A company plans to use Dynamics 365 Supply Chain Management and retire its current system. The company plans to implement procure-to-pay processes.
You are planning the data migration.
You need to identify the types of master data to include in the migration discussions.
Which two types of data should you include? Each correct answer presents part of the solution. (Choose two.)
NOTE: Each correct selection is worth one point.
A. vendors
B. payment terms
C. units of measure
D. item groups
E. items
Show Answer
Correct Answer: A, E
Explanation: For procure-to-pay in Dynamics 365 Supply Chain Management, core master data includes vendors and items. Vendors are required to create purchase orders and manage supplier transactions. Items represent the products or services being procured and are fundamental to purchasing, inventory, and financial postings. Payment terms, units of measure, and item groups are setup or reference data, not primary master data for migration discussions.
Question 101
HOTSPOT
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A company is implementing Dynamics 365 Finance.
All users must sign into the system using multi-factor authentication. An accounting manager must be able to view and edit invoices by using out-of-the-box functionality.
You need to recommend security solutions.
Which security solutions should you recommend? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Implement multi-factor authentication:
Microsoft Entra ID Conditional Access
View and edit invoices:
Dynamics 365 role-based security
Explanation: Multi-factor authentication in Dynamics 365 Finance is enforced through Microsoft Entra ID Conditional Access policies. Viewing and editing invoices using out-of-the-box functionality is handled by assigning appropriate Dynamics 365 Finance security roles, which control access to invoice forms and actions without customization.
Question 102
DRAG DROP
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A retail company is designing security requirements for its Dynamics 365 finance and operations apps implementation. Four sales associates enter and manage customer sales orders.
Sales associates must have access only to the forms that they require for maintaining their customers and sales orders. Sales associates must also have access only to the sales orders that they enter for the specific customers they manage.
The company must provide an annual audit report to an industry compliance governing agency with proof that the sales associates cannot perform certain tasks against their customers such as invoicing. Those tasks must be performed by a different employee of the company.
You need to implement the security controls for the requirements.
Which security controls should you use? To answer, drag the appropriate security controls to the correct requirements. Each security control 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.
Show Answer
Correct Answer: Restrict access to certain forms.
roles
Restrict access to certain sales orders.
security policies
Enable an industry compliance audit report.
security policies
Explanation: Roles control menu items and forms a user can access. Security policies (XDS) enforce record-level access so users see only their own sales orders. Security policies also include segregation-of-duties rules and conflict reports, which provide auditable evidence for industry compliance.
Question 103
A company uses the vendor collaboration functionality within Dynamics 365 Supply Chain Management.
You must grant an external vendor permission to collaborate with the company. The system must send the vendor an invitation email.
Emails must be sent to work email addresses only.
You need to configure user access.
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 new Azure Active Directory tenant.
B. Set up separation of duties.
C. Provision a vendor user.
D. Assign user roles.
Show Answer
Correct Answer: C, D
Explanation: To enable vendor collaboration in Dynamics 365 Supply Chain Management, the external vendor must first be provisioned as a vendor user so the system can create an invitation and send it to the vendor’s work email address. After the user exists, appropriate security roles must be assigned to grant access to vendor collaboration features. Creating a new Azure AD tenant or configuring separation of duties is not required for this scenario.
Question 104
DRAG DROP -
A company uses AX 2012 R3 and plans to migrate to Dynamics 365 Finance and Supply Chain Management. The company’s AX 2012 R3 implementation is heavily customized.
The company wants to understand if AX 2012 R3 can be upgraded or if it must be reimplemented. AX 2012 R3 uses some features that have been deprecated in Dynamics 365 Finance and Supply Chain Management.
The company has the following requirements:
• Determine if AX2012 R3 can be upgraded or if it must be reimplemented.
• Identify code conflicts in the new code format.
You need to identify which tool to use for each requirement.
Which tool should you use? To answer, move the appropriate tool to the correct requirement. You may use each tool once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Determine the feasibility of upgrading vs. reimplementation:
Upgrade analyzer
Plan for the migration of customized code / identify code conflicts:
Code upgrade estimation
Explanation: The Upgrade analyzer assesses deprecated features and upgrade feasibility from AX 2012 R3 to Dynamics 365. The Code upgrade estimation tool analyzes customized code, estimates upgrade effort, and highlights conflicts with the new code format.
