Exam MB-920: Microsoft Dynamics 365 Fundamentals (ERP) MCQ

A company uses Dynamics 365 Finance and Operations apps.

A manager requires an overview of customer invoice data, reports, and transactions from one location.

You need to explain where to find this information.

Where should you direct the manager to?

A manufacturing company plans to use Dynamics 365 Finance and Operations apps.

The company must work with the valuation and accounting of raw materials, semi-finished goods, finished goods, and work-in-progress assets.

You need to recommend which finance and operations app the company should use.

Which finance and operations app should you recommend?

A multinational manufacturing company is implementing Dynamics 365 Finance and Operations apps.

The company must create two operating units as part of the company configuration.

What are two operating units the company can create? Each correct answer presents a complete solution.

A company uses Dynamics 365 Finance to manage financial data across different regions and currencies.

The company plans to centralize its data, reports, and transactions.

You need to configure a centralized solution for the company.

Which user interface element should you configure?

A company uses Dynamics 365 Finance.

You create a reporting key performance indicator (KPI) to measure the total sales revenue of products. The KPI must be added as an element to a workspace.

Which presentation type should you use for the KPI?

A company implements Dynamics 365 Supply Chain Management.

The company develops a custom workspace for warehouse users. The company also develops analytical reports by using Visual Studio.

You need to embed the reports into the workspace.

In which section of the workspace should you embed the reports?

A company is setting up reporting in Dynamics 365 Finance by using the Reporting tool.

The company wants to set up the General ledger to enable reporting capabilities.

You need to fill out the reporting attributes.

Which two attributes can you use? Each correct answer presents a complete solution.

A company integrates a model-driven app with Dynamics 365 Finance by using Microsoft Dataverse and Power Automate.

When a company record is updated in Dynamics 365 Finance, the system automatically synchronizes the changes with the corresponding record in the model-driven app. This integration is achieved without any custom code.

You need to determine the type of event that triggers the update notification in Dataverse.

Which type of event occurred?

A rental agency uses Dynamics 365 Finance.

You must export all active customer records for the current fiscal year and update each of the payment terms. The updates must publish back to the Dynamics 365 Finance customer master.

You need to complete the export.

Which Dynamics 365 Finance feature should you use?

A company implements Dynamics 365 Supply Chain Management with the procurement and sourcing module. You activate the purchase order (PO) approval workflow process.

A user initiates a Request change action.

Which two approval statuses does the purchase order move through? Each correct answer presents a complete solution.

You are implementing Dynamics 365 Finance.

You try to set up customer approval workflows. The system will not allow the setup.

You need to fix the issue.

What should you do?

A manufacturing company plans to use workflow automation in Dynamics 365 Finance.

The company plans to use accounts payable workflows to automate its processes.

You need to identify the included accounts payable workflow types.

Which two workflow types should you use? Each correct answer presents a complete solution. Choose two.

A company implements Dynamics 365 Finance.

The company maintains heavy manufacturing items. The items require regular maintenance and overhauling.

You need to identify a Dynamics 365 Finance module to manage maintenance, overhauling, and repair of the items.

Which module should you recommend?

A company implements Dynamics 365 Finance.

The company maintains heavy manufacturing items. The items require regular maintenance and overhauling.

You need to identify a Dynamics 365 Finance module to manage maintenance, overhauling, and repair of the items.

Which module should you recommend?

You are implementing Dynamics 365 Supply Chain Management for a company.

You need to define zones and storage locations for managing on-hand inventory effectively.

Which module should you configure?

You are configuring products in Dynamics 365 Supply Chain Management for a retailer that sells electronics and computers.

The retailer also provides in-house remote technical support, which is billed to customers on an hourly basis.

You need to configure the appropriate product type for the technical support service.

What should you configure?

A company uses Dynamics 365 Supply Chain Management. A supplier provides coffee to the company to sell through the company warehouse.

The supplier fulfillment manager must be able to access Dynamics 365 Supply Chain Management to view purchase orders and other data that pertains to orders and deliveries for the company.

You need to configure the system.

Which three components should you set up? Each correct answer presents part of the solution.

A company manufactures organic products and sells the products to research laboratories. The company implements the Dynamics 365 Supply Chain Management Production module.

You need to digitize the production process.

Which strategy should you use?

A company implements Dynamics 365 Supply Chain Management to automate their manufacturing process.

You need to ensure raw material needed for the production process is available.

What should you do?

A company implements Dynamics 365 Supply Chain Management to automate their manufacturing process.

You need to ensure raw material needed for the production process is available.

What should you do?

A company implements Dynamics 365 Supply Chain Management to automate their manufacturing process.

