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. They need to automate the process of reordering raw materials when inventory falls below a predefined level. Which feature should they configure?
⚠ Common exam trap
Many candidates confuse safety stock levels with ABC classification, thinking that categorizing items by importance (A items) automatically triggers reordering, but ABC classification only groups items for management focus and does not automate replenishment.
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 levels
Safety stock levels in Dynamics 365 Finance are used to define a minimum quantity for an item. When inventory falls below this predefined level, the system can automatically generate replenishment orders (e.g., purchase orders or transfer orders) to ensure raw materials are reordered without manual intervention. This directly automates the reordering process based on inventory thresholds.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Safety stock levels
Why this is correct
Safety stock levels trigger replenishment when inventory falls below a predefined level.
- ✗
ABC classification
Why it's wrong here
ABC classification categorizes items by value, not for automated reordering.
- ✗
Batch attributes
Why it's wrong here
Batch attributes track characteristics like lot numbers, not replenishment.
- ✗
Inventory aging reports
Why it's wrong here
Inventory aging reports show how long stock has been held, not trigger reordering.
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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.