Microsoft

MB-700 — Microsoft Dynamics 365: Finance and Operations Apps Solution Architect Study Guide

305 practice questions Updated 2026-04-24 $19 (70% off) HTML + PDF formats

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Preview 15 of 305 real practice questions from the Microsoft MB-700 study guide.

Question 36

A company uses Dynamics 365 finance and operations apps. The company is creating a detailed One Version strategy for applying updates to different environments through Lifecycle Services (LCS). You need to identify which environment can receive automatic updates from Microsoft. Which environment should you select?

A. Microsoft Dataverse environment deployed through LCS
B. Microsoft-managed environment deployed through LCS
C. Local VHD development environment downloaded from OneDrive
D. Local VHD development environment downloaded from LCS
Show Answer
Correct Answer: B
Explanation:
In Dynamics 365 Finance and Operations One Version, only Microsoft-managed environments deployed through Lifecycle Services (LCS) are eligible to receive automatic updates directly from Microsoft. Local VHD development environments and Dataverse environments do not receive automatic One Version updates.

Question 45

A company implements a Microsoft Power Platform solution. The company must be able to merge all newly created hotfixes to the existing solution and generate a new version. Components that are not included in the new version must be deleted. You need to recommend an action that meets the requirements. Which action should you recommend?

A. Update
B. Create
C. Upgrade
D. Patch
Show Answer
Correct Answer: C
Explanation:
In Microsoft Power Platform solution lifecycle management, an Upgrade is used to consolidate (merge) all existing patches/hotfixes into a new base version of the solution. During an upgrade, components included in the new version are applied, and any components not present in the upgraded solution are removed. Update does not remove missing components, Create makes a new solution, and Patch is only for incremental fixes without consolidation or cleanup.

Question 13

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 uses Dynamics 365 Finance. Service updates have become costly over time, taking resources away from their daily jobs to test against updates which include both functional testing and performance tuning. The company has a medium risk tolerance. You need to define a testing strategy. Solution: Implement automated regression testing processes. Does the solution meet the goal?

A. Yes
B. No
Show Answer
Correct Answer: A
Explanation:
Automated regression testing directly reduces the ongoing cost and manual effort of testing service updates while still providing consistent coverage of core business processes. For an organization with medium risk tolerance, automation is an appropriate strategy because it balances risk mitigation with efficiency, without requiring exhaustive manual testing for every update.

Question 9

You are a solution architect at a company that uses Dynamics 365 finance and operations apps. You define the company’s performance and load testing strategy. The company conducts all FastTrack workshops during the implementation. All topics FastTrack reviews in performance workshops must be included in the performance and load testing strategy. You need to identify the components to include in the strategy. Which two components should you include? Each correct answer presents part of the solution. (Choose two.) NOTE: Each correct selection is worth one point.

A. Key business scenarios
B. Rollout plan
C. Cutover strategy
D. Volumes
E. Gaps
Show Answer
Correct Answer: A, D
Explanation:
FastTrack performance workshops focus on ensuring that the most important business processes perform acceptably at scale. Therefore, the strategy must include key business scenarios to define what processes are tested, and volumes to represent realistic transaction counts, data sizes, and user concurrency. Rollout plans, cutover strategies, and gaps are related to deployment or functional design, not performance and load testing.

Question 14

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 uses Dynamics 365 Finance. Service updates have become costly over time, taking resources away from their daily jobs to test against updates which include both functional testing and performance tuning. The company has a medium risk tolerance. You need to define a testing strategy. Solution: Apply a comprehensive end to end testing business processes. Does the solution meet the goal?

A. Yes
B. No
Show Answer
Correct Answer: B
Explanation:
A comprehensive end-to-end testing strategy is resource-intensive and increases testing effort and cost. Given the company’s medium risk tolerance and the goal of reducing the burden of service update testing, a lighter, risk-based or targeted testing approach would be more appropriate. Therefore, this solution does not meet the stated goal.

Question 32

A customer is implementing Dynamics 365 Supply Chain Management. Purchase orders are being confirmed without any manager oversight. Purchase orders must be reviewed by the manager of an employee who enters a purchase order. You need to configure the system to meet the requirement. What should you configure?

