MB-310 Practice Test 11 — 15 Questions

Question 1

A credit manager needs to review a customer's credit history, including credit limits, current balance, and any credit holds, directly from the customer record. They also want to see a graphical representation of the customer's credit utilization. Which workspace should they use?

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

Accepted Answer

Credit and collections workspace. The Credit and collections workspace is specifically designed for credit managers to monitor customer credit. It aggregates credit limits, current balances, and holds, and provides visualizations such as charts for credit utilization. This workspace enables quick assessment and action, directly fulfilling the requirement to review credit history and utilization from the customer record.

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Cash management workspace

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Accounts receivable workspace

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Customer service workspace

Question 2

You are a functional consultant configuring a new legal entity in Dynamics 365 Finance. The organization requires that vendor invoices posted in this legal entity be automatically posted to a balancing financial dimension representing the department, based on the vendor's default department. Which feature should you configure to enforce this without requiring manual entry on each invoice?

Accepted Answer

Financial dimension default template. A financial dimension default template, when assigned to a vendor, automatically populates specified financial dimension values on transactions entered for that vendor. This ensures the department dimension is consistently applied to vendor invoices without manual intervention. Account structures and advanced rules control validity and requirements but do not derive values from master data, and dimension focus is only for reporting.

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Dimension focus

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Advanced rule

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Account structure

Question 3

A company wants to offer a discount to customers who pay their invoices within 10 days. The invoice total is $1,000, and the discount is 2% if paid within 10 days, otherwise the net amount is due within 30 days. Which configuration should you use in Dynamics 365 Finance?

Accepted Answer

Set up a payment term with 'Net 30' and a cash discount of 2% if paid within 10 days.. To offer a cash discount for early payment, you configure payment terms with a discount line. In Dynamics 365 Finance, payment terms can specify a discount percentage and the number of days within which payment must be made. The 'Net 30' indicates the full amount is due in 30 days. When an invoice is created with these terms, the system calculates the discount if the payment is made within the discount period. This is the standard way to handle early payment discounts.

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Set up a credit limit rule that reduces the invoice amount by 2% if paid within 10 days.

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Create a collection letter sequence that offers a 2% discount if payment is received within 10 days.

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Configure a billing schedule with a 2% reduction for early payment.

Question 4

A company has a fixed asset with a value model that uses the 'Reducing balance' depreciation method with a factor of 200 and a useful life of 5 years. After the first year, the net book value is 60,000. The accountant notices that the depreciation for the second year is calculated differently than expected and asks the consultant to explain how the reducing balance method computes depreciation in Dynamics 365 Finance. What should the consultant explain?

Accepted Answer

The reducing balance method calculates depreciation by applying the factor to the straight-line percentage and then to the net book value, and it can switch to straight line when beneficial.. The reducing balance method applies a rate derived from the straight-line percentage multiplied by the factor to the net book value each period. Dynamics 365 Finance also allows an automatic switch to straight-line when that method yields a higher depreciation amount, ensuring the asset is fully depreciated by the end of its useful life. This produces higher depreciation in early periods and lower amounts later.

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The reducing balance method always depreciates a fixed percentage of the original acquisition cost each period, ignoring net book value.

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The reducing balance method requires that the factor be set to 100 and that the useful life be entered in months rather than years.

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The reducing balance method uses the factor to divide the acquisition cost by the useful life, then multiplies by the factor each year.

Question 5

A fixed asset accountant needs to transfer a fully depreciated asset from the Production department to the Marketing department, but the asset will remain in service and continue to be tracked. The transfer should not affect the asset's financial value. Which action should the accountant perform in Dynamics 365 Finance?

Accepted Answer

Create a fixed asset transfer journal.. A fixed asset transfer journal is the correct tool to move an asset between departments or financial dimensions without altering its financial value. It updates the asset's assignment while preserving acquisition cost and accumulated depreciation, ensuring the transfer is auditable and future postings reflect the new department.

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Post a disposal transaction for the Production department and an acquisition for the Marketing department.

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Create a reclassification journal for the fixed asset.

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Modify the department financial dimension directly on the fixed asset record.

Question 6

A company uses Dynamics 365 Finance with a single legal entity. The controller wants to ensure that all expense accounts require a financial dimension value for 'Department' and 'CostCenter' when posting. The dimensions are already created and linked to the chart of accounts. Which configuration should be applied to enforce this requirement?

