MB-920 Describe the core capabilities of the finance and operations apps Practice Test 6 — 15 Questions

Question 1

A manufacturing company uses Dynamics 365 Finance and Operations. They need to track the consumption of raw materials in real time during production runs. Which feature should they use?

Accepted Answer

Production orders. Production orders are the correct feature because they are the primary mechanism in Dynamics 365 Finance and Operations for managing and tracking the manufacturing process, including real-time consumption of raw materials through operations such as 'Start', 'Report as finished', and 'Picking list' registrations. This allows for immediate updates to inventory levels and work-in-progress accounting during production runs.

Answer

Warehouse mobile device menu items

Answer

Purchase orders

Answer

Inventory journals

Question 2

A company implements Dynamics 365 Finance and Operations. They want to ensure that only authorized users can access the system from external networks. What should they configure?

Accepted Answer

Conditional Access policies in Microsoft Entra ID. Conditional Access policies in Microsoft Entra ID (formerly Azure AD) allow administrators to enforce access controls based on conditions such as user location, device compliance, and network context. For external network access, you can configure policies to require multi-factor authentication or block access from untrusted IP ranges, ensuring only authorized users can connect to Dynamics 365 Finance and Operations from outside the corporate network.

Answer

Mobile device management in Microsoft Intune

Answer

Role-based security in Finance and Operations

Answer

Data loss prevention policies in Microsoft Purview

Question 3

A global company uses Dynamics 365 Finance and Operations with multiple legal entities. They need to consolidate financial data across entities for reporting, while allowing each entity to operate independently. What should they configure?

Accepted Answer

Consolidation module. The Consolidation module in Dynamics 365 Finance and Operations is specifically designed to aggregate financial data from multiple legal entities into a single consolidated view for reporting, while preserving each entity's independent operations. This module supports both periodic consolidation (e.g., monthly) and on-demand consolidation, handling currency translation, elimination entries, and intercompany transactions automatically. It is the correct tool for meeting the requirement of centralized reporting with decentralized entity autonomy.

Answer

Financial reporting

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Intercompany accounting

Answer

Budget planning

Question 4

A company uses Dynamics 365 Supply Chain Management. They need to automatically reorder inventory when stock falls below a certain level. Which feature should they use?

Accepted Answer

Reorder point and replenishment. Option D is correct because the system can create purchase orders automatically when stock reaches a reorder point. Option A is wrong because safety stock is a minimum stock level but does not automatically create orders. Option B is wrong because inventory blocking is for holding stock. Option C is wrong because cycle counting is for inventory accuracy.

Answer

Inventory blocking

Answer

Cycle counting

Answer

Safety stock levels

Question 5

A company uses Dynamics 365 Project Operations. They want to track time and expenses against a project and invoice the customer based on actuals. Which billing method should they use?

Accepted Answer

Time and material. Time and material billing is the correct method because it invoices the customer based on actual time entries and expenses tracked against the project. In Dynamics 365 Project Operations, this billing method is designed for projects where the scope is uncertain and the customer agrees to pay for actual effort and costs incurred.

Answer

Cost plus

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Milestone billing

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Fixed price

Question 6

A company uses Dynamics 365 Finance and Operations and wants to extend the system to handle a unique business process that is not supported out of the box. What is the recommended approach?

Accepted Answer

Create a custom module using the extensibility framework. Option D is correct because Dynamics 365 Finance and Operations provides an official extensibility framework that allows developers to create custom modules and extend the system without modifying the source code. This approach ensures that customizations remain upgrade-safe and supported by Microsoft, unlike direct source code modifications which break the application lifecycle.

Answer

Purchase a third-party ISV solution

Answer

Use Power Apps and Power Automate

Answer

Modify the source code of Finance and Operations

Question 7

A company uses Dynamics 365 Supply Chain Management. They need to track the location of items in the warehouse using barcodes. Which feature should they use?

Accepted Answer

Warehouse management. Option B is correct because Warehouse management uses mobile devices to scan barcodes and track inventory. Option A is wrong because Inventory management is the base module. Option C is wrong because Transportation management is for shipping. Option D is wrong because Quality management is for quality control.

Answer

Quality management

Answer

Inventory management

Answer

Transportation management

Question 8

A company uses Dynamics 365 Finance and Operations. They want to automate the approval of purchase orders based on the total amount. What should they configure?

