Question 12
A distribution company wants to set up barcodes in their Dynamics 365 Supply Chain Management system for warehouse scanning.
Barcodes will be entered manually.
You need to minimize the risk of errors on barcode entry.
What should you do?
A. Select an item and set up security on the barcode field.
B. Create a new barcode, enter the value, select the type, and enter the size and max length.
C. Create a new barcode, enter the value, select the type, and enter the mask.
Show Answer
Correct Answer: C
Explanation:
To minimize manual entry errors, Dynamics 365 barcode setup should use a mask. A barcode mask enforces a specific pattern (such as fixed prefixes, numeric/alphanumeric structure, and check logic), which helps prevent incorrect or incomplete entries. Size and max length alone do not validate the structure of the barcode and therefore do not sufficiently reduce entry errors.
Question 13
A company uses Dynamics 365 Supply Chain Management.
Three assets at a single location all need the same tune-up. A single worker can complete all three tune-ups. The worker’s hours must be allocated to each asset.
You need to configure the system for the worker.
Which configuration should you use?
A. Configure a job card for the device.
B. Create three separate work orders.
C. Configure work line details.
D. Create a consumption registration for the items.
Show Answer
Correct Answer: B
Explanation:
In Dynamics 365 Asset Management, labor time and costs are tracked per asset through work orders. Since each asset must have the worker’s hours allocated individually, each asset requires its own work order even if the work, location, and worker are the same. Other options do not provide asset-level labor allocation.
Question 14
A company uses Dynamics 365 Supply Chain Management.
Three assets at a single location all need the same tune-up. A single worker can complete all three tune-ups. The worker’s hours must be allocated to each asset.
You need to configure the system for the worker.
Which configuration should you use?
A. Create a consumption registration for the expenses.
B. Create a consumption registration for the items.
C. Create one work order and split hours by work order job.
D. Configure labor standards.
Show Answer
Correct Answer: C
Explanation:
All three assets require the same work at the same location and can be handled by one worker, but the worker’s labor hours must be tracked separately per asset. In Dynamics 365 Asset Management/Supply Chain Management, this is achieved by creating one work order that contains multiple work order jobs—one per asset—and then splitting and posting the worker’s hours against each work order job. Consumption registrations are for items or expenses, and labor standards define expected time, not actual hour allocation.
Question 15
A company uses Dynamics 365 Supply Chain Management.
Three assets at a single location all need the same tune-up. A single worker can complete all three tune-ups. The worker’s hours must be allocated to each asset.
You need to configure the system for the worker.
Which configuration should you use?
A. Create a consumption registration for the expenses.
B. Create three separate work orders.
C. Configure work line details.
D. Create a consumption registration for the items.
Show Answer
Correct Answer: C
Explanation:
In Dynamics 365 Supply Chain Management (Asset Management), when a single worker performs the same maintenance activity on multiple assets at one location and their labor time must be allocated to each asset, you configure this through work line details. Work line details allow labor hours to be registered and distributed across multiple assets within the same maintenance work context. Creating separate work orders is unnecessary and does not directly address labor allocation, while consumption registrations are used for posting costs, not configuring how hours are assigned to assets.
Question 16
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A company plans to configure Dynamics 365 Supply Chain Management to perform preventative maintenance for several machines on its shop floor.
The company has the following requirements:
• Create work orders automatically.
• Inspect assets daily starting June 1 of this year.
• Perform five calibration and safety checks on a set of assets each day to maintain safety compliance.
You need to configure the appropriate solution.
Solution: Create a maintenance round, assign the assets, configure the maintenance round for the requirements, and schedule the maintenance round.
Does the solution meet the goal?
Show Answer
Correct Answer: A
Explanation:
Maintenance rounds in Dynamics 365 Supply Chain Management are designed for recurring inspections and preventative maintenance across multiple assets. They can be scheduled to run daily starting on a specific date, include predefined checklists such as calibration and safety checks, and automatically generate work orders. Assigning assets and configuring the round to perform five checks per day meets all stated requirements.
Question 17
You are the planner for a distribution company.
You observe an increase in planned orders for item C0001. You must track the source for these planned orders and break them out based on their demand. You are not concerned with safety stock maximums for this item.
You need to ensure that the master planning batch job will create a unique planned purchase order for every new demand requirement for C0001.
Which coverage code should you use?
A. Manual
B. Period
C. Min/Max
D. Requirement
Show Answer
Correct Answer: D
Explanation:
Requirement coverage creates a separate planned order for each individual demand (sales order, forecast line, or dependent requirement). This allows you to track the exact source of each planned order and ensures a unique planned purchase order per demand, without aggregating by period or applying min/max or safety stock logic.
Question 18
A company receives a large quantity of inventory into the warehouse.
The inventory has a short shelf life and must be sent out to the stores as soon as possible.
You need to use Buyer's push to transfer the inventory out to the stores.
