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MB-920 A company uses Dynamics 365 Human Resources Practice Question
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?
⚠ Common exam trap
Many exam-takers 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.
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.
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.
- ✗
That the position details for the existing position are fully defined
Why it's wrong here
Position details do not control hierarchy enablement.
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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.