Top Microsoft Dynamics 365 Finance and Operations Interview Questions and Answers

Preparing for Dynamics 365 Finance and Operations Interview Questions (D365 F&O) interviews in 2025 has become more important than ever. With organizations rapidly embracing digital transformation, the demand for skilled D365 consultants—Functional, Technical, Finance, SCM, and Support—continues to rise. Companies in India, especially in tech hubs like Hyderabad, are hiring aggressively for roles across Finance, Supply Chain, Development, and Integration.

This comprehensive guide covers the top dynamics 365 finance and operations interview questions that companies are asking in 2025. Whether you’re a fresher, working professional, or someone with 3 years experience, this blog gives you more than 150+ D365 F&O interview questions and answers to strengthen your preparation.

We also include actionable dynamics 365 f&o interview preparation tips, scenario-based Q&A, certification guidance, and a detailed CTA for those looking for structured training.

Overview of Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 Finance & Operations is one of the most powerful and comprehensive ERP systems in the world. Today, it is offered as two major applications:

Dynamics 365 Finance

Used for:

General Ledger
Accounts Payable & Receivable
Budgeting
Cash & Bank
Fixed Assets
Financial Reporting

Dynamics 365 Supply Chain Management (SCM)

Used for:

Inventory management
Procurement & sourcing
Production planning
Warehouse management
Demand forecasting
Master planning

The rising adoption of ERP solutions in India—particularly in cities like Hyderabad—has further increased the demand for skilled professionals. As a result, microsoft dynamics 365 f&o interview questions now emphasize real-world scenarios, module knowledge, system navigation, and business process understanding.

Common Interview Topics

A typical D365 F&O interview covers both functional and technical areas. Below are the most important topics you must prepare for.

Functional Interview Topics

Legal entities & organization structures
Financial dimensions
Chart of accounts
Fiscal calendars, posting profiles
Inventory models & reservations
Procurement workflows
BOM, routes, production orders
Master planning & demand forecasting
Item groups, storage & tracking dimensions
Sales order cycle & shipping processes

Technical Interview Topics

X++ programming
AOT objects
Extensions & customizations
Event handlers
Data entities & DMF
Batch processing
OData, REST APIs, integrations
LCS (Lifecycle Services)
Security roles, duties, privileges
Form patterns & best practices

Mastering these is essential for clearing d365 f&o interview questions and answers

Top 150+ Dynamics 365 F&O Interview Questions and Answers (Functional + Technical

Below is the most comprehensive set of real interview questions covering:

Finance
SCM
Functional
Technical
3 Years Experience
Project-Based Scenarios

A. Basic Dynamics 365 Finance and Operations Interview Questions

1. What is Dynamics 365 Finance and Operations?
A cloud-based ERP solution that manages finance, supply chain, and operational processes.

