MB-310 Practice Test 12 — 15 Questions

Question 1

A company is implementing budget control in Dynamics 365 Finance. The budget manager needs to ensure that purchase requisitions are checked against available budget before they can be approved, and that overspending is prevented. Which two configuration steps are required to enforce budget control on purchase requisitions? (Choose two.)

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

Accepted Answer

Define budget control rules that include the Purchase requisition source document and set the budget check to prevent overspending.. Enforcing budget control on purchase requisitions requires two things: the budget control configuration must be enabled and activated for the legal entity, and a budget control rule must include the Purchase requisition source document with an over-budget action that blocks the transaction. Together these turn on the checking engine and define what happens when budget is exceeded. Budget amounts and workflow are supporting elements but do not enforce the check.

Answer

Configure a workflow for purchase requisitions that requires approval before posting.

Answer

Assign the budget manager role to the user who approves purchase requisitions.

Answer

Create a budget register entry and approve it to establish the budget amounts for the period.

Question 2

A Contoso finance specialist is configuring budget control for a new fiscal year. The company wants to ensure that when a purchase requisition is submitted, the system checks whether sufficient budget remains. The budget manager selects the budget control rule and the budget funds available definition. However, when a test purchase requisition is submitted, no budget check occurs. What is the most likely cause?

Accepted Answer

Budget control is not enabled for the legal entity.. Budget control in Dynamics 365 Finance is enabled at the legal entity level via the Budget control configuration page. Enabling this parameter activates the budget check for all applicable source documents, including purchase requisitions. Without it, no validation occurs regardless of rules or funds-available definitions. Therefore, the missing activation is the root cause.

Answer

The budget funds available definition does not include the correct budget model.

Answer

The purchase requisition workflow is not configured to include a budget check task.

Answer

The purchase requisition was created with a budget-checking override.

Question 3

A consulting firm has a fixed asset value model for a high-end server with an acquisition cost of USD 20,000 and a salvage value of USD 2,000. The firm uses the reducing balance depreciation method with a factor of 20%, and the asset was placed in service on January 1. The firm wants to know the depreciation amount for the first year. What will the system calculate as the depreciation expense for the first year?

Accepted Answer

USD 4,000. The reducing balance depreciation method applies a fixed percentage (the factor) to the net book value of the asset at the beginning of each period. For the first year, the net book value equals the acquisition cost because no depreciation has been recorded. Thus, 20% of USD 20,000 yields USD 4,000. The salvage value does not reduce the basis for the calculation; it only ensures that the asset is not depreciated below its salvage value over its life.

Answer

USD 3,000

Answer

USD 3,600

Answer

USD 2,000

Question 4

A user in the General ledger module needs to create a journal entry that includes a main account that is configured as a 'Balance sheet' account with a financial dimension of 'Department'. The user wants to ensure that the department dimension is mandatory for this account. Which configuration should be set up to enforce this requirement?

Accepted Answer

Set up an advanced rule for the account structure that requires the Department dimension for the specific main account.. To enforce that a specific main account requires a particular financial dimension, you must use advanced rules within the account structure. Advanced rules allow you to define criteria, such as a specific main account, and then specify which dimensions are mandatory for that account. This ensures that users cannot post to the account without providing the required dimension. Simply including the dimension in the account structure does not make it mandatory.

Answer

Create an account structure that includes the Main account and Department dimensions, and mark the Department dimension as mandatory.

Answer

Configure the main account to have a 'Mandatory dimension' property set to 'Department'.

Answer

In the General ledger parameters, enable the 'Require dimensions' option and select the Department dimension.

Question 5

A company uses subscription billing and needs to group multiple subscription charges into a single invoice for each customer. They want to ensure that all charges for a customer are billed together on the same invoice, regardless of the subscription start dates. Which subscription billing parameter should they configure?

Accepted Answer

Invoice grouping. Invoice grouping in subscription billing consolidates all charges for a customer into one invoice, regardless of subscription start dates or billing schedules. Configuring this setting ensures that multiple subscription charges are billed together, reducing the number of invoices and simplifying customer billing. It is the specific feature designed for this consolidation requirement.

Answer

Proration method

Answer

Charge setup

Answer

Billing cycle

Question 6

A legal entity in Dynamics 365 Finance uses a single chart of accounts and needs to allocate shared electricity costs from a cost pool to three departments based on their square footage. The allocation must be calculated and posted to the general ledger monthly. Which two actions must you perform to set up this allocation? (Choose two.)

