MB-920 Practice Questions

Question 1

A store manager needs to process a return for a customer who purchased an item using a loyalty card. The manager wants to ensure that the loyalty points originally earned from that purchase are reversed. What should the manager do?

Accepted Answer

Process the return using the standard return function in POS.. In Dynamics 365 Commerce, the standard return function in POS automatically reverses any loyalty points that were earned on the original transaction. This ensures that the customer's loyalty balance is accurately adjusted without manual intervention or external requests.

Answer

Issue a store credit instead of a refund to keep the points.

Answer

Contact the head office to adjust the points.

Answer

Manually deduct the loyalty points from the customer's account.

Question 2

Your organization is implementing Dynamics 365 Finance and needs to ensure that intercompany transactions are automatically reconciled. Which setup is required?

Accepted Answer

Set up intercompany accounting and define intercompany partners.. Setting up intercompany accounting and defining intercompany partners is required for automatic reconciliation of intercompany transactions. Option A is incorrect because elimination rules are part of consolidation processes used to remove intercompany balances, not for automatic reconciliation. Option B is incorrect because allocation rules are used for distributing costs, not for intercompany reconciliation. Option D is incorrect because consolidation processes combine financial statements of multiple legal entities, which is distinct from intercompany transaction reconciliation.

Answer

Define elimination rules for intercompany transactions.

Answer

Create allocation rules for intercompany charges.

Answer

Configure consolidation processes.

Question 3

You are a Dynamics 365 Finance consultant for a service company that uses the Project management and accounting module. They need to track project costs and revenue, and bill customers based on time and materials. The company wants to use the 'Work in process' (WIP) accounting method to recognize revenue as costs are incurred. They also need to automatically generate invoices based on project progress. Requirements: 1) Use WIP accounting for projects. 2) Automate invoice generation. 3) Use standard features. Which configuration should you set up?

Accepted Answer

Set up a project group with 'Time and material' project type, enable WIP accounting, and define billing rules.. It configures a 'Time and material' project group with WIP accounting enabled and defines billing rules. This setup automatically recognizes revenue as costs are incurred (WIP method) and allows automatic invoice generation based on progress. Option A (accruals) is for non-WIP methods and periodic tasks are not automated. Option B (Fixed-price) is incorrect because the company uses time and materials billing. Option C (manual invoices) does not automate invoice generation. D matches all requirements using standard features.

Answer

Enable 'Accruals' in project parameters and use periodic tasks to generate invoices.

Answer

Configure a project group with the 'Fixed-price' project type and use progress billing.

Answer

Use the 'Cost record' journal to post costs and manually create invoices.

Question 4

A company wants to use Dynamics 365 Finance to track budget versus actuals for each department. What should they configure?

Accepted Answer

Budget control configuration. Budget control configuration in Dynamics 365 Finance is the feature that enables tracking of budget versus actuals by defining budget models, budget codes, and budget control rules. It allows organizations to set up budget checks, encumbrances, and reporting to compare planned budgets against actual expenditures for each department.

Answer

Financial dimensions

Answer

Chart of accounts

Answer

General journal

Question 5

A company uses Dynamics 365 Human Resources. They want to automate the process of approving time-off requests based on employee tenure and department. What feature should be configured?

Accepted Answer

Leave and absence management. Leave and absence management in Dynamics 365 Human Resources provides the workflow engine and rule-based configuration needed to automate time-off request approvals. It allows administrators to define approval policies based on employee attributes such as tenure and department, enabling automatic routing and decision-making without manual intervention.

Answer

Compensation management

Answer

Recruitment

Answer

Performance management

Question 6

A company uses Dynamics 365 Finance. The accounting manager needs to automatically match bank statement lines to open invoices and payments. Which feature should be used?

Accepted Answer

Bank reconciliation automation. Bank reconciliation automation in Dynamics 365 Finance automatically matches bank statement lines to open invoices and payments using predefined matching rules and algorithms. This feature reduces manual effort by identifying and reconciling transactions based on criteria such as amounts, dates, and reference numbers, which directly addresses the accounting manager's need.

