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

Question 1

Which TWO modules are part of Dynamics 365 Finance and Operations core capabilities? (Choose two.)

Accepted Answer

Accounts payable. Options D and E are correct because Accounts payable and General ledger are core financial modules within Dynamics 365 Finance and Operations. Accounts payable handles vendor invoices, payments, and settlement processes, while General ledger provides the chart of accounts, journal entries, and financial reporting foundation. These modules are part of the Finance application's standard capabilities. Options A, B, and C are incorrect because Customer service belongs to Dynamics 365 Customer Service, Marketing belongs to Dynamics 365 Marketing, and Human resources is a separate Dynamics 365 Human Resources application, not a core Finance and Operations module.

Answer

Customer service

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Human resources

Answer

Marketing

Question 2

You are configuring transfer order policies in Dynamics 365 Supply Chain Management. A transfer order from WH01 to WH03 shows an expected transit time of 5 days. However, the business requires that transfers between these warehouses take no more than 3 days. What should you modify?

Accepted Answer

Modify the existing rule for WH01 to WH03, setting AllowedTransitDays to 3.. In Dynamics 365 Supply Chain Management, transfer order policies use transit time rules to define allowed transit days between warehouses. The existing rule for WH01 to WH03 specifies a transit time of 5 days, but the business requires 3 days. Modifying the existing rule's AllowedTransitDays to 3 directly updates the transit time for that specific warehouse pair, ensuring compliance without creating conflicts or relying on defaults.

Answer

Remove the rule and rely on default transit days.

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Add a new rule with higher priority for WH01 to WH03 with AllowedTransitDays: 3.

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Change the Priority of the WH01 to WH03 rule to 1.

Question 3

A manufacturing company uses Dynamics 365 Finance and Operations. They need to configure a production flow that allows multiple products to be produced on the same production line with minimal changeover time. The production scheduler wants to automatically sequence production orders to reduce setup time. Which feature should the company configure?

Accepted Answer

Finite scheduling with sequencing constraints. Finite scheduling with sequencing constraints is the correct feature because it allows the system to automatically sequence production orders on a shared resource (e.g., a production line) based on setup time reduction rules. This minimizes changeover time by grouping similar products or optimizing the order of operations, which directly addresses the requirement for minimal changeover and automatic sequencing.

Answer

Material requirements planning (MRP)

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Gantt chart view in production floor control

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Operations scheduling

Question 4

A retail company uses Dynamics 365 Commerce integrated with Finance and Operations. They want to ensure that inventory levels are updated in real-time when a sale is completed at the point of sale (POS). Which configuration should be enabled?

Accepted Answer

Use the Retail Server and channel data distribution with real-time service. Dynamics 365 Commerce uses the Retail Server and channel data distribution framework with real-time service to synchronize inventory changes instantly from the POS to the Finance and Operations back office. This ensures that inventory levels are updated in real-time when a sale is completed, leveraging the Commerce Data Exchange (CDX) real-time service for immediate data flow.

Answer

Schedule a recurring Data management framework job to import sales transactions

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Enable the asynchronous service (Async Service) for inventory updates

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Configure the Inventory update service in Commerce headquarters

Question 5

A company using Dynamics 365 Finance needs to track the financial impact of a specific project across multiple dimensions such as cost center, department, and location. Which feature should they use to ensure that all financial transactions are automatically tagged with these dimensions?

Accepted Answer

Advanced rule structures for financial dimensions. Advanced rule structures allow you to set up rules that automatically default financial dimension values based on conditions such as main account or cost center. This ensures that transactions are automatically tagged with the required dimensions like cost center, department, and location. Option A is incorrect because account structures with main account segments define valid combinations of main accounts and financial dimensions, but they do not automatically default dimension values. Option C is incorrect because budget control configuration is used to enforce budget limits, not to tag transactions with dimensions. Option D is incorrect because project contracts with funding sources define how projects are funded and billed, but do not automatically assign dimensions to transactions.

Answer

Account structures with main account segments

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Budget control configuration

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Project contracts with funding sources

Question 6

A company uses Dynamics 365 Finance and Operations. The finance team wants to post a vendor invoice that has a discount of 2% if paid within 10 days, otherwise net 30. How should this be configured?

