MB-310 Practice Test 10 — 10 Questions

Question 1

A new accounts payable clerk must record a vendor invoice that is not tied to a purchase order. The clerk needs the invoice to be available for a payment proposal in the next payment run. Which journal type should the clerk use to enter the invoice?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Vendor invoice journal. The vendor invoice journal is the correct entry point for a non-PO vendor invoice because it immediately posts to the vendor balance and creates an open payable. Only posted, open vendor transactions are considered by the payment proposal. The invoice register holds invoices before approval, so it would not make the invoice available in time.

Answer

General journal

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Invoice register journal

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Vendor disbursement journal

Question 2

A Dynamics 365 Finance user needs to transfer budget amounts from one department to another within the same fiscal year. The organization uses budget register entries for all budget adjustments. Which budget code should the user select to record this transfer?

Accepted Answer

Transfer. A budget transfer moves budget amounts from one department to another without changing the total budget. The Transfer budget code is specifically intended for this purpose. Original budget is for initial setup, Revision changes total budget, and Encumbrance reserves funds for commitments. Therefore, Transfer is the correct budget code for this scenario.

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Encumbrance

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Revision

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Original budget

Question 3

A company acquires a new piece of machinery and wants to include the freight and installation costs in the asset's acquisition cost. The invoice for the machinery has been posted, and the freight and installation costs are on a separate vendor invoice. Which transaction type should be used to add these additional costs to the fixed asset?

Accepted Answer

Acquisition adjustment. Acquisition adjustment is designed to add costs to an existing fixed asset after the initial acquisition. Freight and installation costs are capitalizable and should be included in the asset's acquisition cost. By using acquisition adjustment, the additional costs are added to the asset's value and depreciated over its remaining useful life, ensuring accurate financial reporting.

Answer

Acquisition

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Depreciation adjustment

Answer

Revaluation

Question 4

A company is reviewing its fixed asset depreciation setup in Dynamics 365 Finance before year-end close. The controller asks the functional consultant to identify which TWO statements accurately describe how depreciation conventions interact with depreciation methods and how they affect the first and last periods of an asset's life. (Choose two.)

Accepted Answer

The Mid quarter convention applies a half-quarter of depreciation in the quarter the asset is placed in service, with the remaining half applied in the quarter of disposal or retirement.. Depreciation conventions control first- and last-period proration and are independent of the depreciation method, allowing combinations such as Straight line with Half year or Reducing balance with Mid quarter. The Mid quarter convention applies half a quarter in the acquisition quarter and the remainder in the disposal quarter. Conventions apply to all acquisition sources and are not auto-recalculated when changed.

Answer

When you change the depreciation convention on an existing asset book, the system automatically recalculates prior-period depreciation and posts adjusting entries.

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Depreciation conventions only apply to assets acquired through the purchase acquisition type, not to assets created through projects or inventory transfers.

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The Full month convention prorates depreciation based on the exact number of days the asset was in service during the first and last months.

Question 5

A user in the Accounts payable department is trying to post an invoice, but the system displays an error that the accounting date is not in an open period. The user has confirmed that the invoice date is within the current month. What is the most likely cause of this error?

Accepted Answer

The ledger calendar for the current month is not set to an open period for the user's legal entity.. The error occurs because the accounting date falls in a period that is not open for posting. The ledger calendar controls which periods are open or closed for each legal entity. Even if the invoice date is in the current month, the accounting date might be set to a different date that falls in a closed period, or the period itself might be on hold. Checking and opening the period in the ledger calendar resolves the issue.

Answer

The vendor invoice journal name is not configured to allow posting to the current period.

Answer

The user does not have permission to post in the current period.

Answer

The invoice date is in a different fiscal year than the accounting date.

Question 6

A subscription billing company needs to recognize revenue for a monthly subscription evenly over the service period. The subscription is billed annually in advance. Which revenue recognition setup should the functional consultant configure to ensure revenue is deferred and recognized monthly?

