MB-920 Hard Questions — 25 Difficult Questions

Question 1

You are the Dynamics 365 Commerce administrator for a medium-sized retail company that operates 20 physical stores and an online store. The company uses Dynamics 365 Commerce with the built-in payment connector for credit card processing. Recently, the company started experiencing a high number of abandoned carts in the online store. Customers report that when they attempt to pay using a credit card, they receive an error message stating 'Payment authorization failed.' However, the same credit cards work fine when used in physical stores. The IT team has verified that the payment connector is configured correctly and that the payment gateway is operational. The online store's checkout page loads correctly and customers can enter their payment details. The error occurs only during the authorization step. What should you do to resolve this issue?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Review and update the payment connector configuration for the online store channel.. The issue is isolated to the online store channel, where the payment connector configuration may be missing or incorrect for that specific channel. Since the physical stores process payments successfully, the problem is not with the payment gateway or the connector itself, but with how the connector is configured for the online channel. Reviewing and updating the payment connector configuration for the online store channel ensures that the authorization request is properly formatted and routed.

Answer

Install a hardware station at the online store's data center.

Answer

Reconfigure the credit card payment method in the headquarters.

Answer

Contact the payment gateway provider to check for service outages.

Question 2

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They need to enforce strict FIFO (first in, first out) picking for perishable goods. Which configuration ensures that the oldest inventory is picked first?

Accepted Answer

Configure a reservation hierarchy with expiration date as the primary dimension. Configuring a reservation hierarchy with expiration date as the primary dimension ensures that the system prioritizes inventory based on the oldest expiration date first. In Dynamics 365 Supply Chain Management with advanced warehouse management, the reservation hierarchy defines the order in which dimensions (e.g., location, license plate, expiration date) are considered during reservation and picking. By placing expiration date at the top, the system automatically enforces FIFO for perishable goods, picking the oldest stock first.

Answer

Adjust the work template to order by location

Answer

Set up location profiles with strict picking order

Answer

Modify the mobile device menu item for picking

Question 3

Which THREE are benefits of using Dynamics 365 Supply Chain Management's AI and Copilot features?

Accepted Answer

Improved demand forecasting. Dynamics 365 Supply Chain Management's AI and Copilot features use machine learning models to analyze historical sales data, market trends, and external factors (e.g., weather, economic indicators) to generate more accurate demand forecasts. This reduces stockouts and overstock situations by predicting future demand with higher precision than traditional statistical methods.

Answer

Automated supplier negotiation

Answer

Reduced need for manual data entry

Question 4

Which TWO actions should a Dynamics 365 Finance administrator take to ensure that intercompany transactions are automatically reconciled and eliminated during consolidation?

Accepted Answer

Set up an elimination rule for intercompany transactions.. Options A and C are correct. Setting up intercompany accounting (option C) ensures that transactions are automatically matched between legal entities, and an elimination rule (option A) automates the elimination of intercompany balances during consolidation. Option B is wrong because the consolidation online feature is for transferring balances, not for elimination. Option D is wrong because consolidation groups are for grouping legal entities, not for eliminating intercompany transactions. Option E is wrong because intercompany workflows are for approval, not for reconciliation or elimination.

Answer

Use the Consolidation online feature to transfer balances.

Answer

Define consolidation groups to group legal entities.

Answer

Create an intercompany workflow to approve transactions.

Question 5

Which THREE are key capabilities of Dynamics 365 Supply Chain Management's warehouse management module?

Accepted Answer

Cycle counting. Cycle counting is a core capability of the Dynamics 365 Supply Chain Management warehouse management module, allowing for ongoing inventory accuracy checks without full physical inventory shutdowns. It supports scheduled and ad-hoc counts based on item criteria, locations, or zones, and integrates with warehouse operations to minimize disruption.

Answer

Product lifecycle management

Answer

Service agreements

Question 6

Refer to the exhibit. A warehouse manager runs the on-hand inventory report for item P-1000 in warehouse WH01. The report shows zero on-hand quantity but the inventory status is 'Available'. The manager knows that there should be 500 units in stock based on a recent purchase order receipt. What is the most likely cause of this discrepancy?

