MB-920 Describe Dynamics 365 Project Operations — All Questions With Answers

Question 1

A consulting firm uses Dynamics 365 Project Operations to manage fixed-price projects. During project execution, the project manager notices that the actual cost is exceeding the budget. What should the project manager do to track and communicate the impact on profit?

Accepted Answer

Review the Cost Performance Index (CPI) on the project and update the estimate at completion (EAC).. In Dynamics 365 Project Operations, the Cost Performance Index (CPI) is the key metric for measuring cost efficiency on a project. When actual costs exceed the budget, the project manager should review the CPI and update the Estimate at Completion (EAC) to forecast the total expected cost based on current performance, directly communicating the impact on profit.

Answer

Analyze resource utilization percentages to identify over-allocated resources.

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Review the Schedule Performance Index (SPI) to assess if the project is behind schedule.

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Compare the project budget to the actual cost in the project invoice.

Question 2

A project manager needs to approve time entries submitted by team members. Where in Dynamics 365 Project Operations can the manager approve these time entries?

Accepted Answer

Project Manager Time Approval workspace. The Project Manager Time Approval workspace in Dynamics 365 Project Operations is the dedicated area where project managers can review, approve, or reject time entries submitted by team members. This workspace provides a filtered view of pending time entries and integrates with the project's approval workflow, ensuring that only authorized managers can process time submissions.

Answer

Resource Manager dashboard

Answer

Sales entity

Answer

Project Contract

Question 3

A company is implementing Dynamics 365 Project Operations and wants to ensure that project costs are accurately tracked for both time and materials (T&M) and fixed-price contracts. The company uses a single project for both types of contracts. Which approach should be used to correctly invoice each contract type?

Accepted Answer

Create two project contracts, one T&M and one fixed-price, and link both to the same project.. Option A is correct because Dynamics 365 Project Operations allows multiple project contracts to be linked to a single project, enabling different billing methods (T&M and fixed-price) for the same project. This ensures that time and material costs are tracked and invoiced according to the T&M contract terms, while fixed-price milestones are invoiced under the fixed-price contract, all from the same project data.

Answer

Create two separate projects and link each to its own contract.

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Create a single project contract with the billing method set to fixed-price and adjust invoices manually.

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Create one project contract with a billing method of T&M and manually create invoices for the fixed-price portion.

Question 4

A project manager is using Dynamics 365 Project Operations to estimate project costs. The project involves a mix of in-house employees and external contractors. The company wants to use standard cost prices for employees and purchase prices for contractors. Which entity should the project manager use to set up these prices?

Accepted Answer

Project price list. The project manager should use the Project price list (Option D) because it is specifically designed to define cost and sales prices for resources in a project context. In Dynamics 365 Project Operations, the Project price list allows you to set standard cost prices for employees and purchase prices for contractors, as it supports role-based pricing and can differentiate between internal and external resource costs based on the price list setup.

Answer

Product catalog

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Role price list

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Resource price list

Question 5

A company uses Dynamics 365 Project Operations to manage projects. A project manager needs to view the overall health of all active projects in the organization. Which dashboard should the manager use?

Accepted Answer

Project Manager dashboard. The Project Manager dashboard in Dynamics 365 Project Operations is specifically designed to provide a consolidated view of project health metrics, including schedule variance, cost variance, and overall status across all active projects. This dashboard uses built-in Power BI reports to aggregate data from project plans, actuals, and forecasts, enabling the project manager to quickly assess which projects are on track, at risk, or behind schedule.

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Sales dashboard

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Time Entry dashboard

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Resource Manager dashboard

Question 6

A project manager needs to create a project from a template that includes a predefined work breakdown structure (WBS) and resource assignments. The template should automatically create the project tasks and assign resources based on skill requirements. Which feature in Dynamics 365 Project Operations should the project manager use?

Accepted Answer

Project template. Option C is correct because project templates in Dynamics 365 Project Operations allow a project manager to create a new project that automatically includes a predefined work breakdown structure (WBS) and resource assignments. When the template is applied, it generates the project tasks and assigns resources based on the skill requirements defined in the template, streamlining project setup and ensuring consistency.

Answer

Project budget

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Resource Reconciliation view

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Scheduling assistant

Question 7

A project manager is configuring Dynamics 365 Project Operations for a company that uses Microsoft Project for detailed scheduling. The company wants to import the WBS from Microsoft Project into Dynamics 365 Project Operations. Which tool or feature should be used?

