MB-920 Describe Dynamics 365 Finance Practice Question
A company uses Dynamics 365 Finance and needs to enforce that purchase orders over $10,000 require approval from the finance manager. What is the most efficient way to configure this?
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 a purchase order approval workflow with a condition on amount.
Workflows in Dynamics 365 Finance allow you to create approval processes based on conditions like amount. Option A is wrong because budget control limits spending but doesn't enforce approval workflow. Option B is wrong because manually notifying approvers is not efficient or automated. Option D is wrong because vendor invoice policies are for invoices, not purchase orders.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Configure budget control to restrict spending.
Why it's wrong here
Budget control prevents overspending but doesn't require approval.
- ✗
Manually notify the finance manager for high-value POs.
Why it's wrong here
Manually notifying the finance manager is not efficient or automated.
- ✓
Create a purchase order approval workflow with a condition on amount.
Why this is correct
Workflows automate approval routing based on conditions.
- ✗
Set up a vendor invoice policy.
Why it's wrong here
Vendor invoice policies are for invoices, not purchase orders.
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Variation 1. A company is implementing Dynamics 365 Finance and needs to ensure that all purchase orders over $10,000 require approval from a manager. What is the best approach to configure this?
medium- ✓ A.Create a purchase order approval workflow
- B.Configure a procurement policy
- C.Set up a budget control rule
- D.Assign a security role to managers
Why A: Correct: A purchase order approval workflow can be configured to require approval based on thresholds such as amount. Option B is wrong because procurement policies govern vendor selection and procurement processes, not approval thresholds. Option C is wrong because budget control rules enforce budget limits but do not trigger approvals for specific amounts. Option D is wrong because security roles control access to features, not approval processes.
Variation 2. A company using Dynamics 365 Finance needs to ensure that purchase orders exceed a certain amount require additional approval from a director. Which feature should be configured?
medium- A.Approval journal
- B.Procurement and sourcing parameters
- C.Budget manager role
- ✓ D.Purchase order workflow
Why D: Purchase order workflow in Dynamics 365 Finance allows configuration of conditional approval rules, such as requiring director approval for purchase orders exceeding a certain amount. Option A is incorrect because an approval journal is not a standard concept in Dynamics 365 Finance for this purpose. Option B is incorrect because procurement and sourcing parameters cover general settings but not specific approval workflows. Option C is incorrect because the budget manager role is related to budget control, not purchase order approval.
Variation 3. A company using Dynamics 365 Finance needs to ensure that purchase requisitions over $10,000 are reviewed by a manager before becoming purchase orders. Which feature should they use?
medium- A.Purchase agreements
- ✓ B.Workflow
- C.Procurement catalogs
- D.Budget control
Why B: Workflow. In Dynamics 365 Finance, the workflow feature allows organizations to define automated approval processes based on rules, such as purchase requisitions exceeding a threshold (e.g., $10,000) requiring manager review before becoming purchase orders. Option A (Purchase agreements) is incorrect because purchase agreements are contracts with vendors specifying terms for purchases, not approval processes. Option C (Procurement catalogs) is incorrect because procurement catalogs manage the list of approved products and services for procurement, not approval workflows. Option D (Budget control) is incorrect because budget control ensures that expenditures do not exceed available budget, but it does not handle approval routing based on requisition amounts.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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