MB-920 Describe the core capabilities of the finance and operations apps — Timed 30 Questions

Question 1

A company uses Dynamics 365 Finance. The finance team needs to ensure that purchase invoices are automatically matched to purchase orders and product receipts before payment is processed. Which feature should be configured?

Accepted Answer

Accounts payable invoice matching. Accounts payable invoice matching (option D) is the correct feature because it automatically compares purchase invoice details (quantities, prices, charges) against the corresponding purchase order and product receipt. This three-way matching ensures that payment is only processed when the invoice matches the order and receipt, preventing overpayment and discrepancies.

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Fixed asset management

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Workflow approval

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Vendor collaboration portal

Question 2

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager reports that the system is not automatically reserving raw materials when a production order is released. What is the most likely cause?

Accepted Answer

The reservation hierarchy is not configured for production. The reservation hierarchy in Dynamics 365 Supply Chain Management determines whether raw materials are automatically reserved when a production order is released. If the hierarchy is not configured for production (e.g., set to 'None' or only for sales orders), the system will not perform automatic reservation, leaving materials unreserved. This is a common setup issue that directly controls the reservation behavior at order release.

Answer

The default order settings for the item are incorrect

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The bom version is not approved

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The explosion date on the production order is set to a future date

Question 3

A company uses Dynamics 365 Finance. The CFO wants to view financial data in real-time using dashboards. Which tool should be used to create these dashboards?

Accepted Answer

Power BI. Power BI is the correct tool because it provides real-time, interactive dashboards that can be embedded directly into Dynamics 365 Finance, allowing the CFO to visualize financial data with live updates. Unlike static reporting tools, Power BI connects to the finance data sources via OData or DirectQuery, enabling dynamic filtering and drill-down without requiring manual data refresh.

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Microsoft Excel

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SQL Server Reporting Services (SSRS)

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Power Apps

Question 4

A retail company uses Dynamics 365 Commerce. The store manager notices that inventory levels are not updated in real-time after a point-of-sale (POS) transaction. What should be checked first?

Accepted Answer

The POS functionality profile setting for inventory processing. The POS functionality profile setting for inventory processing controls how inventory updates are handled at the register. If this setting is not configured to process inventory in real-time, the system will defer updates to a batch job, causing the observed delay. This is the first place to check because it directly governs the behavior of inventory updates during POS transactions.

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The default inventory location for the store

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The assortment configuration for the store

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The Commerce Data Exchange (CDX) job schedule

Question 5

A company uses Dynamics 365 Project Operations. The project manager needs to track actual hours worked against budgeted hours for a fixed-price project. Which module should be used?

Accepted Answer

Project management. In Dynamics 365 Project Operations, the Project management module (specifically the Project Planning and Tracking area) is the correct place to monitor actual hours worked against budgeted hours for a fixed-price project. This module provides the project manager with a view of planned vs. actual effort, allowing them to track progress and ensure the project stays within the fixed budget.

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Resource management

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Expense management

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Time and attendance

Question 6

A company uses Dynamics 365 Human Resources. The HR manager wants to automate the process of sending onboarding tasks to new hires. Which feature should be used?

Accepted Answer

Checklists. Checklists in Dynamics 365 Human Resources allow HR managers to define a series of onboarding tasks (e.g., IT setup, benefits enrollment) that are automatically assigned to new hires upon hire date or status change. This feature directly supports automating the onboarding process without requiring custom development.

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Workflow

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Performance journals

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Personnel actions

Question 7

A company uses Dynamics 365 Finance. The controller wants to enforce that all purchase requisitions over $10,000 require CFO approval. Which configuration should be used?

Accepted Answer

Purchase requisition workflow. A purchase requisition workflow is the correct configuration because it allows the controller to define a conditional approval step that triggers CFO approval when the requisition total exceeds $10,000. Workflows in Dynamics 365 Finance are designed to route documents through approval processes based on configurable conditions, such as monetary thresholds. This directly meets the requirement without altering budget control or audit policies.

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Budget control configuration

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Audit policy rule

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Configuration key

Question 8

A company uses Dynamics 365 Supply Chain Management. The warehouse manager wants to enable wave processing to automatically create work for outbound orders. Which setup is required?

Accepted Answer

Warehouse management parameters with wave processing enabled. Wave processing automates work creation for outbound orders. Option A is correct. Option B (Reservation hierarchy) controls material reservation. Option C (Location directives) determine where to put/pick items but are part of wave steps. Option D (Inventory status) is for inventory classification.

Answer

Inventory status for the items

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Location directives for picking

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Reservation hierarchy for the item

Question 9

A company wants to use AI capabilities to automatically categorize thousands of vendor invoices. Which Dynamics 365 Finance feature should be used?

Accepted Answer

Invoice automation using AI Builder. AI Builder integrated with Accounts payable invoice automation uses AI to categorize and process invoices. Option D is correct. Option A (Electronic reporting) is for generating documents. Option B (Budget planning) is for budgeting. Option C (Fixed assets) is for asset management.

Answer

Budget planning

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Electronic reporting

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Fixed assets

Question 10

A company uses Dynamics 365 Supply Chain Management. Which TWO configurations are required to enable the Warehouse Management module?

Accepted Answer

Assign a warehouse management item to each item. Option B is correct because each item that will be used in warehouse management processes must be assigned a 'warehouse management item' flag in the item model group. This flag enables the item to participate in advanced warehouse processes such as wave execution, location directives, and mobile device transactions. Option C is correct because the warehouse record itself must have the 'Use warehouse management processes' option enabled to activate the module for that specific warehouse.

