MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A company uses Dynamics 365 Supply Chain Management and wants to automate the generation of purchase orders from sales orders through direct delivery. Which setup is required?
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
✓
Set up the item with a default order type of 'Direct delivery'
Setting the default order type to 'Direct delivery' on the item or customer enables automatic creation of purchase orders from sales orders when direct delivery is used. Option A is wrong because demand forecasting is used for predicting future demand, not for automating purchase order generation from sales orders. Option C is wrong because intercompany orders are for transactions between legal entities within the same organization, not for direct delivery with external vendors. Option D is wrong because purchase agreements are for long-term contracts with vendors but do not automatically generate purchase orders from sales 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.
- ✗
Set up demand forecasting
Why it's wrong here
Demand forecasting predicts demand but doesn't create POs automatically.
- ✓
Set up the item with a default order type of 'Direct delivery'
Why this is correct
Direct delivery automatically creates purchase orders when a sales order is entered.
- ✗
Set up an intercompany order
Why it's wrong here
Intercompany is for transactions between two legal entities.
- ✗
Set up a purchase agreement
Why it's wrong here
Purchase agreements are for pricing and terms, not automatic PO creation.
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