A. Security roles
B. Hierarchy workflow
C. Participant workflow
D. User workflow
Show Answer
Correct Answer: B
Explanation:
The requirement is that purchase orders must be reviewed by the manager of the employee who creates the purchase order. In Dynamics 365 Supply Chain Management, a hierarchy workflow routes approvals based on the organizational reporting structure, automatically sending the document to the worker’s manager. Security roles control access, not approvals, and participant or user workflows require manual assignment rather than using the managerial hierarchy. Therefore, a hierarchy workflow is the correct configuration.

Question 11

A company plans to implement Dynamics 365 Supply Chain Management. The company completes the sizing estimator. The company is unsure of volume transactions flowing in and out of the system at go-live. The volume of transactions, coupled with new integrations and customizations for a new line of business for the company is an area of concern. You need to address the concern. Which tool should you use?

A. Trace parser
B. environment monitoring
C. Performance SDK
D. regression suite automation testing (RSAT)
Show Answer
Correct Answer: C
Explanation:
The concern is uncertainty around transaction volumes, integrations, and customizations at go-live, which is fundamentally a performance and load risk. The Performance SDK is specifically designed to simulate business processes at scale, generate load, and measure system performance under realistic and peak transaction volumes. It helps identify bottlenecks caused by customizations and integrations before go-live. RSAT focuses on functional regression testing, not performance or volume testing, while environment monitoring and trace parser are diagnostic tools rather than proactive load-testing solutions.

Question 22

DRAG DROP - A manufacturing company is implementing Dynamics 365 Supply Chain Management. The company wants to ensure that they are prepared for the testing phase of the implementation. You need to validate the solution. Which type of test should you perform? To answer, drag the appropriate test types to the correct scenarios. Each test type may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point.

Illustration for MB-700 question 22
Show Answer
Correct Answer: Developer – Unit test User – Regression test
Explanation:
Unit tests are performed by developers to validate new code and features in isolation. Regression tests are run by users or testers to ensure updates do not break existing functionality.

Question 35

A company uses Dynamics 365 finance and operations apps. The company is creating a detailed One Version strategy for applying updates to different environments through Lifecycle Services (LCS). You need to identify which environment can receive automatic updates from Microsoft. Which environment should you select?

A. Microsoft Azure-hosted VHD development environment downloaded from LCS
B. Local VHD development environment downloaded from OneDrive
C. Multiple box testing environment hosted in Microsoft Azure
D. Customer-managed environment deployed through LCS
Show Answer
Correct Answer: C
Explanation:
In the One Version update model, Microsoft automatically applies updates only to Microsoft-managed environments. A multiple box testing environment hosted in Microsoft Azure is a Microsoft-managed (Tier 2+) environment and therefore receives automatic updates from Microsoft. Development VHDs (local or Azure-hosted) and customer-managed environments require manual updates.

Question 23

A company plans to upgrade from Microsoft Dynamics AX 2012 to Dynamics 365 Finance and Dynamics 365 Supply Chain Management. The company has a large call center that uses a third-party system to enter sales orders. The company decides to keep the third-party system and integrate it with Dynamics 365 Finance and Dynamics 365 Supply Chain Management. The company also wants to reuse the Microsoft Dynamics AX 2012 integration and endpoints with Dynamics 365 Finance and Dynamics 365 Supply Chain Management. For performance reasons, non-real-time integrations must be avoided. All solutions that are proposed should be supported by Microsoft in case there are performance issues. You need to plan the integration strategy. What should you do?

A. Plan for testing in a Tier 2+ environment.
B. Define custom service API requirements.
C. Use the Microsoft Excel add-in.
D. Plan for testing in a production environment.
Show Answer
Correct Answer: B
Explanation:
The requirement is to keep real-time integration, reuse existing AX 2012 integrations/endpoints, and ensure Microsoft-supported solutions for performance. Defining custom service API requirements aligns with using supported real-time service-based integrations in Dynamics 365 Finance and Supply Chain Management. The other options relate to testing or data entry tools and do not address the integration strategy itself.

