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

Question 1

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 2

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 3

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. Option D is correct because the Cash and bank management module in Dynamics 365 Finance can be configured to view and manage bank accounts across legal entities, enabling centralized cash management. Option A is wrong because Intercompany accounting handles transactions between entities, not cash visibility. Option B is wrong because the General ledger consolidation process is for financial reporting, not real-time cash management. Option C is wrong because Budget control is for spending limits, not cash visibility.

Answer

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 4

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 5

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 6

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. Option C is correct because 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 7

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 8

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 9

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. Option B is correct because 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 C is wrong because the general journal is for manual entries. Option D is wrong because the consolidation process is for combining financial statements.

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Settlement

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Consolidation

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General journal

Question 10

Which THREE capabilities are part of the core capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse management. Warehouse management (A) is a core capability of Dynamics 365 Supply Chain Management, providing advanced functionality for managing warehouse operations including receiving, putaway, picking, packing, and shipping. It integrates with barcode scanning and RFID to optimize inventory accuracy and labor efficiency.

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Payroll processing

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Sales order management

Question 11

Which TWO features are available in Dynamics 365 Finance to support financial reporting and analysis?

Accepted Answer

Financial reporting. Financial reporting (Option B) is a core feature in Dynamics 365 Finance that provides out-of-the-box financial statements (e.g., balance sheet, income statement) using the Financial Reporting module, which leverages the financial dimensions and main accounts for customizable reporting. Business performance analytics (Option C) is a cloud-based, embedded analytics capability that offers pre-built KPIs, dashboards, and drill-through insights for real-time financial and operational analysis, directly supporting decision-making without requiring external tools.

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Catalog management

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Production scheduling

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Inventory valuation

Question 12

Which THREE modules are part of Dynamics 365 Commerce?

Accepted Answer

Point of sale (POS). Point of Sale (POS) is a core module of Dynamics 365 Commerce that enables in-store transactions, inventory management, and customer engagement at the physical retail location. It integrates directly with the online store and call center modules to provide a unified omnichannel commerce experience.

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Budgeting

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Production control

Question 13

Refer to the exhibit. A budget transfer has been proposed in Dynamics 365 Finance for the Sales department, cost center CC001. The budget manager receives an error that the transfer exceeds the available budget. What is the most likely cause?

Accepted Answer

The budget amount exceeds the available budget for the combination of dimensions. Option D is correct because the error message indicates that the proposed budget transfer would cause the budget balance for the specific combination of financial dimensions (Sales department, cost center CC001) to go negative. In Dynamics 365 Finance, budget control checks are performed against the available budget balance for each dimension combination; if the transfer amount exceeds the remaining budget, the system blocks the transaction.

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The main account is not valid

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The fiscal year 2024 is not open for budget

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The budget model ORIGINAL is not defined

Question 14

Refer to the exhibit. A sales order requires 80 units of ITEM001 from warehouse WH01. What is the immediate effect on the available quantity?

Accepted Answer

The available quantity becomes 0. When a sales order is created for 80 units of ITEM001 from warehouse WH01, the system checks the available quantity. The available quantity is 70, which is insufficient to cover the full order. In Dynamics 365 Supply Chain Management, the immediate effect is that the available quantity becomes 0 because the system reserves the entire available quantity against the sales order, even if the order cannot be fully fulfilled. This reflects the on-hand inventory being committed to the order, leaving no remaining available quantity.

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The available quantity remains 70

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The available quantity becomes 20

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The available quantity becomes -10

Question 15

Refer to the exhibit. An auditor runs this Kusto query in Microsoft Sentinel connected to Dynamics 365 Finance. What is the purpose of this query?

Accepted Answer

Find the top 5 users who posted the most vendor invoices in the past week. The Kusto query filters audit log entries for vendor invoice posting events (event ID 1050) from the past 7 days, groups them by user, counts the number of postings per user, and sorts descending to show the top 5 users. This directly identifies the users who posted the most vendor invoices in the past week, making option D correct.

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Compare invoice posting rates between current and previous week

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List all vendor invoices posted by system accounts

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Identify users who have failed to post vendor invoices