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

Question 1

A company uses Dynamics 365 Finance to manage its financial operations. They need to automate the process of posting vendor invoices that are received via email. Which feature should they configure?

Accepted Answer

Vendor invoice automation. Option A is correct because the Vendor invoice automation feature in Dynamics 365 Finance allows automated processing of vendor invoices from email attachments. Option B is wrong because Electronic reporting is for configuring electronic documents, not invoice automation. Option C is wrong because Workflow is for approval processes, not automated posting. Option D is wrong because Data management is for data import/export, not invoice processing.

Answer

Electronic reporting

Answer

Data management

Answer

Workflow

Question 2

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to reduce inventory holding costs by implementing a strategy where materials are ordered only when needed for production. Which inventory strategy should they use?

Accepted Answer

Just-in-time (JIT). Just-in-time (JIT) is the correct inventory strategy because it aligns with the goal of reducing holding costs by ordering materials only when they are needed for production. In Dynamics 365 Supply Chain Management, JIT can be implemented using kanban rules and lean manufacturing principles, which trigger replenishment based on actual consumption rather than forecasted demand, minimizing inventory levels.

Answer

Reorder point

Answer

Economic order quantity (EOQ)

Answer

Safety stock

Question 3

A retail company uses Dynamics 365 Commerce. They notice that the online store is not syncing inventory levels correctly from the warehouse management system. Which component should they troubleshoot first?

Accepted Answer

Commerce Data Exchange (CDX). Commerce Data Exchange (CDX) is the component responsible for synchronizing data between Dynamics 365 Commerce and the warehouse management system. Since inventory levels are not syncing correctly, CDX is the first component to troubleshoot because it handles the data transfer and transformation processes that keep inventory records consistent across channels.

Answer

Retail Cloud Scale Unit (RCSU)

Answer

Product catalog

Answer

Point of sale (POS) system

Question 4

A company uses Dynamics 365 Project Operations. They need to track project costs and revenue recognition in real time. Which module should they use?

Accepted Answer

Project Operations. Dynamics 365 Project Operations is the dedicated module for managing the entire project lifecycle, including cost tracking and revenue recognition in real time. It integrates project planning, resource management, and financials to ensure that project costs and revenue are recognized accurately as work progresses, without needing to switch to separate modules.

Answer

Finance

Answer

Commerce

Answer

Supply Chain Management

Question 5

A company uses Dynamics 365 Finance. They need to generate financial statements that comply with international accounting standards. Which configuration should they use?

Accepted Answer

Financial reporting. Financial reporting in Dynamics 365 Finance is the dedicated configuration for creating, managing, and generating financial statements that comply with international accounting standards such as IFRS. It uses the Financial Reporting module (formerly Management Reporter) to produce balance sheets, income statements, and other reports with multi-currency and multi-entity consolidation support, ensuring compliance with regulatory requirements.

Answer

Budgeting

Answer

General ledger

Answer

Tax engine

Question 6

A company uses Dynamics 365 Supply Chain Management. They are experiencing delays in production because the system does not automatically order raw materials when inventory drops below a certain level. Which master planning parameter should be configured to address this?

Accepted Answer

Reorder point. Option A is correct because the reorder point triggers a planned order when inventory drops below a defined level. Option B is wrong because safety stock is a buffer, not an automatic ordering trigger. Option C is wrong because coverage groups define how items are planned, but the reorder point is the specific parameter. Option D is wrong because the forecast is for demand estimation, not automatic ordering.

Answer

Coverage group

Answer

Safety stock

Answer

Forecast

Question 7

A company uses Dynamics 365 Human Resources. They want to streamline the employee onboarding process by automating document collection and task assignments. Which feature should they use?

Accepted Answer

Personnel management. Personnel management in Dynamics 365 Human Resources provides the 'Hire' and 'Onboard' workflows that automate document collection (e.g., tax forms, employment agreements) and task assignments (e.g., IT setup, training) during employee onboarding. This feature uses configurable checklists and document templates to streamline the process, directly addressing the requirement.

