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Describe Dynamics 365 Human Resources practice questions

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Practise Microsoft Dynamics 365 Fundamentals ERP MB-920 Describe Dynamics 365 Human Resources practice questions — original exam-style scenarios with answer choices, explanations, and analysis of common mistakes.

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19 questionsDomain: Describe Dynamics 365 Human Resources

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What the exam tests

What to know about Describe Dynamics 365 Human Resources

Describe Dynamics 365 Human Resources questions test whether you can apply the concept in context, not just recognise a definition.

How the topic appears in realistic exam-style scenarios.

Which detail in the question changes the correct answer.

How to eliminate plausible but wrong options.

How to connect the question back to the wider exam objective.

Watch out for

Common Describe Dynamics 365 Human Resources exam traps

▸Answering from memory before reading the full scenario.
▸Missing a constraint such as cost, availability, security, scope or command context.
▸Choosing a broad answer when the question asks for the most specific fix.
▸Ignoring why the wrong options are tempting.

Practice set

Describe Dynamics 365 Human Resources questions

19 questions · select your answer, then reveal the explanation

Question 1mediummultiple choice

Read the full NAT/PAT explanation →

A multinational company is implementing Dynamics 365 Human Resources. They need to ensure that employees in different countries can accrue leave based on local statutory requirements. The HR manager wants to automate the calculation of leave entitlements at the beginning of each fiscal year. Which feature should they configure?

Trap 1: Position-based hierarchies

Position hierarchies define reporting structure, not leave accrual.

Trap 2: Approval workflows for leave requests

Approval workflows manage the leave request process, not accrual rules.

Trap 3: Compensation plans

Compensation plans handle salary and bonus, not leave accrual.

Study all Describe Dynamics 365 Human Resources common traps →

A
Position-based hierarchies
Why wrong: Position hierarchies define reporting structure, not leave accrual.
B
Leave and absence plans
Leave and absence plans are used to define accrual rules, tiers, and carry-forward.
C
Approval workflows for leave requests
Why wrong: Approval workflows manage the leave request process, not accrual rules.
D
Compensation plans
Why wrong: Compensation plans handle salary and bonus, not leave accrual.

Full breakdown with real-world context →

Question 2hardmultiple choice

Read the full Describe Dynamics 365 Human Resources explanation →

A company uses Dynamics 365 Human Resources. The HR team reports that when they try to generate the 'Employee absence history' report for the previous quarter, the data for some employees is missing. The system shows no errors. What is the most likely cause?

Trap 1: The absence request workflow is not published.

Workflow publishing affects request processing, not historical report generation.

Trap 2: The leave types are not configured for the relevant legal entities.

Leave type configuration affects approval, not report data retrieval.

Trap 3: The employees do not have the required security role to be included…

Security roles control access to reports, but would typically show an error or blank report, not missing data for some employees.

Study all Describe Dynamics 365 Human Resources common traps →

A
The absence request workflow is not published.
Why wrong: Workflow publishing affects request processing, not historical report generation.
B
The leave types are not configured for the relevant legal entities.
Why wrong: Leave type configuration affects approval, not report data retrieval.
C
The employees do not have the required security role to be included in reports.
Why wrong: Security roles control access to reports, but would typically show an error or blank report, not missing data for some employees.
D
The work calendar is not assigned to the positions of those employees.
Without a work calendar, absence duration cannot be calculated, causing missing data.

Full breakdown with real-world context →

Question 3easymultiple choice

Read the full Describe Dynamics 365 Human Resources explanation →

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?

Trap 1: Applicant

Applicants are for recruitment, not current employees.

Trap 2: Job

A job defines duties and requirements, not individual competencies.

Trap 3: Position

A position is an instance of a job, not a person record.

Study all Describe Dynamics 365 Human Resources common traps →

A
Worker
Worker records store personal information, including skills and certifications.
B
Applicant
Why wrong: Applicants are for recruitment, not current employees.
C
Job
Why wrong: A job defines duties and requirements, not individual competencies.
D
Position
Why wrong: A position is an instance of a job, not a person record.

