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

Question 1

A company uses Dynamics 365 Project Operations for project-based work. They need to ensure that subcontractor expenses are billed to the customer at a markup. Which configuration should they set up?

Accepted Answer

Create an expense category with a sales price markup percentage. To bill subcontractor expenses to a customer at a markup, you must configure an expense category with a sales price markup percentage. This allows the system to automatically calculate the billable amount by applying the markup to the actual cost of the subcontractor expense, ensuring the customer is charged the marked-up price.

Answer

Define a project contract with a cost-plus pricing template

Answer

Configure billing rules on the project contract

Answer

Set up a fee schedule for subcontractor expenses

Question 2

Which TWO core capabilities are part of Dynamics 365 Human Resources? (Choose two.)

Accepted Answer

Employee self-service. Employee self-service (A) is a core capability of Dynamics 365 Human Resources, allowing employees to view and update their own personal information, submit time-off requests, and access pay statements without HR intervention. Leave and absence management (E) is also core, providing configurable leave plans, accrual rules, and absence tracking that integrate with payroll and scheduling. Talent acquisition (B) belongs to Dynamics 365 Talent/Attract rather than the core HR module, so it is not one of the two answers. Payroll integration (C) is typically handled through partner solutions or Dynamics 365 Finance rather than being a native core HR capability. Learning management (D) is provided by Dynamics 365 Guides or third-party LMS integrations, not as a core Human Resources feature.

Answer

Talent acquisition

Answer

Payroll integration

Answer

Learning management

Question 3

An organization uses Dynamics 365 Finance to manage fixed assets. Which THREE capabilities are part of the fixed assets module? (Choose three.)

Accepted Answer

Depreciation calculation. Option A (Depreciation calculation) is correct because the Fixed assets module in Dynamics 365 Finance includes depreciation books and profiles that automatically calculate and post periodic depreciation for assets. Option C (Asset transfer) is correct because the module supports transferring assets between financial dimensions, legal entities, or locations via the asset transfer function, updating the asset's book and ledger records. Option D (Asset retirement obligations) is correct because the module includes an asset retirement obligation (ARO) feature that lets you recognize and amortize the liability associated with retiring an asset over its useful life. Option B (Lease accounting) is not part of the Fixed assets module; lease accounting is handled by the separate Asset leasing module. Option E (Impairment testing) is not a standard capability of the Fixed assets module; impairment testing is associated with the Asset leasing module and other financial reporting processes, not fixed asset maintenance.

Answer

Lease accounting

Answer

Impairment testing

Question 4

Refer to the exhibit. The purchase policy 'StandardPurchasePolicy' is configured as shown. A user creates a purchase requisition for $12,000 with a non-catalog item. Which behavior will occur?

Accepted Answer

The requisition is blocked because non-catalog items are not allowed.. The policy requires catalog items (RequireCatalogItems: true) and sets a $10,000 threshold for department manager approval. Since the requisition is for $12,000 (above threshold) and uses a non-catalog item, it will be blocked because RequireCatalogItems is true. Option D is correct. Option A is wrong because non-catalog items are not allowed. Option B is wrong because even if catalog items are required, the threshold triggers approval. Option C is wrong because the policy prevents creation.

Answer

The requisition is created but requires additional approval from a higher level.

Answer

The requisition is created and automatically approved.

Answer

The requisition is created and sent for department manager approval.

Question 5

You are the system administrator for a global retail company using Dynamics 365 Commerce. The company operates multiple stores across different countries, each with its own currency and tax rules. The finance team needs to generate a consolidated financial report that includes sales data from all stores in a single currency (USD). The current setup uses separate legal entities for each country. You need to configure a solution that automatically consolidates financial data from all legal entities into a single reporting entity without manual data entry. The consolidation must include intercompany eliminations. What should you do?

Accepted Answer

Set up a consolidation company and run the consolidation process from the Consolidations module.. Dynamics 365 Finance provides a dedicated Consolidations module that allows you to create a consolidation company and run the consolidation process to automatically combine financial data from multiple legal entities into a single reporting entity. This process supports intercompany eliminations and currency translation to USD, eliminating manual data entry.

