MB-920 Describe the core capabilities of the finance and operations apps Practice Test 3 — 15 Questions

Question 1

A company uses Dynamics 365 Human Resources. They need to automate the process of sending onboarding tasks to new employees based on their start date. Which feature should they configure?

Accepted Answer

Personnel actions workflow. Personnel actions workflows in Dynamics 365 Human Resources allow you to automate business processes, such as sending onboarding tasks to new employees based on their start date. By configuring a personnel action workflow, you can define conditions (e.g., start date) that trigger specific actions, including the assignment of onboarding checklists and tasks. This directly meets the requirement for automated task distribution.

Answer

Employee self-service goals

Answer

Position hierarchies

Answer

Checklist templates

Question 2

A company uses Dynamics 365 Finance to manage its general ledger. They need to create a financial report that shows actual vs budget amounts for each department. Which tool should they use?

Accepted Answer

Financial reporting module. Financial reporting in Dynamics 365 Finance allows creating custom reports with budget comparisons. Option D is correct. Option A (Financial dimension sets) is a configuration for defining dimensions, not a reporting tool. Option B (Power BI content packs for Finance) is for analytics, but Financial reporting is more appropriate. Option C (Export to Excel and create a pivot table) is a manual workaround that requires moving data to Excel, rather than a built-in reporting tool.

Answer

Financial dimension sets

Answer

Power BI content packs for Finance

Answer

Export to Excel and create a pivot table

Question 3

Which TWO of the following are capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse management. Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, enabling advanced inbound and outbound processes, wave management, and mobile device-driven warehouse operations. Production control (C) is also a core capability, providing functionality for production orders, batch orders, and lean manufacturing, including BOM management and routing.

Answer

Project cost management

Answer

Budget control

Answer

Omni-channel commerce

Question 4

You are reviewing a budget plan import file for Dynamics 365 Finance. The exhibit shows a JSON snippet for a budget plan line. Which of the following is a required field that is missing from this snippet?

Accepted Answer

BudgetPlanLine.BudgetPlanLineDetail. The BudgetPlanLine.BudgetPlanLineDetail is a required field in the budget plan import file for Dynamics 365 Finance. This field contains the detailed financial data (such as amounts and currency) that must be associated with each budget plan line. Without it, the import process fails as the system cannot map the line to its corresponding financial details.

Answer

BudgetPlanLine.Period

Answer

BudgetPlanLine.Account

Answer

BudgetPlanLineDetail.BudgetModel

Question 5

You are troubleshooting a purchase order import in Dynamics 365 Finance. The exhibit shows an XML snippet for a purchase order. The import fails with an error stating that the purchase order line is missing a required field. Which field is missing?

Accepted Answer

LineNumber. The error indicates that a required field is missing from the purchase order line. In Dynamics 365 Finance, the LineNumber field is mandatory for each purchase order line because it uniquely identifies the line within the import process and is used for sequencing and reference. Without LineNumber, the system cannot process the line, causing the import to fail.

Answer

TaxGroup

Answer

ReceiptDateRequested

Answer

LineDescription

Question 6

You are importing sales orders into Dynamics 365 Finance and Operations using Data Management. The exhibit shows the structure of the import file. Which field is required for the sales order header but missing?

Accepted Answer

OrderType. In Dynamics 365 Finance and Operations, the SalesOrderType field is mandatory for the sales order header when importing via Data Management because it determines whether the order is a journal or a standard order. Without this field, the system cannot process the header record, as it defaults to a specific type required for validation and downstream integration.

Answer

LineTotal

Answer

SalesOrderNumber

Answer

DeliveryAddress

Question 7

A company uses Dynamics 365 Finance and Operations and wants to extend the system to handle a unique business process that is not supported out of the box. What is the recommended approach?

Accepted Answer

Create a custom module using the extensibility framework. Dynamics 365 Finance and Operations provides an official extensibility framework that allows developers to create custom modules and extend the system without modifying the source code. This approach ensures that customizations remain upgrade-safe and supported by Microsoft, unlike direct source code modifications which break the application lifecycle.

Answer

Purchase a third-party ISV solution

Answer

Use Power Apps and Power Automate

Answer

Modify the source code of Finance and Operations

Question 8

Refer to the exhibit. A validation rule configuration for Dynamics 365 Finance and Operations is shown. What happens when a user enters a vendor invoice with an invoice date of tomorrow and a total amount of $100?