Full breakdown with real-world context →

Question 4mediummultiple choice

Read the full Describe Dynamics 365 Human Resources explanation →

A retail company with 500 employees is deploying Dynamics 365 Human Resources. They need to ensure that employees can view their own pay slips and update personal information from a mobile app. Which component should they enable?

Trap 1: Recruitment

Recruitment is for managing job applications.

Trap 2: Manager self service

Manager self service is for managers to view team information, not for employees to update their own data.

Trap 3: Compensation management

Compensation management is for HR to manage salary structures.

Study all Describe Dynamics 365 Human Resources common traps →

A
Recruitment
Why wrong: Recruitment is for managing job applications.
B
Manager self service
Why wrong: Manager self service is for managers to view team information, not for employees to update their own data.
C
Employee self service
Employee self service allows employees to access their own information and pay slips via mobile.
D
Compensation management
Why wrong: Compensation management is for HR to manage salary structures.

Full breakdown with real-world context →

Question 5hardmultiple choice

Read the full NAT/PAT explanation →

A company uses Dynamics 365 Human Resources. An HR administrator notices that when they process a termination for an employee, the system does not automatically calculate the final paycheck. The employee is paid monthly. What should the administrator do to ensure final pay is calculated?

Trap 1: Create an ad hoc pay run for the employee.

Ad hoc pay runs are for one-time payments, not standard final pay.

Trap 2: Manually add a benefit deduction for the employee.

Benefits are separate from payroll calculation.

Trap 3: Submit an absence request to clear leave balances.

Leave clearance does not trigger final pay calculation.

Study all Describe Dynamics 365 Human Resources common traps →

A
Run the pay statement generation process.
Pay statement generation calculates final pay and deductions.
B
Create an ad hoc pay run for the employee.
Why wrong: Ad hoc pay runs are for one-time payments, not standard final pay.
C
Manually add a benefit deduction for the employee.
Why wrong: Benefits are separate from payroll calculation.
D
Submit an absence request to clear leave balances.
Why wrong: Leave clearance does not trigger final pay calculation.

Full breakdown with real-world context →

Question 6mediummulti select

Read the full Describe Dynamics 365 Human Resources explanation →

Which TWO features are available in Dynamics 365 Human Resources for managing employee benefits?

Trap 1: Performance review configuration

Performance reviews are part of performance management, not benefits.

Trap 2: Compensation grids

Compensation grids are used for salary structures, not benefits.

Trap 3: Absence accrual schedules

Absence accrual is part of leave management, not benefits.

Study all Describe Dynamics 365 Human Resources common traps →

A
Performance review configuration
Why wrong: Performance reviews are part of performance management, not benefits.
B
Benefit plan setup
Benefit plan setup defines the types, options, and rates of benefits.
C
Open enrollment for benefit elections
Open enrollment allows employees to select benefits during defined periods.
D
Compensation grids
Why wrong: Compensation grids are used for salary structures, not benefits.
E
Absence accrual schedules
Why wrong: Absence accrual is part of leave management, not benefits.

Full breakdown with real-world context →

Question 7hardmulti select

Read the full Describe Dynamics 365 Human Resources explanation →

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

Trap 1: Position types

Position types categorize positions, not directly used in compensation plans.

Trap 2: Work calendars

Work calendars are for absence and attendance, not compensation.

Study all Describe Dynamics 365 Human Resources common traps →

A
Position types
Why wrong: Position types categorize positions, not directly used in compensation plans.
B
Work calendars
Why wrong: Work calendars are for absence and attendance, not compensation.
C
Compensation levels
Compensation levels group jobs with similar pay ranges.
D
Compensation grids
Compensation grids define pay ranges and rates.
E
Eligibility rules
Eligibility rules determine which employees are eligible for a compensation plan.

