Describe the core capabilities of the finance and operations apps →easyMultiple ChoiceObjective-mapped

MB-920 Practice Question: Describe the core capabilities of the finance and operations apps

Exhibit

Refer to the exhibit.

```json
{
  "ItemNumber": "ITEM001",
  "Warehouse": "WH01",
  "Location": "BULK-01",
  "InventoryStatus": "Available",
  "OnHandQuantity": 100,
  "ReservedQuantity": 30,
  "AvailableQuantity": 70
}
```

Refer to the exhibit. A sales order requires 80 units of ITEM001 from warehouse WH01. What is the immediate effect on the available quantity?

⚠ Common exam trap

Test-takers frequently assume the system will partially reserve only the order quantity (80) and leave a negative available quantity, but Dynamics 365 reserves all available stock first, setting available to 0, not a negative value.

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

✓

The available quantity becomes 0

When a sales order is created for 80 units of ITEM001 from warehouse WH01, the system checks the available quantity. The available quantity is 70, which is insufficient to cover the full order. In Dynamics 365 Supply Chain Management, the immediate effect is that the available quantity becomes 0 because the system reserves the entire available quantity against the sales order, even if the order cannot be fully fulfilled. This reflects the on-hand inventory being committed to the order, leaving no remaining available quantity.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

✗
The available quantity remains 70
Why it's wrong here
Reservation reduces available quantity.
✓
The available quantity becomes 0
Why this is correct
70 units are reserved, leaving 0 available.
✗
The available quantity becomes 20
Why it's wrong here
Only 70 units are available, so 70 can be reserved, not 80.
✗
The available quantity becomes -10
Why it's wrong here
Negative on-hand is not allowed without over-reservation settings.

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MB-920 Practice Question: Describe the core capabilities of the finance and operations apps

Exhibit

Why each option matters

Option-by-option breakdown

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