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

Question 1

A manufacturing company uses Dynamics 365 Finance. They need to automate the process of reordering raw materials when inventory falls below a predefined level. Which feature should they configure?

Accepted Answer

Safety stock levels. Option B is correct because Safety stock levels trigger replenishment when inventory drops below the set threshold. Option A is wrong because ABC classification is used for inventory categorization, not automated reordering. Option C is wrong because Inventory aging reports analyze stock age, not trigger reorders. Option D is wrong because Batch attributes are for quality control, not replenishment.

Answer

ABC classification

Answer

Batch attributes

Answer

Inventory aging reports

Question 2

A retail company using Dynamics 365 Commerce wants to implement a loyalty program that rewards customers based on purchase frequency and total spend. They need to assign different point multipliers for specific product categories. Which configuration should they use?

Accepted Answer

Loyalty program rules. Loyalty program rules in Dynamics 365 Commerce allow you to define earning and redemption rules, including point multipliers based on product categories. This configuration directly supports rewarding customers based on purchase frequency and total spend while assigning different multipliers for specific categories, making it the correct choice.

Answer

Category hierarchy rules

Answer

Assortment management

Answer

Channel navigation hierarchy

Question 3

A company uses Dynamics 365 Supply Chain Management. They want to track the carbon footprint of each product throughout its lifecycle, from raw material to end-of-life disposal. Which module should they use?

Accepted Answer

Sustainability. The Sustainability module in Dynamics 365 Supply Chain Management is specifically designed to calculate and track carbon emissions across the entire product lifecycle, including raw material extraction, production, distribution, usage, and end-of-life disposal. It uses predefined emission factors and activity data to compute the carbon footprint per product, enabling organizations to meet environmental reporting requirements and identify reduction opportunities.

Answer

Transportation management

Answer

Warehouse management

Answer

Product information management

Question 4

A company uses Dynamics 365 Finance to manage intercompany transactions. They need to ensure that when a sales order is created in one legal entity, a corresponding purchase order is automatically generated in another legal entity. Which feature should they configure?

Accepted Answer

Intercompany trading. Option A is correct because Intercompany trading in Dynamics 365 Finance automatically generates matching orders across legal entities. Option B is wrong because Consolidations is for combining financial results, not operational transactions. Option C is wrong because Elimination rules are for removing intercompany transactions in consolidated reports. Option D is wrong because Budget control manages spending limits, not intercompany order generation.

Answer

Budget control

Answer

Elimination rules

Answer

Consolidations

Question 5

A company uses Dynamics 365 Human Resources. They want to automate the process of assigning training courses to employees based on their job role and completion of prerequisite courses. Which feature should they use?

Accepted Answer

Training management. Training management in Dynamics 365 Human Resources is the correct feature because it is specifically designed to handle course assignments, prerequisites, and automated training workflows based on job roles. This module allows administrators to define training plans, link them to job positions, and enforce prerequisite completion before enrolling employees, directly meeting the stated requirement.

Answer

Compensation management

Answer

Performance management

Answer

Recruitment management

Question 6

A company uses Dynamics 365 Project Operations. They need to track time and expenses for project resources and bill clients accordingly. Which core capability should they use?

Accepted Answer

Time and expense management. Time and expense management is the core capability in Dynamics 365 Project Operations that enables project resources to log their hours and incurred costs. This data is then used to drive accurate client billing, as the system can automatically calculate billable amounts based on recorded time and expenses against the project.

Answer

Invoicing

Answer

Resource scheduling

Answer

Project budgeting

Question 7

A company uses Dynamics 365 Commerce. They want to offer personalized product recommendations to online shoppers based on their browsing history and purchase patterns. Which Copilot feature should they enable?

Accepted Answer

Copilot in Dynamics 365 Commerce. Option C is correct because Copilot in Dynamics 365 Commerce provides AI-driven personalized product recommendations. Option A is wrong because Copilot in Dynamics 365 Sales focuses on lead scoring, not e-commerce recommendations. Option B is wrong because Copilot in Dynamics 365 Customer Service provides support suggestions. Option D is wrong because Copilot in Dynamics 365 Finance provides financial insights.

Answer

Copilot in Dynamics 365 Customer Service

Answer

Copilot in Dynamics 365 Finance

Answer

Copilot in Dynamics 365 Sales

Question 8

A company uses Dynamics 365 Supply Chain Management. They need to optimize production scheduling by considering machine capacity, material availability, and delivery deadlines. Which feature should they use?

