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
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?
⚠ Common exam trap
Candidates often 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.
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
✓
Set the 'Automatic reservation' field on the production order defaults to 'At start'.
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.
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.
- ✗
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.
Go deeper
Related to this question
About these practice questions
Courseiva writes every MB-920 question from scratch — 930 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.