Answer

Use Microsoft Power BI to connect to each legal entity's database and create a consolidated report.

Answer

Use the Excel add-in to pull data from each legal entity and consolidate manually.

Answer

Export data from each legal entity using Data management and import into a single legal entity.

Question 6

You are the supply chain manager for a company using Dynamics 365 Supply Chain Management. The company produces high-value electronic components and needs to track each unit by serial number from receipt to sale. They also require that when a customer returns a defective unit, the system automatically identifies the original purchase order and vendor batch number for quality investigation. Currently, the system captures serial numbers at receipt and sale, but the link to the vendor batch is not maintained. You need to configure the product and tracking dimensions to ensure the vendor batch is recorded and associated with the serial number on the sales return. The company uses advanced warehouse management processes. What should you do?

Accepted Answer

Enable both serial number and batch tracking on the item, and set the reservation hierarchy to use batch below serial.. Enabling both serial number and batch tracking on the item, and setting the reservation hierarchy to use batch below serial, ensures that each serialized unit is linked to its vendor batch at receipt. This hierarchy allows the system to reserve the serial number first, then the batch, so when a defective unit is returned, the system can trace back to the original purchase order and vendor batch number for quality investigation. This configuration is essential for high-value electronics where lot-level traceability is required, and it works seamlessly with advanced warehouse management processes.

Answer

Use the location dimension to record the vendor batch in the warehouse.

Answer

Enable serial number tracking on the item, and disable batch tracking.

Answer

Enable batch tracking on the item, and use the batch number as the only tracking dimension.

Question 7

A professional services firm uses Dynamics 365 Project Operations to manage projects. They bill clients based on time and materials. Currently, project managers manually adjust actuals to correct timesheet entries that were posted to the wrong project. This has led to billing errors. The firm wants to automate the correction process by allowing project managers to transfer time entries from one project to another without affecting the original timesheet. The transferred time should retain the original employee, hours, and rate. You need to configure the system to support this. What should you do?

Accepted Answer

Use the 'Correct' action on the actuals to reverse and repost the time entry to the correct project.. The 'Correct' action on actuals in Dynamics 365 Project Operations allows you to reverse the original time entry and repost it to the correct project while preserving the original employee, hours, and rate. This automates the correction process without affecting the original timesheet, preventing billing errors.

Answer

Delete the incorrect time entry and create a new one on the correct project.

Answer

Adjust the resource assignment on the correct project to reflect the hours.

Answer

Use the journal adjustment feature to move the cost and sales amount.

Question 8

A company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to implement a strategy where fast-moving items are stored closer to the shipping dock to reduce travel time. Currently, all items are stored randomly. You need to configure the system to automatically assign storage locations based on item movement frequency. The company uses advanced warehouse management. What should you do?

Accepted Answer

Configure location directives to direct putaway to locations near the shipping dock for items with high movement frequency.. Location directives in Dynamics 365 Supply Chain Management automatically guide putaway processes by evaluating criteria such as item movement frequency. By configuring a location directive with a query that identifies fast-moving items and directing them to locations near the shipping dock, the system ensures efficient, rule-based storage without manual intervention. This directly addresses the requirement to reduce travel time using advanced warehouse management capabilities.

Answer

Set up wave processing to prioritize fast-moving items during picking.

Answer

Define inventory statuses and enable 'Auto-report as finished' to trigger movement.

Answer

Create a new inventory status for fast-moving items and manually move them to desired locations.

Question 9

A company using Dynamics 365 Finance and Operations wants to improve their accounts receivable process. They need to automatically send payment reminders to customers with overdue invoices and apply late payment penalties. What should they configure?

Accepted Answer

Collections management. Collections management in Dynamics 365 Finance and Operations is the dedicated module for automating the accounts receivable process, including sending payment reminders and applying late payment penalties. It provides configurable aging snapshots, collection agents, and automated workflows to trigger reminders and penalty calculations based on overdue invoice criteria.