Accepted Answer

Finite capacity scheduling. Finite capacity scheduling is the correct feature because it explicitly considers machine capacity, material availability, and delivery deadlines when generating a production schedule. Unlike infinite loading, which assumes unlimited resources, finite capacity scheduling respects the actual workload of each resource and material constraints, ensuring that the schedule is realistic and achievable.

Answer

Master planning

Answer

Gantt chart

Answer

Lean manufacturing

Question 9

A company uses Dynamics 365 Finance. They need to generate financial statements that comply with local regulatory requirements. Which feature should they use?

Accepted Answer

Financial reporting. Financial reporting in Dynamics 365 Finance is the dedicated feature for generating financial statements that comply with local regulatory requirements. It provides configurable report definitions, row and column structures, and supports multiple reporting frameworks (e.g., GAAP, IFRS) to meet statutory reporting needs. Unlike transactional modules, Financial reporting is specifically designed to produce balance sheets, income statements, and other regulated reports.

Answer

Accounts payable

Answer

Fixed assets management

Answer

Budgeting

Question 10

Which TWO features are part of Dynamics 365 Supply Chain Management? (Select two.)

Accepted Answer

Transportation management. Transportation management is a core feature of Dynamics 365 Supply Chain Management that enables companies to manage inbound and outbound transportation, including route planning, carrier selection, freight reconciliation, and shipment tracking. It integrates with warehouse management to optimize logistics and reduce shipping costs.

Answer

Commerce

Answer

Human Resources

Answer

Project Operations

Question 11

Which THREE capabilities are provided by Dynamics 365 Finance? (Select three.)

Accepted Answer

General ledger. The General ledger is the core of Dynamics 365 Finance, providing a centralized chart of accounts, journal entries, and financial reporting. It enables organizations to track all financial transactions and maintain a complete audit trail, which is fundamental to the application's finance capabilities.

Answer

Warehouse management

Answer

Asset management

Question 12

Which TWO features are part of Dynamics 365 Commerce? (Select two.)

Accepted Answer

Loyalty programs. Loyalty programs are a core feature of Dynamics 365 Commerce, enabling retailers to create, manage, and execute customer loyalty schemes, including points accrual, rewards, and tier management. This functionality is tightly integrated with the omnichannel capabilities to provide a consistent loyalty experience across online and physical store channels.

Answer

Production control

Answer

Project accounting

Answer

Fixed assets

Question 13

Refer to the exhibit. A Dynamics 365 Supply Chain Management system returns the above JSON for on-hand inventory. For item A0001, what is the available physical quantity that is not reserved?

Accepted Answer

70. The available physical quantity that is not reserved is calculated as the on-hand inventory minus the physically reserved quantity. In the JSON, item A0001 has an on-hand quantity of 100 and a physical reservation of 30, so the available physical quantity not reserved is 100 - 30 = 70. This matches option C.

Answer

100

Answer

50

Answer

90

Question 14

Refer to the exhibit. A Dynamics 365 Finance batch job configuration is shown. The job started on December 1, 2025 at 08:00 UTC and is recurring daily. It is currently December 2, 2025 at 10:00 UTC and the job status is 'Executing'. What does this indicate?

Accepted Answer

The job from December 1 is still running, exceeding the recurrence interval.. Option C is correct because the batch job started on December 1 at 08:00 UTC with a daily recurrence, and as of December 2 at 10:00 UTC (26 hours later), its status is still 'Executing'. This means the first instance never completed, so the recurrence interval (24 hours) has been exceeded, and the system will not start a new instance until the current one finishes. In Dynamics 365 Finance, a batch job with a recurrence interval shorter than its actual runtime will remain in 'Executing' status and block subsequent scheduled runs.

Answer

The job has encountered an error and is retrying.

Answer

The job is scheduled for weekly recurrence, not daily.

Answer

The job completed successfully on December 1 and is now running the December 2 instance.

Question 15

Refer to the exhibit. A Dynamics 365 Finance administrator configures a financial dimension called 'Department' with the values shown. An accountant needs to post an expense to the Marketing department. Which dimension value should they use?

Accepted Answer

200. The correct dimension value is 200 because the 'Department' financial dimension in Dynamics 365 Finance uses the dimension value code, not the display name or description. The accountant must select the value '200' to post an expense to the Marketing department, as '200' is the assigned code for Marketing in the exhibit.

Answer

100

Answer

300

Answer

400