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

Question 1

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 2

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

Accepted Answer

Online store management. Dynamics 365 Commerce is a unified commerce solution that covers omnichannel retail operations. Online store management (Option B) is a core capability, enabling businesses to create and manage e-commerce sites with product catalogs, pricing, and promotions. Call center management (Option C) is also a key capability, providing order processing, customer service, and fulfillment features for phone-based sales channels.

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Budget planning

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Master planning

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Employee self-service

Question 3

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. 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 4

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 5

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.

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Warehouse mobile device menu items

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Purchase orders

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Inventory journals

Question 6

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.

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Mobile device management in Microsoft Intune

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Role-based security in Finance and Operations

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Data loss prevention policies in Microsoft Purview

Question 7

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.

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Financial reporting

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Intercompany accounting

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Budget planning

Question 8

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. The reorder point and replenishment feature in Dynamics 365 Supply Chain Management automatically generates purchase orders or transfer orders when inventory falls below the defined reorder point. Option A is incorrect because inventory blocking is used to prevent stock from being used, not for automatic reordering. Option C is incorrect because cycle counting is a method to audit inventory accuracy, not to trigger replenishment. Option D is incorrect because safety stock levels define a minimum buffer but do not automatically create orders; they work in conjunction with reorder points.

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Inventory blocking

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Cycle counting

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Safety stock levels

Question 9

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.

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Cost plus

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Milestone billing

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Fixed price

Question 10

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. 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.

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Purchase a third-party ISV solution

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Use Power Apps and Power Automate

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Modify the source code of Finance and Operations

Question 11

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. Warehouse management in Dynamics 365 Supply Chain Management uses mobile devices to scan barcodes and track inventory location. Option A (Quality management) is focused on quality control, not location tracking. Option B (Inventory management) is the base module for inventory transactions but lacks barcode-directed warehouse operations. Option C (Transportation management) handles shipment planning, not warehouse-level tracking.

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Quality management

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Inventory management

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Transportation management

Question 12

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.

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Procurement catalog

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Vendor master

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Purchase order form configuration

Question 13

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. Elimination rules in consolidation are specifically designed to remove intercompany transactions when consolidating financial data from multiple legal entities. In Dynamics 365 Finance, these rules automatically generate reversing entries to eliminate balances between entities, ensuring the consolidated financial statements reflect only external transactions. This is the correct configuration for eliminating intercompany activity during the consolidation process.

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Consolidation groups

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Financial dimensions

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Intercompany accounting setup

Question 14

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.

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Field service

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Project management

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Warehouse management

Question 15

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.

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Human resources

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Budgeting