Question 25

DRAG DROP - A company is implementing Dynamics 365 Supply Chain Management. The company is planning load testing. The implementation team reports that performance is slow when sales orders are confirmed. You need to evaluate load testing by using the Performance SDK tool. Which types of load tests can you perform? To answer, drag the appropriate load test types to the correct components. Each load test type may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point.

Illustration for MB-700 question 25
Show Answer
Correct Answer: Task recording: Single user only Visual Studio Enterprise Edition: Single user and multi-user
Explanation:
Task recordings in the Performance SDK replay a single recorded business process and therefore support only single-user load tests. Visual Studio Enterprise Edition can scale these tests to simulate both single-user and concurrent multi-user load scenarios.

Question 26

A company uses Dynamics 365 Finance. The company has several integrations with Dynamics 365 Finance that use REST web services. You must perform unit testing on the web services before you promote the web services to the main build environment. You need to recommend solutions to manually unit test the web services. Which two tools should you recommend? Each correct answer presents a complete solution. NOTE: Each correct selection is worth one point.

A. Azure DevOps
B. Dynamics 365 task recordings
C. SoapUI
D. Regression suite automation testing (RSAT)
E. Postman
Show Answer
Correct Answer: C, E
Explanation:
The requirement is to manually unit test REST web services used by Dynamics 365 Finance integrations before promotion. SoapUI and Postman are both purpose-built API testing tools that support REST calls, authentication, payload validation, and response inspection, making them suitable for manual unit testing. Azure DevOps is for ALM, task recordings are for UI scenarios, and RSAT is for automated regression testing of business processes, not manual REST API unit testing.

Question 10

A company is upgrading their AX 2012 R3 environment to Dynamics 365 Finance. The company plans to upgrade the data store by using a phased approach. You need to define the strategy to migrate master data and opening balances. Which tool should you recommend?

A. Data upgrade tool
B. Data migration tool
C. Business process modeler
D. Combine XPO tool
Show Answer
Correct Answer: A
Explanation:
In an AX 2012 R3 to Dynamics 365 Finance upgrade using a phased approach, Microsoft provides the Data upgrade tool to move required data such as master data and opening balances. This tool supports selective, upgrade-based data movement rather than a full historical migration. The other options do not perform data upgrades (Business process modeler), are for code (Combine XPO), or are not the official upgrade tool for AX 2012 to D365 Finance (generic data migration tool).

