MICROSOFT CERTIFICATION
MB-920 Dynamics 365 Fundamentals (ERP) Practice Exam
Exam Number: 3134 | Last updated 16-Apr-26 | 805+ questions across 4 vendor-aligned objectives
The MB-920 Dynamics 365 Fundamentals (ERP) certification validates the skills of anyone seeking foundational knowledge of Dynamics 365 enterprise resource planning apps including Finance and Supply Chain Management. This exam measures your ability to work with Dynamics 365 Finance, Dynamics 365 Supply Chain Management, Dynamics 365 Business Central, Dynamics 365 Human Resources, Dataverse, demonstrating both conceptual understanding and practical implementation skills required in today’s enterprise environments.
The heaviest exam domains include Describe Dynamics 365 Finance (20–25%), Describe Dynamics 365 Supply Chain Management (20–25%), and Describe Dynamics 365 Business Central (20–25%). These areas collectively represent the majority of exam content and require focused preparation across their respective subtopics.
Additional domains tested include Describe Dynamics 365 Human Resources (10–15%), and Describe Dynamics 365 Project Operations (10–15%). Together, these areas round out the full exam blueprint and ensure candidates possess well-rounded expertise across the certification scope.
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Question #1 - Describe Dynamics 365 Finance
A CFO evaluates D365 Finance for their organization. They need to manage general ledger, accounts payable, accounts receivable, budgeting, and fixed assets in a single integrated system.
Which statement best describes Dynamics 365 Finance?
A) A project management tool only
B) An enterprise financial management application that automates and modernizes global financial operations
C) A CRM system for managing customer relationships
D) A human resources application
Show solution
Correct answers: B – Explanation:
D365 Finance provides comprehensive financial management — GL, AP, AR, budgeting, fixed assets, and financial reporting for enterprises. It is not a CRM, project-only, or HR system, though it integrates with those. Source: Check Source
Question #2 - Describe Dynamics 365 Finance
A CFO evaluates D365 Finance. They need general ledger, accounts payable/receivable, budgeting, and fixed assets in one system.
Which statement best describes Dynamics 365 Finance?
A) A customer relationship management system for managing sales pipeline and deal activities
B) An enterprise financial management application automating and modernizing global operations
C) A human resources application focused exclusively on employee benefits and payroll processing
D) A project management tool designed only for tracking project timelines and resource allocation
Show solution
Correct answers: B – Explanation:
D365 Finance provides comprehensive financial management including GL, AP, AR, budgeting, fixed assets, and consolidated financial reporting for enterprises operating globally. It is purpose-built for finance, not CRM, project-only, or HR-only functionality, though it integrates with those modules in the broader D365 ecosystem. Source: Check Source
Question #3 - Describe Dynamics 365 Finance
A multinational needs monthly close across 12 legal entities in different currencies with consolidated financial statements.
Which D365 Finance capability supports this?
A) Manual data collection from each entity compiled in spreadsheets for quarterly consolidation
B) A third-party consolidation tool operating independently with no D365 Finance data integration
C) Financial consolidation across legal entities with automated currency translation and eliminations
D) Separate Excel workbooks per entity requiring manual formula linking for consolidated totals
Show solution
Correct answers: C – Explanation:
D365 Finance supports multi-entity consolidation with automatic currency translation and intercompany elimination entries for unified financial reporting. Manual collection from each entity is error-prone and does not scale for monthly close requirements. Excel workbooks lack audit trails, automated currency translation, and intercompany elimination handling. Third-party tools without integration fragment the financial close process from the source ledger data. Source: Check Source
Question #4 - Describe Dynamics 365 Supply Chain Management
A manufacturer needs an ERP managing procurement, production, inventory, warehousing, and logistics in one integrated platform.
Which Dynamics 365 app provides this end-to-end supply chain management?