Accepted Answer

Define a Terms of payment with a cash discount code that specifies 2% discount within 10 days. In Dynamics 365 Finance and Operations, a cash discount for early payment is configured by defining a Terms of payment record that includes a cash discount code. The cash discount code specifies the discount percentage (2%) and the discount period (10 days), while the Terms of payment record defines the net due date (30 days). This setup ensures the discount is automatically applied when the vendor invoice is posted and the payment is made within the discount period, without requiring manual entry or per-invoice adjustments.

Answer

Enter the discount manually on each vendor invoice

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Set up the discount in the Purchase order form

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Configure the cash discount in the Vendor invoice journal

Question 7

A company uses Dynamics 365 Supply Chain Management and wants to use AI to predict inventory shortages and suggest reorder quantities. Which feature should they enable?

Accepted Answer

Inventory Visibility Add-in with demand forecasting. The Inventory Visibility Add-in with demand forecasting uses AI and machine learning to analyze historical sales data, predict future demand, and identify potential inventory shortages. It then suggests optimal reorder quantities to maintain stock levels, directly addressing the scenario's need for AI-driven predictions and replenishment recommendations.

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Product lifecycle management (PLM)

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Master planning module

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Warehouse management module

Question 8

A manufacturing company uses Dynamics 365 Finance and Operations. They need to automate the process of creating purchase orders when inventory for a critical raw material drops below a predefined level. The solution must minimize manual intervention and ensure that purchase orders are created only during business hours. Which feature should they configure?

Accepted Answer

Define reorder point and coverage group for the item, and schedule the master planning batch job to run during business hours.. Defining a reorder point and coverage group for the item, combined with scheduling the master planning batch job to run during business hours, directly addresses the requirement. Master planning uses the coverage group settings (including reorder point) to detect when inventory falls below the threshold and automatically generates planned purchase orders. Scheduling the batch job during business hours ensures POs are created only then, minimizing manual intervention.

Answer

Configure item coverage settings and run the master planning batch job during business hours.

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Create a purchase requisition workflow that triggers when inventory falls below a certain level.

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Set up safety stock levels for the raw material.

Question 9

A company uses Dynamics 365 Finance and Operations. They need to create a new vendor record and ensure that the vendor is automatically assigned to a specific vendor group based on the vendor's country/region. Which feature should they use?

Accepted Answer

Data entities with business rules. Data entities with business rules allow you to define logic that automatically assigns a vendor to a specific vendor group based on the vendor's country/region during data import or record creation. This feature leverages the business rules framework within data entities to enforce conditional assignments without custom code.

Answer

Vendor workflow

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Vendor groups

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Address books

Question 10

A company uses Dynamics 365 Finance and Operations. They need to generate a report that shows the financial performance of each department for the current fiscal year. Which tool should they use?

Accepted Answer

Financial reports. Financial reports in Dynamics 365 Finance and Operations are the correct tool for generating departmental financial performance reports for the current fiscal year. They are specifically designed to create GAAP/IFRS-compliant financial statements, such as income statements by department, using the built-in financial dimensions and row/column definitions. This tool directly leverages the general ledger data and supports hierarchical reporting structures without requiring external data sources or custom development.

Answer

Power BI

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Management reporter

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Excel integration via OData

Question 11

A company uses Dynamics 365 Finance and Operations. They need to ensure that only authorized users can approve purchase orders above $10,000. Which TWO features should they configure?

Accepted Answer

Purchase order workflow. Option A (Purchase order workflow) is correct because the purchase order workflow is the mechanism in Dynamics 365 Finance and Operations that routes purchase orders through defined approval steps, so it is what enforces that POs above $10,000 require approval before they can be confirmed. Option E (Approval limits) is correct because approval limits define the monetary threshold and the maximum amount a given approver is authorized to approve, which is exactly how the system ensures only authorized users can approve POs above $10,000. Together, the workflow drives the approval process and the approval limit determines who is authorized at that dollar value. Option B (User roles) is not correct on its own because roles grant access to functionality but do not by themselves enforce the $10,000 approval threshold. Option C (Electronic signatures) is not correct because electronic signatures capture signer confirmation for specific documents or processes, not the monetary approval routing and limits required here. Option D (Segregation of duties) is not correct because SoD rules prevent conflicting duties being assigned to the same user, which addresses fraud risk rather than enforcing the $10,000 approval authorization.

Answer

User roles

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Electronic signatures

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Segregation of duties

Question 12

A company uses Dynamics 365 Supply Chain Management. They need to improve the accuracy of demand forecasting by incorporating external data such as weather forecasts and economic indicators. Which THREE features should they consider?

