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MB-920 Practice Question: Implementing Dynamics 365 Project Operations and…

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?

⚠ Common exam trap

A common mix-up: candidates assume a single project must have a single billing method, but Dynamics 365 Project Operations supports multiple contracts per project, each with its own billing method, enabling accurate hybrid invoicing.

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

Create two project contracts, one T&M and one fixed-price, and link both to the same project.

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 analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Create two project contracts, one T&M and one fixed-price, and link both to the same project.

    Why this is correct

    Multiple contracts can be linked to one project, each with its own billing method.

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

    Why it's wrong here

    Separate projects would not share resources and schedules.

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

    Why it's wrong here

    Manual adjustments are not recommended.

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

    Why it's wrong here

    A contract has a single billing method.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.