Microsoft Dynamics 365 Fundamentals ERP MB-920 (MB-920) — Questions 601–675

A company is implementing Dynamics 365 Project Operations and wants to ensure that project costs are accurately tracked for both time and materials (T&M) and fixed-price contracts. The company uses a single project for both types of contracts. Which approach should be used to correctly invoice each contract type?

A company uses Dynamics 365 Supply Chain Management and wants to implement a strategy where products are stored at multiple warehouse locations, but picking is optimized by consolidating orders from the nearest location to the customer. Which configuration supports this?

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the production schedule is not reflecting real-time capacity constraints, causing delays. Which feature should they configure to dynamically adjust schedules based on current resource availability?

A company uses Dynamics 365 Supply Chain Management. They need to track the serial numbers of products sold to customers for warranty management. Which inventory configuration should they use?

A company uses Dynamics 365 Finance and Operations. They are experiencing slow performance in the general ledger module when generating financial statements. The database administrator notices that the general journal table has grown significantly. Which action should they take to improve performance?

A company uses Dynamics 365 Supply Chain Management and wants to integrate with an external transportation management system (TMS) to get real-time shipping rates. Which integration approach should they use?

A company wants to use AI capabilities to automatically categorize thousands of vendor invoices. Which Dynamics 365 Finance feature should be used?

A retail company uses Dynamics 365 Finance. They want to automatically post revenue and cost of goods sold (COGS) when a sales order is invoiced. Which posting setup is required?

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to forecast demand for the next quarter to plan procurement and production. Which module should they use for demand forecasting?

A company wants to share product data across multiple Dynamics 365 Finance legal entities. What should be used?

A company uses Dynamics 365 Project Operations to manage projects. They need to track project budgets and actual costs in real-time. Which core capability should they use?

A company using Dynamics 365 Finance notices that the 'General ledger' trial balance does not match the subledger balances for accounts payable. The discrepancy appears only for a specific vendor. What is the most likely cause?

Refer to the exhibit. A company has configured the General ledger parameters as shown. A user attempts to post a purchase order that exceeds the remaining budget for the current fiscal year. What will happen?

A company wants to automate the replenishment of raw materials to production lines based on actual consumption. Which capability in Dynamics 365 Supply Chain Management should they use?

A company uses Dynamics 365 Supply Chain Management and wants to implement demand-driven material requirements planning (DDMRP). Which feature should they configure to support DDMRP?

Which TWO of the following are capabilities of Dynamics 365 Supply Chain Management?

A finance manager needs to create a journal entry to record the monthly depreciation of fixed assets. The company uses Dynamics 365 Finance. Which journal type should be used?

Refer to the exhibit. An organization in Dynamics 365 Finance has defined financial dimensions as shown. What is the total length of the account structure for a journal entry?

A company uses Dynamics 365 Supply Chain Management and wants to ensure that when a sales order is created, the system automatically checks if there is enough inventory to fulfill it. If not, the order should be placed on hold until the required materials are available. Which feature should they use?

A manufacturing company uses Dynamics 365 Supply Chain Management. Which THREE components are required to set up a production process for a discrete manufacturing scenario?

A company uses Dynamics 365 Supply Chain Management and wants to implement a vendor-managed inventory (VMI) process where vendors monitor and replenish stock at the customer's warehouse. What is the recommended setup?

Which TWO capabilities are part of Dynamics 365 Supply Chain Management?

You are a Dynamics 365 Finance consultant for a medium-sized manufacturing company that recently implemented Dynamics 365 Finance. The company uses the perpetual inventory system with standard cost. They have encountered an issue where the inventory value in the general ledger does not match the inventory value in the inventory module. After investigation, you discover that some purchase order receipts were posted directly to the general ledger without updating inventory quantities. The CFO wants to ensure that inventory financial postings are always synchronized with inventory transactions. The company uses batch processing for inventory closing. They need a solution that prevents discrepancies in the future. Requirements: 1) Ensure that all inventory transactions update both inventory quantities and financial postings. 2) Minimize manual intervention. 3) Use existing Dynamics 365 Finance features. Which course of action should you recommend?

A company using Dynamics 365 Finance needs to generate financial statements in a specific format required by local regulators. Which tool should they use?

You are the Dynamics 365 Finance administrator for a manufacturing company with multiple legal entities. The company uses intercompany transactions between Entity A (US) and Entity B (Germany). Entity A sells raw materials to Entity B. The transactions must be recorded in both entities' ledgers, and the intracompany trade must be eliminated during consolidation. Recently, the accounting team reported that intercompany transactions are not being eliminated correctly. Upon investigation, you find that the intercompany transactions were posted using separate purchase orders and sales orders, not through the intercompany module. The elimination process uses intercompany eliminations rules. What should you do to ensure proper elimination?

A manufacturing company uses Dynamics 365 Finance and Supply Chain Management. The finance department wants to allocate overhead costs to production orders based on machine hours. Which costing method should they configure?