Answer

Set up financial dimensions for inventory

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Configure the advanced warehouse management parameter

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Enable the Warehouse Management feature in Feature Management

Question 11

A company uses Dynamics 365 Finance. The accounting team needs to create a financial report that shows actual vs. budgeted expenses by department. Which THREE components must be configured?

Accepted Answer

Financial dimension sets. Financial dimension sets (A) are required because they define the combination of dimensions (e.g., Department, Cost Center) used to segment actual and budget data in reports. Main accounts (B) are the core accounts from the chart of accounts that capture the expense values. A budget model (C) is necessary because it holds the budget amounts for each account and dimension combination, enabling the actual vs. budget comparison.

Answer

Chart of accounts

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Fixed asset group

Question 12

A company uses Dynamics 365 Commerce. Which TWO features are available to enhance the customer shopping experience online?

Accepted Answer

Product recommendations powered by AI. Option A is correct because Dynamics 365 Commerce includes AI-powered product recommendations that analyze customer behavior, purchase history, and browsing patterns to suggest relevant items, directly enhancing the online shopping experience. Option B is correct because the customer loyalty program feature allows retailers to create and manage loyalty schemes, points, and rewards, which increases customer engagement and repeat purchases online.

Answer

Purchase order management

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Inventory counting

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Vendor invoice processing

Question 13

Refer to the exhibit. A budget transfer is being submitted in Dynamics 365 Finance. Based on the JSON, which dimension combination is used for the budget transfer?

Accepted Answer

Department 100 and Cost center CC001. The JSON shows a budget transfer with Department '100' and CostCenter 'CC001'. Option B is correct. Option A includes a Project dimension not present. Option C misses CostCenter. Option D includes Location not present.

Answer

Department 100, CostCenter CC001, and Location LOC01

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Department 100 only

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Department 100 and Project P001

Question 14

Refer to the exhibit. A purchase order line shows a LineDiscount of 10.0 and LineAmount of 225.00. If the discount is applied as a percentage, what is the correct interpretation?

Accepted Answer

The line discount is a 10% discount on the line total. Option B is correct because the LineDiscount of 10.0 is interpreted as a percentage (10%) when the discount method is set to percentage. This means the line discount is calculated as 10% of the line total, resulting in a LineAmount of 225.00 after the discount is applied. In Dynamics 365 Finance and Operations, the LineDiscount field stores the discount value, and its interpretation depends on the discount method selected on the purchase order line.

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The line discount is applied after line amount calculation

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The line discount is a flat $10.00 reduction

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The line discount is 10% of the unit price

Question 15

Refer to the exhibit. A production order in Dynamics 365 Supply Chain Management has Reservation set to 'Manual'. What does this mean for material availability?

Accepted Answer

Materials must be manually reserved by the user. When the Reservation field on a production order is set to 'Manual', materials are not automatically reserved or consumed. Instead, the user must explicitly reserve materials (e.g., via the production order's 'Reserve' action) before or during production. This ensures that material availability is controlled manually, preventing automatic allocation from inventory.

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Materials are automatically reserved when the order is released

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Materials are automatically consumed during production

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Materials are reserved based on the BOM explosion date

Question 16

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 core capability should they use?

Accepted Answer

Replenishment rules. Replenishment rules in Dynamics 365 Finance allow you to define automatic reordering logic based on predefined inventory levels, such as minimum and maximum stock quantities. This capability directly addresses the requirement to trigger purchase orders or transfer orders when raw materials fall below a threshold, without manual intervention.

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Inventory counting

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Demand forecasting

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Vendor collaboration

Question 17

A retail company wants to use Dynamics 365 Commerce to manage online and in-store sales from a single platform. Which core capability should they leverage to unify their sales data?

Accepted Answer

Omnichannel order management. Omnichannel order management is the core capability in Dynamics 365 Commerce that unifies sales data from online and in-store channels into a single order lifecycle. It enables centralized processing, fulfillment, and returns across all channels, ensuring consistent inventory and customer data without silos.

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Loyalty management

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Product recommendations

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Inventory visibility

Question 18

A company implements Dynamics 365 Finance and needs to comply with international accounting standards. They must ensure that all financial transactions are recorded in two ledgers: one for legal reporting and one for internal management. Which feature should they configure?

Accepted Answer

Dual ledger. Dual ledger is the correct feature because it allows an organization to maintain two separate accounting ledgers within the same legal entity: one for legal reporting (typically based on local GAAP or IFRS) and one for internal management reporting (e.g., based on a different accounting standard or internal adjustments). This is achieved through the use of main accounts and financial dimensions, where the legal ledger uses the primary main account structure and the management ledger can use an extended or alternative account structure, ensuring both sets of books are updated simultaneously from a single transaction entry.

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Intercompany accounting

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Single ledger

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Consolidation

Question 19

A logistics company uses Dynamics 365 Supply Chain Management. They want to optimize delivery routes to reduce fuel costs and improve on-time delivery. Which capability should they use?

Accepted Answer

Transportation management. Transportation management in Dynamics 365 Supply Chain Management provides route planning, rate shopping, and shipment consolidation capabilities. It uses real-time data and constraints (e.g., traffic, delivery windows) to optimize delivery routes, directly reducing fuel costs and improving on-time delivery.

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Production control

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Warehouse management

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Asset management

Question 20

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