MB-920 Describe shared Dynamics 365 ERP features — 15 Questions

Question 1

A manufacturing company uses Dynamics 365 Finance and Operations. The production manager notices that raw material costs are being recorded against the wrong work order. What feature should be configured to ensure costs are correctly allocated?

Accepted Answer

Cost accounting dimensions. Cost accounting dimensions in Dynamics 365 Finance and Operations allow you to define and track financial data by specific attributes, such as work orders, projects, or cost centers. By configuring cost accounting dimensions, the system can enforce that raw material costs are allocated to the correct work order based on predefined rules, ensuring accurate cost tracking and reporting.

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Power BI reports

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Data management

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Production orders

Question 2

A retailer using Dynamics 365 Commerce wants to implement a buy-one-get-one-free promotion. Which type of discount should be configured?

Accepted Answer

Multibuy discount. A buy-one-get-one-free (BOGO) promotion is a classic multibuy discount scenario where purchasing a specific quantity of an item triggers a free item. In Dynamics 365 Commerce, the Multibuy discount type is designed exactly for this: it applies a discount when a defined quantity of products is purchased, and it can be configured to give a percentage off or a fixed amount off, including making the second item free. This is distinct from simple discounts which apply to a single item, and total discounts which apply to the entire cart.

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Total discount

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Simple discount

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Customer loyalty discount

Question 3

A company uses Dynamics 365 Finance and has multiple legal entities. They want to share a chart of accounts across all entities while allowing different fiscal calendars. What configuration should be used?

Accepted Answer

Shared chart of accounts with entity-specific fiscal calendars. D is correct because Dynamics 365 Finance allows a shared chart of accounts across legal entities while enabling entity-specific fiscal calendars. This configuration meets the requirement of maintaining a unified account structure for reporting and consolidation, while respecting local regulatory or business needs for different fiscal year periods.

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Single fiscal calendar for all entities

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Separate chart of accounts per entity

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Consolidations with elimination

Question 4

A project manager needs to track time spent on a project in Dynamics 365 Project Operations. Which feature allows employees to submit time entries that can be approved and billed?

Accepted Answer

Time entry. Time entry in Dynamics 365 Project Operations is the dedicated feature for recording hours worked on projects. These entries can be submitted for approval and then used to bill customers, directly linking time capture to the project billing lifecycle.

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Expense management

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Resource scheduling

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Project budget control

Question 5

A company wants to prevent sales orders from being processed if the customer exceeds their credit limit. What feature in Dynamics 365 Sales should be enabled?

Accepted Answer

Credit limit management. Credit limit management in Dynamics 365 Sales allows organizations to define credit limits for customers and enforce them during order processing. When enabled, the system checks the customer's outstanding balance against their credit limit before a sales order is saved or submitted, blocking the order if the limit is exceeded. This prevents revenue leakage and reduces financial risk by ensuring orders are not processed for customers who have exceeded their credit capacity.

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Tax calculation

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Shipping management

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Price management

Question 6

A global company uses Dynamics 365 Finance and needs to comply with multiple tax regulations. They want to automatically apply the correct tax rate based on the customer's address. What should be configured?

Accepted Answer

Tax determination by address. To automatically apply the correct tax rate based on the customer's address in Dynamics 365 Finance, you configure 'Tax determination by address'. This feature uses the delivery address or primary address of the customer to determine the appropriate sales tax group and item sales tax group, enabling compliance with multiple tax regulations without manual intervention.

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Tax exempt numbers

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Tax reporting

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Manual tax overrides

Question 7

A company uses Dynamics 365 Supply Chain Management. The warehouse manager reports that inventory counts are consistently inaccurate. Which feature should be used to improve inventory accuracy?

Accepted Answer

Cycle counting. Cycle counting is a periodic inventory auditing process where a subset of items is counted on a regular schedule, allowing discrepancies to be identified and corrected without a full physical inventory. In Dynamics 365 Supply Chain Management, cycle counting helps maintain accurate on-hand inventory by systematically validating counts against system records, which directly addresses the warehouse manager's issue of consistently inaccurate counts.