A company uses Dynamics 365 Supply Chain Management. They want to optimize inventory levels to reduce carrying costs while avoiding stockouts. They need a system that suggests replenishment quantities based on historical demand and lead times. Which feature should they use?

A company uses Dynamics 365 Supply Chain Management for warehouse operations. The warehouse manager wants to improve inventory accuracy and reduce the time spent on physical inventory counts. Which TWO actions should the manager take?

Refer to the exhibit. The purchase policy 'StandardPurchasePolicy' is configured as shown. A user creates a purchase requisition for $12,000 with a non-catalog item. Which behavior will occur?

A company wants to automatically create purchase orders when inventory for a specific item drops below a predefined level. Which master planning concept should be used?

An organization is configuring Dynamics 365 Human Resources. They want to track skills, certifications, and education for each employee. Which worker type should be used to store this information?

A company wants to automate the reconciliation of bank transactions with general ledger entries in Dynamics 365 Finance. Which feature should they use?

You are a Dynamics 365 Finance administrator for a small business that uses Dynamics 365 Finance for financial management. The company has a single legal entity and uses the cash basis accounting method for tax purposes. The company recently hired a new accountant who is unfamiliar with the system. The accountant needs to record a vendor invoice for office supplies. The invoice is from a vendor already set up in the system. The invoice amount is $500, and the applicable tax rate is 8%. The accountant wants to ensure that the invoice is posted correctly and that the tax amount is calculated automatically. Which steps should the accountant take to record the vendor invoice?

You are a financial analyst at Fabrikam Inc., a retail company using Dynamics 365 Finance. The company has a requirement to track expenses by department and project. Currently, the chart of accounts uses a single segment for main accounts. The CFO wants to add cost centers and projects as financial dimensions to provide more granular reporting. You need to configure financial dimensions without disrupting existing transactions. You also need to ensure that new dimensions are available for budgeting. What should you do?

A multinational corporation uses Dynamics 365 Finance and needs to report in both local GAAP and IFRS. What is the recommended approach?

A company uses Dynamics 365 Finance and wants to streamline the approval of purchase requisitions. They need to ensure that requisitions over $10,000 are approved by a manager, while those over $50,000 require director approval. What should they configure?

Which TWO are valid options for posting vendor invoices in Dynamics 365 Finance? (Select TWO.)

A company uses Dynamics 365 Supply Chain Management and wants to manage the procurement of raw materials from multiple suppliers. They need to compare supplier prices, lead times, and quality ratings before selecting a vendor. Which module should they use?

A company wants to use Dynamics 365 Supply Chain Management to automate replenishment of raw materials from suppliers based on current inventory levels. Which feature should they configure?

A distribution company uses Dynamics 365 Supply Chain Management. They need to automatically allocate inventory to sales orders based on customer priority. What feature should they configure?

You are a Dynamics 365 consultant for a multinational manufacturing company that operates in three countries: USA, Germany, and Japan. The company uses Dynamics 365 Finance and Operations. They have the following requirements: - Each country must have its own set of financial reports that comply with local accounting standards (US GAAP, German HGB, Japanese GAAP). - The company needs to consolidate financials at the global level on a monthly basis. - They want to use a single instance of Dynamics 365 Finance and Operations. - All subsidiaries must share the same chart of accounts to facilitate consolidation. Which approach should you recommend?

Which TWO features in Dynamics 365 Supply Chain Management can be used to improve warehouse picking efficiency?

A company uses Dynamics 365 Supply Chain Management and wants to track the entire lifecycle of a product from raw material to finished good, including all transformations and movements. Which feature should they enable?

You are a Dynamics 365 Finance system administrator for a large manufacturing company. The company uses the 'Standard cost' inventory model and performs periodic inventory closing to recalculate standard costs. Recently, the finance team noticed that the inventory closing process is taking too long and sometimes fails, causing delays in month-end closing. They need to optimize the inventory closing process. The company has millions of inventory transactions per month. Requirements: 1) Reduce inventory closing processing time. 2) Ensure data integrity. 3) Use available Dynamics 365 Finance features. Which approach should you recommend?

A company uses Dynamics 365 Finance. The accountant needs to view the current balance of a specific ledger account at any time. Which inquiry should they use?

A company wants to use Dynamics 365 Finance to manage its cash flow by forecasting future bank balances. Which module should they use?

A company is implementing Dynamics 365 Human Resources and needs to configure benefit plans. Which THREE actions are required to set up a new benefit plan?

Refer to the exhibit. A master plan has generated a planned purchase order for 100 units of item A0001 with status 'Approved'. What does the 'Approved' status indicate?

A company uses Dynamics 365 Commerce to manage its online and brick-and-mortar stores. They need to configure a promotion that offers a 10% discount on all products in the 'Home & Garden' category when customers purchase at least three items from that category. Which TWO components must be configured to implement this promotion?

A company uses Dynamics 365 Finance and has enabled the 'Budget control' feature. Users report that they cannot post purchase requisitions even though sufficient budget is available. What is the most likely cause?