Accepted Answer

Project for the Web integration. Project for the Web integration is the correct tool because it provides native synchronization between Microsoft Project and Dynamics 365 Project Operations, allowing the Work Breakdown Structure (WBS) to be imported directly without custom development. This integration leverages the Common Data Service (CDS) to map project tasks, dependencies, and resources seamlessly.

Answer

Data import wizard

Answer

Power Automate flow

Answer

Excel add-in

Question 8

A company uses Dynamics 365 Project Operations to manage project expenses. An employee submits an expense report for a project. The project manager needs to approve the expense report. Where does the project manager perform this approval?

Accepted Answer

Expense Approval workspace. In Dynamics 365 Project Operations, expense report approvals are handled through the Expense Approval workspace. This workspace is specifically designed for project managers and approvers to review, approve, or reject expense reports submitted by project team members. It provides a centralized view of all pending expense approvals tied to projects.

Answer

Project Contract

Answer

Resource Manager dashboard

Answer

Time Approval workspace

Question 9

Which TWO of the following are valid billing methods in Dynamics 365 Project Operations? (Choose two.)

Accepted Answer

Time and Material. Time and Material (B) is a valid billing method in Dynamics 365 Project Operations where customers are billed based on actual hours worked and expenses incurred, plus a markup. Fixed Price (C) is also valid, where a single total price is agreed upon for the entire project scope, regardless of actual effort. Both are core billing methods supported in the system for project-based invoicing.

Answer

Flat Fee

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Retainer

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Cost Plus

Question 10

Which THREE of the following are capabilities of Dynamics 365 Project Operations? (Choose three.)

Accepted Answer

Resource Management. Resource Management (B) is a core capability of Dynamics 365 Project Operations, enabling project managers to find, schedule, and assign resources based on skills, availability, and role requirements. It integrates with Project Operations' scheduling engine to optimize resource utilization across projects.

Answer

Inventory Management

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Payroll Processing

Question 11

Which TWO of the following are valid project types in Dynamics 365 Project Operations? (Choose two.)

Accepted Answer

Time and Material. In Dynamics 365 Project Operations, 'Time and Material' (Option B) is a valid project type that invoices customers based on actual hours worked and expenses incurred, making it suitable for projects where scope is not fully defined. This type allows for flexible billing and is commonly used in consulting or agile engagements.

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External

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Internal

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Investment

Question 12

You are the project manager for a large engineering firm that uses Dynamics 365 Project Operations. Your organization has recently deployed Project Operations and is using it to manage multiple concurrent projects. You have been assigned to a new project named 'Bridge Construction' which is a fixed-price contract with a total value of $2,000,000. The project is scheduled to run for 12 months. During the first month, the team encounters an unexpected geological issue that requires additional surveying work. This additional work will require 200 hours of a senior geologist's time and 100 hours of a surveyor's time. The project contract has not accounted for this scope change. You need to ensure that the project stays profitable and that the client is billed appropriately. The client is open to change orders but expects formal documentation. What should you do?

Accepted Answer

Create a change order in the project contract to reflect the additional scope, then update the WBS and budget.. In Dynamics 365 Project Operations, when a fixed-price contract encounters unplanned scope, the correct process is to create a change order on the project contract to formally document the scope change, update the Work Breakdown Structure (WBS) with the new tasks, and adjust the budget accordingly. This ensures the client is billed correctly through the contract's billing rules and maintains project profitability by tracking the additional costs against the revised budget.

Answer

Create a separate internal project to track the additional costs and invoice the client manually.

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Proceed with the work and adjust the final invoice at project completion.

Answer

Add the additional labor tasks to the existing work breakdown structure (WBS) and increase the project budget accordingly.

Question 13

You are a project administrator for a consulting company that uses Dynamics 365 Project Operations. The company has a team of 50 consultants who work on multiple projects simultaneously. The company uses time and material billing for most projects. You receive a complaint from a project manager that a consultant, John Doe, has not submitted his time entries for the past two weeks. The project manager needs to bill the client this week and John's time is critical for the invoice. You need to resolve this issue as quickly as possible. What should you do?

Accepted Answer

Contact John directly and ask him to submit his time entries immediately.. Option D is correct because the most direct and efficient way to resolve the immediate billing issue is to contact John directly and ask him to submit his time entries. In Dynamics 365 Project Operations, time entry submission is a user-driven process; there is no automated mechanism for a project administrator or system administrator to force-submit or manually enter time on behalf of a consultant without proper permissions or data integrity risks. Direct communication ensures the fastest resolution without bypassing system controls or introducing inaccurate data.