2. What are the two key modules after Microsoft rebranding?

Dynamics 365 Finance
Dynamics 365 Supply Chain Management

3. What is a Legal Entity?
A company within D365 where financial transactions are processed.

4. What are Workspaces?
Role-based dashboards providing quick access to commonly used features.

5. What is Azure-hosted architecture in D365?
F&O is fully cloud-hosted on the Microsoft Azure platform.

B. Dynamics 365 Finance Interview Questions

6. What is the Chart of Accounts (COA)?
A structure for classifying financial transactions.

7. What are Financial Dimensions?
Attributes (Cost Center, Department) used for detailed reporting.

8. What is Ledger Settlement?
Process to match debit and credit entries.

9. How does Budget Control work?
Prevents overspending by validating transactions against budgets.

10. What are Posting Profiles?
Rules that determine which ledger accounts are used for transactions.

C. Dynamics 365 Supply Chain Management Interview Questions

11. What is a Released Product?
A product made available for procurement, inventory, or sales.

12. What is Inventory Reservation?
Allocating items to orders.

13. What are Inventory Dimensions?

Product
Storage
Tracking

14. What is Master Planning?
Calculates supply and demand through planned orders.

15. What are Coverage Groups?
Control replenishment policies for items.

D. Dynamics 365 Functional Consultant Interview Questions

16. What is the difference between BOM and Formula?

BOM → Discrete manufacturing
Formula → Process manufacturing

17. How does Procurement workflow work?
Approval workflows for purchase orders, requisitions, and vendors.

18. What are Trade Agreements?
Price/discount rules for customers and vendors.

19. What is Inventory Valuation?
Determines inventory cost calculation methods.

20. What is the purpose of Route Operations?
Defines steps in manufacturing.

E. Dynamics 365 Technical Interview Questions

21. What is X++?
Object-oriented language used in Dynamics 365.

22. What is the AOT (Application Object Tree)?
Repository containing all objects in the system.

23. What are Extensions?
Mechanism to modify standard objects without over-layering.

24. What is Event Handler?
Custom code triggered on specific events.

25. What is a Data Entity?
Used for data import/export through DMF.

F. Dynamics 365 Interview Questions for 3 Years Experience

26. How do you debug batch jobs?
Using Visual Studio → Attach to Process → Batch executable.

27. What is an OData integration?
A RESTful API used for external system communication.

28. How do you write a Query in X++?
Using Query, QueryBuildDataSource, and QueryRun.

29. What is a Number Sequence?
Generates unique identifiers.

30. What is DocuRef?
Stores document attachments.

G. Additional 120+ Functional & Technical Questions (Grouped)

1. Finance Module – Interview Questions with Answers (25)

1. What is a Ledger Calendar?
A Ledger Calendar defines the financial periods (months, quarters, years) used for posting transactions. You can open/close periods to control postings.

2. What is the Financial Period Close workspace?
A central dashboard to track period-end tasks, checklists, team assignments, and closing progress.

3. Difference between Standard Cost and Actual Cost?

Standard Cost = Fixed estimated cost; used in manufacturing.
Actual Cost = Based on real transactions and actual consumption.

4. What is Consolidation in D365?
Combining multiple legal entities’ financials into one consolidated company for reporting.

5. What are Allocation Rules?
Rules to split amounts automatically across departments or cost centres.

6. What are Advanced Ledger Entries?
Manual adjustments for reporting without affecting the GL permanently.

7. Purpose of Financial Reporter?
Used to design balance sheets, P&L reports, and custom financial statements.

8. How does Cash Flow Forecasting work?
It predicts future cash inflows/outflows based on open transactions, budgets, and forecasts.

9. Difference between Invoice Journal and Invoice Register?

Register → Initial recording
Approval → Moves to Invoice Pool
Invoice Journal → Final posting

10. What is Vendor Settlement?
Used to match invoices against payments or credit notes.

11. What are Prepayments?
Advance payments made to vendors or received from customers.

12. What are Payment Terms?
Rules like Net 30/Net 45 determining due dates for payments.

13. How are Fixed Assets tracked?
Using asset groups, books, lifecycles, and depreciation profiles.

14. What are Depreciation Books?
Separate books to track depreciation for legal and tax purposes.

15. What is a Reason Code?
Additional explanation for adjustments or corrections.

16. What are Aging Buckets?
Time intervals like 0–30, 31–60 days for overdue invoices.

17. What are Exchange Rate Types?
Different rate categories used for accounting, reporting, or budgeting.

18. What are Ledger Accruals?
Automatically spread expenses across multiple periods.

19. How does D365 handle Multi-Currency?
Using currency exchange rates, accounting currencies, and reporting currencies.

20. What is Financial Consolidation?
Combining multiple company accounts, eliminating intercompany balances.

21. What is Period Locking?
Blocking certain users or transactions in closed periods.

22. What is Intercompany Accounting?
Automatic postings between two legal entities for one transaction.

23. How is Bank Reconciliation performed?
Matching bank statement entries with D365 bank account transactions.

24. What are Invoice Matching Policies?
Controls 2-way/3-way matching for procurement invoices.

25. What are Posting Definitions?
Rules to split or redirect postings based on transaction type.

2. Supply Chain Management (SCM) – Interview Questions with Answers (25)

1. Item Group vs Item Model Group?

Item Group = Financial posting
Item Model Group = Inventory costing behaviour

2. What are Reservation Hierarchies?
Define the order in which inventory dimensions are reserved.

3. What are Batch Attributes?
Quality or product characteristics tracked for batch-controlled items.

4. What is Netting in Master Planning?
Calculates shortages after subtracting available inventory.

5. Inventory Recalculation vs Closing?

Recalculation → Corrections within period
Closing → Final settlement for the month

