) from a single set of financial data. It uses reporting trees and row/column definitions to generate different report formats without requiring separate ledger structures, thus avoiding the need for duplicate books.

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Dual ledger

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Consolidation

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Intercompany accounting

Question 10

Which TWO capabilities are core to Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse management. Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced inbound and outbound warehouse operations, wave processing, and location directives. Transportation management (E) is also core, offering freight rating, routing, and shipment consolidation to optimize logistics. Together, they directly support the end-to-end supply chain processes within the application.

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Project cost management

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Omnichannel order management

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Financial reporting

Question 11

Which THREE capabilities are core to Dynamics 365 Finance?

Accepted Answer

General ledger. General ledger is a core capability of Dynamics 365 Finance because it serves as the central repository for all financial transactions, providing the foundation for financial reporting, account structures, and fiscal period management. It enables organizations to maintain a complete audit trail and comply with accounting standards such as GAAP and IFRS.

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Production control

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Warehouse management

Question 12

Which TWO capabilities are core to Dynamics 365 Commerce?

Accepted Answer

Loyalty management. Loyalty management is a core capability of Dynamics 365 Commerce because it enables retailers to create, manage, and execute loyalty programs (e.g., points-based, tiered) directly within the omnichannel commerce platform. Product recommendations are also core, leveraging AI and machine learning to provide personalized product suggestions across e-commerce and point-of-sale (POS) channels, driving cross-sell and up-sell opportunities.

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Project cost management

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Transportation management

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Budget control

Question 13

Refer to the exhibit. This JSON snippet represents a budget record in Dynamics 365 Finance. Which core capability is being configured?

Accepted Answer

Budget control. The JSON snippet defines budget control parameters such as 'BudgetControlConfiguration', 'BudgetCycle', and 'BudgetInterval', which are used to enforce budget checks during financial transactions. This directly configures the Budget Control module in Dynamics 365 Finance, enabling organizations to monitor and restrict expenditures against approved budgets.

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Fixed asset management

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Project accounting

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General ledger

Question 14

Refer to the exhibit. This XML snippet shows a workflow configuration in Dynamics 365 Finance. What is the purpose of this workflow?

Accepted Answer

To automate purchase order approval based on amount. The workflow configuration in Dynamics 365 Finance uses a condition based on the purchase order amount to trigger an approval step. This is the core purpose of a purchase order approval workflow: to automatically route purchase orders for approval when they exceed a defined monetary threshold, ensuring proper authorization before the order is processed.

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To enforce budget control on purchase orders

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To facilitate vendor collaboration

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To match purchase orders with invoices

Question 15

Refer to the exhibit. This data represents a product record in Dynamics 365 Commerce. Which core capability is demonstrated by applying a 10% discount from a promotion?

Accepted Answer

Customer engagement and loyalty management. Applying a 10% discount from a promotion directly demonstrates the customer engagement and loyalty management capability in Dynamics 365 Commerce. This feature allows businesses to create and manage promotional pricing rules, such as percentage discounts, to incentivize purchases and reward customer loyalty. The discount is applied at the point of sale or online checkout based on configured promotion logic, not through inventory or order management processes.

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Omnichannel order management

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Inventory visibility

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Price synchronization