MB-920 Describe the core capabilities of the finance and operations apps Practice Test 20 — 15 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager wants to ensure that picking work is directed to the most efficient location for each item, minimizing travel time. Which feature should be configured to achieve this?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Location directives. Location directives are used to determine the picking and put-away locations based on configurable strategies. By setting up a location directive with a strategy that prioritizes the closest location or a specific picking path, the warehouse manager can ensure that picking work is directed efficiently, reducing travel time and improving productivity.

Answer

Work templates

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Inventory reservation hierarchies

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Wave templates

Question 2

A company is evaluating Dynamics 365 Finance to manage its core financial operations. They need to understand which capabilities are included in the general ledger module. Which two capabilities are part of the general ledger? (Choose two.)

Accepted Answer

Financial dimensions. The general ledger module in Dynamics 365 Finance includes capabilities such as financial dimensions and budgeting. Financial dimensions allow detailed transaction tagging, and budgeting provides planning and control. Accounts payable, fixed assets, and cash and bank management are separate modules that integrate with the general ledger but are not part of it. Therefore, the correct capabilities are financial dimensions and budgeting.

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Cash and bank management

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Fixed assets

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Accounts payable

Question 3

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager wants to ensure that picking work is directed to the most efficient location for each item, minimizing travel time. Which feature should be configured to achieve this?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Master planning. Master planning is the requirements planning engine that nets demand forecasts against on-hand inventory and open orders to produce planned purchase orders. Inventory forecasting only supplies demand data, warehouse management executes physical operations, and procurement processes orders but does not plan them. For automatic generation of planned purchase orders based on forecasts and inventory, master planning is the correct feature.

Answer

Inventory forecasting

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Procurement and sourcing

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Warehouse management

Question 4

A retail company uses Dynamics 365 Commerce. They want to enable customers to buy online and pick up their orders at a physical store. Which capability should they implement?

Accepted Answer

BOPIS (Buy Online, Pickup In Store). The scenario requires an omnichannel fulfillment option where customers buy online and collect in a store. BOPIS is the specific Dynamics 365 Commerce feature designed for this. It integrates e-commerce with store inventory and operations, allowing customers to choose a pickup location during online checkout. Other options address call center orders, store configuration, or loyalty, but none deliver the required online purchase with in-store pickup.

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Retail channel management

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Loyalty program setup

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Call center order processing

Question 5

A company uses Dynamics 365 Finance to manage its accounts payable process. The accounting manager wants to ensure that all vendor invoices above $10,000 are automatically routed to the CFO for approval before payment. The company also needs to maintain an audit trail of who approved each invoice and when. What should the manager configure?

Accepted Answer

Set up a vendor invoice workflow with a conditional approval step based on the invoice total.. The requirement is to automatically route vendor invoices over $10,000 to the CFO for approval and keep an audit trail. This is achieved by configuring a vendor invoice workflow with a conditional approval step that evaluates the invoice total. The workflow ensures that only invoices meeting the condition are sent to the CFO, and it logs each approval action, satisfying both the approval and audit needs.

Answer

Create a purchase order workflow that includes an approval task for the CFO.

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Configure a ledger accrual scheme to hold invoices above $10,000 until manually released.

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Set up a vendor posting profile to restrict posting of large invoices.

Question 6

A company uses Dynamics 365 Finance to manage its accounts payable processes. The accounts payable manager wants to streamline the approval of vendor invoices by automatically routing them to the appropriate approver based on the invoice amount. Which feature should be configured?

Accepted Answer

Workflow. Workflow in Dynamics 365 Finance is the appropriate feature for automating approval processes. By configuring a workflow for vendor invoices with conditional decisions based on the invoice amount, the system can automatically route invoices to the appropriate approver. This streamlines the approval process and ensures that invoices are reviewed by the correct person.

Answer

Budget control

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Vendor collaboration workspace

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Accounts payable invoice matching

Question 7

A company uses Dynamics 365 Commerce to manage its online store. The e-commerce manager wants to configure a promotion that offers a 10% discount on a specific product category when the customer's cart total exceeds $100. Which type of discount should the manager configure?

Accepted Answer

Threshold discount. Threshold discounts in Dynamics 365 Commerce are used to apply a discount when the cart total meets or exceeds a specified amount. They can be scoped to specific product categories, making them ideal for the described promotion. The manager should configure a threshold discount with a 10% off action and a condition of cart total > $100 for the designated category.

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Discount offer

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Mix and match discount

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Quantity discount

Question 8

A company uses Dynamics 365 Finance to manage its accounts payable processes. The AP manager needs to configure the system to automatically match vendor invoices to purchase orders and product receipts, and to handle discrepancies according to predefined tolerances. Which TWO features should the manager configure? (Choose two.)

