MB-920 Describe the core capabilities of the finance and operations apps Practice Test 5 — 15 Questions

Question 1

A manufacturing company uses Dynamics 365 Finance to manage its financial operations. The company wants to automate the process of creating purchase orders when inventory levels fall below a predefined threshold. Which feature should they use?

Accepted Answer

Replenishment rules. Replenishment rules in Dynamics 365 Supply Chain Management allow you to define minimum and maximum inventory levels for items. When the inventory level falls below the defined minimum, the system automatically generates purchase orders to replenish stock, directly addressing the requirement for automated PO creation based on inventory thresholds.

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Demand forecasting

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Vendor collaboration

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Procurement and sourcing categories

Question 2

A retail company using Dynamics 365 Commerce is experiencing slow performance in the point of sale (POS) system during peak hours. The company uses a hybrid deployment with on-premises back-office and cloud-based POS. What is the most likely cause of the performance issue?

Accepted Answer

Network latency between on-premises and cloud environments. In a hybrid deployment where the on-premises back-office handles data processing and the cloud-based POS relies on real-time communication, network latency between the two environments is the most likely cause of slow performance during peak hours. The POS system must send requests (e.g., inventory lookups, transaction processing) to the on-premises back-office over the internet, and high latency or packet loss can significantly degrade response times, especially under heavy load.

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On-premises data center overload

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Incorrect POS hardware profile configuration

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Insufficient POS terminal memory

Question 3

A company uses Dynamics 365 Project Operations to manage its consulting projects. They need to track project profitability by comparing actual costs against budgeted costs. Which module should they primarily use?

Accepted Answer

Project management and accounting. The Project management and accounting module in Dynamics 365 Project Operations is the primary module for tracking project profitability because it integrates budgeted costs, actual costs, and revenue recognition. It provides the cost control and variance analysis capabilities needed to compare actual costs against budgeted costs, enabling profitability tracking at the project level.

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Expense management

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Billing and invoicing

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Timesheet entry

Question 4

A distribution company uses Dynamics 365 Supply Chain Management. They want to automatically generate transfer orders between warehouses based on demand. Which feature should they configure?

Accepted Answer

Replenishment rules. Replenishment rules can be set up to generate transfer orders automatically. Option B is correct. Option A is for inbound receiving, not inter-warehouse transfers. Option C is for shipping, not replenishment. Option D is for picking routes, not automatic transfers.

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Warehouse receipt process

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Wave processing

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Outbound shipment processing

Question 5

A company uses Dynamics 365 Finance and needs to comply with a new regulatory requirement to track fixed assets by location and custodian. They currently use the standard Fixed assets module. What is the best approach to meet this requirement?

Accepted Answer

Add custom fields to the Fixed asset table to capture location and custodian. Option B is correct because Dynamics 365 Finance allows extending standard entities like the Fixed asset table with custom fields to capture additional data such as location and custodian without modifying core logic. This approach leverages the platform's extensibility features (e.g., custom fields on the Fixed asset table) and ensures compliance with the new regulatory requirement while maintaining integration with existing fixed asset processes like depreciation and lifecycle management.

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Implement the Asset management module for tracking

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Use the Inventory management module to track assets as inventory items

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Create a separate custom entity to store asset location and custodian

Question 6

A company uses Dynamics 365 Commerce for its online store. They want to offer personalized product recommendations to customers based on their browsing history. Which Dynamics 365 capability should they use?

Accepted Answer

Product recommendations in Commerce. Dynamics 365 Commerce includes a built-in product recommendations engine that leverages AI and machine learning to analyze customer browsing and purchase history, enabling personalized product suggestions directly within the online store. This capability is specifically designed for e-commerce scenarios and integrates seamlessly with Commerce's product catalog and shopping experience.

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Marketing segments in Dynamics 365 Marketing

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Customer Service Insights

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Power BI embedded analytics

Question 7

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.

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Employee self-service goals

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Position hierarchies

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Checklist templates

Question 8

A company uses Dynamics 365 Supply Chain Management. They are experiencing inventory discrepancies during physical counts. The discrepancies occur only for items using a specific storage dimension group that includes location and pallet ID. What is the most likely cause?

Accepted Answer

The storage dimension group does not require pallet ID tracking for all transactions. When a storage dimension group includes pallet ID but does not require pallet ID tracking for all transactions, users can skip entering the pallet ID during inventory movements or counts. This leads to discrepancies because the system cannot accurately track inventory at the pallet level, causing mismatches between physical stock and system records.

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The warehouse management parameters are misconfigured

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Items are using batch numbers inconsistently

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The inventory posting setup is incorrect

Question 9

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 requires moving data to Excel. Option B is for analytics, but Financial reporting is more appropriate. Option C is for custom financial dimensions, not reporting.

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Financial dimension sets

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Power BI content packs for Finance

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Export to Excel and create a pivot table

Question 10

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.

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Project cost management

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Budget control

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Omni-channel commerce

Question 11

Which THREE of the following are core capabilities of Dynamics 365 Finance?

Accepted Answer

Fixed assets management. Fixed assets management is a core capability of Dynamics 365 Finance because it provides end-to-end lifecycle tracking of tangible assets—from acquisition and depreciation to disposal. The module supports multiple depreciation conventions (e.g., straight-line, declining balance) and integrates with the general ledger for automatic posting of asset transactions, ensuring accurate financial reporting and compliance with accounting standards like IFRS and GAAP.

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Loyalty programs

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Inventory valuation

Question 12

Which TWO of the following are capabilities of Dynamics 365 Commerce?

Accepted Answer

Online store management. Options B and D are correct. Option A is part of Supply Chain Management. Option C is part of Finance. Option E is part of Human Resources.

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Budget planning

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Master planning

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Employee self-service

Question 13

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. Option A is correct because 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.

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BudgetPlanLine.Period

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BudgetPlanLine.Account

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BudgetPlanLineDetail.BudgetModel

Question 14

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.

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TaxGroup

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ReceiptDateRequested

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LineDescription

Question 15

You are importing sales orders into Dynamics 365 Sales 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

SalesOrderType. In Dynamics 365 Sales, 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.

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LineTotal

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SalesOrderNumber

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DeliveryAddress