Which two actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Create a sales order.
B. Create transfer orders.
C. Select Product and ship open sales orders.
D. Select Product and distribution method.
Show Answer
Correct Answer: B, D
Explanation:
Buyer’s push is used to proactively distribute inventory from a warehouse to stores without relying on store demand or sales orders. To do this, you define which products are pushed and how they should be distributed, and then generate transfer orders to move the inventory. Creating sales orders or shipping open sales orders is not part of the buyer’s push process.
Question 19
An organization has two legal entities. One of the companies is going to sell a new product to the other company.
The company that will receive the product must get a discount on items for the first three months of initial sales.
You need to configure the system to apply the discount for the specified period.
What should you do?
A. Set the default purchase price on the company that is receiving the product.
B. Enter the default purchase price on the company that is selling the product.
C. Set up an intercompany purchase agreement. Do not allow the validity period to be edited.
D. Set up a Trade Agreement. Set the To Date field to end in three months.
Show Answer
Correct Answer: D
Explanation:
In Dynamics 365 Finance, time-bound pricing or discounts between legal entities are controlled through Trade agreements. A trade agreement allows you to define specific prices or discounts with validity dates. By setting the To Date to three months in the future, the discount will automatically apply only during the initial sales period and then expire. Default purchase prices and intercompany purchase agreements do not provide the same flexible, date-effective discount control.
Question 20
HOTSPOT
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Case study
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This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study
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To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background
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School of Fine Art is a distribution company that sells school supply items to primary and secondary schools. These include items such as pens, pencils, paper, notebooks, chalk, desks, acrylic paints, blackboards, dry erase markers, and whiteboard paint. Due to increased demand for colored pencils, lead times are longer for these pencils. School of Fine Art plans to expand sales into this market.
School of Fine Art plans to implement Dynamics 365 Supply Chain Management to manage the business.
Current environment. Company structure
School of Fine Art consists of two legal entities.
Primary company
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• Located in Dublin, Ireland.
• Has a single named warehouse.
• Is the primary distribution center for both companies.
Second company
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• Is located in Glasgow, Scotland.
• Includes the following warehouses: Glasgow1, Glasgow2.
○ Glasgow1 is used primarily to supply items regionally.
○ Glasgow2 serves as local storage for vendor-owned inventory and bulk storage for School of Fine Art's inventory.
Current environment. General processes
School of Fine Art uses a combination of spreadsheets and paper forms to manage the business.
• All sales, purchases, and inventory are tracked in spreadsheets that are password protected by managers.
• Managers frequently share spreadsheet passwords so that other users can make edits on their behalf. Inventory quantities and values are unreliable.
• The spreadsheets are often incorrectly updated, have entry errors, and broken formulas for calculations.
• Purchase order receipts, picking lists, packing slips, and invoices are all handwritten on pre-printed, three-part forms.
• Late summer is the company's busiest time. During this time, workers are typically on the warehouse floor or making rush deliveries to schools to meet last-minute needs.
Current environment. Inventory and warehousing
• School of Fine Art values inventory by using FIFO costing methods.
• Inventory in the warehouses cannot be distinguished as available inventory or inventory that is sold to a customer and waiting to be picked. This creates inventory inflation during cycle counts and later shortages because warehouse workers count items that are already promised to customers and waiting to be shipped.
• Glasgow2 space is fully allocated to vendors.
• Due to space constraints, school orders for photocopiers are shipped from the vendor to the school.
• Crayons are stored as separate item numbers depending on whether they are in a box or a case. This creates issues when counting inventory to determine the total number of crayons in stock.
• Lack of inventory controls has led to shortages on sales orders, creating backorders and unhappy schools.
• Inventory is ordered quarterly due to the seasonality of the business.
• Items can change annually based on popular sizes, colors, and styles for each new school season. The creation of the different configurations is a manual process, which creates so much overhead that temporary workers are brought in to do the data entry.
Current environment. Purchasing
• Reordering is manually managed by the buyers looking at the seasonal spikes for the start of the school year, slowing around the end-of-year holidays until the following school year.
• Pens are readily available products that are rarely discounted for sale.
• Photocopiers are only available for sale on the Glasgow region.
• Photocopy paper and construction paper are ordered by the pallet into Dublin1 and must be broken down into smaller sizes. The pallets are typically broken down and then split between what stays in Dublin1 and what is shipped to Glasgow1.
• Chalk and blackboards are slower sellers, so many vendors do not carry these items. School of Fine Art purchases these products from a single vendor. There are no alternative vendors available.
• School of Fine Art agrees to purchase a new line of smartboards from a vendor. The agreed-upon smartboard purchase prices will have a cost price per 55-inch, 75-inch, or 85-inch smartboard.
