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.
{
"InventoryAdjustment": {
"ItemNumber": "A-001",
"Quantity": 100,
"SiteId": "1",
"WarehouseId": "11",
"ReasonCode": "CycleCount"
}
}Refer to the exhibit. An inventory adjustment is being posted for item A-001. The ReasonCode is 'CycleCount'. What is the most likely purpose of this adjustment?
⚠ Common exam trap
Watch out — candidates often confuse a cycle count adjustment with other inventory transactions like production consumption or purchase receipts, but the 'CycleCount' reason code explicitly ties the adjustment to a physical count correction, not to operational flows.
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
✓
To correct inventory after a physical count.
In Dynamics 365 Supply Chain Management, a cycle count is a type of physical inventory count used to verify on-hand quantities. When the counted quantity differs from the system quantity, an inventory adjustment with the reason code 'CycleCount' is posted to correct the system's on-hand inventory to match the physical count. This ensures inventory accuracy without affecting other transactions like sales or production.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
To correct inventory after a physical count.
Why this is correct
Cycle count adjustments correct inventory based on physical counts.
- ✗
To record a sales order delivery.
Why it's wrong here
Sales orders use different reason codes.
- ✗
To adjust for production consumption.
Why it's wrong here
Production consumption uses different reason codes.
- ✗
To receive a purchase order.
Why it's wrong here
Purchase order receipts use different transactions.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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