Courseiva

MB-920 Practice Question: Describe the core capabilities of the finance and operations apps

You are the supply chain manager for a company using Dynamics 365 Supply Chain Management. The company produces high-value electronic components and needs to track each unit by serial number from receipt to sale. They also require that when a customer returns a defective unit, the system automatically identifies the original purchase order and vendor batch number for quality investigation. Currently, the system captures serial numbers at receipt and sale, but the link to the vendor batch is not maintained. You need to configure the product and tracking dimensions to ensure the vendor batch is recorded and associated with the serial number on the sales return. The company uses advanced warehouse management processes. What should you do?

⚠ Common exam trap

Candidates often assume serial number tracking alone is sufficient for traceability, but without batch tracking and the correct reservation hierarchy, the system cannot automatically link a returned serial number to its vendor batch for quality investigation.

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

Enable both serial number and batch tracking on the item, and set the reservation hierarchy to use batch below serial.

Enabling both serial number and batch tracking on the item, and setting the reservation hierarchy to use batch below serial, ensures that each serialized unit is linked to its vendor batch at receipt. This hierarchy allows the system to reserve the serial number first, then the batch, so when a defective unit is returned, the system can trace back to the original purchase order and vendor batch number for quality investigation. This configuration is essential for high-value electronics where lot-level traceability is required, and it works seamlessly with advanced warehouse management processes.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Use the location dimension to record the vendor batch in the warehouse.

    Why it's wrong here

    Location dimension does not provide traceability for returns.

  • Enable serial number tracking on the item, and disable batch tracking.

    Why it's wrong here

    Without batch tracking, vendor batch is not recorded.

  • Enable both serial number and batch tracking on the item, and set the reservation hierarchy to use batch below serial.

    Why this is correct

    Both dimensions are active, and reservation hierarchy ensures batch is captured with serial.

  • Enable batch tracking on the item, and use the batch number as the only tracking dimension.

    Why it's wrong here

    Batch alone cannot track individual units.

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 →

How Courseiva writes practice questions · Editorial policy

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.