Answer

Manually enter the time entries for John based on his project schedule.

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Escalate to the system administrator to force-submit the time entries.

Answer

Send an automatic reminder from the system and wait for John to submit.

Question 14

A project manager notices that resource bookings in a project are not reflecting in the schedule. The project uses Dynamics 365 Project Operations with a hybrid resource management approach. What is the most likely cause?

Accepted Answer

The project uses generic resources that have not been replaced with named resources.. In Dynamics 365 Project Operations with a hybrid resource management approach, generic resources are placeholders that do not have actual availability or booking details. When generic resources are used without being replaced by named resources, their bookings do not reflect in the schedule because the system cannot map them to real resource calendars or capacity. This is the most likely cause of the issue described.

Answer

The resource bookings are set to 'Soft Book' mode.

Answer

The resource calendar has been modified after booking.

Answer

The project status is not updated to 'In Progress'.

Question 15

A company is implementing Dynamics 365 Project Operations and needs to define cost and sales price lists for a project. Which TWO actions should the administrator take to ensure accurate project budgeting?

Accepted Answer

Define sales price lists with effective dates to cover different project phases.. Option C is correct because sales price lists in Dynamics 365 Project Operations support effective dates, allowing the administrator to define different prices for different project phases (e.g., design, development, deployment). This ensures that cost and revenue are accurately tracked as rates change over the project lifecycle, which is essential for precise project budgeting.

Answer

Set up cost price lists to include markup percentages.

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Configure discounts directly in the price list for bulk purchases.

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Assign the same price list to all customers for consistency.

Question 16

A project manager creates a project with a budget of $60,000 in Draft status, but the workflow does not trigger the Senior Manager Approval step. What is the most likely reason?

Accepted Answer

The workflow is not activated for the project.. In Dynamics 365 Project Operations, workflows must be explicitly activated to run automatically when a project is created or updated. A workflow in Draft status is not active, so it will not trigger any approval steps regardless of the project's budget or status. Activating the workflow enables the system to evaluate conditions and initiate the Senior Manager Approval step as designed.

Answer

The project budget is too low.

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The approver email is incorrect.

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The project status is not 'Draft' after approval.

Question 17

You are the Dynamics 365 Project Operations administrator for Contoso Ltd., a consulting firm with 200 employees. The company uses Project Operations for time and expense tracking, project planning, and resource management. Recently, project managers have reported that when they attempt to assign resources to projects, the system shows 'No available resources' even though resources are free according to their calendars. Resource managers confirm that resources are not booked on other projects. The system uses the 'Centralized Resource Management' approach. Resources are organized by skill and role. The booking method is 'Full Capacity' with a working day of 8 hours. You suspect an issue with resource scheduling parameters. After reviewing the setup, you find that the 'Resource Scheduling' parameter 'Consider Resource Capacity' is set to 'Yes', and the 'Working Hours' template is correct. What should you check next to resolve the issue?

Accepted Answer

Ensure that resource calendars are published and reflect current availability.. Option B is correct because the 'Consider Resource Capacity' parameter and working hours template are already verified as correct. The next logical step is to ensure that resource calendars are published and reflect current availability. In Dynamics 365 Project Operations, even if a resource has free time on their calendar, the system will not consider that capacity for assignment unless the calendar is published and synchronized with the scheduling engine. Unpublished or outdated calendars can cause the 'No available resources' error despite apparent free time.

Answer

Review the 'Resource Smoothing' configuration in the project schedule.

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Check the delegation and approval settings for resource requests.

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Verify that the resource skills are correctly mapped to project requirements.

Question 18

A project manager needs to track time and expenses against a project budget in Dynamics 365 Project Operations. Which module should they primarily use?

Accepted Answer

Time and Expense. The Time and Expense module in Dynamics 365 Project Operations is specifically designed for project managers to record and track time entries and expense reports against a project budget. It provides the core functionality to capture actuals, compare them to budgeted amounts, and manage approvals, making it the primary module for this task.

Answer

Sales

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Finance

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Procurement

Question 19

Which TWO features are available in Dynamics 365 Project Operations to help manage project profitability?

Accepted Answer

Resource cost rates and billing rates. A is correct because Dynamics 365 Project Operations uses resource cost rates and billing rates to calculate project costs and revenue, directly enabling profitability tracking. By defining cost rates for resources (e.g., hourly wages) and billing rates for customers, the system computes margins and supports profitability analysis.