You need to ensure raw material needed for the production process is available.

What should you do?

A discrete manufacturing company that produces bicycles uses Dynamics 365 Supply Chain Management.

The company designs a new bicycle that must have the following created and defined:

• configuration routes
• configuration rules
• dimension-based configurations

You need to manage the configurations.

What should you configure?

A company uses Dynamics 365 Supply Chain Management.

You are drafting a purchase order for sporting goods with a new supplier. Before placing the order, your manager wants to review the purchase details and ensure that the supplier can meet the inventory needs.

You need to select the correct purchase order type.

Which purchase order should you create?

A company implements Dynamics 365 Supply Chain Management.

A vendor negotiates a lower price based on percentages for all purchases.

You need to create a trade agreement for the vendor.

What should you configure?

A company implements Dynamics 365 Supply Chain Management.

All physical inventory transactions must be posted in the system to ensure accurate audits of each piece of material.

You need to recommend entry types that the company can use for the Inventory journal.

Which three types of entries can the company use? Each correct answer presents a complete solution.

A company implements the advanced warehouse management module of Dynamics 365 Supply Chain Management.

The warehouse layout must be designed during system configuration.

You need to design the warehouse layout.

Which two components should you use? Each correct answer presents a complete solution.

A grocery store uses costing methods in Dynamics 365 Supply Chain Management to manage inventory.

The store makes several purchases of a specialty item throughout the fiscal year.

You need to price the item by using the mean cost per unit of all inventory purchases made during the period.

Which costing method should you use?

A chemical distributor uses Dynamics 365 Supply Chain Management. The distributor is setting up a new warehouse.

The warehouse plans to use sectioning to manage the flow of goods and safety protocols. The sections will include receivables, storage, inspections, and quarantine.

You need to section off the warehouse.

Which warehouse management capability should you use?

A heavy equipment company uses Dynamics 365 Supply Chain Management.

The company receives an order for a hazardous waste removal truck. The truck will be designed as a new unit and fabricated as part of a project.

You need to recommend a manufacturing strategy for the company.

Which manufacturing strategy should you recommend?

A manufacturer specializes in high-quality industrial machinery and follows the procure-to-pay process.

The manufacturer receives a machine order and approves it. Parts are now required from the supplier.

You need to obtain the parts from the supplier.

Which transaction should you create?

A retail company uses Dynamics 365 Supply Chain Management.

A customer places an order. You are following the order-to-cash process.

You need to issue the customer a copy of a document that contains products ordered and the confirmation of delivery terms.

Which document should you issue to the customer?

A company uses Dynamics 365 Supply Chain Management.

You create a new purchase order using the purchase order pane and select a vendor account record.

You need to identify the vendor fields that will default to the purchase order header.

Which two vendor fields should you identify? Each correct answer presents a complete solution.  Choose two.

A company uses Dynamics 365 Supply Chain Management.

A finance clerk has a printer that needs to be replaced. The finance clerk enters the printer model, quantity, and estimated cost into Dynamics 365 Supply Chain Management.

A manager needs to approve what the clerk entered.

Which transaction should you use?

A company that sells farm equipment is implementing Dynamics 365 Supply Chain Management.

Warehouse locations follow the same processes. Each warehouse can hold 25 tractors, 3 excavators, and 10 forklifts.

You need to configure the maximum equipment each location can hold.

What should you configure?

A company implements Dynamics 365 Finance and Dynamics 365 Supply Chain Management.

The company must use fixed asset and costing functionalities specifically in the Finance modules.

Which three Dynamics 365 Finance modules can the company use? Each correct answer presents a complete solution.

A company uses Dynamics 365 Finance.

The company enters into a business contract with another company that is registered with the United States Stock Exchange. You must validate the company.

You need to enter the company into the system.

Where should you enter the information?

A pharmaceutical company operates organizations in the United States, Canada, and Mexico.

You set up the internal organizational structure in Dynamics 365 Finance. Each organization must use the local currency and comply with the local tax laws.

You need to determine which organizational model to use.

What should you use?

You are implementing Dynamics 365 Finance for a company.

Dynamics 365 Finance must be set up with separate areas for United States, United Kingdom, and Australia. Each department must have a default customized screen that users can use to log in.

You need to ensure that everyone views only financial information for their region on their desktop.

What should you configure?

A company is expanding its retail business into a location that has a different sales tax.

You need to set up a new sales tax code in Dynamics 365 Finance to accommodate the expansion.

Which two elements should you specify to create the sales tax code? Each correct answer presents part of the solution.

A company uses Dynamics 365 Finance to manage its operations. The company has multiple business units across several regions, each operating semi-independently.

You need to enable financial reporting across departments and cost centers.