Accepted Answer

Demand forecasting. Option B (Demand forecasting) is correct because Dynamics 365 Supply Chain Management's demand forecasting capability is the core feature that generates statistical baseline forecasts and lets you adjust them with external signals such as weather and economic indicators. Option D (Azure Machine Learning integration) is correct because Demand planning/Demand forecasting in Supply Chain Management can be extended with Azure Machine Learning to build and train custom ML models that consume external datasets (weather, economic data) for improved forecast accuracy. Option E (Data integration via Data management) is correct because external data must first be imported into Dataverse/Finance and Operations using Data management (data entities, recurring integrations, and Data Integrator/Dual-write or bring-your-own-database patterns) before it can be used by forecasting or ML models. Option A (Inventory visibility) is not correct because it provides near-real-time on-hand inventory visibility across systems and does not perform demand forecasting or ingest weather/economic indicators. Option C (Master planning) is not correct because it consumes demand forecasts to generate planned orders and net requirements; it does not itself improve forecast accuracy with external data.

Answer

Inventory visibility

Answer

Master planning

Question 13

A company uses Dynamics 365 Supply Chain Management. They need to ensure that when a sales order is created, the system automatically checks credit limits and inventory availability. Which THREE components are involved?

Accepted Answer

Inventory management. Option B (Inventory management) is correct because it holds the on-hand, reserved, and available-to-promise data that the sales order uses to determine whether inventory availability checks pass or fail. Option D (Sales order processing) is correct because the sales order form itself triggers the credit limit and inventory availability checks when the order is created or confirmed. Option E (Accounts receivable) is correct because credit limit checking is driven by the customer's credit limit and outstanding balance data maintained in Accounts receivable, which is evaluated during sales order entry. Options A (Procurement and sourcing) and C (Master planning) are not part of this real-time check: procurement handles purchase requisitions and purchase orders, and master planning generates planned orders and coverage suggestions rather than validating a sales order at creation time.

Answer

Procurement and sourcing

Answer

Master planning

Question 14

You are a Dynamics 365 consultant for a multinational manufacturing company that operates in three countries: USA, Germany, and Japan. The company uses Dynamics 365 Finance and Operations. They have the following requirements: 
- Each country must have its own set of financial reports that comply with local accounting standards (US GAAP, German HGB, Japanese GAAP). 
- The company needs to consolidate financials at the global level on a monthly basis. 
- They want to use a single instance of Dynamics 365 Finance and Operations. 
- All subsidiaries must share the same chart of accounts to facilitate consolidation. 
Which approach should you recommend?

Accepted Answer

Set up one legal entity with financial dimensions to represent each country. Configure local reporting by using financial dimension sets.. Using a single legal entity with financial dimensions to represent each country allows the company to maintain a single instance of Dynamics 365 Finance and Operations while enabling local financial reporting (US GAAP, German HGB, Japanese GAAP) through dimension-based filtering. The shared chart of accounts supports global consolidation, and financial dimension sets can isolate country-specific transactions for local compliance without requiring separate legal entities or instances.

Answer

Create a separate legal entity for each country. Consolidate financials using the Consolidation module.

Answer

Use one legal entity for the USA and set up separate instances for Germany and Japan.

Answer

Implement one legal entity and use different fiscal calendars for each country.

Question 15

You are a system administrator for a company that uses Dynamics 365 Supply Chain Management. The warehouse manager reports that pickers are frequently going to the wrong locations for items, causing delays. The warehouse uses a directed putaway and picking process. Currently, location profiles are set up but not optimized. The manager wants to ensure that items are stored in locations that minimize travel time and that pickers are directed to the correct locations. The warehouse has 10,000 SKUs and high turnover. Which configuration should you implement?

Accepted Answer

Use the location stocking limits and zone-based slotting to assign items to optimal locations based on velocity.. Location stocking limits and zone-based slotting in Dynamics 365 Supply Chain Management allow you to assign items to optimal locations based on velocity (pick frequency). This ensures high-turnover items are stored in easily accessible zones, minimizing travel time and directing pickers to correct locations, directly addressing the warehouse manager's requirements.

Answer

Configure wave processing for order picking.

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Implement barcode scanning for all warehouse transactions.

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Set up location profiles with fixed locations for all SKUs.