Answer

Advanced ledger entries

Answer

Payment proposals

Answer

Cash flow forecast

Question 7

You are a Dynamics 365 consultant for a chemical company that uses process manufacturing. They produce adhesives in batches, and the quality of the final product depends on precise adherence to the formula. The company wants to implement a system that prevents operators from starting a production batch unless the raw materials meet quality specifications (e.g., viscosity and purity). Additionally, the system should record the actual test results for each material used in the batch. Which feature combination should you recommend?

Accepted Answer

Quality management with quality orders linked to production. Quality management with quality orders linked to production is the correct combination because it enforces quality specifications (viscosity, purity) as prerequisites for starting a batch and records actual test results against the production order. Quality orders in Dynamics 365 Supply Chain Management can be associated with production orders, and the system can block the start of production until the quality order is validated. This directly satisfies both the prevention and recording requirements.

Answer

Batch disposition codes and reservation hierarchy

Answer

Inventory blocking and quarantine management

Answer

Material consumption registration and production journals

Question 8

Which TWO are components of Dynamics 365 Finance? (Choose two.)

Accepted Answer

Accounts payable. Accounts payable is a core component of Dynamics 365 Finance that manages vendor invoices, payments, and purchase transactions. It integrates with the general ledger to ensure accurate financial reporting and supports automated payment processing and vendor reconciliation.

Answer

Production control

Answer

Sales order management

Answer

Inventory management

Question 9

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

Accepted Answer

Navigate to Sales orders list, then Create a new sales order, then Select customer, then Add items, then Submit order.. Creating a sales order involves navigating to the sales orders list, creating a new order, selecting the customer, adding items, and submitting.

Answer

Navigate to Sales orders list, then Select customer, then Create a new sales order, then Add items, then Submit order.

Answer

Navigate to Sales orders list, then Create a new sales order, then Add items, then Select customer, then Submit order.

Answer

Navigate to Sales orders list, then Create a new sales order, then Select customer, then Submit order, then Add items.

Question 10

Which THREE features are part of Dynamics 365 Supply Chain Management? (Choose three.)

Accepted Answer

Transportation management. Transportation management is a core feature of Dynamics 365 Supply Chain Management that handles inbound and outbound shipping, freight rating, routing, and carrier selection. It integrates with warehouse management to optimize delivery schedules and costs, making it a key supply chain capability.

Answer

Human resources

Answer

Budgeting

Question 11

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 12

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 13

Drag and drop the steps to set up a new product in Dynamics 365 Commerce in the correct order.

Accepted Answer

Create the product, then enter product details, then assign a category, then release to companies.. Product setup requires creating the product, entering details, assigning a category, and releasing it to companies.

Answer

Enter product details, then assign a category, then create the product, then release to companies.

Answer

Create the product, then assign a category, then enter product details, then release to companies.

Answer

Create the product, then enter product details, then release to companies, then assign a category.

Question 14

A company is implementing Dynamics 365 Finance. They want to use AI to automatically classify vendor invoices and extract key data. Which feature should they enable?

Accepted Answer

AI Builder for invoice processing. AI Builder for invoice processing is the correct feature because it uses prebuilt AI models to automatically classify vendor invoices and extract key data such as invoice number, date, and line items directly within Dynamics 365 Finance. This capability leverages Microsoft's AI Builder, which integrates with Power Automate and Dataverse to process invoices without custom development, aligning with the requirement for AI-driven automation.

Answer

Vendor collaboration

Answer

Optical character recognition (OCR) service

Answer

Power BI reports

Question 15

Drag and drop the steps to set up a new user in Dynamics 365 Finance and Operations in the correct order.

Accepted Answer

Create user record, then enter user details, then assign security roles, then enable user.. User setup includes creating the user, entering details, assigning roles, and enabling.

Answer

Create user record, then assign security roles, then enter user details, then enable user.

Answer

Create user record, then enter user details, then enable user, then assign security roles.

Answer

Enter user details, then create user record, then assign security roles, then enable user.

Microsoft Dynamics 365 Fundamentals ERP MB-920 practice test

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