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Picking

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Receiving

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Location directives

Question 8

A company wants to use Dynamics 365 Finance to automate the approval of purchase requisitions under $1,000. What feature should be configured?

Accepted Answer

Workflow automation. Workflow automation in Dynamics 365 Finance allows you to define business processes that route documents for approval. By configuring a purchase requisition workflow with a conditional decision (e.g., amount <= $1,000), the system can automatically approve the requisition without manual intervention. This feature is specifically designed to automate approval steps based on configurable rules.

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Budget control

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Vendor approval

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Purchase policies

Question 9

A company uses Dynamics 365 Commerce. They notice that product recommendations are not appearing on the e-commerce site. What must be enabled?

Accepted Answer

Recommendations service. Product recommendations in Dynamics 365 Commerce require the Recommendations service to be enabled and configured. This service uses AI and machine learning to generate personalized product suggestions based on user behavior, catalog data, and transaction history. Without it, the e-commerce site cannot display recommendation widgets, even if other services like search or content delivery are operational.

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Customer insights

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Content delivery network

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Search service

Question 10

A company uses Dynamics 365 Project Operations. The project manager needs to create a project budget and track actuals against it. Which feature should be used?

Accepted Answer

Project budget management. Project budget management in Dynamics 365 Project Operations allows the project manager to create a detailed budget for a project and then track actual costs and revenues against that budget. This feature provides real-time variance analysis and integrates with the financial dimensions to ensure accurate budget control.

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Resource utilization

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Expense reports

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Project invoices

Question 11

A company wants to share product data across multiple Dynamics 365 Finance legal entities. What should be used?

Accepted Answer

Shared product master. The Shared product master (B) is the correct feature because it allows product data to be defined once and shared across multiple Dynamics 365 Finance legal entities. This ensures consistent product information, such as item numbers, descriptions, and dimensions, is synchronized without duplication, which is essential for multi-entity organizations.

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Purchase agreements

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Inventory journal

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Sales orders

Question 12

Which TWO features are part of Dynamics 365 Finance shared financial management? (Select exactly two.)

Accepted Answer

Accounts payable. Accounts payable (Option C) is a core component of Dynamics 365 Finance shared financial management, handling vendor invoices, payments, and expense tracking across legal entities. It is part of the shared financial management module that provides centralized processing of payables, ensuring consistency and compliance in multi-company environments.

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Fixed assets

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Budget control

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Cash flow forecasting

Question 13

Which THREE capabilities are provided by Dynamics 365 Supply Chain Management's Warehouse Management module? (Select exactly three.)

Accepted Answer

Mobile device support. Option A is correct because the Warehouse Management module in Dynamics 365 Supply Chain Management includes native mobile device support through the Warehouse Management mobile app. This app enables warehouse workers to perform tasks like receiving, picking, and inventory movements directly from handheld devices, integrating with the system in real time.

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Route planning

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Product variant management

Question 14

Which TWO are common features shared across Dynamics 365 ERP applications? (Select exactly two.)

Accepted Answer

Power BI integration. Power BI integration is a common feature across Dynamics 365 ERP applications because it is built into the platform via the Power BI content packs and embedded analytics, allowing users to visualize and share insights from financial and operational data without leaving the application. This integration is a core part of the Power Platform, which is shared across all Dynamics 365 apps, enabling real-time reporting and dashboards.

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Machine learning models

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Batch attribute management

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Compliance management

Question 15

Which THREE are valid options for configuring product lifecycle states in Dynamics 365 Supply Chain Management? (Select exactly three.)

Accepted Answer

In development. Option A is correct because 'In development' is a default lifecycle state in Dynamics 365 Supply Chain Management that indicates a product is being created and is not yet available for transactions. This state prevents the product from being used in sales, purchasing, or production processes until it is released.

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Deleted

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Obsolete