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QUESTION 1
HOTSPOT
A company plans to stock new items and value those items by using FIFO principle. The company has multiple sites set
up. There are multiple warehouses for each site.
You must be able to view the value and quantity of these items at each warehouse.
You need to apply FIFO costing per warehouse.
How should you complete the costing setup? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:

QUESTION 2
A company manufactures and sells surround-sound audio systems. A third-party company manufactures the stereo
receivers as part of the Bill of materials (BOM) for complete sound systems.
You need to automatically create a purchase order for the stereo receiver from the production order for a sound
system.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Assign the Vendor account to the service item BOM line.
B. Set service item BOM line type to Vendor.
C. Set the service item BOM line type to Pegged supply.
D. Link the service items to the vendor on the costing sheet.
E. Attach the service item to the parent item as a BOM line.
Correct Answer: ABE

QUESTION 3
A company manufactures street, mountain, and racing bicycles.
The company wants to use product variants to control bicycle configuration.
You need to configure the bicycles in the system.
What should you do?
A. Create mountain, street, and racing bicycles as separate configuration models.
B. Use one item number for all types of bicycles. Use a separate configuration number for each type of bicycle.
C. Use different item numbers for mountain, street, and racing bicycles.
Correct Answer: A

QUESTION 4
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 simplify interactions between purchasing department employees and vendors.
You need to ensure that employees are redirected to a vendor\\’s online store to select items for inclusion on purchase
requisitions.
Solution: Create a procurement catalog.
Does the solution meet the goal?
A. Yes
B. No
Correct Answer: B
References: https://docs.microsoft.com/en-us/dynamics365/supply-chain/procurement/set-up-external-catalog-forpunchout

QUESTION 5
You need to configure inventory levels for the retail stores.
Which two actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Enter a manual forecast for the initial stock levels at the retail stores.
B. After the first month of face mask sales, look at the warehouse sales orders for the past 30 days to generate a
demand forecast.
C. After the first month of face mask sales, review store sales for the past 30 days to generate a demand forecast.
D. After the first month of face mask sales, create a forecast for the warehouse and a second forecast for the retail
stores.
E. After the first month of face mask sales, create a manual forecast for the warehouse and automatically generate a
demand forecast for the stores.
Correct Answer: AC

QUESTION 6
A company has several warehouse locations. The company acquires a new warehouse.
You must design a new warehouse process workflow for the new warehouse.
You need to configure the workflow.
Which three features should you configure? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. work pools
B. cluster picking
C. outbound wave processing
D. work templates
E. wave templates
Correct Answer: ADE
Reference: https://docs.microsoft.com/en-us/dynamics365/unified-operations/supply-chain/warehousing/warehousemanagement-overview

QUESTION 7
You need to complete the shipments. What should you do?
A. Confirm the load and generate packing slips and bills of lading.
B. Confirm shipments and generate pick/put work.
C. Create work for printing shipping documents and send an ASN.
D. Confirm the load, generate picking list, and send an ASN.
Correct Answer: D

QUESTION 8
A company uses Dynamics 365 Supply Chain Management.
A customer returns a product that is defective for a replacement.
You need to process the return order.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Create a return of type Credit Only
B. Set the deadline date according to the company policy
C. Create a credit note for the replaced product
D. Set the delivery address to the customer\\’s address in the return order
E. Create a return of type Physical Return
F. Set the deadline date to the date the customer returns the defective product
G. Set the delivery address to the company warehouse in the return order
Correct Answer: BEG

QUESTION 9
A company needs to create new items that can be company owned or vendor owned.
You need to create and set up the items so that they can be used as company owned or consignment.
What should you do?
A. Assign a non-stock service item model group
B. Assign a moving average costing inventory model
C. Activate batch dimension and assign a standard costing inventory model
D. Activate owner dimension and assign a standard costing inventory model
Correct Answer: D

QUESTION 10
HOTSPOT
A parent company owns two subsidiaries.
Some of the products manufactured in one of the subsidiaries must be sold to the other subsidiary so they can be sold
in retail stores.
You need to configure the customer and products for intercompany setup.
How should you configure the setup? To answer, select the appropriate options in the answer areas.
NOTE: Each selection is worth one point.
Hot Area:

QUESTION 11
A company uses Dynamics 365 Supply Chain Management.
The finance department processes royalty claims using the accounts payable module.
You need to pass the claims to the accounts payable group for payment.
Which three events will occur? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. A Royalty accrual journal posting reverses the previous interim postings for accrual and expense amounts.
B. A credit is posted to the vendor\\’s payable account.
C. A vendor invoice for the royalty payment is set to draft.
D. A new vendor invoice for the royalty is created and posted.
E. A hold is put on the amounts held in the royalty fees account.
Correct Answer: ABD
References: https://docs.microsoft.com/en-us/dynamics365/finance/accounts-payable/royalty-contract

QUESTION 12
You are the materials manager at a distribution company.
You are responsible for setting up the ABC classification of all items as follows:
1.
Class A materials represent 70 percent of the material value.
2.
Class B materials represent 20 percent of the material value.
3.
Class C materials represent 10 percent of the material value but are the most commonly used.
You need to assign an ABC classification value model to all items using those values.
What should you do?
A. Run the ABC classification report
B. Run the ABC classification periodic task to update the value model for all items
C. Manually update the Value classification on the Released product record
D. Run the ABC classification periodic task to update the revenue model for all items
Correct Answer: B

QUESTION 13
HOTSPOT
You are configuring pricing for a new item.
Wholesale customers must pay $10.00 for order quantities of up to 9 units. All other customers receive a static price of
$14.00 regardless of quantity.
You need to configure sales trade agreements.
In Trade Agreement Setup, which actions should you perform? To answer, select the appropriate options in the answer
area.
NOTE: Each correct selection is worth one point.
Hot Area:

Correct Answer:

References: https://docs.microsoft.com/en-us/dynamics365/unified-operations/supply-chain/salesmarketing/tasks/create-new-trade-agreement

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