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MB-920 Practice Question: A clothing retailer wants to implement a buy…

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?

⚠ Common exam trap

Test-takers frequently 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.

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.

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.

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.

  • 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.

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