• The company purchases pencils for the following warehouses:
○ Glasgow1:
• standard pencils from Vendor A
• colored pencils from Vendor B
○ Dublin1:
• standard pencils from Vendor A
• colored pencils from Vendor A
• As whiteboard paint grows in popularity, so does the demand. This causes supply shortages. Whiteboard paint is ordered six months in advance.
Current environment. Customer sales
• The company contractually agrees to prices for some items with schools prior to the start of each school year.
• Schools may order bulk cases of products and choose to distribute further breakdowns, such as a case of crayons, which are then distributed to classrooms by the box.
• Pens do not require contracts with schools because they are low margin and do not have supply chain shortages.
• Painting supplies such as acrylic paint, canvases, and easels do not require a special contract and are sold at regular list price to all schools.
• Schools that offer painting classes are part of a program that provides special pricing on the painting supplies.
• Chalk and blackboards are ordered less frequently than they were in past years. Schools are choosing to use whiteboard paint, which is a lower cost than ordering and installing the whiteboards.
Requirements. Customers and sales
• The system must have the ability to limit product purchase amounts by a single school to prevent stock shortages for other schools.
• Schools are obligated to purchase the agreed amount for specific items per the school year.
• Customer service must be able to easily enter items for sales orders and identify stock shortages.
• Sales of whiteboard paint must be limited so that one school does not buy all the inventory and force backorders for other schools.
• Schools must agree to the amount of whiteboard paint they will purchase for the whole school year.
Requirements. Inventory costing
• Inventory must have associated costs except for the vendor storage in Glasgow2.
• The vendor storage must still contain quantities but not include cost in inventory valuations.
• At the end of each month, the costing manager must be able to identify how many items will not be fully settled.
• Annual configuration changes to items must be automatically created where possible.
• The company must be able to track costs for colored pencils and standard pencils separately.
Requirements. Inventory
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• Warehouse workers must be able to use their mobile phones and the mobile app to take calls and create transactions in the warehouse.
• The desks must use a single item number and barcode regardless of year manufactured and the vendor.
• Water-based paints from the vendor must be received in pails.
• Acrylic paint must be managed by batches and expiration dates.
• Pencils must be categorized as colored pencils or standard pencils. The individual colors of each colored pencil (such as red, green, and blue) will not be tracked.
• The creation of unique smartboard items must be kept to a minimum.
Issues
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• WarehouseWorker1 works in Glasgow2. The worker receives a request to ship pallets of paper from the warehouse to Glasgow1 and Dublin1. WarehouseWorker1 must create the shipments in the system to transfer the pallets of paper from Glasgow1 to Dublin1.
• The number of backorders for desks has increased. Customer service representatives struggle to select a desk item number that has inventory on hand. The desks are the same item, but the manufacturer vendor and year differ.
• A school calls customer service to report that its photocopier is broken. The school needs expedited shipment of a replacement.
• A school that is part of the special paint program reports that a sale price on canvas last month was a better price than its paint program price. The school requests a price adjustment.
• A school reports that different shipments of acrylic paints are slightly different in color.
• The sales team decides to have a flash sale on pens for one month only. The person entering the Sales order line should be able to communicate the information to the customer on the Sales order line.
• Schools are reporting that chalk and blackboards are broken upon receipt. A worker in Dublin1 opens some cases of these products in the warehouse and finds that they are also broken. You must implement processes to enforce inventory inspection for a percentage of each purchase order line received. You must block all inventory for a purchase order line if the inspection fails.
You must configure the acrylic paint requirements.
What should you configure? To answer, select the appropriate option in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Tracking dimension
Allow reservation on demand order
Explanation:
Acrylic paint must be tracked by batch and expiration date, which requires a tracking dimension. Reservation should be allowed on demand (sales orders) to reserve specific batches without enforcing one-to-one sales order marking, which is not required by the scenario.
Question 21
You are the logistics manager at a distribution company.
Your primary carrier service provides rates for transportation between New York City and Colorado. These rates are a flat rate depending on the city or general area of pickup as follows:
• New York City = $500
• Colorado = $450
You need to set up Transportation Management to calculate the rate from New York City to Colorado.
What should you do?
A. Create a Point-to-Point based Rate Master with the rates broken out by pieces.
B. Using the Point-to-Point engine with an empty break master, assign rates based on starting and ending locations.
C. Set up zones in the Zone Master for New York City and Colorado. Assign rates to each zone in the Zone Master by starting and ending location.
D. Use a mileage-based rate engine to configure a rate master that calculates the rate based on the miles from New York City to Colorado.
Show Answer
Correct Answer: B
Explanation:
The requirement is a flat rate determined solely by a specific origin–destination pair (New York City to Colorado), with no dependency on weight, pieces, or mileage. The Point-to-Point rate engine is designed for this exact scenario. Using an empty break master ensures no additional rating factors are applied, allowing you to directly assign the flat rate based on the starting and ending locations. Other options introduce unnecessary complexity (pieces, zones, or mileage) that are not required by the scenario.