MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
Northwind Traders uses Dynamics 365 Supply Chain Management for their distribution operations. They have a requirement to manage inventory across multiple warehouses and legal entities. They want to transfer finished goods from their manufacturing subsidiary (legal entity A) to their distribution subsidiary (legal entity B) at a transfer price that includes a markup. The transfer should be recorded as a sale in entity A and a purchase in entity B. They plan to use intercompany functionality. The finance team has set up intercompany parameters, but the transactions are not creating the expected intercompany orders. The administrator has verified that both entities are configured correctly in the system. However, the intercompany orders are not generated automatically when a purchase order is created in entity B. What should the administrator check next?
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
✓
Ensure that the intercompany relationship is defined for the specific item in the item mapping setup.
Intercompany orders require that the intercompany relationship is defined on the item level, not just the legal entity level. The item must be mapped between entities to trigger automatic order creation. The vendor setup on the purchase order is correct but without item mapping, no interchain. Intercompany parameters are global, but item relations are per item.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Ensure that the intercompany relationship is defined for the specific item in the item mapping setup.
Why this is correct
Without item-level mapping, intercompany orders are not automatically generated.
- ✗
Confirm that the inventory unit of measure is the same in both entities.
Why it's wrong here
Unit mismatch would cause errors but not prevent order creation entirely.
- ✗
Check that the intercompany parameters in entity B are set to 'Create intercompany purchase orders automatically'.
Why it's wrong here
This parameter is required but already assumed correct; still need item mapping.
- ✗
Verify that the vendor associated with entity A is set up as an intercompany vendor in entity B.
Why it's wrong here
Vendor setup is required but not sufficient without item mapping.
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