MB-920 Describe the core capabilities of the finance and operations apps Practice Test 8 — 15 Questions

Question 1

A company uses Dynamics 365 Human Resources to manage employee information. They need to ensure that only authorized HR staff can view sensitive personal data. Which feature should they configure?

Accepted Answer

Role-based security. Role-based security (option C) is the correct feature because Dynamics 365 Human Resources uses role-based security to control access to sensitive personal data. By assigning HR staff to specific security roles (e.g., HR Manager, HR Assistant), administrators can grant or deny permissions to view, edit, or delete sensitive fields like Social Security numbers or bank account details. This ensures that only authorized users with the appropriate role can access protected data, aligning with data privacy requirements.

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Employee self-service

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Audit logging

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Workflow automation

Question 2

A company uses Dynamics 365 Finance and wants to automate the approval of purchase orders under $10,000 while requiring manual approval for larger amounts. Which feature should they use?

Accepted Answer

Workflow automation. Workflow automation in Dynamics 365 Finance can be configured to automatically approve purchase orders under a specified amount and route larger ones for manual approval. Option B is incorrect because budget control enforces spending limits but does not automate approval workflows. Option C is incorrect because audit logging records user actions for compliance, not approval routing. Option D is incorrect because vendor collaboration is for communication with suppliers, not internal approval processes.

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Budget control

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Audit logging

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Vendor collaboration

Question 3

Which TWO capabilities are core to Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse management. Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced inbound and outbound warehouse operations, wave processing, and location directives. Transportation management (E) is also core, offering freight rating, routing, and shipment consolidation to optimize logistics. Together, they directly support the end-to-end supply chain processes within the application.

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Project cost management

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Omnichannel order management

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Financial reporting

Question 4

Which TWO capabilities are core to Dynamics 365 Commerce?

Accepted Answer

Loyalty management. Loyalty management is a core capability of Dynamics 365 Commerce because it enables retailers to create, manage, and execute loyalty programs (e.g., points-based, tiered) directly within the omnichannel commerce platform. Product recommendations are also core, leveraging AI and machine learning to provide personalized product suggestions across e-commerce and point-of-sale (POS) channels, driving cross-sell and up-sell opportunities.

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Project cost management

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Transportation management

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Budget control

Question 5

A company uses Dynamics 365 Finance to manage its financial operations. They need to automate the process of posting vendor invoices that are received via email. Which feature should they configure?

Accepted Answer

Vendor invoice automation. Vendor invoice automation is the correct feature because it is specifically designed to ingest vendor invoices from email (via an Exchange mailbox or Microsoft Dataverse), use OCR/invoice recognition to create pending vendor invoices, and then match and post them automatically according to configured rules. This directly addresses the scenario of automating the posting of email-received vendor invoices in Dynamics 365 Finance. Electronic reporting is for configuring and generating statutory/financial documents and formats, not for capturing and posting incoming vendor invoices. Data management is used for importing/exporting and integrating data via entities, not for email-driven invoice processing. Workflow routes documents for review and approval but does not itself receive emails or perform invoice recognition and posting.

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Electronic reporting

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Data management

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Workflow

Question 6

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to reduce inventory holding costs by implementing a strategy where materials are ordered only when needed for production. Which inventory strategy should they use?

Accepted Answer

Just-in-time (JIT). Just-in-time (JIT) is the correct inventory strategy because it aligns with the goal of reducing holding costs by ordering materials only when they are needed for production. In Dynamics 365 Supply Chain Management, JIT can be implemented using kanban rules and lean manufacturing principles, which trigger replenishment based on actual consumption rather than forecasted demand, minimizing inventory levels.

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Reorder point

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Economic order quantity (EOQ)

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Safety stock

Question 7

A company uses Dynamics 365 Project Operations. They need to track project costs and revenue recognition in real time. Which module should they use?

Accepted Answer

Project Operations. Dynamics 365 Project Operations is the dedicated module for managing the entire project lifecycle, including cost tracking and revenue recognition in real time. It integrates project planning, resource management, and financials to ensure that project costs and revenue are recognized accurately as work progresses, without needing to switch to separate modules.