Accepted Answer

Create an account structure that includes the main account and the Department and CostCenter dimensions, and set the dimensions as mandatory in the account structure.. To enforce that all expense accounts require Department and CostCenter dimensions, you should create an account structure that includes the main account and these dimensions, and mark the dimensions as mandatory. This ensures that any posting to an expense account in the structure must include values for these dimensions. Advanced rules can be used for conditional requirements, but for a blanket requirement, mandatory dimensions in the account structure are the correct approach.

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Set up a dimension hierarchy and assign it to the expense accounts, then mark the dimensions as mandatory in the hierarchy.

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Configure advanced rules on the account structure to require Department and CostCenter for expense accounts.

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On the main account, set the 'Financial dimension' FastTab to require input for Department and CostCenter.

Question 7

An accounts payable manager needs to pay several outstanding invoices from the same vendor in a single bank transfer instead of issuing a separate payment for each invoice. The vendor is already set up with a bank account and the invoices are due. What should the manager configure or use so the invoices are consolidated into one payment?

Accepted Answer

Set the vendor's payment specification to 'Per vendor' on the vendor payment method.. The payment specification on the vendor payment method controls grouping of open transactions into payments. Selecting per vendor consolidates all due invoices for the vendor into a single payment and bank transfer, which is precisely the outcome requested. Payment fees, payment terms, and per-invoice specification affect amounts or timing but never merge multiple invoices into one disbursement.

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Change the vendor's default payment terms to 'Net 30' and regenerate the payment proposal.

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Set the vendor's payment specification to 'Per invoice' on the vendor payment method.

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Create a payment fee for the vendor and assign it to the payment method.

Question 8

A vendor invoice for 1,200 EUR is posted on March 15 with an exchange rate to USD of 1.10, resulting in a payable of 1,320 USD. The invoice remains unpaid at the end of the month. On March 31, the exchange rate is 1.15. The accounts payable manager runs the foreign currency revaluation for accounts payable. Which ledger account is debited by the revaluation posting, and for what amount?

Accepted Answer

Unrealized loss account, 60 USD. When the EUR-to-USD rate increases after invoice posting, the USD-equivalent payable grows, creating an unrealized loss. Foreign currency revaluation for accounts payable debits the unrealized loss account and credits the vendor balance for the 60 USD difference. This keeps the payable aligned with the current rate without modifying the original invoice or the vendor master.

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Unrealized gain account, 60 USD

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Vendor balance account, 1,380 USD

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Vendor balance account, 60 USD

Question 9

A Fabrikam controller creates a budget transfer in the budget register. The transfer moves 50,000 from the Operations budget account to the Marketing budget account. Both accounts are under budget control with the same budget model and budget cycle. After posting the transfer, the controller notices that budget control availability for Operations decreased, but Marketing availability did not increase. What is the most likely cause?

Accepted Answer

The transfer line for Marketing used a budget class of Transfer In, but the budget account's dimension combination did not match the budget account defined in the budget control rule.. Budget control matches register entries to rules by the budget account dimension combination. A transfer-in line whose dimensions do not match a budget account in the rule is not counted toward Marketing's available budget, while the transfer-out line that does match reduces Operations. Verifying the dimension combination on the transfer line against the budget control rule resolves the discrepancy.

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The budget transfer used a budget register entry type that is excluded from budget control.

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The Marketing budget account is not included in the budget control rule's budget group.

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Budget control checks only decrease entries, so increases are never reflected in availability until the next budget cycle.

Question 10

A company is implementing Dynamics 365 Finance and needs to configure depreciation for a new asset. The asset will use a straight-line depreciation method with a 5-year service life. Which two settings must be configured on the value model to achieve this? (Choose two.)

Accepted Answer

Service life. To configure straight-line depreciation over 5 years, you must set the depreciation profile to a straight-line method and the service life to 5 years on the value model. These two settings directly determine the depreciation method and the period over which the asset is depreciated. Other settings like the depreciation convention and fixed asset group are important but not mandatory to achieve the basic calculation.

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Depreciation convention

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Depreciation run date

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Fixed asset group

Question 11

A vendor invoice for 100 units of an item is entered for a purchase order line that has a confirmed quantity of 100 units, but the product receipt was posted for only 80 units. The invoice matching policy for the legal entity requires three-way matching and has 'Allow matching discrepancies' disabled. A user attempts to post the invoice. What happens when the user clicks Post?

