MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
This MB-920 practice question tests your understanding of describe the core capabilities of the finance and operations apps. Examine the command output carefully: the correct answer depends on what the output actually shows, not on general recall alone. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
You are a Dynamics 365 consultant for a medium-sized manufacturing company that recently deployed Dynamics 365 Finance and Operations. The company uses the Production control module to manage manufacturing orders. They report that when a production order is started, the system does not automatically reserve raw materials from inventory, causing stockouts on the shop floor. The warehouse team manually reserves materials after the order is released. You need to configure the system so that raw materials are automatically reserved when a production order status is changed to 'Started'. The company uses standard cost inventory valuation. What should you do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Set the 'Automatic reservation' field on the production order defaults to 'At start'.
Option A is correct because the 'Automatic reservation' field on the production order defaults controls when raw materials are physically reserved. Setting it to 'At start' ensures that when a production order status changes to 'Started', the system automatically reserves the required raw materials from inventory, preventing stockouts on the shop floor. This is a standard configuration in Dynamics 365 Finance and Operations for production control.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Set the 'Automatic reservation' field on the production order defaults to 'At start'.
Why this is correct
This reserves materials automatically when production starts.
Related concept
Read the scenario before looking for a memorised answer.
✗
Set the 'Reservation hierarchy' on the item model group to 'Single level'.
Why it's wrong here
Reservation hierarchy controls pegging in planning, not automatic reservation at start.
✗
Set the 'Default financial dimensions' on the finished good item to include the warehouse dimension.
Why it's wrong here
Financial dimensions do not affect material reservation.
✗
Enable 'Auto-report as finished' on the bill of materials (BOM).
Why it's wrong here
This automatically reports finished goods, not material reservation.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse the 'Automatic reservation' setting with other inventory or production parameters, such as reservation hierarchy or auto-report as finished, which address different aspects of production and inventory management.
Detailed technical explanation
How to think about this question
The 'Automatic reservation' field has three options: 'None', 'At start', and 'At release'. When set to 'At start', the system uses the reservation hierarchy defined on the item model group to physically reserve materials from available inventory as soon as the production order status is updated to 'Started'. This is critical for standard cost valuation because it ensures accurate cost calculation and prevents negative inventory issues on the shop floor.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Describe the core capabilities of the finance and operations apps — This question tests Describe the core capabilities of the finance and operations apps — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Set the 'Automatic reservation' field on the production order defaults to 'At start'. — Option A is correct because the 'Automatic reservation' field on the production order defaults controls when raw materials are physically reserved. Setting it to 'At start' ensures that when a production order status changes to 'Started', the system automatically reserves the required raw materials from inventory, preventing stockouts on the shop floor. This is a standard configuration in Dynamics 365 Finance and Operations for production control.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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