Accepted Answer

The purchase order receipt has not been registered in the warehouse. The most likely cause is that the purchase order receipt has not been registered in the warehouse (Option A). In Dynamics 365 Supply Chain Management, inventory status is set to 'Available' by default when an item is created or received, but the on-hand quantity only updates after the receipt is physically registered against the warehouse. Since the manager sees zero on-hand quantity despite knowing 500 units were received, the receipt transaction likely exists in the system but hasn't been posted to the warehouse inventory, leaving the quantity unrecorded.

Answer

The item is stored in a different location

Answer

The item is reserved for a sales order

Answer

The item is on a quality order

Question 7

Which THREE components are part of the advanced warehouse management setup in Dynamics 365 Supply Chain Management?

Accepted Answer

Location directives. Options A, B, and D are correct. Location directives determine pick/put locations, location profiles define location characteristics, and work templates define work types and processes. Option C (BOM versions) is incorrect because BOM versions are used for product structure and manufacturing, not warehouse management. Option E (Costing methods) is incorrect because costing methods are for inventory valuation and accounting.

Answer

BOM versions

Answer

Costing methods

Question 8

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

Answer

The bom version is not approved

Answer

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

Question 9

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.

Answer

Vendor collaboration

Answer

Inventory visibility

Answer

Demand forecasting

Question 10

Refer to the exhibit. A purchase order has an amount of $15,000 and is pending approval. The workflow 'POApprovalWorkflow' has a condition that requires approval for amounts over $10,000. What will happen if a user tries to submit this purchase order?

Accepted Answer

The purchase order will be submitted for approval.. The workflow 'POApprovalWorkflow' is configured with a condition that triggers approval for purchase orders exceeding $10,000. Since the purchase order amount is $15,000, it meets the condition and will be submitted to the approval workflow process, not automatically approved, skipped, or rejected.

Answer

The purchase order will be automatically approved.

Answer

The purchase order will be skipped by the workflow.

Answer

The purchase order will be rejected.

Question 11

Which THREE elements are required when setting up budget control in Dynamics 365 Finance?

Accepted Answer

Budget interval. The three required elements for setting up budget control in Dynamics 365 Finance are budget intervals, budget thresholds, and budget control rules. Budget intervals define the time period for budget control, budget thresholds set tolerance levels for overspending, and budget control rules specify the conditions and actions for enforcing budget control. Option B (budget plan template) is incorrect because budget plan templates are used for budget planning and not for budget control. Option D (reporting currency) is incorrect because reporting currency is an optional configuration and not a mandatory element for budget control.

Answer

Budget plan template

Answer

Reporting currency

Question 12

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They notice that workers can confirm pick work even when the picked quantity is less than the expected quantity. They want to enforce that picking must be completed in full before confirmation. What should they configure?

Accepted Answer

Set the 'Confirm all lines' option to Yes on the mobile device menu item for picking.. The 'Confirm all lines' option on the mobile device menu item forces full picking. 'Pick line' allows partial picks. 'Work confirmation policy' can block, but the specific setting is on the menu item.

Answer

Enable the 'Short picking' policy in the work template.

Answer

Set the 'Maximum pick quantity' to 100% on the location directive.

Answer

Configure the work confirmation policy to require full quantity.

Question 13

An organization is implementing Dynamics 365 Finance and needs to ensure that all vendor invoices are approved before payment. They want to automate three-way matching for purchase order invoices. What must be set up?

Accepted Answer

Accounts payable parameters, invoice matching workflow, and vendor tolerances. Three-way matching in Dynamics 365 Finance requires all three components: accounts payable parameters (to enable matching), the invoice matching workflow (to define the approval process), and vendor tolerances (to set acceptable variances). Option A is wrong because only the workflow is insufficient without enabling matching in parameters and setting tolerances. Option B is wrong because only accounts payable parameters are insufficient without the workflow and tolerances. Option D is wrong because only vendor tolerances are insufficient without the parameters and workflow.

Answer

Only the invoice matching workflow

Answer

Only accounts payable parameters for invoice matching

Answer

Only vendor tolerances for matching

Question 14

A company uses Dynamics 365 Supply Chain Management. They need to improve the accuracy of demand forecasting by incorporating external data such as weather forecasts and economic indicators. Which THREE features should they consider?