6. What is a Location Directive?
Rules to decide where to pick or put inventory in the warehouse.

7. What are Wave Templates?
Defines how shipments are released and processed in bulk.

8. What is Cycle Counting?
Regular counting of small portions of inventory instead of full physical counts.

9. What is License Plate?
Barcode/ID for tracking warehouse pallets/containers.

10. What are Shipment Waves?
Batch releasing of orders into the warehouse.

11. What is Vendor Lead Time?
Expected days required for the vendor to deliver.

12. What is Supply Forecasting?
Predicts future inventory demand.

13. Replenishment vs Min-Max?

Min-Max → Stock below min triggers replenishment
Replenishment → Based on rules, demand, or forecasts

14. What is a Quarantine Order?
Blocking defective or quality-check items.

15. What are Quality Orders?
Tests triggered during receiving, production, etc.

16. Co-product vs By-product?
Outputs generated during manufacturing.

17. What is Kanban?
Lean production system using cards for demand-driven supply.

18. What is Fulfillment Policy?
Rules for order allocation and delivery.

19. What is Load Planning Workbench?
Tool to manage transportation loads, routes, and rates.

20. What is Safety Stock?
Minimum required stock to avoid shortages.

21. What is Inventory Blocking?
Manually preventing inventory from being used.

22. What is Item Coverage?
Controls master planning behaviour.

23. What is VMI?
Vendor controls customer’s inventory.

24. What are UOM Conversions?
Conversions between units like Box → Pieces.

25. What is Product Lifecycle State?
Controls product availability (e.g., Active, Obsolete).

3. Procurement & Sourcing – Interview Questions with Answers (20)

1. What are Purchasing Policies?
Rules for buying behaviour (approval limits, categories, etc.)

2. Purchase Order vs Purchase Agreement?

PO = One-time order
PA = Long-term contract

3. What is RFQ?
Request for vendor quotations.

4. What is Vendor Evaluation?
Scoring vendors based on quality, delivery, pricing.

5. Procurement Categories?
Non-inventory service items grouped for purchasing.

6. Category Hierarchy?
Tree-structure for procurement categories.

7. Vendor Collaboration?
Vendor portal for PO confirmations, invoice submissions.

8. Trade Agreement Journal?
Stores price/discount rules.

9. Vendor Certifications?
Compliance documents like ISO.

10. Vendor Scorecard?
Performance metrics of vendors.

11. PR Workflow?
Approval process for purchase requisitions.

12. Three-way Matching?
PO + Receipt + Invoice

13. Buyer Groups?
Used to assign procurement responsibilities.

14. Delivery Tolerances?
Allowed quantity variations for orders.

15. Vendor Invoice Automation?
OCR + automated matching.

16. Vendor Request Workflow?
Approval for onboarding new vendors.

17. Quotation Comparison?
Comparison of multiple vendors’ offers.

18. Purchase Charges?
Freight, duty, insurance charges.

19. Procurement Catalog?
Approved items/services for internal purchase.

20. Consignment Inventory?
Vendor-owned stock stored at customer site.

4. Production Control – Interview Questions with Answers (20)

1. What is a BOM Version?
Different versions of the product structure.

2. What is a Route Version?
Defines alternate production steps.

3. Explain Production Order Life Cycle.
Created → Estimated → Scheduled → Released → Started → Reported → Ended.

4. What is Job Scheduling?
Detailed scheduling of machine and labour.

5. Resource Requirement?
Skills or machines needed for production.

6. Estimate vs Release?
Estimate = Cost preview
Release = Commit to production

7. What is RAF?
Report as Finished (partial or full completion).

8. Flushing Principles?
Automatic material consumption (Start, Finish, Manual).

9. Lean Manufacturing?
Kanban-based, demand-driven production.

10. Production Parameters?
Settings for costing, scheduling, inventory.

11. Production Pools?
Grouping of production orders.

12. Subcontracting?
Outsourcing production operations.

13. BOM vs Formula?

BOM = Discrete
Formula = Process

14. Scrap Configuration?
Defines expected/actual scrap.

15. WHS-integrated production?
Advanced warehouse operations in production.

16. Backflushing?
Auto material consumption at RAF.

17. Mixed Mode Manufacturing?
Combination of make-to-stock, make-to-order.

18. Gantt Chart Scheduling?
Visual representation of job scheduling.

19. Cost Categories?
Defines labour/machine cost breakdown.

