MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A company uses Dynamics 365 Supply Chain Management to manage its inventory across multiple warehouses. They want to transfer items between warehouses using a transfer order. Which process should they use to physically move the inventory?
⚠ Common exam trap
Many exam-takers confuse a transfer order with an inventory adjustment journal, thinking that a simple quantity change can simulate a transfer, but only the ship-and-receive process correctly updates both warehouse balances and maintains audit trail integrity.
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
✓
Ship the transfer order from the source warehouse and receive it at the destination warehouse
To physically move inventory between warehouses in Dynamics 365 Supply Chain Management, the correct process is to ship the transfer order from the source warehouse and then receive it at the destination warehouse. This two-step process updates inventory quantities in both locations and creates the necessary inventory transactions to reflect the movement. Simply creating a transfer order without shipping and receiving does not change physical stock levels.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Perform an inventory counting journal
Why it's wrong here
Counting journals are for cycle counts, not transfers.
- ✓
Ship the transfer order from the source warehouse and receive it at the destination warehouse
Why this is correct
This physically moves inventory between warehouses.
- ✗
Create an inventory adjustment journal
Why it's wrong here
Adjustment journals correct quantities, not transfers.
- ✗
Post a production consumption journal
Why it's wrong here
Production consumption is for manufacturing output.
Go deeper
Related to this question
About these practice questions
This MB-920 question is part of Courseiva's 930-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
JA
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.