Accepted Answer

Demand forecasting. Demand forecasting in Dynamics 365 Supply Chain Management uses historical transaction data and can be extended with external data sources like weather and economic indicators through Azure Machine Learning. This integration improves forecast accuracy by applying machine learning models that correlate external factors with demand patterns.

Answer

Inventory visibility

Answer

Master planning

Question 15

A company wants to use Dynamics 365 Finance for advanced financial planning and analysis. Which THREE capabilities should they enable?

Accepted Answer

Budgeting. Budgeting (C) is a core capability in Dynamics 365 Finance that enables organizations to create, manage, and analyze budgets, which is essential for advanced financial planning and analysis. It integrates with general ledger and other modules to support budget control, budget planning, and budget reporting, allowing for proactive financial management.

Answer

Accounts payable

Answer

Invoice capture

Question 16

A company is implementing Dynamics 365 Finance and needs to automate the reconciliation of bank transactions. Which feature should be used to match bank statement lines with open bank document lines based on rules?

Accepted Answer

Advanced bank reconciliation. Advanced bank reconciliation in Dynamics 365 Finance allows you to import bank statement lines and automatically match them to open bank document lines (such as checks, deposits, and transfers) using user-defined matching rules. This feature supports rule-based matching (e.g., by amount, date, or reference) and handles complex scenarios like partial matches or tolerance thresholds, making it the correct choice for automating bank transaction reconciliation.

Answer

Bank account reconciliation

Answer

Payment proposal

Answer

Automatic settlement

Question 17

A manufacturing company uses Dynamics 365 Supply Chain Management for process manufacturing. They produce a liquid chemical that requires a specific mixing time. Which feature should be used to enforce that the production step takes at least 30 minutes before the next step can begin?

Accepted Answer

Route operation with a 'Process time' set to 30 minutes. A route operation with a 'Process time' of 30 minutes will enforce that the operation takes at least that long. Option A is for discrete manufacturing, not process. Option C is for product configuration, not production steps. Option D is for quality management, not time enforcement.

Answer

Product configuration model

Answer

Production orders with a bill of materials (BOM)

Answer

Quality order with a test time

Question 18

You are a Dynamics 365 Finance consultant for a retail company that operates in multiple countries. The company uses Dynamics 365 Finance with the following configuration: The main legal entity is based in the United States (US), and there are subsidiary legal entities in Canada (CA) and the United Kingdom (UK). The finance team needs to generate consolidated financial reports that combine data from all three entities. Additionally, the company wants to automate the elimination of intercompany transactions during consolidation. The company also needs to comply with local tax reporting requirements in each country. The tax rates and rules change frequently, and the company wants to manage these changes without modifying the source code. You have set up the consolidation module and the tax engine. However, during the consolidation process, you notice that the intercompany transactions are not being eliminated, and the consolidated report shows double-counting. What should you do to automatically eliminate intercompany transactions during consolidation?

Accepted Answer

Configure elimination rules in the consolidation module to automatically generate elimination entries.. Elimination rules automate the removal of intercompany balances. Option A is wrong because manual journal entries are not automated. Option C is wrong because intercompany accounting is for transaction posting, not elimination. Option D is wrong because the consolidation online feature is for real-time consolidation but does not automatically eliminate.

Answer

Create manual journal entries to eliminate intercompany balances after consolidation.

Answer

Set up intercompany accounting to post elimination entries automatically.

Answer

Use the consolidation online feature to eliminate transactions in real time.

Question 19

A distribution company uses Dynamics 365 Supply Chain Management. They need to automatically allocate inventory to sales orders based on customer priority. What feature should they configure?

Accepted Answer

ATP (Available to Promise). Available to Promise (ATP) in Dynamics 365 Supply Chain Management calculates the quantity of inventory that can be promised to new orders based on existing demand, supply, and lead times. By setting customer priority codes and using allocation methods, the system can automatically allocate ATP quantities to higher-priority customers first, ensuring inventory is allocated according to business rules.

Answer

Picking list

Answer

Inventory reservation hierarchy

Answer

Batch balancing

Question 20

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.

Answer

Intercompany accounting

Answer

Single ledger

Answer

Consolidation