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Finance

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Commerce

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Supply Chain Management

Question 8

A company uses Dynamics 365 Finance. They need to generate financial statements that comply with international accounting standards. Which configuration should they use?

Accepted Answer

Financial reporting. Financial reporting in Dynamics 365 Finance is the dedicated configuration for creating, managing, and generating financial statements that comply with international accounting standards such as IFRS. It uses the Financial Reporting module (formerly Management Reporter) to produce balance sheets, income statements, and other reports with multi-currency and multi-entity consolidation support, ensuring compliance with regulatory requirements.

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Budgeting

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General ledger

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Tax engine

Question 9

A company uses Dynamics 365 Commerce. They need to offer a promotion where customers get a 10% discount on a specific product line. Which pricing mechanism should they configure?

Accepted Answer

Retail discount. A retail discount is the correct pricing mechanism for a broad promotion offering a 10% discount on a product line to all customers. Retail discounts in Dynamics 365 Commerce are designed for promotional pricing that applies to a wide audience, such as percentage off on specific products or categories. Unlike trade agreements, which are for negotiated prices with specific customers or vendors, retail discounts are ideal for general promotions.

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Trade agreement

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Price adjustment

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Coupon

Question 10

Which THREE are core capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse management. Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced inbound and outbound processes, wave execution, and location directives to optimize inventory movement and storage. It integrates with barcode scanning and mobile device workflows to enable real-time warehouse operations.

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Budgeting

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Sales order processing

Question 11

Which TWO features are included in Dynamics 365 Commerce to enhance the customer experience?

Accepted Answer

Personalized offers. Personalized offers (B) are correct because Dynamics 365 Commerce uses AI-driven customer insights and segmentation to deliver tailored discounts and promotions in real time, directly enhancing the shopping experience. Product recommendations (C) are correct because the system leverages machine learning algorithms to analyze browsing and purchase history, suggesting relevant items to increase cross-sell and upsell opportunities.

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Vendor collaboration

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Inventory visibility

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Demand forecasting

Question 12

A company uses Dynamics 365 Finance. The accounting manager needs to automatically match bank statement lines to open invoices and payments. Which feature should be used?

Accepted Answer

Bank reconciliation automation. Bank reconciliation automation in Dynamics 365 Finance automatically matches bank statement lines to open invoices and payments using predefined matching rules and algorithms. This feature reduces manual effort by identifying and reconciling transactions based on criteria such as amounts, dates, and reference numbers, which directly addresses the accounting manager's need.

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Advanced ledger entries

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Payment proposals

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Cash flow forecast

Question 13

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to ensure that raw materials are automatically replenished based on current inventory levels and forecasted demand. Which feature should be configured?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the feature designed to calculate material and capacity requirements based on current inventory levels and forecasted demand. It generates planned orders for replenishment, ensuring raw materials are available to meet production and customer demand without overstocking.

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Quality management

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Vendor collaboration

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Warehouse management

Question 14

A multinational organization uses Dynamics 365 Finance with multiple legal entities. They need to centralize cash management and consolidate bank account balances across entities. What is the recommended approach?

Accepted Answer

Use the Cash and bank management module with cross-company bank accounts. The Cash and bank management module in Dynamics 365 Finance supports cross-company bank accounts, allowing centralized visibility and management of bank balances across legal entities. Option A is incorrect because the General ledger consolidation process is for aggregating financial data for reporting, not real-time cash management. Option C is incorrect because Budget control is used to enforce spending limits, not for cash visibility. Option D is incorrect because Intercompany accounting handles transactions between entities, but does not provide centralized cash management.

Answer

Run the consolidation process in General ledger

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Configure Budget control for each entity

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Set up intercompany accounting for each entity

Question 15

A retail company uses Dynamics 365 Commerce. They want to offer a loyalty program that awards points based on purchase amount and allows customers to redeem points for discounts. Which capability should be configured?

Accepted Answer

Loyalty program management. Loyalty program management in Dynamics 365 Commerce is the specific capability designed to define and administer loyalty schemes, including earning rules (points per purchase amount) and redemption rules (discounts for points). This directly matches the requirement to award points based on purchase amount and allow customers to redeem points for discounts.

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Call center functionality

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Channel setup

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Product assortment management