Answer

Vendor contract management

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Inventory costing methods

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Sales tax calculation

Question 20

Drag and drop the steps to configure a new warehouse in Dynamics 365 Supply Chain Management in the correct order.

MB-920 Describe Dynamics 365 Project Operations — All Questions With Answers

A consulting firm uses Dynamics 365 Project Operations to manage fixed-price projects. During project execution, the project manager notices that the actual cost is exceeding the budget. What should the project manager do to track and communicate the impact on profit?

A project manager needs to approve time entries submitted by team members. Where in Dynamics 365 Project Operations can the manager approve these time entries?

A company uses Dynamics 365 Project Operations to manage projects. A project manager needs to view the overall health of all active projects in the organization. Which dashboard should the manager use?

A project manager is configuring Dynamics 365 Project Operations for a company that uses Microsoft Project for detailed scheduling. The company wants to import the WBS from Microsoft Project into Dynamics 365 Project Operations. Which tool or feature should be used?

A company uses Dynamics 365 Project Operations to manage project expenses. An employee submits an expense report for a project. The project manager needs to approve the expense report. Where does the project manager perform this approval?

Which TWO of the following are valid billing methods in Dynamics 365 Project Operations? (Choose two.)

Which THREE of the following are capabilities of Dynamics 365 Project Operations? (Choose three.)

Which TWO of the following are valid project types in Dynamics 365 Project Operations? (Choose two.)

A project manager notices that resource bookings in a project are not reflecting in the schedule. The project uses Dynamics 365 Project Operations with a hybrid resource management approach. What is the most likely cause?

A company is implementing Dynamics 365 Project Operations and needs to define cost and sales price lists for a project. Which TWO actions should the administrator take to ensure accurate project budgeting?

A project manager creates a project with a budget of $60,000 in Draft status, but the workflow does not trigger the Senior Manager Approval step. What is the most likely reason?

Exhibit

A project manager needs to track time and expenses against a project budget in Dynamics 365 Project Operations. Which module should they primarily use?

Which TWO features are available in Dynamics 365 Project Operations to help manage project profitability?

Drag and drop the steps to configure a new warehouse in Dynamics 365 Supply Chain Management in the correct order.

Match each Dynamics 365 Project Operations component to its function.

MB-920 Describe Dynamics 365 Project Operations — All Questions With Answers

A consulting firm uses Dynamics 365 Project Operations to manage fixed-price projects. During project execution, the project manager notices that the actual cost is exceeding the budget. What should the project manager do to track and communicate the impact on profit?

A project manager needs to approve time entries submitted by team members. Where in Dynamics 365 Project Operations can the manager approve these time entries?

A company uses Dynamics 365 Project Operations to manage projects. A project manager needs to view the overall health of all active projects in the organization. Which dashboard should the manager use?

A project manager is configuring Dynamics 365 Project Operations for a company that uses Microsoft Project for detailed scheduling. The company wants to import the WBS from Microsoft Project into Dynamics 365 Project Operations. Which tool or feature should be used?

A company uses Dynamics 365 Project Operations to manage project expenses. An employee submits an expense report for a project. The project manager needs to approve the expense report. Where does the project manager perform this approval?

Which TWO of the following are valid billing methods in Dynamics 365 Project Operations? (Choose two.)

Which THREE of the following are capabilities of Dynamics 365 Project Operations? (Choose three.)

Which TWO of the following are valid project types in Dynamics 365 Project Operations? (Choose two.)

A project manager notices that resource bookings in a project are not reflecting in the schedule. The project uses Dynamics 365 Project Operations with a hybrid resource management approach. What is the most likely cause?

A company is implementing Dynamics 365 Project Operations and needs to define cost and sales price lists for a project. Which TWO actions should the administrator take to ensure accurate project budgeting?

A project manager creates a project with a budget of $60,000 in Draft status, but the workflow does not trigger the Senior Manager Approval step. What is the most likely reason?

Exhibit

A project manager needs to track time and expenses against a project budget in Dynamics 365 Project Operations. Which module should they primarily use?

Which TWO features are available in Dynamics 365 Project Operations to help manage project profitability?

Drag and drop the steps to configure a new warehouse in Dynamics 365 Supply Chain Management in the correct order.

Match each Dynamics 365 Project Operations component to its function.