Which configuration should you use?

A company uses Dynamics 365 Finance to manage its finances.

A manager plans to assess the positive and negative cost trends for the business and the impact of commercial lease expenses.

You need to identify the cost accounting insights to report on.

Which two insights should you use? Each correct answer presents a complete solution. Choose two.

A company implements Dynamics 365 Finance.

The accounting team wants to display the trial balance.

You need to configure the trial balance settings.

What should you do?

You are implementing Dynamics 365 Finance.

You are setting up the chart of accounts. Some accounts must be available for only the first 90 days of the year.

You need to ensure that these accounts are suspended after 90 days.

What should you configure?

A retail company uses Dynamics 365 Finance.

The company requires a custom financial dimension to define the billing department, fund, cost center, and company attributes.

You need to activate the dimension.

Which three actions occur in the invoice table after you activate the dimension? Each correct answer presents a complete solution.

A company procures raw materials from various suppliers to manufacture its products.

As part of the accounts payable process, the finance team reimburses suppliers to ensure timely settlement of accounts.

You need to reimburse a supplier.

Which type of journal entry should you use?

A company implements Dynamics 365 Finance.

The company has business transactions with international vendors and customers. The company wants to pay new vendors by using a letter of credit.

You need to configure the letter of credit functionality.

Which module should you use?

A company implements Dynamics 365 Supply Chain Management.

The company processes vendor payments weekly on Wednesdays.

You need to configure the payment setup for the vendors.

What should you configure?

A company uses Dynamics 365 Finance. The company logs all fixed assets in the Dynamics 365 Finance app.

The accounting department plans to move 10 of its printers to the data entry department. The printer assets must be transferred in the system to the new department, including asset depreciation.

You need to set up the system for the transfer.

What should you do?

A company uses Dynamics 365 Finance.

You receive shipments of materials for which you did not create a purchase order.

You need to accrue the expenses.

What are two ways to accrue the expenses? Each correct answer presents a complete solution.

A logistics company uses Dynamics 365 Finance.

Several customers have outstanding invoices. The CFO wants the system to identify delinquent customers, send an email reminder, and schedule a collections phone call.

You need to configure the functionality.

What should you use?

A company implements the Dynamics 365 Finance fixed assets module.

You need to help the company dispose of an existing fixed asset.

Which two items should you post to dispose of the asset? Each correct answer presents a complete solution.

A user at a pharmaceutical company must search Dynamics 365 Finance by using a keyword.

The user enters Invoices into the Dynamics 365 Finance search box.

Which area of the app does the app search?

A company is deploying Dynamics 365 Finance and Operations apps.

The head of the personnel department must manage the workforce, open positions, and hiring.

You need to recommend an app.

Which app should you recommend?

A manufacturing company plans to implement Dynamics 365 Finance and Operations apps to maintain, overhaul, and repair machine assets.

You need to recommend which module from the finance and operations apps the company should use.

Which module should you recommend?

A company uses Dynamics 365 Finance.

You use the Report designer to create reports for management. Management reviews the reports weekly.

You need to distribute the reports to the management team weekly.

Which two actions can you perform? Each correct answer presents a complete solution.

A company implements Dynamics 365 Supply Chain Management. The company uses a custom feature to capture customer feedback.

The company plans to send the feedback to AI Builder to perform sentiment analysis.

You need to implement Power Automate to send the feedback from Dynamics 365 Supply Chain Management.

Which integration technique should you use to send the feedback to AI Builder?

A company is implementing Dynamics 365 Supply Chain Management. The company also uses Dynamics 365 Sales to manage customer relationships.

The company wants to synchronize customer information between Dynamics 365 Sales and Dynamics 365 Supply Chain Management daily at midnight.

You need to set up an asynchronous integration.

Which two technologies should you use? Each correct answer presents a complete solution.

A company uses Dynamics 365 Finance. A user is implementing workflow to automate a process.

A workflow forwards a notification to the department manager when a purchase order is submitted for review. The company needs to designate a backup approver when the department manager is not available.

You need to enable the user options to support this workflow.

Which two options should you use? Each correct answer presents a complete solution. Choose two.

An automotive company is deploying Dynamics 365 Finance to run its business.

A new division in Canada must support localized legal contracts and preparation of financial statements.

You need to set up the system.

What should you set up first?

A company implements Dynamics 365 Finance.

The company must distribute a transaction amount across multiple ledger account and dimension combinations.

You need to design the financial process for the company.

Which process type should you design?

You are implementing Dynamics 365 Finance for a company.

You need to view account balances for the first half of the fiscal year in the general ledger.

In which two locations can you view the account balances? Each correct answer presents a complete solution.

