Describe the core capabilities of the finance and operations apps →mediumMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
A manufacturing company uses Dynamics 365 Finance and Operations. They want to automate the generation of purchase orders based on inventory levels falling below a reorder point. Which feature should they configure?
⚠ Common exam trap
Many exam-takers confuse inventory cycle counting (a verification process) with inventory replenishment, or they think purchase requisition workflows are automated triggers rather than manual request approvals.
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
✓
Safety stock and reorder point planning
The 'Safety stock and reorder point planning' feature in Dynamics 365 Finance and Operations uses item coverage settings to automatically generate planned purchase orders when projected inventory falls below the defined reorder point. This is part of master planning, which calculates replenishment proposals based on inventory levels, lead times, and demand forecasts.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Inventory closing and adjustment
Why it's wrong here
Inventory closing adjusts costs, not generates purchase orders.
- ✓
Safety stock and reorder point planning
Why this is correct
This feature automatically generates planned purchase orders when inventory falls below reorder point.
- ✗
Inventory cycle counting
Why it's wrong here
Cycle counting is for periodic inventory verification, not automatic purchase order generation.
- ✗
Purchase requisition workflow
Why it's wrong here
Purchase requisition workflow is a manual approval process, not automatic generation.
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