Which TWO are benefits of using Dynamics 365 Supply Chain Management with IoT integration?

A company uses Dynamics 365 Supply Chain Management to manage production orders. A production planner needs to schedule a rush order for a high-priority customer. The planner wants to see the impact on existing orders before committing. Which feature should the planner use?

Match each Dynamics 365 Finance feature to its description.

Contoso Retail is a mid-sized company with 50 physical stores and an online store. They use Dynamics 365 Commerce. Recently, they launched a promotion offering 20% off on all electronics for a weekend. During the promotion, the online store experienced slow page load times, and some customers reported errors when adding items to the cart. The IT team checked the infrastructure and found that the Retail Server CPU usage was at 95%, and the channel database had high lock contention. The POS systems in stores were working fine. The company uses a single Retail Server instance and a single channel database for all channels. What is the best course of action to prevent this issue in future promotions?

Refer to the exhibit. A validation rule configuration for Dynamics 365 Finance and Operations is shown. What happens when a user enters a vendor invoice with an invoice date of tomorrow and a total amount of $100?

Refer to the exhibit. A company has configured budget control in Dynamics 365 Finance as shown. The finance team reports that when posting a purchase invoice for raw materials, no budget check is performed. What is the most likely cause?

Which THREE components must be configured to enable a complete compensation management process in Dynamics 365 Human Resources?

A retail company uses Dynamics 365 Supply Chain Management to manage its distribution network. They have a central warehouse in Chicago and five regional distribution centers (RDCs) across the United States. The company wants to ensure that when a sales order is created for a customer in a specific region, the system automatically suggests fulfillment from the nearest RDC to minimize shipping costs and delivery time. Currently, sales order processing requires manual selection of the warehouse. Which feature should you configure to automate this process?

You are configuring master planning for item A0001 in Dynamics 365 Supply Chain Management. The exhibit shows a coverage group configuration. Based on the exhibit, what is the expected behavior when the on-hand quantity drops to 400 units?

A company uses Dynamics 365 Finance and wants to automatically post vendor invoices from a purchase order receipt. Which process should be configured?

Which TWO of the following are capabilities of Dynamics 365 Supply Chain Management?

You are a solutions architect for a furniture manufacturer that uses Dynamics 365 Supply Chain Management. The company produces custom furniture and uses make-to-order production. They have the following requirements: (1) When a sales order is created, the system must automatically create a production order for the configured product. (2) The production order must use a BOM and route that are specific to the order configuration. (3) The production order must be scheduled based on material availability and capacity. (4) The company wants to use Copilot to assist in creating the production schedule. Which set of configurations should you implement?

A manufacturing company uses Dynamics 365 Finance to manage its financial operations. The finance team reports that when they post a purchase invoice for raw materials, the system automatically updates the general ledger and the inventory valuation. However, the team wants to ensure that the purchase invoice posting also triggers a budget check against the remaining budget for the raw materials account. Which configuration should you enable?

Which THREE of the following are valid actions when managing cash and bank management in Dynamics 365 Finance?

A company is implementing Dynamics 365 Finance and needs to support multiple legal entities with different fiscal calendars. Which feature should be used to manage this requirement?

Refer to the exhibit. A batch job for inventory replenishment is in 'Waiting' status. The last run failed due to insufficient inventory. What should you do to resolve the issue?

Which TWO features in Dynamics 365 Supply Chain Management are used to manage product quality?

A company uses Dynamics 365 Finance. They want to automatically generate vendor payments based on due dates and available cash discounts. Which payment proposal type should they use?

A manufacturing company uses Dynamics 365 Finance. They need to track the cost of raw materials and finished goods across multiple production stages. Which costing method should they use?

A company using Dynamics 365 Finance and Operations wants to implement a new policy that requires all purchase orders over $10,000 to be approved by a manager before being submitted to the vendor. They need a flexible approval process that can be modified without developer intervention. What should they configure?

Which THREE are valid financial dimensions in Dynamics 365 Finance?

Which TWO of the following are prerequisites for using quality management in Dynamics 365 Supply Chain Management?

During a financial audit, it is discovered that some vendor invoices were posted with incorrect tax codes. The tax codes were set up correctly, but users manually overrode them. How can the company prevent manual tax code overrides in the future?

Contoso Ltd. is a global manufacturer of electronic components. They use Dynamics 365 Supply Chain Management with advanced warehouse management (WMS). The warehouse manager reports that during peak seasons, the picking process is slow because workers often have to travel long distances to pick items for multiple orders. Additionally, they want to improve the accuracy of shipments by ensuring that items are picked in the correct sequence. They have implemented barcode scanning on mobile devices. The IT team has configured location directives and work templates. However, the manager believes that the current setup does not optimize travel time or enforce a specific picking order. The company needs a solution that groups orders with similar items into a single picking trip and prioritizes picks based on the physical layout of the warehouse. They have considered using wave management but are unsure how to configure it. What should the administrator do?

The exhibit shows an error in Dynamics 365 Supply Chain Management when trying to reserve inventory. What is the most likely root cause?