- A
Assign tax groups to customer profiles based on their home address.
Why wrong: Tax groups are assigned to stores, not customers.
- B
Configure tax settings for each physical store.
Returns are processed at the store, so store-specific tax settings are required.
- C
Ensure the online store's tax settings match the headquarters location.
Why wrong: Returns are processed at the physical store, not headquarters.
- D
Set the tax override option for all return transactions in the online store.
Why wrong: Returns are not processed in the online store; they are processed in the physical store.
MB-920 Describe Dynamics 365 Commerce Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 commerce. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A clothing retailer wants to implement a buy online, return in store (BORIS) process using Dynamics 365 Commerce. The retailer has multiple stores with different tax rates. Which configuration is essential to ensure that returns are processed correctly with the appropriate tax?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Configure tax settings for each physical store.
Option B is correct because in Dynamics 365 Commerce, each physical store can have its own tax settings, including tax groups and tax rates. When a return is processed in-store for an online purchase, the system uses the store's tax configuration to calculate the correct tax for the return transaction. This ensures compliance with local tax regulations, which vary by store location.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Assign tax groups to customer profiles based on their home address.
Why it's wrong here
Tax groups are assigned to stores, not customers.
- ✓
Configure tax settings for each physical store.
Why this is correct
Returns are processed at the store, so store-specific tax settings are required.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Ensure the online store's tax settings match the headquarters location.
Why it's wrong here
Returns are processed at the physical store, not headquarters.
- ✗
Set the tax override option for all return transactions in the online store.
Why it's wrong here
Returns are not processed in the online store; they are processed in the physical store.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume tax is always based on the customer's address or the headquarters location, but for in-store returns, Dynamics 365 Commerce uses the store's physical location tax settings to ensure correct tax refunds.
Detailed technical explanation
How to think about this question
In Dynamics 365 Commerce, the system uses the store's warehouse address to determine the tax group for in-store transactions, including returns. The tax calculation engine applies the store's tax settings when a return is created in the point of sale (POS) system, ensuring that the refunded tax matches the tax that would have been charged if the item were sold in that store. This is critical for BORIS scenarios where the online order may have been shipped from a different location with a different tax rate.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Describe Dynamics 365 Commerce — study guide chapter
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FAQ
Questions learners often ask
What does this MB-920 question test?
Describe Dynamics 365 Commerce — This question tests Describe Dynamics 365 Commerce — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Configure tax settings for each physical store. — Option B is correct because in Dynamics 365 Commerce, each physical store can have its own tax settings, including tax groups and tax rates. When a return is processed in-store for an online purchase, the system uses the store's tax configuration to calculate the correct tax for the return transaction. This ensures compliance with local tax regulations, which vary by store location.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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