MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A distribution company uses Dynamics 365 Supply Chain Management. They need to ensure that a specific item is only sold to customers in Europe due to regulatory restrictions. What should they configure?
⚠ Common exam trap
Watch out — candidates often confuse inventory-level restrictions (like item groups) with regulatory compliance settings, assuming a generic 'restricted item group' can enforce geographic rules, when in fact only the product compliance module provides country-specific sales controls.
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
✓
Configure product compliance settings to restrict the item to Europe.
Dynamics 365 Supply Chain Management uses product compliance settings to enforce regulatory restrictions on where an item can be sold. By configuring the 'Country of Origin' and 'Restricted for Sales' fields within the product compliance module, you can limit the item to specific geographic regions, such as Europe, ensuring that sales orders for non-European customers are blocked or flagged.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create a trade agreement journal for that item.
Why it's wrong here
Trade agreements set prices or discounts, not sales restrictions.
- ✗
Assign the item to a restricted item group.
Why it's wrong here
Item groups group items but do not enforce geographic restrictions.
- ✓
Configure product compliance settings to restrict the item to Europe.
Why this is correct
Product compliance allows setting geographic restrictions for items.
- ✗
Set up a customer approval process in the sales order.
Why it's wrong here
Customer approval is manual and does not prevent orders from other regions.
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