A) Power BI providing interactive data visualization and analytical reporting dashboard tools
B) Dynamics 365 Supply Chain Management integrating procurement, production, and logistics modules
C) Dynamics 365 Sales managing customer relationships and revenue pipeline tracking activities
D) Dynamics 365 Business Central targeting small and mid-size organizations with simpler needs
Show solution
Correct answers: B – Explanation:
D365 SCM provides integrated procurement, production control, inventory management, warehouse management, and transportation management for enterprise-scale manufacturing and distribution. Sales manages revenue pipeline, not supply chain operations. Business Central targets SMBs with lighter-weight integrated functionality. Power BI visualizes data and provides analytics but does not manage operational supply chain processes. Source: Check Source
Question #5 - Describe Dynamics 365 Supply Chain Management
A food manufacturer needs production schedules based on demand forecasts, available raw materials, and capacity constraints.
Which D365 SCM capability handles this planning?
A) Master Planning with Planning Optimization evaluating demand, supply, and capacity constraints
B) The warehouse mobile app managing execution of warehouse operations and inventory movements
C) Manual production scheduling performed on a physical whiteboard by the plant operations team
D) Sales order entry capturing customer demand without any production planning integration
Show solution
Correct answers: A – Explanation:
Master Planning evaluates demand forecasts, current supply, inventory positions, and production capacity constraints to generate optimized production and procurement schedules. Manual whiteboard scheduling does not scale and cannot evaluate complex multi-constraint optimization. Sales orders capture demand signals but do not translate them into production and procurement plans. The warehouse app manages execution of warehouse operations but not production planning activities. Source: Check Source
Question #6 - Describe Dynamics 365 Business Central
A small accounting firm with 20 employees needs an affordable ERP covering financials, sales, purchasing, and inventory.
Which Dynamics 365 app is best suited for this small business?
A) Dynamics 365 Finance targeting enterprise-scale financial operations across global legal entities
B) Dynamics 365 Supply Chain Management designed for complex manufacturing and logistics operations
C) Dynamics 365 Customer Insights providing customer data analytics and unified profile management
D) Dynamics 365 Business Central designed for small and mid-size organizations with integrated ERP
Show solution
Correct answers: D – Explanation:
Business Central is designed for small-to-mid-size organizations, providing integrated financials, sales, purchasing, and inventory with simpler deployment and pricing appropriate for a 20-person firm. D365 Finance targets enterprise complexity with features exceeding small business needs. D365 SCM handles complex manufacturing and logistics beyond a small accounting firm. Customer Insights provides customer analytics, not operational ERP functionality. Source: Check Source
Question #7 - Describe Dynamics 365 Business Central
A growing startup uses Business Central and wants a custom approval workflow without hiring developers.
Which capability allows non-developer extension of Business Central?
A) Assembly language extensions compiled and linked into the Business Central server process
B) Power Automate integration providing low-code visual workflow automation connected to BC
C) Direct database modification using SQL scripts executed against the BC production environment
D) X programming language used for D365 Finance and Operations development, not Business Central
Show solution
Correct answers: B – Explanation:
Power Automate integrates with Business Central to create approval workflows using a visual low-code designer accessible to non-developers. X is the programming language for D365 Finance and Operations, not the AL language used by Business Central. Direct database modification bypasses all application logic, security rules, and audit trail generation. Assembly language is a hardware-level programming language not used for business application development. Source: Check Source
Question #8 - Describe Dynamics 365 Human Resources
An HR director needs a system managing employee records, benefits enrollment, leave tracking, and performance reviews.
Which Dynamics 365 app addresses these HR needs?
A) Dynamics 365 Field Service managing on-site work orders and mobile technician scheduling
B) Dynamics 365 Sales managing customer relationships and revenue pipeline tracking activities
C) Dynamics 365 Customer Service handling support case lifecycle and customer communication
D) Dynamics 365 Human Resources managing employee lifecycle, benefits, leave, and performance
Show solution
Correct answers: D – Explanation:
D365 Human Resources manages the complete employee lifecycle including records, benefits enrollment, leave management, compensation, and performance tracking. Sales manages customer revenue opportunities, not employee management. Customer Service handles external support cases, not internal HR functions. Field Service manages on-site technician operations, not employee benefits and leave management. Source: Check Source
Question #9 - Describe Dynamics 365 Human Resources
A company wants employees to request time off and managers to approve it through a self-service portal.
