- A
That the compensation plan for the new position is active
Why wrong: Compensation plans do not affect position hierarchy creation.
- B
That the organization type is set to 'Legal entity'
Why wrong: Organization types do not affect position-level hierarchy creation.
- C
That the position hierarchy feature is enabled in the shared parameters
Position hierarchies must be enabled in System administration > Shared parameters > Position hierarchies.
- D
That the position details for the existing position are fully defined
Why wrong: Position details do not control hierarchy enablement.
MB-920 Describe Dynamics 365 Human Resources Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 human resources. 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 company uses Dynamics 365 Human Resources. The HR manager wants to set up a new position that reports to an existing position, but the system does not allow the reporting relationship to be established. What should the system administrator verify?
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
That the position hierarchy feature is enabled in the shared parameters
The position hierarchy feature must be enabled in the shared parameters of Dynamics 365 Human Resources to allow reporting relationships between positions. Without this feature turned on, the system blocks the creation of parent-child position links, regardless of other configuration details.
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.
- ✗
That the compensation plan for the new position is active
Why it's wrong here
Compensation plans do not affect position hierarchy creation.
- ✗
That the organization type is set to 'Legal entity'
Why it's wrong here
Organization types do not affect position-level hierarchy creation.
- ✓
That the position hierarchy feature is enabled in the shared parameters
Why this is correct
Position hierarchies must be enabled in System administration > Shared parameters > Position hierarchies.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
That the position details for the existing position are fully defined
Why it's wrong here
Position details do not control hierarchy enablement.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates assume position reporting relationships are always available by default, but Microsoft deliberately hides this functionality behind a shared parameter toggle to allow organizations to control whether they use hierarchical position structures.
Detailed technical explanation
How to think about this question
The position hierarchy feature is a shared parameter toggle found under System administration > Setup > Shared parameters > Human resources > Position hierarchy. When disabled, the system hides the 'Reports to' field on the position form and blocks any API or UI attempts to assign a parent position. In real-world scenarios, organizations often forget to enable this feature after initial deployment, leading to confusion when managers try to set up organizational charts.
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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FAQ
Questions learners often ask
What does this MB-920 question test?
Describe Dynamics 365 Human Resources — This question tests Describe Dynamics 365 Human Resources — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: That the position hierarchy feature is enabled in the shared parameters — The position hierarchy feature must be enabled in the shared parameters of Dynamics 365 Human Resources to allow reporting relationships between positions. Without this feature turned on, the system blocks the creation of parent-child position links, regardless of other configuration details.
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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