Accepted Answer

Posting is blocked with a matching discrepancy error because the invoice quantity exceeds the received quantity and discrepancies are not allowed.. Three-way matching compares the vendor invoice against both the purchase order and the product receipt. Because the received quantity is lower than the invoiced quantity and the matching policy disallows discrepancies, the system blocks posting and reports a matching failure. The invoice can only be posted after the receipt is corrected or the invoice quantity is reduced to match what was actually received.

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The invoice is posted and an inventory adjustment is created for the missing 20 units.

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The invoice posts only after the user approves it through the invoice matching workflow regardless of the discrepancy setting.

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The invoice posts, but the quantity discrepancy is recorded on the purchase order for later review.

Question 12

A vendor invoice for $12,000 has a payment term of Net 30. The accounting manager wants the system to automatically apply a 2% early payment discount if the invoice is paid within 10 days. The discount is not currently being calculated on the payment proposal. You need to configure the system so the discount is calculated and posted correctly. What should you do first?

Accepted Answer

Set up a cash discount code in Accounts payable > Payment setup > Cash discounts and assign it to the vendor invoice.. Cash discounts in Dynamics 365 Finance are defined through cash discount codes, which store the discount percentage, the number of days the discount is available, and the ledger accounts for the discount. Assigning the code to the vendor or invoice enables the payment proposal and payment journal to calculate and post the discount. Without this setup, no discount logic is applied.

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Configure a payment schedule in Accounts payable > Payment setup > Payment schedules and attach it to the vendor.

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Create a payment fee in Accounts payable > Payment setup > Payment fee and assign it to the vendor.

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Set the vendor's default payment method to a method that supports cash discounts.

Question 13

A consulting firm in Dynamics 365 Finance wants to record the cost of reconfiguring a leased office space as a fixed asset. The improvements are expected to benefit the company for the remaining five years of the lease term, and the company wants depreciation to align with the lease term rather than the asset's physical life. The lease does not transfer ownership. Which approach should the functional consultant recommend?

Accepted Answer

Create a fixed asset with a service life of five years and assign a depreciation profile whose life matches the remaining lease term.. Leasehold improvements should be capitalized and depreciated over the shorter of their useful life or the remaining lease term. Configuring the fixed asset with a five-year service life and a depreciation profile aligned to the remaining lease term accomplishes this, ensuring the asset is fully depreciated by lease end when ownership does not transfer.

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Set up the improvements as an intangible asset and amortize over five years using a reducing balance method.

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Record the improvements as an expense in the current period because the company does not own the leased space.

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Create the fixed asset with a service life equal to the building's remaining physical life and depreciate on a straight line basis.

Question 14

A subscription billing company sells a monthly service. A customer is billed on the first day of each month and pays on the fifteenth. The company wants to recognize revenue evenly across the month and automatically create the billing schedule for the next twelve months when a sales order is confirmed. Which feature should the functional consultant configure?

Accepted Answer

Revenue recognition with a billing schedule, using a billing schedule group with a monthly recurrence and a revenue recognition schedule that spreads revenue across the period.. Subscription billing is configured with billing schedules that generate future billing lines automatically when a sales order is confirmed, and revenue recognition schedules that defer and recognize revenue across the service period. A billing schedule group with a monthly recurrence produces the twelve monthly billings, and the revenue recognition schedule ensures even recognition. The other options use unrelated features that do not provide both capabilities.

Answer

A project contract with a fixed-price billing rule and a milestone that recognizes revenue on a straight-line basis over twelve months.

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A recurring free text invoice template with a monthly interval and a posting profile that defers revenue to a balance sheet account.

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A sales agreement with a monthly commitment and a rebate program that generates invoices and defers revenue automatically.

Question 15

A Contoso budget manager needs to allow department managers to draft budget plan lines and attach supporting documentation, but the lines must not affect the approved budget until a controller reviews and approves them. The budget planning workflow already includes a controller approval task. Which configuration should you apply to the budget planning stage that department managers use?

Accepted Answer

On the budget planning stage, clear the option that posts the budget plan to the budget register.. The budget planning stage controls whether lines that are entered during that stage are posted to the budget register. When the posting option is cleared, department managers can enter and attach documentation without affecting approved budget amounts. The controller's approval task in the workflow then allows the stage that posts to the register to run, so only approved lines update budget balances.

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Create a separate budget planning process for each department and set the budget planning stage to use a different budget register entry.

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Configure the budget planning stage to post to the budget register and rely on the workflow rejection to reverse entries if the controller declines.

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Set the stage's budget planning workflow to use a manual task and mark the stage as read-only.