Describe Dynamics 365 Finance →easyMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Finance Practice Question

Exhibit

Refer to the exhibit.

{
  "BudgetControlConfiguration": {
    "BudgetControlEnabled": true,
    "DocumentsToCheck": ["PurchaseOrders", "VendorInvoices"],
    "CheckLevel": "Both",
    "BudgetInterval": "FiscalYear",
    "Threshold": {
      "Warning": 80,
      "Error": 100
    }
  }
}

Refer to the exhibit. The budget control configuration shows that budget checks are enabled for purchase orders and vendor invoices. A purchase order is created for a budget amount that is 90% of the available budget. What happens during budget checking?

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

✓

A warning is displayed but the purchase order can be posted.

The budget control configuration includes a warning threshold (e.g., 80%), and since the purchase order uses 90% of the available budget, it exceeds the warning threshold but not the error threshold (100%), so a warning is displayed but the purchase order can still be posted. Option A is incorrect because the purchase order is not blocked unless it exceeds the error threshold. Option B is incorrect because budget overrun (exceeding 100%) does not occur. Option C is incorrect because purchase orders are configured for budget checking as shown in the exhibit.

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 purchase order is blocked from posting.
Why it's wrong here
Blocking occurs only when error threshold (100%) is exceeded.
✗
The purchase order is allowed and budget is overrun.
Why it's wrong here
Budget overrun is not allowed; it would be blocked if error threshold exceeded.
✗
The budget check is skipped because purchase orders are not configured.
Why it's wrong here
Purchase orders are in the DocumentsToCheck list.
✓
A warning is displayed but the purchase order can be posted.
Why this is correct
90% exceeds the warning threshold (80%) but not the error threshold (100%).

Go deeper

3 more ways this is tested on MB-920

These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.

Variation 1. 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?

hard

✓ A.The CheckLevel is set to "None", disabling budget checks for purchase invoices.
B.The source document type is not supported for budget control.
C.The account structure does not include any financial dimensions.
D.Budget control is not enabled in the system.

Why A: The 'CheckLevel' for purchase invoices is set to 'None', which disables budget checks for that document type. Option B is incorrect because purchase invoices are a supported source document type for budget control. Option C is incorrect; while the account structure may lack financial dimensions, the primary issue is the CheckLevel setting. Option D is incorrect because budget control is enabled (as shown in the exhibit).

Variation 2. Refer to the exhibit. A company has configured budget control as shown. A user attempts to create a purchase order for $12,000. The system currently issues a warning but allows the transaction to proceed. The company wants to prevent any transaction exceeding the threshold from being posted. What should the budget controller change in the configuration?

hard

A.Remove VendorInvoice from the Documents list.
B.Change the BudgetModel to Revised Budget.
C.Change the BudgetThreshold to 12000.
✓ D.Change the ActionOnExceed to Block.

Why D: Changing the ActionOnExceed to 'Block' will prevent any transaction exceeding the threshold from being posted. Currently, the action is set to 'Warn', which allows the transaction to proceed with a warning. Option A is incorrect because removing VendorInvoice from the Documents list would disable budget control for that document type, not change the behavior on exceed. Option B is incorrect because changing the BudgetModel to Revised Budget would affect which budget amounts are used for comparison, but not the action when exceeded. Option C is incorrect because changing the BudgetThreshold to $12,000 would match the exact amount, but the system would still issue a warning for amounts exceeding that threshold unless the action is changed to Block.

Variation 3. 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?

hard

A.Users do not have permission to post purchase requisitions.
B.Budget control is disabled for the legal entity.
✓ C.Budget register entries have not been created for the current fiscal year.
D.Budget control is configured to check only purchase orders.

Why C: Budget control requires budget register entries to be created and posted for the current fiscal year to establish the budget amounts. Without these entries, the system has no budget to compare against, so even if sufficient budget appears available, the control cannot validate and will block the requisition. Option A is incorrect because permissions do not affect budget control checks. Option B is incorrect because the feature is enabled (as stated), so it is not disabled for the legal entity. Option D is incorrect because budget control can be configured for purchase requisitions, but the issue is the missing budget register entries.

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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MB-920 Describe Dynamics 365 Finance Practice Question

Exhibit

Why each option matters

Option-by-option breakdown

Related to this question

3 more ways this is tested on MB-920