Accepted Answer

Workflow for purchase orders. Workflows in Dynamics 365 Finance and Operations allow you to define automated business processes, such as approval of purchase orders based on conditions like total amount. By configuring a workflow for purchase orders, you can set up conditional approval rules (e.g., if amount > $5,000, route to manager; if > $20,000, route to director) without custom code. This directly addresses the requirement to automate approval based on the total amount.

Answer

Procurement catalog

Answer

Vendor master

Answer

Purchase order form configuration

Question 9

A company uses Dynamics 365 Finance and Operations with multiple legal entities. They need to eliminate intercompany transactions during consolidation. What should they configure?

Accepted Answer

Elimination rules in consolidation. Option A is correct because the elimination rule automatically removes intercompany transactions during consolidation. Option B is wrong because intercompany accounting sets up accounts but does not eliminate. Option C is wrong because consolidation groups define which entities consolidate. Option D is wrong because financial dimensions are for reporting categories.

Answer

Consolidation groups

Answer

Financial dimensions

Answer

Intercompany accounting setup

Question 10

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

Accepted Answer

Accounts payable. Accounts payable is a core financial management capability in Dynamics 365 Finance and Operations. It manages vendor invoices, payments, and expense tracking, ensuring accurate liability recording and timely disbursements. This module integrates directly with the general ledger to maintain financial integrity.

Answer

Field service

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Project management

Answer

Warehouse management

Question 11

Which THREE features are part of Dynamics 365 Supply Chain Management? (Choose three.)

Accepted Answer

Transportation management. Transportation management is a core feature of Dynamics 365 Supply Chain Management that handles inbound and outbound shipping, freight rating, routing, and carrier selection. It integrates with warehouse management to optimize delivery schedules and costs, making it a key supply chain capability.

Answer

Human resources

Answer

Budgeting

Question 12

Which TWO benefits does using Lifecycle Services (LCS) provide for Dynamics 365 Finance and Operations implementations? (Choose two.)

Accepted Answer

Providing implementation methodology guidance. Options A and C are correct. LCS provides cloud-hosted environments for testing and methodology guidance. Option B is wrong because code development is done in Visual Studio, not LCS. Option D is wrong because LCS does not manage user subscriptions. Option E is wrong because LCS does not provide AI insights.

Answer

Writing custom code

Answer

Managing user subscriptions

Answer

Providing AI-powered insights

Question 13

Refer to the exhibit. A configuration snippet from Dynamics 365 Finance and Operations defines a workflow. What does this workflow do?

Accepted Answer

Require manager approval for purchase orders over $10,000. The workflow configuration in Dynamics 365 Finance and Operations defines a conditional approval step: when a purchase order exceeds $10,000, it is routed to the user's manager for approval. This is a standard workflow condition that triggers a specific approval step based on a monetary threshold, ensuring that high-value orders receive managerial oversight before proceeding.

Answer

Reject purchase orders over $10,000

Answer

Automatically approve all purchase orders under $10,000

Answer

Send all purchase orders to the VP for approval

Question 14

Refer to the exhibit. A Power BI report configuration for Dynamics 365 Finance and Operations shows a data source, measure, filter, and visual. What does this configuration produce?

Accepted Answer

A bar chart of total sales for 2025. The configuration shows a filter set to 'Year = 2025', a measure for 'Total Sales', and a visual type set to 'Bar chart'. This means the report will display a bar chart of total sales specifically for the year 2025, not any other year or a line chart over time.

Answer

A bar chart of total sales for 2024

Answer

A table showing total sales by year

Answer

A line chart of total sales over time

Question 15

Refer to the exhibit. A validation rule configuration for Dynamics 365 Finance and Operations is shown. What happens when a user enters a vendor invoice with an invoice date of tomorrow and a total amount of $100?

Accepted Answer

The date rule fails and the invoice is not saved. Option D is correct because the first rule checks that InvoiceDate <= Today. Since tomorrow's date is greater than today, the validation fails for the date rule. The second rule passes because total amount is positive. But the first error blocks submission. Option A is wrong because it says both pass. Option B is wrong because it says only amount fails. Option C is wrong because it says only date passes.

Answer

The amount rule fails and the invoice is not saved

Answer

Both rules pass and the invoice is saved

Answer

The date rule passes, but the amount rule fails