Full breakdown with real-world context →

Question 8easymultiple choice

Read the full Describe Dynamics 365 Human Resources explanation →

An HR administrator is reviewing the absence setup. John Doe has submitted a 1-day absence request for next Wednesday. The system shows an error that the absence duration cannot be calculated. What is the most likely cause?

Exhibit

Refer to the exhibit.

WorkCalendar (Name=US Calendar, LegalEntity=USMF, StartTime=08:00, EndTime=17:00, Monday-Friday)

Employee: John Doe, Position: Sales Representative, WorkCalendar: (none)

Trap 1: The absence request requires manager approval first.

Approval is a separate step after duration is calculated.

Trap 2: The leave type is not configured for the USMF legal entity.

Leave type configuration affects approval, not duration calculation.

Trap 3: The exhibit shows a time zone mismatch.

Time zone is not mentioned in the exhibit and would not cause this error.

Study all Describe Dynamics 365 Human Resources common traps →

A
The absence request requires manager approval first.
Why wrong: Approval is a separate step after duration is calculated.
B
The leave type is not configured for the USMF legal entity.
Why wrong: Leave type configuration affects approval, not duration calculation.
C
The work calendar is not assigned to John's position.
A work calendar is required to calculate absence duration.
D
The exhibit shows a time zone mismatch.
Why wrong: Time zone is not mentioned in the exhibit and would not cause this error.

Full breakdown with real-world context →

Question 9hardmultiple choice

Read the full Describe Dynamics 365 Human Resources explanation →

Jane Smith requests 2 days of vacation on 01/15/2023. Her available balance shows 0 days. Why is her balance zero?

Exhibit

Refer to the exhibit.

LeaveAbsencePlan: 'Standard Vacation'
AccrualRate: 0.0385 per hour worked (equivalent to 2 weeks per year)
CarryForward: 5 days maximum
LeaveType: Vacation (code: VAC)

Employee: Jane Smith, HireDate: 01/01/2022, Full-time, 40 hours/week

Today: 01/15/2023
Jane has not taken any vacation in 2023.
Accrual frequency: Monthly, on the first day of each month.

Trap 1: The accrual rate is too low to accrue any days by mid-January.

The accrual rate is 0.0385 per hour, but no accrual event has occurred yet.

Trap 2: Carry forward rules reset at the beginning of each year.

Carry forward applies to unused days from previous year; Jane had no prior balance.

Trap 3: Jane's hire date causes a prorated accrual that has not been…

Hire date affects initial accrual, but for 2023, accruals follow the plan schedule.

Study all Describe Dynamics 365 Human Resources common traps →

A
The accrual rate is too low to accrue any days by mid-January.
Why wrong: The accrual rate is 0.0385 per hour, but no accrual event has occurred yet.
B
Carry forward rules reset at the beginning of each year.
Why wrong: Carry forward applies to unused days from previous year; Jane had no prior balance.
C
Jane's hire date causes a prorated accrual that has not been processed.
Why wrong: Hire date affects initial accrual, but for 2023, accruals follow the plan schedule.
D
The first accrual of the year occurs on February 1, not January 1.
Accrual frequency is monthly on the 1st; first accrual is Feb 1.

Full breakdown with real-world context →

Question 10mediummultiple choice

Read the full Describe Dynamics 365 Human Resources explanation →

Contoso Ltd. is a manufacturing company with 1,200 employees across three legal entities: USMF (United States), FRRT (France), and GBSI (United Kingdom). They are implementing Dynamics 365 Human Resources. The HR director wants to set up a unified absence management system that complies with local regulations. In the US, employees accrue vacation based on years of service (0-5 years: 10 days; 5+ years: 15 days). In France, all employees receive 25 days annually, plus additional RTT days for managers. In the UK, statutory leave is 28 days, but the company offers 25 days base with 3 bank holidays. The system must automatically calculate accruals on the first day of each month for US and UK, and at the start of the leave year (January 1) for France. Additionally, employees in France must be able to request RTT days separately, and managers must approve them. The HR team is unsure how to configure this. Which approach should be recommended?