Answer

Cash and bank management

Answer

Accounts receivable

Answer

Credit and collections

Question 10

A global manufacturer uses Dynamics 365 Finance to manage its financial operations. The company has multiple legal entities and needs to generate consolidated financial statements that include all subsidiaries. The finance team wants to automate the consolidation process to reduce manual effort and ensure accuracy. Which feature should they use?

Accepted Answer

Consolidation accounts. Consolidation accounts enable the aggregation of financial data from multiple legal entities into a single consolidated legal entity. This is the standard feature for automated consolidation in Dynamics 365 Finance. The other options serve different purposes: financial dimensions provide detailed tagging, budgeting supports planning, and ledger settlement matches transactions within a single legal entity. Only consolidation accounts directly address the need for consolidated financial statements.

Answer

Financial dimensions

Answer

Ledger settlement

Answer

Budgeting

Question 11

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager needs to ensure that inventory is stored in the most efficient manner and that picking routes are optimized. Which feature should the manager use?

Accepted Answer

Warehouse location directives with route sequencing. Location directives with route sequencing are used to optimize picking routes by determining the sequence of locations to visit. This reduces travel time and improves warehouse efficiency. The other options are related to warehouse management but do not specifically address route optimization. Therefore, the manager should use location directives with route sequencing.

Answer

Work templates

Answer

Wave templates

Answer

Location directives

Question 12

A distribution company uses Dynamics 365 Supply Chain Management. The warehouse manager needs to ensure that inventory is allocated to sales orders based on specific criteria such as order priority and delivery date. Which feature should the warehouse manager use to automate this allocation?

Accepted Answer

Reservation hierarchy. The reservation hierarchy is used to automate the reservation of inventory for sales orders. It defines the sequence in which inventory dimensions are considered when reserving stock, allowing the system to allocate inventory based on criteria such as order priority and delivery date. This ensures that high-priority orders are fulfilled first, aligning with business rules.

Answer

Warehouse work policies

Answer

Inventory blocking

Answer

Inventory counting

Question 13

A multinational company uses Dynamics 365 Finance to manage its financial operations. The company operates in multiple countries and needs to record transactions in different currencies while maintaining a single base currency for consolidated reporting. Which feature should the finance team configure to meet this requirement?

Accepted Answer

Set up multiple legal entities, each with its own accounting currency, and use consolidation to combine financial data.. The requirement is to record transactions in multiple currencies and maintain a single base currency for consolidated reporting. Dynamics 365 Finance achieves this by allowing multiple legal entities, each with its own accounting currency for local transactions, and then consolidating their financial data into a single base currency. This provides both local currency recording and group-level reporting.

Answer

Use financial dimensions to track transactions in different currencies and report on them separately.

Answer

Enable foreign currency revaluation and use a single legal entity with multiple reporting currencies.

Answer

Configure exchange rate types and use them to convert all transactions to the base currency at the time of entry.

Question 14

A company uses Dynamics 365 Commerce to manage its retail operations. The store manager wants to enable customers to purchase products online and pick them up at a local store. Which feature should the manager configure?

Accepted Answer

Click and collect. Click and collect is the specific Dynamics 365 Commerce feature that enables customers to buy online and pick up in store. It manages inventory reservations, order status, and customer notifications. While BOPIS is a common term, the product feature is named click and collect.

Answer

Ship from store

Answer

Unified commerce

Answer

BOPIS

Question 15

A company uses Dynamics 365 Finance to manage its budgeting process. The finance team needs to create a budget, enter budget amounts, and then compare actual expenditures against the budget. Which two features should the team use? (Choose two.)

Accepted Answer

Budget register entries. Budget planning and budget register entries are the correct features. Budget planning is used to create a budget collaboratively, and budget register entries are used to enter and update budget amounts. Together, they allow the finance team to create a budget and enter amounts, which can then be compared to actuals using budget analysis or budget control.

Answer

Budget control

Answer

Budget transfer

Answer

Budget analysis