Question 21

Case study - 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 - 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 - VanArsdel, Ltd. is a company that uses Microsoft Dynamics AX 2012 R3 in the United States, Canada, Mexico, and Brazil in an on-premises environment. The company implemented the solution by using Sure Step 2012. VanArsdel, Ltd. plans to upgrade to Dynamics 365 Finance, Dynamics 365 Supply Chain Management, and Dynamics 365 Commerce using Proseware, Inc. as the implementation partner. VanArsdel, Ltd. has implemented 13 other software systems for customer management and sales. Current Environment - Methodology - VanArsdel, Ltd. deploys a proprietary methodology named VanPMP. The company plans to use VanPMP for all software implementations. The company uses a standard project template for all new implementations. Solution - Microsoft Power Apps is used by the sales team to enter sales orders. The orders are then integrated with the current Dynamics AX 2012 R3 instance asynchronously once every hour. All sales orders are invoiced through the invoicing batch process at the end of the day. Sales are used for all business-critical scenarios. The external systems include 12 integrations, such as Microsoft Power Platform, Office 365, Azure, and third-party systems. One of the automated accounts receivable import integrations, named integration 1, generates revenue in a business-to-business (B2B) scenario that is supported by sales orders. The integration runs every night and is always the first integration to be tested. All regression testing is completed manually. Security - The company uses Dynamics AX 2012 R3 in all the countries/regions in which they operate. Because VanArsdel, Ltd. operates within the United States, the company must comply with government financial compliance standards. Government compliance requires that VanArsdel, Ltd. manufacturing divisions must not be able to approve purchase orders. Manufacturing managers must not be able to access data in other manufacturing sites. The manufacturing divisions belong to a single legal entity with multiple sites. Requirements - Licensing - The implementation requires the following Dynamics 365 licenses: • 120 Supply Chain Management licenses • 60 Finance licenses • 50 Commerce licenses Methodology - The implementation must use the VanArsdel, Ltd. proprietary methodology for the Dynamics 365 implementation. The methodology in the project template must use the Microsoft-recommended approach. Progress must be tracked in a central location for VanArsdel, Ltd,, Microsoft, and Proseware, Inc. to view. VanArsdel Ltd. requires a sample methodology in Lifecycle Services (LCS). The project must coordinate project dates in the methodology with any required Microsoft touchpoints to ensure that the project is on track and implemented according to best practices. Solution - The sales order entry Power Apps integration must be configured by using out-of-the-box solutions. Integrations - The company has the following integration requirements: • Four integrations must run asynchronously. • Eight integrations must run synchronously. • The integrations must be able to run after applying updates to the system. All items must have their own item pricing. Each item must have an MSRP and a selling price that is determined based on the date and location. Testing - The user reporting test case needs to be reviewed by using the same process in the test environment. The Regression suite automation tool (RSAT) must be used to automate every critical scenario. All other testing must be performed manually. Integration 1 must be deployed first. All data must be created and tested in the correct sequence to ensure that pricing is applied correctly to the item. Security - Dynamics 365 must be rolled out incrementally by country/region. The implementation must go live in the United States first, and then continue to the other countries/regions over the next 12 months. VanArsdel, Ltd, must assign access to new users based on the site of the users. VanArsdel, Ltd. requires that Proseware, Inc. perform the following: • Objective 1. Determine the software licensing costs for the system based on the contracted costs determined during the start of the project. • Objective 2. Audit the security roles for users in the manufacturing division. Issues - Some users report that too many fields are displayed when the users create records in the Dynamics 365 AX 2012 R3 instance. These fields often prevent users from being productive. Statement of work concerns - Before the project kickoff, several of the VanArsdel, Ltd. IT team members had concerns after reviewing the statement of work. The primary concerns were raised by the following team members • An administrator named Admin1 reports a performance impact on multiple large integrations with the Dynamics 365 AX 2012 R3 implementation. • An administrator named Admin2 reports a concern with environment management with the global rollout. All concerns must be reviewed and scheduled with all solution architects in workshops. Testing - The Dynamics 365 AX 2012 R3 instance experiences frequent issues due to users running reports for an extended period of time on the same Application Object Server (AOS) service. A user named User1 reports a delay retrieving the same report in Dynamics 365. You are a consultant for Proseware, Inc. You need to audit the system based on government financial compliance standards in Objective 2. What should you use?

A. Compare permissions
B. Segregation of duties
C. Role to user assignments report
D. User role assignments report
E. Security diagnostic for task recording
Show Answer
Correct Answer: B
Explanation:
Government financial compliance audits in Dynamics 365 Finance focus on ensuring that conflicting duties (such as creating and approving purchase orders) are not assigned to the same users. The Segregation of duties framework is specifically designed to identify and evaluate these conflicts across security roles and users, which directly addresses auditing manufacturing division roles for compliance. Reports that only list role or user assignments do not analyze compliance risks.

Question 41

DRAG DROP - A company is implementing these Microsoft solutions: • Dynamics 365 Finance • Dynamics 365 Supply Chain Management • Dynamics 365 Commerce • Power Apps All users will require finance capabilities, but the other solutions will vary per user. You need to identify the license types required to build a quote. What should you select? To answer, drag the appropriate license types to the correct solutions. Each license type may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point.

Illustration for MB-700 question 41
Show Answer
Correct Answer: Power Apps: Add-ons Dynamics 365 Commerce: Base or Attach
Explanation:
All users already have Dynamics 365 Finance as the base license. Power Apps is licensed through add-ons on top of existing licenses. Dynamics 365 Commerce can be licensed either as a Base application or as an Attach license when Finance is already present.

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MB-700 — Frequently Asked Questions

What is the Microsoft MB-700 exam?

The Microsoft MB-700 exam — Microsoft Dynamics 365: Finance and Operations Apps Solution Architect — is a professional IT certification exam offered by Microsoft. Passing this exam earns you the Microsoft Certified: Dynamics 365: Finance and Operations Apps Solution Architect Expert certification, a widely recognized credential in the IT industry.

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