Answer

Benefits management

Answer

Time and attendance

Answer

Compensation management

Question 8

A company uses Dynamics 365 Commerce. They need to offer a promotion where customers get a 10% discount on a specific product line. Which pricing mechanism should they configure?

Accepted Answer

Trade agreement. A trade agreement is the correct pricing mechanism because it allows you to define a specific discount percentage for a product line (e.g., 10% off all items in a category) directly in the Dynamics 365 Commerce pricing engine. Trade agreements are designed for negotiated or promotional pricing on specific products or product lines and are evaluated during price calculation, making them ideal for this scenario.

Answer

Retail discount

Answer

Price adjustment

Answer

Coupon

Question 9

A company uses Dynamics 365 Finance. They want to automatically generate and post vendor payments based on approved invoices. Which feature should they use?

Accepted Answer

Payment proposal. The Payment proposal feature in Dynamics 365 Finance allows users to automatically generate and post vendor payments based on approved invoices. It selects due invoices according to defined criteria (e.g., due date, discount date) and creates payment journal lines, which can then be posted. This directly meets the requirement of automating payment generation from approved invoices.

Answer

Electronic payment

Answer

Vendor invoice automation

Answer

Workflow

Question 10

Which TWO capabilities are part of the core capabilities of Dynamics 365 Finance?

Accepted Answer

Accounts payable. Accounts payable is a core capability of Dynamics 365 Finance because it manages vendor invoices, purchase orders, and payment processing, directly integrating with the general ledger to ensure accurate financial reporting. This module handles end-to-end vendor financial transactions, including invoice matching, payment scheduling, and aging analysis, which are fundamental to the finance function.

Answer

Customer service

Answer

Warehouse management

Answer

Project management

Question 11

Which THREE are core capabilities of 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 processes, wave execution, and location directives to optimize inventory movement and storage. It integrates with barcode scanning and mobile device workflows to enable real-time warehouse operations.

Answer

Budgeting

Answer

Sales order processing

Question 12

Which TWO features are included in Dynamics 365 Commerce to enhance the customer experience?

Accepted Answer

Personalized offers. Options B and C are correct. Product recommendations and Personalized offers are features in Dynamics 365 Commerce. Option A (Inventory visibility) is a capability but more operational. Option D (Demand forecasting) is for planning. Option E (Vendor collaboration) is for supply chain.

Answer

Vendor collaboration

Answer

Inventory visibility

Answer

Demand forecasting

Question 13

Refer to the exhibit. You are implementing Dynamics 365 Finance for Contoso. The configuration JSON includes a list of modules. Which module is missing to ensure full financial management capabilities?

Accepted Answer

Cash and bank management. Cash and bank management is a core financial module in Dynamics 365 Finance that handles bank accounts, checks, deposits, and reconciliations. Without it, the system cannot manage cash flow, bank transactions, or financial reconciliation, which are essential for full financial management capabilities.

Answer

Project management

Answer

Inventory management

Answer

Procurement

Question 14

Refer to the exhibit. A company configures Dynamics 365 Supply Chain Management with the parameters shown. They notice that material requirements planning (MRP) is recalculating every time a sales order is entered, causing performance issues. Which parameter should be changed?

Accepted Answer

ExplosionMode. The 'ExplosionMode' parameter controls when MRP recalculates demand. Setting it to 'Always' causes MRP to regenerate every time a sales order is entered, leading to performance degradation. Changing it to 'Never' or 'MinMax' prevents unnecessary recalculations and improves system responsiveness.

Answer

DynamicPlan

Answer

RouteNetwork

Answer

FrozenPlan

Question 15

Refer to the exhibit. A company is setting up Dynamics 365 Commerce. They have configured the payment connector as shown. However, online payments are failing. What is the most likely cause?

Accepted Answer

The retailServer API version is incompatible. The payment connector configuration requires the retailServer API version to match the version of the Commerce Scale Unit (CSU) that processes the payment. An incompatible API version causes the connector to fail when communicating with the payment gateway, leading to online payment failures. This is the most likely cause because the exhibit shows a retailServer API version that does not align with the deployed CSU version.

Answer

The retailServer URL is missing

Answer

The merchantId is incorrect

Answer

The channel list does not include Online