MB-920 Describe the core capabilities of the finance and operations apps Practice Test 9 — 15 Questions

Question 1

An organization uses Dynamics 365 Project Operations. A project manager needs to track the budget consumption and actual costs against the approved budget for a project. Which feature should they use?

Accepted Answer

Project budget and cost control. Project budget and cost control in Dynamics 365 Project Operations enables project managers to track budget consumption and actual costs against the approved budget. This feature provides real-time visibility into budget variances, cost overruns, and remaining budget, directly supporting the requirement to monitor financial performance against the plan.

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Expense management

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Time entry

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Resource scheduling

Question 2

A company uses Dynamics 365 Supply Chain Management and wants to implement a vendor-managed inventory (VMI) process where vendors monitor and replenish stock at the customer's warehouse. What is the recommended setup?

Accepted Answer

Set up consignment inventory for the vendor. Vendor-managed inventory (VMI) in Dynamics 365 Supply Chain Management is implemented using consignment inventory. In a consignment setup, the vendor owns the stock until it is consumed or transferred to the customer's inventory, which aligns with the VMI process where the vendor monitors and replenishes stock at the customer's warehouse. The system supports this through consignment replenishment orders and vendor-owned inventory tracking.

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Configure warehouse management for the vendor

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Enable quality management for received items

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Create a purchase agreement with the vendor

Question 3

A finance team in Dynamics 365 Finance needs to automate the generation of vendor payments based on due dates and available cash discounts. Which feature should they use?

Accepted Answer

Payment proposals. Payment proposals in Dynamics 365 Finance allow the finance team to automatically generate vendor payments by filtering invoices based on due dates and cash discount terms. This feature evaluates vendor invoices against configured payment schedules and discount periods, then proposes payments for approval or direct processing, eliminating manual selection.

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Vendor invoices

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Vendor collaboration workspace

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Purchase orders

Question 4

A company uses Dynamics 365 Human Resources. They want to automate the process of approving time-off requests based on employee tenure and department. What feature should be configured?

Accepted Answer

Leave and absence management. Leave and absence management in Dynamics 365 Human Resources provides the workflow engine and rule-based configuration needed to automate time-off request approvals. It allows administrators to define approval policies based on employee attributes such as tenure and department, enabling automatic routing and decision-making without manual intervention.

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Compensation management

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Recruitment

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Performance management

Question 5

An organization uses Dynamics 365 Finance. They need to revalue foreign currency bank accounts at month-end and post the unrealized gain or loss. Which process should be run?

Accepted Answer

Foreign currency revaluation. The Foreign currency revaluation process in Dynamics 365 Finance is specifically designed to revalue foreign currency-denominated bank accounts and ledger accounts at period end, calculating unrealized gains or losses due to exchange rate fluctuations. Running this process generates the necessary journal entries to adjust balances and post the unrealized gain/loss to the appropriate accounts.

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Settlement

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Consolidation

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General journal

Question 6

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.

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Payroll processing

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Sales order management

Question 7

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.

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Catalog management

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Production scheduling

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Inventory valuation

Question 8

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.

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The main account is not valid

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The fiscal year 2024 is not open for budget

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The budget model ORIGINAL is not defined

Question 9

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.

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On-premises data center overload

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Incorrect POS hardware profile configuration

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Insufficient POS terminal memory

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 in Dynamics 365 Supply Chain Management define minimum and maximum stock levels per item and warehouse, and the system automatically generates transfer orders or purchase orders when inventory falls below the minimum. This is exactly the feature used to move stock between warehouses based on demand signals. Configuring replenishment ensures warehouses are restocked automatically without manual intervention.

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Warehouse receipt process

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Wave processing

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Outbound shipment processing

Question 11

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.

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Marketing segments in Dynamics 365 Marketing

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Customer Service Insights

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Power BI embedded analytics

Question 12

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.

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The warehouse management parameters are misconfigured

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Items are using batch numbers inconsistently

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The inventory posting setup is incorrect

Question 13

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 14

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 15

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