Which D365 HR feature provides this?
A) A shared spreadsheet maintained on a network drive tracking all employee leave balances
B) An email sent to the HR department inbox requiring manual calendar and balance tracking
C) Employee and Manager Self-Service portals with integrated leave request and approval workflows
D) Paper-based leave request forms distributed physically requiring manual processing by HR staff
Show solution
Correct answers: C – Explanation:
Self-service portals allow employees to submit leave requests and managers to approve them digitally within the system, with automatic calendar and balance updates throughout. Paper forms are not digital, require manual processing, and create filing overhead for the HR department. Email requests require manual tracking, lack workflow enforcement, and risk lost or forgotten requests. Shared spreadsheets are error-prone, lack approval workflows, and do not integrate with payroll processing. Source: Check Source
Question #10 - Describe Dynamics 365 Project Operations
A consulting firm needs to manage proposals, resource scheduling, time/expense tracking, and project billing in one system.
Which Dynamics 365 app provides end-to-end project lifecycle management?
A) Dynamics 365 Project Operations covering the complete proposal-to-billing project lifecycle
B) Microsoft Project desktop application providing offline project scheduling without ERP integration
C) Dynamics 365 Finance alone providing general ledger accounting without project execution tools
D) Dynamics 365 Sales managing customer deal pipeline without project delivery or billing features
Show solution
Correct answers: A – Explanation:
Project Operations covers the complete project lifecycle from proposal through resource management, time and expense capture, and client invoicing in a unified platform. D365 Finance handles general accounting but lacks project execution management tools. Desktop Project provides scheduling without integrated resource management, time tracking, or ERP billing. Sales manages deal pipeline but does not manage project delivery, execution, or billing processes. Source: Check Source
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What the MB-920 Dynamics 365 Fundamentals (ERP) exam measures
- Describe Dynamics 365 Finance (20–25%) — Evaluate your ability to implement and manage tasks within this domain, including real-world job skills and scenario-based problem solving.
- Describe Dynamics 365 Supply Chain Management (20–25%) — Evaluate your ability to implement and manage tasks within this domain, including real-world job skills and scenario-based problem solving.
- Describe Dynamics 365 Business Central (20–25%) — Evaluate your ability to implement and manage tasks within this domain, including real-world job skills and scenario-based problem solving.
- Describe Dynamics 365 Human Resources (10–15%) — Evaluate your ability to implement and manage tasks within this domain, including real-world job skills and scenario-based problem solving.
- Describe Dynamics 365 Project Operations (10–15%) — Evaluate your ability to implement and manage tasks within this domain, including real-world job skills and scenario-based problem solving.
How to prepare for this exam
- Review the official exam guide to understand every objective and domain weight before you begin studying
- Complete the relevant Microsoft Learn learning path to build a structured foundation across all exam topics
- Get hands-on practice in an Azure free-tier sandbox or trial environment to reinforce what you have studied with real configurations
- Apply your knowledge through real-world project experience — whether at work, in volunteer roles, or contributing to open-source initiatives
- Master one objective at a time, starting with the highest-weighted domain to maximize your score potential early
- Use PowerKram learn mode to study by individual objective and review detailed explanations for every question
- Switch to PowerKram exam mode to simulate the real test experience with randomized questions and timed conditions
Career paths and salary outlook
Earning this certification can open doors to several in-demand roles:
- ERP Business Analyst: $70,000–$100,000 per year (based on Glassdoor and ZipRecruiter data)
- Dynamics 365 Support Specialist: $65,000–$90,000 per year (based on Glassdoor and ZipRecruiter data)
- Operations Coordinator: $60,000–$85,000 per year (based on Glassdoor and ZipRecruiter data)
Official resources
Microsoft provides comprehensive free training to prepare for the MB-920 Dynamics 365 Fundamentals (ERP) exam. Start with the official Microsoft Learn learning path for structured, self-paced modules covering every exam domain. Review the exam study guide for the complete skills outline and recent updates.