Question 105
A company plans to use Dynamics 365 Supply Chain Management.
The company makes a list of requirements and now must categorize the requirements as functional or non-functional.
You need to identify the functional requirements.
Which requirement should you identify as functional?
A. Environments must be refreshed from gold for testing.
B. Enable workers to record time against production orders.
C. Service updates must be automatically applied to a sandbox.
D. The ability to process 1,000 invoice lines per hour.
Show Answer
Correct Answer: B
Explanation: Functional requirements describe what the system must do from a business or user perspective. Enabling workers to record time against production orders is a core business function of Dynamics 365 Supply Chain Management. The other options relate to environment management, service updates, or performance characteristics, which are non-functional requirements.
Question 106
DRAG DROP
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A large company is enrolled in the Dynamics 365 Supply Chain Management FastTrack program.
A user wants to know when the data sources for reporting and required reports will be designed.
You need to identify the Success by Design stage that will address the report and data questions.
In which stage will each activity occur? To answer, drag the appropriate stages to the correct requirements. Each stage 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.
Show Answer
Correct Answer: Design reports:
Implement
Identify report data source:
Initiate
Explanation: In Success by Design, reporting requirements and data sources are identified early during Initiate. Detailed report design is completed during Implement when the solution is built.
Question 107
A company is upgrading its existing operational software to an enterprise resource planning (ERP) system and is evaluating Dynamics 365 Finance.
The company is setup with the following:
• One parent company based in the US and three fully owned subsidiaries that use US dollars (USD) for the accounting currency.
• Two partially owned subsidiaries that use Canadian dollars (CAD) for the accounting currency.
• Distribution facilities in both Canada and the US.
• Project managers travel to customer locations.
• Intercompany sales are transacted between the US subsidiaries.
• E-commerce business-to-business (B2B) sales.
• A call center that receives customer orders.
The company has the following requirements:
• Must provide an asset maintenance capability.
• Must provide a purchase requisition approval process.
• Must provide an invoice approval process.
You need to identify which functional component of Dynamics 365 Finance to implement.
Which functional component should you use?
A. Expense management
B. Invoice approval workflow
C. Purchase requisition workflow
D. Business-to-business e-commerce
Show Answer
Correct Answer: B
Explanation: The requirement explicitly includes an invoice approval process. Among the listed options, Invoice approval workflow is the Dynamics 365 Finance functional component that directly satisfies this requirement. The other options address different or narrower scenarios (expenses, purchase requisitions only, or e‑commerce) and do not directly meet the stated invoice approval need.
Question 108
HOTSPOT
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A company is implementing Dynamics 365 Finance.
The company is concerned that the encryption of data between the application server and the browser might be used to access the application.
You need to recommend what the company should do to increase the security of the data during transmission.
Which security components should you recommend the company use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Configure the connection:
Azure Key Vault
Add to the configuration in Dynamics 365 Finance:
certificate secret
Explanation: To secure data in transit between the browser and the Dynamics 365 Finance application server, HTTPS/TLS must be used. Azure Key Vault is used to securely store and manage the SSL/TLS certificates. The certificate secret from Key Vault is then referenced in the Dynamics 365 Finance configuration to enable encrypted communication.
Question 109
An oil and gas company is planning an implementation of Dynamics 365 Finance and Supply Chain Management.
Workers have inventory on their company trucks and drive out to customer sites to complete repairs. The workers need to manage inventory on their truck and also record the time spent with each customer. The company wants to fit to standard functionality as much as possible.
You need to recommend a solution.
What should you recommend?
A. Microsoft Power App Canvas App
B. Dynamics 365 Field Service
C. Dynamics 365 Warehouse mobile app
D. Third party ISV
E. Dynamics 365 Expense management mobile app
Show Answer
Correct Answer: B
Explanation: Dynamics 365 Field Service is designed for mobile workers who travel to customer sites. It provides standard functionality for managing technician time, work orders, and truck (van) inventory, including inventory consumption and replenishment, while integrating with Dynamics 365 Finance and Supply Chain Management. This best fits the requirement to use standard functionality without custom apps or third‑party solutions.
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