Trap 1: Create a single global leave plan with the maximum accrual (28…

This approach is error-prone and does not automate accrual per local rules.

Trap 2: Use compensation plans to handle leave entitlements because they…

Compensation plans are for salary and bonuses, not leave accrual.

Trap 3: Use the same leave plan for all entities and rely on approval…

Workflows validate requests, but accrual is still calculated from the plan; different rules need separate plans.

Study all Describe Dynamics 365 Human Resources common traps →

A
Create a single global leave plan with the maximum accrual (28 days) and then manually adjust balances for each employee based on their country.
Why wrong: This approach is error-prone and does not automate accrual per local rules.
B
Create separate leave and absence plans for each legal entity, configuring accrual rules, frequencies, and leave types per country.
Each legal entity can have its own plan, accommodating different accrual rules, frequencies, and leave types like RTT.
C
Use compensation plans to handle leave entitlements because they are based on employee classification.
Why wrong: Compensation plans are for salary and bonuses, not leave accrual.
D
Use the same leave plan for all entities and rely on approval workflows to validate leave requests according to local rules.
Why wrong: Workflows validate requests, but accrual is still calculated from the plan; different rules need separate plans.

Full breakdown with real-world context →

Question 11mediummultiple choice

Read the full Describe Dynamics 365 Human Resources explanation →

A company uses Dynamics 365 Human Resources to manage employee leave. Employees in the sales department frequently submit leave requests that conflict with scheduled client meetings, causing operational disruptions. The HR manager wants to prevent such conflicts without restricting all leave during client meetings. What should the HR manager configure?

Trap 1: Disable employee self-service for leave requests in the sales…

Disabling self-service would prevent employees from submitting any leave requests, which is overly restrictive and not the intended solution.

Trap 2: Configure calendar parameters to block leave on days when client…

Calendar parameters apply globally and would block leave for all employees, not just the sales department.

Trap 3: Set a maximum leave balance for sales department employees.

Maximum leave balance limits the amount of leave an employee can accrue, but does not prevent conflicts with scheduled meetings.

Study all Describe Dynamics 365 Human Resources common traps →

A
Disable employee self-service for leave requests in the sales department.
Why wrong: Disabling self-service would prevent employees from submitting any leave requests, which is overly restrictive and not the intended solution.
B
Configure calendar parameters to block leave on days when client meetings are scheduled.
Why wrong: Calendar parameters apply globally and would block leave for all employees, not just the sales department.
C
Set a maximum leave balance for sales department employees.
Why wrong: Maximum leave balance limits the amount of leave an employee can accrue, but does not prevent conflicts with scheduled meetings.
D
Create a leave blocking rule for the sales department position on days with client meetings.
Leave blocking rules can be configured for specific positions or departments, preventing leave requests on particular dates for that group only.

Full breakdown with real-world context →

Question 12hardmulti select

Read the full Describe Dynamics 365 Human Resources explanation →

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?

Trap 1: Define benefit eligibility rules.

Eligibility rules are configured after the plan is created, not as a prerequisite.

Trap 2: Integrate with payroll for deductions.

Payroll integration is optional and not required to set up the benefit plan.

Study all Describe Dynamics 365 Human Resources common traps →

A
Assign the benefit plan to employees.
After creating the plan and options, you assign the plan to eligible employees to complete the setup.
B
Define benefit eligibility rules.
Why wrong: Eligibility rules are configured after the plan is created, not as a prerequisite.
C
Create benefit plan types.
Benefit plan types categorize the plan (e.g., medical, dental) and are required before creating a specific plan.
D
Integrate with payroll for deductions.
Why wrong: Payroll integration is optional and not required to set up the benefit plan.
E
Configure benefit plan options.
Plan options define the details of the benefit, such as coverage levels and costs.

