MB-920 Describe Dynamics 365 Finance Practice Question
A manufacturing company is implementing Dynamics 365 Finance and wants to streamline its procure-to-pay process. They need to automatically generate purchase orders when inventory falls below a predefined level. Which feature should they configure?
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 reorder point planning and coverage groups
Reorder point planning and coverage groups in Dynamics 365 Finance automatically generate planned purchase orders when inventory falls to the reorder point. Option A is incorrect because procurement catalogs with punch-out to vendor are for indirect procurement, not automated inventory replenishment. Option B is incorrect because purchase requisition workflow with auto-release requires manual initiation and approval, not automatic generation based on inventory levels. Option D is incorrect because vendor collaboration facilitates communication with suppliers but does not automatically create purchase 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.
- ✗
Use procurement catalogs with punch-out to vendor
Why it's wrong here
Procurement catalogs with punch-out to vendor are for indirect procurement, not automated inventory replenishment.
- ✗
Configure purchase requisition workflow with auto-release
Why it's wrong here
Purchase requisition workflow with auto-release requires manual initiation and approval, not automatic generation based on inventory levels.
- ✓
Set up reorder point planning and coverage groups
Why this is correct
Reorder point planning and coverage groups in Dynamics 365 Finance automatically generate planned purchase orders when inventory falls to the reorder point.
- ✗
Enable vendor collaboration for automatic ordering
Why it's wrong here
Vendor collaboration facilitates communication with suppliers but does not automatically create purchase orders.
Go deeper
Related to this question
About these practice questions
Courseiva writes every MB-920 question from scratch — 930 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or 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.