Accepted Answer

The date rule fails and the invoice is not saved. The validation rule configuration shown in the exhibit includes a date rule that checks whether the invoice date is less than or equal to the current date. Since the user entered an invoice date of tomorrow (a future date), this condition evaluates to false, causing the date rule to fail. When a validation rule fails, the system prevents the record from being saved, so the invoice is not saved. The amount rule is not the cause of the failure because $100 likely satisfies the amount condition (e.g., amount > 0), but the date rule failure alone blocks the save.

Answer

The amount rule fails and the invoice is not saved

Answer

Both rules pass and the invoice is saved

Answer

The date rule passes, but the amount rule fails

Question 9

A company uses Dynamics 365 Finance and wants to create financial statements for external reporting. Which tool should they use?

Accepted Answer

Financial reporting. Financial reporting (option C) is the correct tool because it is the dedicated, built-in reporting solution in Dynamics 365 Finance for creating GAAP-compliant external financial statements such as balance sheets, income statements, and cash flow statements. It uses the financial dimensions and main accounts from the general ledger to generate highly formatted, regulatory-ready reports without requiring external tools.

Answer

Excel integration

Answer

Management Reporter

Answer

Power BI

Question 10

A distribution company uses Dynamics 365 Supply Chain Management. They need to automatically allocate inventory to sales orders based on customer priority. What feature should they configure?

Accepted Answer

ATP (Available to Promise). Available to Promise (ATP) in Dynamics 365 Supply Chain Management calculates the quantity of inventory that can be promised to new orders based on existing demand, supply, and lead times. By setting customer priority codes and using allocation methods, the system can automatically allocate ATP quantities to higher-priority customers first, ensuring inventory is allocated according to business rules.

Answer

Picking list

Answer

Inventory reservation hierarchy

Answer

Batch balancing

Question 11

A company using Dynamics 365 Project Operations needs to track time and expenses against a project. Which module should they use?

Accepted Answer

Project management and accounting. In Dynamics 365 Project Operations, the Project management and accounting module is the primary module for tracking time and expenses against a project. It integrates time entry and expense reporting directly with project costing, billing, and budgeting, ensuring that all project-related transactions are captured and allocated correctly.

Answer

Expense management

Answer

Time and attendance

Answer

Human resources

Question 12

A purchase order with a total amount of $15,000 is submitted. Based on the exhibit, how many approvals are required?

Accepted Answer

2. The exhibit (not shown here) typically defines approval thresholds for purchase orders. A $15,000 PO exceeds a lower threshold (e.g., $10,000) but is below a higher threshold (e.g., $20,000), triggering two sequential approvals—one from a manager and one from a director—based on the workflow configuration in Dynamics 365 Finance and Operations.

Answer

3

Answer

1

Answer

0 (auto-approve)

Question 13

A company uses Dynamics 365 Finance and Operations. They need to configure financial dimensions for reporting. Which TWO statements about financial dimensions are correct?

Accepted Answer

Financial dimensions can be used to segment financial data for reporting.. Financial dimensions in Dynamics 365 Finance and Operations are specifically designed to segment financial data, such as splitting revenue by region or product line, enabling granular reporting and analysis. This segmentation allows organizations to create detailed financial statements and pivot on dimensions like cost center or department for deeper insights.

Answer

Financial dimensions cannot be used in budget control.

Answer

Financial dimensions are only applicable to the main account.

Answer

Financial dimensions can only be used in one account structure at a time.

Question 14

A company uses Dynamics 365 Supply Chain Management. They want to implement a lean manufacturing process. Which THREE features should they configure?

Accepted Answer

Production flows. Production flows are the core modeling element for lean manufacturing in Dynamics 365 Supply Chain Management, defining the sequence of activities and the movement of materials through a value stream. They are required to set up a lean production environment and are the foundation for kanban rules and work cells.

Answer

Bill of materials

Answer

Route operations

Question 15

A company uses Dynamics 365 Finance. They need to automate expense report processing. Which TWO capabilities are available in Expense management?

Accepted Answer

Credit card transaction import. Credit card transaction import (Option B) is a core capability of Expense management in Dynamics 365 Finance, allowing employees to automatically import corporate credit card charges into expense reports, reducing manual entry. AI-powered receipt matching (Option D) uses machine learning to match receipt images to expense line items, streamlining approval and audit processes.

Answer

Integration with payroll for automatic deductions

Answer

Direct submission to general ledger

Answer

Automatic payment to employees