Full breakdown with real-world context →

Question 13hardmultiple choice

Read the full NAT/PAT explanation →

You are a Dynamics 365 Human Resources administrator for a multinational corporation with 5,000 employees across three regions: North America, Europe, and Asia Pacific. The company uses Dynamics 365 Human Resources to manage employee records, benefits, leave, and compensation. Recently, the HR team has been receiving complaints from employees in the Asia Pacific region that their leave balances are not updating correctly after they submit leave requests. Additionally, managers in that region report that they cannot see their direct reports' leave balances when trying to approve leave. You investigate and find that employees in Asia Pacific have a different leave policy than other regions, and this policy is configured using a custom leave type called "Regional Leave." The system is set up with a single legal entity. You need to resolve the issue so that leave balances update correctly and managers can view leave balances. What should you do?

Trap 1: Create a new leave type called 'Regional Leave - Asia Pacific' and…

A new leave type does not solve the policy calculation issue; the underlying leave policy configuration is still shared.

Trap 2: Disable the leave functionality for Asia Pacific employees and…

Manual processing is inefficient and does not leverage the system's capabilities.

Trap 3: Modify the calendar parameters to exclude Asia Pacific holidays…

Calendar parameters are global and not suitable for region-specific adjustments.

Study all Describe Dynamics 365 Human Resources common traps →

A
Create a separate legal entity for the Asia Pacific region and configure a dedicated leave policy for that entity.
A separate legal entity allows independent leave policy configuration, ensuring correct balances and manager visibility.
B
Create a new leave type called 'Regional Leave - Asia Pacific' and assign it to employees in that region.
Why wrong: A new leave type does not solve the policy calculation issue; the underlying leave policy configuration is still shared.
C
Disable the leave functionality for Asia Pacific employees and process leave manually.
Why wrong: Manual processing is inefficient and does not leverage the system's capabilities.
D
Modify the calendar parameters to exclude Asia Pacific holidays from leave balance calculations.
Why wrong: Calendar parameters are global and not suitable for region-specific adjustments.

Full breakdown with real-world context →

Question 14mediummultiple choice

Read the full Describe Dynamics 365 Human Resources explanation →

A company uses Dynamics 365 Human Resources. The HR manager wants to set up a new position that reports to an existing position, but the system does not allow the reporting relationship to be established. What should the system administrator verify?

Trap 1: That the compensation plan for the new position is active

Compensation plans do not affect position hierarchy creation.

Trap 2: That the organization type is set to 'Legal entity'

Organization types do not affect position-level hierarchy creation.

Trap 3: That the position details for the existing position are fully…

Position details do not control hierarchy enablement.

Study all Describe Dynamics 365 Human Resources common traps →

A
That the compensation plan for the new position is active
Why wrong: Compensation plans do not affect position hierarchy creation.
B
That the organization type is set to 'Legal entity'
Why wrong: Organization types do not affect position-level hierarchy creation.
C
That the position hierarchy feature is enabled in the shared parameters
Position hierarchies must be enabled in System administration > Shared parameters > Position hierarchies.
D
That the position details for the existing position are fully defined
Why wrong: Position details do not control hierarchy enablement.

Full breakdown with real-world context →

Question 15hardmulti select

Read the full Describe Dynamics 365 Human Resources explanation →

An organization is implementing Dynamics 365 Human Resources. They need to store employee certifications and track expiration dates. Which TWO actions can be performed using standard functionality?

Trap 1: Configure automatic renewal of certifications before expiration

Automatic renewal is not a standard feature.

Trap 2: Link certifications to worker skills for gap analysis

Certifications are not linked to skills in standard functionality.

Trap 3: Automatically attach certifications to positions when hiring

Certifications are not automatically attached to positions.

Study all Describe Dynamics 365 Human Resources common traps →

A
Set up alerts to notify managers when certifications are about to expire
Alerts can be configured using the alert rules feature.
B
Configure automatic renewal of certifications before expiration
Why wrong: Automatic renewal is not a standard feature.
C
Link certifications to worker skills for gap analysis
Why wrong: Certifications are not linked to skills in standard functionality.
D
Enter certification details on the worker's profile
Certifications can be added to worker profiles in the system.
E
Automatically attach certifications to positions when hiring
Why wrong: Certifications are not automatically attached to positions.