A company is implementing Dynamics 365 Finance.

The company requires random checks to evaluate whether expense reports and purchase orders comply with company policies.

You need to make sure this evaluation is set up to collect data before go-live.

What should you configure?

A company implements Dynamics 365 Supply Chain Management.

You need to prepare an invoice as an estimate of the actual invoice amount before you post the invoice.

Which invoice type should you prepare?

A company implements Dynamics 365 Finance.

The company must create purchase orders, vendor invoices, and customer invoices.

You need to configure Dynamics 365 Finance modules for the company.

Which two modules should you configure? Each correct answer presents part of the solution.

You are implementing Dynamics 365 Finance for a company. You set up fixed assets processes.

You want to use a single set of pages, inquiries, and reports.

What should you set up to ensure the information is together?

A company implements Dynamics 365 Finance to maintain the company budget.

You need to configure the budget register entry.

Which two amount types can you use? Each correct answer presents a complete solution.

A company manufactures widgets.

You must implement an application that follows the production lifecycle. The application must help determine the following:

• Which raw materials are used.
• When the widgets are available for distribution.

You need to configure the correct application.

Which application should you configure?

A company makes necklaces in several colors. The company implements Dynamics 365 Supply Chain Management.

You need to start entering products by configuring options to enter the correct information.

Which two options should you configure? Each correct answer presents part of the solution.

A company implements the Dynamics 365 Supply Chain Management Product information management module.

The company wants to automate its garment manufacturing unit. The manufacturing unit produces shirts with different combinations of colors and sizes.

You need to create a new record for the shirt product.

Which combination of product type and product subtype should you use?

A company implements Dynamics 365 Supply Chain Management.

The company sells the following types of bicycles:

• electric
• mountain
• racing
• recreational

Each bicycle has different types, brands, and colors.

You need to ensure that a specifically arranged list of types and colors for each type appears during procurement.

What should you set up?

A company uses Dynamics 365 Supply Chain Management. The company packages and sells beverages in several quantities.

You must set up the following quantities:

1 bottle = 1 piece

1 box = 12 pieces

1 crate = 144 pieces

1 crate = 12 boxes

You need to configure the system to ensure that quantity specifications are followed.

What should you configure?

A pharmaceutical company plans to implement Dynamics 365 Supply Chain Management. The company specializes in importing and processing raw materials and ingredients.

Materials are blended into bulk products such as baby formula without a specific requirement for waste reduction. Products are then packaged and sent in bulk to retailers.

You need to set up the manufacturing type.

Which single manufacturing type should you use?

A furniture manufacturer uses Dynamics 365 Supply Chain Management.

An order has come in for a custom-made dining table that will be manufactured and shipped to a client.

Time will be allocated to manufacture the table and a work order with the bill of materials (BOM) will be sent to the workshop.

You need to recommend the production process stages to use for this order.

Which two stages should you recommend? Each correct answer presents part of the solution. Choose two.

A company implements the Dynamics 365 Supply Chain Management inventory module.

The company must use inventory journals for item-related transactions.

You need to recommend inventory journal types for the company to execute inventory transactions.

Which two journal types should you recommend? Each correct answer presents a complete solution.

A bicycle manufacturer uses Dynamics 365 Supply Chain Management.

The manufacturer has three warehouses that contain front tires. Front tires are item number T1001. The system shows the following inventory for the front tires:

• Warehouse1 has physical and available inventory of 3.
• Warehouse2 has physical and available inventory of 5.
• Warehouse3 has physical and available inventory of 2.

You need to check the physical availability of the front tires in inventory.

What should you use to get this information?

A company implements the Dynamics 365 Supply Chain Management manufacturing module.

The company manufactures products based on the sales forecast and the defined replenishment rule.

You need to recommend a manufacturing strategy.

Which strategy should you recommend?

A company uses Dynamics 365 Supply Chain Management to distribute baby formula. The company buys extra product from a wholesaler when supplies are low.

A VIP customer orders out-of-stock formula that is in transit from the wholesaler.

You need to ensure that the customer receives the first available stock.

What should you configure?

A home security company uses Dynamics 365 Supply Chain Management. The company sells smart home devices and performs home installations.

A worker needs to reserve inventory for a large sales order that has just come in.

You need to identify which reservations the worker could make.

Which two reservations should you identify? Each correct answer presents part of the solution. Choose two.

A company uses Dynamics 365 Supply Chain Management.

The company has workers use a mobile device to manage orders. The workers are responsible for picking items across the warehouse. The workers need to collect items for multiple orders in one go and need to minimize travel time in the warehouse.

You need to recommend the warehouse picking method.

Which method should you recommend?