Accepted Answer

Create a revenue recognition schedule with a 'Straight line' method and assign it to the subscription billing item.. To recognize revenue evenly over the service period for an annually billed subscription, you must create a revenue recognition schedule with a 'Straight line' method and assign it to the subscription billing item. This schedule defers the revenue at invoicing and recognizes it in equal monthly amounts over the service period, aligning with the requirement.

Answer

Configure the subscription billing item with a 'Revenue recognition' value of 'Monthly' and set the deferral period to 12 months.

Answer

Create a billing schedule with a monthly frequency and assign it to the subscription.

Answer

Set up a deferred revenue account in the Posting form and enable 'Defer revenue' on the subscription billing parameters.

Question 7

A Contoso budget analyst is using budget planning in Dynamics 365 Finance. The analyst needs to create a budget plan that pulls actual expenditure from the previous fiscal year as a starting point, applies a 5 percent increase, and then allows department managers to adjust the lines. Which sequence of configuration elements should the analyst use?

Accepted Answer

Create a budget plan process with a data source that includes actual expenditure for the previous fiscal year, add a budget plan priority that applies a 5 percent increase, and include a stage that allows department managers to edit lines.. Budget planning uses data sources to populate lines, budget plan priorities or calculated columns to apply calculations such as a percentage increase, and stages to control workflow and editing. Pulling prior-year actuals requires a data source that includes actual expenditure, and allowing department managers to adjust lines requires an editable stage. The other sequences either omit the data source, the increase, or the editing capability.

Answer

Create a budget plan process, import prior-year actuals from Excel, and configure the stage to post directly to the budget register.

Answer

Create a budget plan process, add a budget plan priority that references the previous fiscal year's budget register entries, and set the stage to read-only for department managers.

Answer

Create a budget plan process, add an allocation stage with a 5 percent increase, then add a workflow stage for department managers.

Question 8

A company is implementing budget control in Dynamics 365 Finance. They need to ensure that budget checks are performed for purchase requisitions and purchase orders. Which two configurations are required? (Choose two.)

Accepted Answer

Enable budget control for the legal entity.. To have budget checks performed on purchase requisitions and purchase orders, you must enable budget control for the legal entity and define budget control rules that cover the relevant accounts and dimensions. These two steps activate the budget checking engine and specify the scope of transactions that will be validated against available budget.

Answer

Create a budget model and assign it to the budget control configuration.

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Set up budget transfer rules.

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Configure budget planning stages.

Question 9

A user needs to enter a vendor payment proposal that includes all invoices due within the next 30 days, but exclude any invoices that are on hold. Which payment proposal option should be used?

Accepted Answer

Set the 'From date' and 'To date' to cover the next 30 days and set 'Invoices on hold' to 'Exclude'.. The payment proposal form in Accounts payable allows filtering by date range and by whether invoices are on hold. To include only invoices due within 30 days and exclude those on hold, set the appropriate 'From date' and 'To date' and set the 'Invoices on hold' option to 'Exclude'. This directly fulfills the requirement without custom queries or broad status filters.

Answer

Create a custom query on the Vendor transactions form to filter by due date and hold status, then run the payment proposal from that query.

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Set the 'Minimum payment date' to today and 'Maximum payment date' to 30 days from today, and leave the hold option at default.

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Use the 'Payment status' filter and select 'Unpaid' only.

Question 10

A company has a fixed asset that was acquired in a previous year and has been fully depreciated. The asset is still in use but has no book value. The company wants to continue using the asset but does not want to incur additional depreciation. What should they do?

Accepted Answer

Leave the asset as is; the system will not depreciate below zero.. When a fixed asset is fully depreciated, its net book value is zero, and Dynamics 365 Finance will not depreciate it further. The asset remains in the register and can continue to be used without any additional depreciation. No configuration changes are required. The other options involve unnecessary or incorrect actions that could disrupt reporting or asset tracking.

Answer

Change the depreciation profile to 'None' on the value model.

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Manually adjust the net book value to zero and mark the asset as disposed.

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Set the 'Depreciation' field to 'No' on the value model.