Full breakdown with real-world context →

Question 16mediumdrag order

Read the full Describe Dynamics 365 Human Resources explanation →

Drag and drop the steps to process a purchase order receipt in Dynamics 365 Finance in the correct order.

Drag steps to the numbered slots on the right, or tap a step then tap a slot.

Steps

Order

1Step 1

2Step 2

3Step 3

4Step 4

5Step 5

Question 17mediumdrag order

Read the full Describe Dynamics 365 Human Resources explanation →

Drag and drop the steps to create a new budget in Dynamics 365 Finance in the correct order.

Drag steps to the numbered slots on the right, or tap a step then tap a slot.

Steps

Order

1Step 1

2Step 2

3Step 3

4Step 4

5Step 5

Question 18mediummatching

Read the full Describe Dynamics 365 Human Resources explanation →

Match each Dynamics 365 Human Resources capability to its definition.

Drag a concept onto its matching description — or click a concept then click the description.

Concepts

Matches

Define and manage employee pay and benefits

Set goals and review employee performance

Manage job postings and applicant tracking

Track employee time off requests

Manage employee skill development

Question 19mediummatching

Read the full Describe Dynamics 365 Human Resources explanation →

Match each Dynamics 365 Supply Chain Management process to its purpose.

Drag a concept onto its matching description — or click a concept then click the description.

Concepts

Matches

Purchase goods and services from vendors

Manage manufacturing orders and execution

Track and optimize stock levels

Manage freight and shipping logistics

Inspect and ensure product quality

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What does the MB-920 exam test about Describe Dynamics 365 Human Resources?: Describe Dynamics 365 Human Resources questions test whether you can apply the concept in context, not just recognise a definition.
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Exam traps to avoid

▸Answering from memory before reading the full scenario.
▸Missing a constraint such as cost, availability, security, scope or command context.
▸Choosing a broad answer when the question asks for the most specific fix.
▸Ignoring why the wrong options are tempting.

Describe Dynamics 365 Human Resources practice questions

What to know about Describe Dynamics 365 Human Resources

Common Describe Dynamics 365 Human Resources exam traps

Describe Dynamics 365 Human Resources questions

A company uses Dynamics 365 Human Resources. The HR team reports that when they try to generate the 'Employee absence history' report for the previous quarter, the data for some employees is missing. The system shows no errors. What is the most likely cause?

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 retail company with 500 employees is deploying Dynamics 365 Human Resources. They need to ensure that employees can view their own pay slips and update personal information from a mobile app. Which component should they enable?

A company uses Dynamics 365 Human Resources. An HR administrator notices that when they process a termination for an employee, the system does not automatically calculate the final paycheck. The employee is paid monthly. What should the administrator do to ensure final pay is calculated?

Which TWO features are available in Dynamics 365 Human Resources for managing employee benefits?

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

An HR administrator is reviewing the absence setup. John Doe has submitted a 1-day absence request for next Wednesday. The system shows an error that the absence duration cannot be calculated. What is the most likely cause?

Exhibit

Jane Smith requests 2 days of vacation on 01/15/2023. Her available balance shows 0 days. Why is her balance zero?

Exhibit

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?

A company uses Dynamics 365 Human Resources. The HR manager wants to set up a new position that reports to an existing position, but the system does not allow the reporting relationship to be established. What should the system administrator verify?

An organization is implementing Dynamics 365 Human Resources. They need to store employee certifications and track expiration dates. Which TWO actions can be performed using standard functionality?

Drag and drop the steps to process a purchase order receipt in Dynamics 365 Finance in the correct order.

Drag and drop the steps to create a new budget in Dynamics 365 Finance in the correct order.

Match each Dynamics 365 Human Resources capability to its definition.

Match each Dynamics 365 Supply Chain Management process to its purpose.

Track your progress over time

Start a Describe Dynamics 365 Human Resources only practice session

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