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

Question 1

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.

Answer

Payroll processing

Answer

Sales order management

Question 2

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.

Answer

Catalog management

Answer

Production scheduling

Answer

Inventory valuation

Question 3

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.

Answer

Budgeting

Answer

Production control

Question 4

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. 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.

Answer

The main account is not valid

Answer

The fiscal year 2024 is not open for budget

Answer

The budget model ORIGINAL is not defined

Question 5

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.

Answer

The available quantity remains 70

Answer

The available quantity becomes 20

Answer

The available quantity becomes -10

Question 6

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.

Answer

Compare invoice posting rates between current and previous week

Answer

List all vendor invoices posted by system accounts

Answer

Identify users who have failed to post vendor invoices

Question 7

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.

Answer

Demand forecasting

Answer

Vendor collaboration

Answer

Procurement and sourcing categories

Question 8

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.

Answer

On-premises data center overload

Answer

Incorrect POS hardware profile configuration

Answer

Insufficient POS terminal memory

Question 9

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.

Answer

Expense management

Answer

Billing and invoicing

Answer

Timesheet entry

Question 10

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 automatically generate transfer orders between warehouses based on demand. Option C is correct. Option A (Warehouse receipt process) is for inbound receiving, not inter-warehouse transfers. Option B (Wave processing) is for picking and shipping waves, not automatic replenishment. Option D (Outbound shipment processing) is for managing outbound shipments, not replenishment.

Answer

Warehouse receipt process

Answer

Wave processing

Answer

Outbound shipment processing

Question 11

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. 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.

Answer

Implement the Asset management module for tracking

Answer

Use the Inventory management module to track assets as inventory items

Answer

Create a separate custom entity to store asset location and custodian

Question 12

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.

Answer

Marketing segments in Dynamics 365 Marketing

Answer

Customer Service Insights

Answer

Power BI embedded analytics

Question 13

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.

Answer

Employee self-service goals

Answer

Position hierarchies

Answer

Checklist templates

Question 14

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.

Answer

The warehouse management parameters are misconfigured

Answer

Items are using batch numbers inconsistently

Answer

The inventory posting setup is incorrect

Question 15

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.

Answer

Project cost management

Answer

Budget control

Answer

Omni-channel commerce