Accepted Answer

Invoice tolerances. Invoice matching and invoice tolerances work together to automatically compare vendor invoices to purchase orders and product receipts, and to handle discrepancies based on predefined rules. Vendor collaboration, payment terms, and posting profiles serve different purposes. Only invoice matching and invoice tolerances directly enable the required automation and discrepancy management.

Answer

Vendor collaboration

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Payment terms

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Posting profiles

Question 9

A company is implementing Dynamics 365 Supply Chain Management. The warehouse manager needs to ensure that when a sales order is created, the system automatically reserves inventory for that order to prevent other orders from promising the same stock. Which feature should be used to achieve this?

Accepted Answer

Inventory reservation. To automatically reserve inventory for a sales order upon creation, the inventory reservation feature is used. It ties specific inventory to the order, preventing other orders from promising the same stock. This is different from ATP, which only calculates availability, and from blocking or marking, which serve other purposes.

Answer

Available to promise (ATP)

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Inventory marking

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Inventory blocking

Question 10

A company uses Dynamics 365 Supply Chain Management. They need to plan production based on demand forecasts and automatically generate planned production orders. Which feature should they use?

Accepted Answer

Master planning. The requirement is to plan production from demand forecasts and automatically generate planned production orders. Master planning is the planning engine in Dynamics 365 Supply Chain Management that performs net requirements calculation, considers forecasts and existing supply/demand, and creates planned orders. Production control, inventory management, and warehouse management are execution or tracking features that do not generate planned orders from forecasts.

Answer

Warehouse management

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Production control

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Inventory management

Question 11

A company uses Dynamics 365 Finance. The controller needs to create a financial report that shows the company's profitability by comparing revenue and expenses for the current quarter against the previous quarter. Which tool should the controller use?

Accepted Answer

Financial reporting. Financial reporting is the standard tool for generating formatted financial statements from general ledger data. It supports multiple columns for different periods, enabling quarter-over-quarter comparison of revenue and expenses. General ledger inquiries lack report formatting, Power BI reports are analytical rather than statement-oriented, and budgeting focuses on plan versus actual. Therefore, Financial reporting is the correct tool.

Answer

General ledger inquiries

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Power BI default reports

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Budgeting

Question 12

A company uses Dynamics 365 Human Resources. The HR manager needs to track employee skills and competencies to identify training needs and support career development. Which feature should the HR manager use?

Accepted Answer

Skills and competencies. The Skills and competencies feature in Dynamics 365 Human Resources is designed to catalog employee skills, competencies, and certifications. It enables HR to identify skill gaps, plan training interventions, and support career progression. This feature provides the necessary tools to track and manage skills data effectively, aligning with the HR manager's goal.

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Position management

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Performance management

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Compensation management

Question 13

A company uses Dynamics 365 Finance. They need to allocate overhead costs to multiple departments based on square footage. Which feature should they configure?

Accepted Answer

Cost accounting allocation bases. The need is to allocate overhead costs to departments using square footage as the driver. Cost accounting provides allocation bases and policies to distribute costs automatically based on statistical measures. Financial dimensions are for tagging, budgeting is for planning, and general ledger journals are for manual entries. None of those provide the automated allocation capability required here.

Answer

Budgeting

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General ledger journal

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Financial dimensions

Question 14

A company uses Dynamics 365 Human Resources. They need to track employee absences and ensure that absence requests are approved by the correct manager before being recorded. Which feature should they configure?

Accepted Answer

Leave and absence plans with workflows. Leave and absence plans in Dynamics 365 Human Resources define absence types, accrual schedules, and balances. By attaching a workflow to leave requests, the system routes each request to the designated approver, ensuring manager approval before the absence is recorded. Benefit, compensation, and performance management address different HR domains and cannot enforce absence approval workflows, so leave and absence plans with workflows are the correct feature.

Answer

Performance management

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Compensation management

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Benefit management

Question 15

A company uses Dynamics 365 Commerce to manage its retail operations. They want to enable several capabilities to improve the customer experience and streamline store operations. Which two features are available in Dynamics 365 Commerce? (Choose two.)

Accepted Answer

Clienteling. Dynamics 365 Commerce includes clienteling, which equips store associates with customer data for personalized service, and distributed order management, which intelligently routes orders to optimal fulfillment locations. Master planning, production control, and expense management belong to Supply Chain Management and Finance, not Commerce. Therefore, clienteling and distributed order management are the two correct features.

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Expense management

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Master planning

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Production control