20. Co-production?
Parallel output items from same process.

5. Technical – Interview Questions with Answers (30)

1. What are EDTs?
Extended Data Types — reusable definitions for fields.

2. Table Extension?
Add custom fields to standard tables.

3. Form Patterns?
UI templates ensuring uniform user experience.

4. Security Model?
Roles → Duties → Privileges → Permissions.

5. Display Methods?
Non-stored calculations shown on forms.

6. Sync vs Async Integration?
Sync = Real-time; Async = Batch/queued.

7. How to deploy code?
Through LCS (deployable package).

8. COC?
Chain of Command — extending methods.

9. SysOperation Framework?
Used for batchable processes.

10. Runnable Class?
Used to execute custom code.

11. Insert vs doInsert()?
doInsert() allows validation override.

12. Debug Cloud Environment?
Attach debugger through VM.

13. Batch Group?
Logical grouping of batch jobs.

14. SQL Optimization?
Use set-based queries, index hints.

15. TempDB Tables?
Temporary storage during processing.

16. QueryBuildRange?
Filter conditions for queries.

17. DMF Import?
Use entities + job history.

18. Visual Studio’s Role?
Primary development environment.

19. OData v4?
Standard REST interface.

20. Custom API?
Expose custom classes as services.

21. Metadata Hotfix?
Fixing model metadata.

22. FormDataSource?
Bridge between form and table.

23. Event Handler Attributes?
Pre/Post event subscription.

24. RecId?
Unique row identifier.

25. What is AOS?
Application Object Server.

26. Entity Store?
Analytical database for Power BI.

27. Power Automate Integration?
Automate workflows between apps.

28. Permissions?
CRUD access to tables.

29. ER Framework?
Electronic Reporting tool.

30. Table Maps vs Entities?
Maps = mapping; Entities = export/import layer.

6. Integrations – Interview Questions with Answers (15)

1. Integration Options?
OData, Custom Services, CDS, PowerApps, DMF, Business Events.

2. What is Dual Write?
Syncs data between F&O and CRM in real time.

3. Data Export Service?
Pushes data to Azure SQL.

4. BYOD?
External SQL database for reporting.

5. Secure OData?
Using AAD OAuth tokens.

6. Recurring Integrations Framework?
Scheduled imports/exports.

7. JSON Integration?
Using custom REST services.

8. Azure Service Bus?
Queue-based integration.

9. Custom Service Class?
Exposes X++ methods as APIs.

10. Business Events?
Triggers external events when changes happen.

11. DMF Package API?
Automated import/export of data.

12. SOAP vs REST?
SOAP = XML
REST = JSON (preferred)

13. Throttling Limits?
Limits on API calls per minute.

14. Scheduling Exports?
Using batch jobs + DMF.

15. Importance of LCS?
Monitoring, deployments, diagnostics.

Scenario-Based Dynamics 365 F&O Interview Questions

Scenario 1: Inventory mismatch issue
Validate transactions, check recalculations, verify adjustments.

Scenario 2: Master planning creating excess planned orders
Fix coverage settings and BOM versions.

Scenario 3: Vendor invoice workflow stuck
Check workflow batch jobs.

Scenario 4: Customer aging report incorrect
Reconcile transactions and parameters.

Scenario 5: Batch job performance issue
Apply set-based operations and indexing.

Tips to Crack Dynamics 365 Interviews

Master the fundamentals of each module.
Focus on real-world scenarios.
Practice 150+ interview questions.
Build a strong, project-based resume.
Take mock interviews to improve confidence.

Recommended Resources, Learning Paths & Certifications

Microsoft Certifications

MB-300
MB-310
MB-330
MB-500
MB-700

Best Training Institute in Hyderabad
For hands-on learning and interview support:
PVN Globe Institute – https://www.pvnglobe.com/ or +91 7988 84 1513

Real-time trainers, project-based learning, certification support, and complete interview preparation.

Call-to-Action (CTA)

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FAQ Section

Is Dynamics 365 F&O a good career in 2025?
Yes. Demand is increasing rapidly, especially for Finance and SCM consultants.

What are the top dynamics 365 finance interview questions?
GL, dimensions, posting profiles, budgeting, and financial reporting.

How to prepare for d365 f&o interview questions and answers?
Study module flows, practice 150+ questions, and take mock interviews.

What is the salary for D365 consultants in Hyderabad?
₹4 LPA to ₹22 LPA.

How many days to learn Dynamics 365 F&O?
60–90 days with structured training.

Dynamics 365 F&O Interview Questions