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

Question 1

A company uses Dynamics 365 Supply Chain Management. The warehouse manager wants to enable wave processing to automatically create work for outbound orders. Which setup is required?

Accepted Answer

Warehouse management parameters with wave processing enabled. Wave processing in Dynamics 365 Supply Chain Management automates the creation of picking work for outbound orders. To enable this, the warehouse management parameters must have wave processing turned on, which allows the system to automatically generate and process waves when outbound orders are released to the warehouse. Without this setting, waves must be created and processed manually, defeating the automation goal.

Answer

Inventory status for the items

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Location directives for picking

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Reservation hierarchy for the item

Question 2

A company uses Dynamics 365 Supply Chain Management. Which TWO configurations are required to enable the Warehouse Management module?

Accepted Answer

Assign a warehouse management item to each item. Each item that will be used in warehouse management processes must be assigned a 'warehouse management item' flag in the item model group. This flag enables the item to participate in advanced warehouse processes such as wave execution, location directives, and mobile device transactions. Option C is correct because the warehouse record itself must have the 'Use warehouse management processes' option enabled to activate the module for that specific warehouse.

Answer

Set up financial dimensions for inventory

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Configure the advanced warehouse management parameter

Answer

Enable the Warehouse Management feature in Feature Management

Question 3

A company uses Dynamics 365 Finance. The accounting team needs to create a financial report that shows actual vs. budgeted expenses by department. Which THREE components must be configured?

Accepted Answer

Financial dimension sets. Financial dimension sets (A) are required because they define the combination of dimensions (e.g., Department, Cost Center) used to segment actual and budget data in reports. Main accounts (B) are the core accounts from the chart of accounts that capture the expense values. A budget model (C) is necessary because it holds the budget amounts for each account and dimension combination, enabling the actual vs. budget comparison.

Answer

Chart of accounts

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Fixed asset group

Question 4

A company uses Dynamics 365 Commerce. Which TWO features are available to enhance the customer shopping experience online?

Accepted Answer

Product recommendations powered by AI. Dynamics 365 Commerce includes AI-powered product recommendations that analyze customer behavior, purchase history, and browsing patterns to suggest relevant items, directly enhancing the online shopping experience. Option B is correct because the customer loyalty program feature allows retailers to create and manage loyalty schemes, points, and rewards, which increases customer engagement and repeat purchases online.

Answer

Purchase order management

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Inventory counting

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Vendor invoice processing

Question 5

Refer to the exhibit. A budget transfer is being submitted in Dynamics 365 Finance. Based on the JSON, which dimension combination is used for the budget transfer?

Accepted Answer

Department 100 and Cost center CC001. The JSON in the exhibit shows a budget transfer with dimensions: Department = '100' and CostCenter = 'CC001'. Therefore, the dimension combination used is Department 100 and Cost Center CC001, which corresponds to Option C. Option A incorrectly includes Location LOC01, Option B only includes Department, and Option D includes Project P001, none of which match the JSON data.

Answer

Department 100, CostCenter CC001, and Location LOC01

Answer

Department 100 only

Answer

Department 100 and Project P001

Question 6

Refer to the exhibit. A purchase order line shows a LineDiscount of 10.0 and LineAmount of 225.00. If the discount is applied as a percentage, what is the correct interpretation?

Accepted Answer

The line discount is a 10% discount on the line total. The LineDiscount of 10.0 is interpreted as a percentage (10%) when the discount method is set to percentage. This means the line discount is calculated as 10% of the line total, resulting in a LineAmount of 225.00 after the discount is applied. In Dynamics 365 Finance and Operations, the LineDiscount field stores the discount value, and its interpretation depends on the discount method selected on the purchase order line.

Answer

The line discount is applied after line amount calculation

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The line discount is a flat $10.00 reduction

Answer

The line discount is 10% of the unit price

Question 7

Refer to the exhibit. A production order in Dynamics 365 Supply Chain Management has Reservation set to 'Manual'. What does this mean for material availability?

Accepted Answer

Materials must be manually reserved by the user. When the Reservation field on a production order is set to 'Manual', materials are not automatically reserved or consumed. Instead, the user must explicitly reserve materials (e.g., via the production order's 'Reserve' action) before or during production. This ensures that material availability is controlled manually, preventing automatic allocation from inventory.

Answer

Materials are automatically reserved when the order is released

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Materials are automatically consumed during production

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Materials are reserved based on the BOM explosion date

Question 8

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.

Answer

Inventory counting

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Demand forecasting

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Vendor collaboration

Question 9

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.

Answer

Loyalty management

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Product recommendations

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Inventory visibility

Question 10

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 11

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.

Answer

Production control

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Warehouse management

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Asset management

Question 12

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.

Answer

Employee self-service

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Audit logging

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Workflow automation

Question 13

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. Workflow automation in Dynamics 365 Finance can be configured to automatically approve purchase orders under a specified amount and route larger ones for manual approval. Option B is incorrect because budget control enforces spending limits but does not automate approval workflows. Option C is incorrect because audit logging records user actions for compliance, not approval routing. Option D is incorrect because vendor collaboration is for communication with suppliers, not internal approval processes.

Answer

Budget control

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Audit logging

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Vendor collaboration

Question 14

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.

Answer

Inventory visibility

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Customer engagement

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Omnichannel order management

Question 15

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