MB-920 Describe the core capabilities of the finance and operations apps Practice Test 4 — 15 Questions

Question 1

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.

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Customer service

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Warehouse management

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Project management

Question 2

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.

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Budgeting

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Sales order processing

Question 3

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

Accepted Answer

Personalized offers. Personalized offers (B) are correct because Dynamics 365 Commerce uses AI-driven customer insights and segmentation to deliver tailored discounts and promotions in real time, directly enhancing the shopping experience. Product recommendations (C) are correct because the system leverages machine learning algorithms to analyze browsing and purchase history, suggesting relevant items to increase cross-sell and upsell opportunities.

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Vendor collaboration

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Inventory visibility

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Demand forecasting

Question 4

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.

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Project management

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Inventory management

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Procurement

Question 5

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.

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DynamicPlan

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RouteNetwork

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FrozenPlan

Question 6

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.

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The retailServer URL is missing

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The merchantId is incorrect

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The channel list does not include Online

Question 7

A company uses Dynamics 365 Finance. The accounting manager needs to automatically match bank statement lines to open invoices and payments. Which feature should be used?

Accepted Answer

Bank reconciliation automation. Bank reconciliation automation in Dynamics 365 Finance automatically matches bank statement lines to open invoices and payments using predefined matching rules and algorithms. This feature reduces manual effort by identifying and reconciling transactions based on criteria such as amounts, dates, and reference numbers, which directly addresses the accounting manager's need.

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Advanced ledger entries

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Payment proposals

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Cash flow forecast

Question 8

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to ensure that raw materials are automatically replenished based on current inventory levels and forecasted demand. Which feature should be configured?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the feature designed to calculate material and capacity requirements based on current inventory levels and forecasted demand. It generates planned orders for replenishment, ensuring raw materials are available to meet production and customer demand without overstocking.

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Quality management

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Vendor collaboration

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Warehouse management

Question 9

A multinational organization uses Dynamics 365 Finance with multiple legal entities. They need to centralize cash management and consolidate bank account balances across entities. What is the recommended approach?

Accepted Answer

Use the Cash and bank management module with cross-company bank accounts. The Cash and bank management module in Dynamics 365 Finance supports cross-company bank accounts, allowing centralized visibility and management of bank balances across legal entities. Option A is incorrect because the General ledger consolidation process is for aggregating financial data for reporting, not real-time cash management. Option C is incorrect because Budget control is used to enforce spending limits, not for cash visibility. Option D is incorrect because Intercompany accounting handles transactions between entities, but does not provide centralized cash management.

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Run the consolidation process in General ledger

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Configure Budget control for each entity

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Set up intercompany accounting for each entity

Question 10

A retail company uses Dynamics 365 Commerce. They want to offer a loyalty program that awards points based on purchase amount and allows customers to redeem points for discounts. Which capability should be configured?

Accepted Answer

Loyalty program management. Loyalty program management in Dynamics 365 Commerce is the specific capability designed to define and administer loyalty schemes, including earning rules (points per purchase amount) and redemption rules (discounts for points). This directly matches the requirement to award points based on purchase amount and allow customers to redeem points for discounts.

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Call center functionality

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Channel setup

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Product assortment management

Question 11

An organization uses Dynamics 365 Project Operations. A project manager needs to track the budget consumption and actual costs against the approved budget for a project. Which feature should they use?

Accepted Answer

Project budget and cost control. Project budget and cost control in Dynamics 365 Project Operations enables project managers to track budget consumption and actual costs against the approved budget. This feature provides real-time visibility into budget variances, cost overruns, and remaining budget, directly supporting the requirement to monitor financial performance against the plan.

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Expense management

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Time entry

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Resource scheduling

Question 12

A company uses Dynamics 365 Supply Chain Management and wants to implement a vendor-managed inventory (VMI) process where vendors monitor and replenish stock at the customer's warehouse. What is the recommended setup?

Accepted Answer

Set up consignment inventory for the vendor. Vendor-managed inventory (VMI) in Dynamics 365 Supply Chain Management is implemented using consignment inventory. In a consignment setup, the vendor owns the stock until it is consumed or transferred to the customer's inventory, which aligns with the VMI process where the vendor monitors and replenishes stock at the customer's warehouse. The system supports this through consignment replenishment orders and vendor-owned inventory tracking.

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Configure warehouse management for the vendor

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Enable quality management for received items

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Create a purchase agreement with the vendor

Question 13

A finance team in Dynamics 365 Finance needs to automate the generation of vendor payments based on due dates and available cash discounts. Which feature should they use?

Accepted Answer

Payment proposals. Payment proposals in Dynamics 365 Finance allow the finance team to automatically generate vendor payments by filtering invoices based on due dates and cash discount terms. This feature evaluates vendor invoices against configured payment schedules and discount periods, then proposes payments for approval or direct processing, eliminating manual selection.

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Vendor invoices

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Vendor collaboration workspace

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Purchase orders

Question 14

A company uses Dynamics 365 Human Resources. They want to automate the process of approving time-off requests based on employee tenure and department. What feature should be configured?

Accepted Answer

Leave and absence management. Leave and absence management in Dynamics 365 Human Resources provides the workflow engine and rule-based configuration needed to automate time-off request approvals. It allows administrators to define approval policies based on employee attributes such as tenure and department, enabling automatic routing and decision-making without manual intervention.

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Compensation management

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Recruitment

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Performance management

Question 15

An organization uses Dynamics 365 Finance. They need to revalue foreign currency bank accounts at month-end and post the unrealized gain or loss. Which process should be run?

Accepted Answer

Foreign currency revaluation. The Foreign currency revaluation process in Dynamics 365 Finance revalues open balances in foreign currencies and posts unrealized gains/losses. Option A is wrong because settlement is for matching payments and invoices. Option B is wrong because the consolidation process is for combining financial statements. Option D is wrong because the general journal is for manual entries.

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Settlement

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Consolidation

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General journal