Accepted Answer

Define a ledger allocation basis that uses a financial dimension to capture square footage per department.. Ledger allocations require an allocation rule that defines the source, destinations, and basis, and a basis that provides the driver values. The basis is typically a financial dimension or a statistical account. Once both are configured, you can run the allocation process periodically to distribute costs. This setup ensures accurate and automated cost distribution without manual journal entries.

Answer

Configure a budget control rule to ensure the allocation does not exceed the budget.

Answer

Create a fixed asset group for the electricity costs and depreciate them over the fiscal year.

Answer

Set up a posting definition for the allocation rule to restrict posting to the original transaction's period.

Question 7

A company uses Dynamics 365 Finance. Customers are grouped into customer pools, and the collections team wants to generate a list of customers with overdue balances that can be worked through in a single page. The collections supervisor needs to create a collection letter sequence that applies a different letter text for each aging period and posts a fee to the customer account. Which configuration should you use?

Accepted Answer

Set up a collection letter sequence with collection letter codes, assign aging period definitions to each code, and select the Print fee check box on each code.. Collection letter sequences are composed of collection letter codes, and each code is tied to one aging period definition so the letter text can differ by how overdue the balance is. Selecting Print fee on the code posts a fee to the customer when the letter is posted. This is the standard configuration that meets both the per-aging text and fee-posting requirements.

Answer

Create a collection letter sequence with one code and assign all aging period definitions to that single code, then enable the Print fee check box on the sequence header.

Answer

Create one collection letter code per aging period, assign each code to the customer posting profile, and use the Accounts receivable parameters to post the fee.

Answer

Create a collection letter sequence with multiple codes, assign aging period definitions, and set the fee amount on the Collections page before each letter run.

Question 8

A legal firm uses Dynamics 365 Finance for accounts payable. When a new vendor is created, the firm must ensure that all future vendor invoices for that vendor are automatically eligible for 1099 reporting. Which configuration should you set on the vendor record?

Accepted Answer

On the Vendor master, in the Tax 1099 section, set the Report 1099 field to Yes and assign the appropriate 1099 box.. The Report 1099 field on the vendor record, along with the associated 1099 box, is the correct configuration to make a vendor reportable for 1099 purposes. When set to Yes, it ensures that all posted invoices for that vendor are automatically included in 1099 reporting without requiring per-invoice changes. This meets the requirement of automatic eligibility upon vendor creation.

Answer

On the Vendor master, set the Vendor group to a group that has the '1099' purpose assigned.

Answer

On the Vendor master, set the Tax exempt number for the vendor.

Answer

On the Vendor master, set the Default description to include '1099'.

Question 9

A company is configuring expense management in Dynamics 365 Finance. Controllers want to ensure that expense reports submitted by employees are routed to the correct approver and that certain categories require a receipt. Which two configurations should the functional consultant set up? (Choose two.)

Accepted Answer

Set the Receipt required option on the relevant expense categories in the Expense management setup.. Approval routing is controlled by the expense report workflow, where approval elements can be conditioned on report total or cost center. Mandatory receipts are controlled per expense category through the Receipt required setting. Together these two configurations ensure reports reach the right approver and that receipts are enforced for the categories the controllers choose.

Answer

Create a new expense policy that restricts the maximum amount per expense line to zero.

Answer

Configure per diem locations and assign them to the employees who travel.

Answer

Assign each employee a default expense category in the worker record.

Question 10

A company uses the Expense management module. An employee submits an expense report that includes a hotel charge of 500 USD. The expense policy requires a receipt for any expense over 100 USD. The employee did not attach a receipt. The policy is configured with the 'Receipt required' rule and the 'Warn' action. What happens when the employee submits the report?

Accepted Answer

The report is submitted with a warning message, and the approver can see the policy violation.. Expense policies in Dynamics 365 Finance can be configured with actions such as Warn, Deny, or Allow. When the action is Warn, the employee can still submit the report, but a warning is displayed and the violation is visible to the approver. This allows the business to enforce awareness without hard-blocking submission, leaving the final decision to the approver.

Answer

The report is automatically rejected and returned to the employee.

Answer

The report is blocked and cannot be submitted until a receipt is attached.

Answer

The report is submitted without any notification because the amount is under the policy limit.

Question 11

A consulting firm uses Dynamics 365 Finance for expense management. Employees often submit expense reports that include both client-billable and internal expenses. The firm's policy requires that client-billable expenses be charged to a specific customer and project, while internal expenses are charged to a default department. The expense management administrator needs to ensure that employees can select the customer and project on expense lines when the expense is billable. What should the administrator configure?

Accepted Answer

Configure expense categories with the Billable option enabled and set up the project and customer dimensions to be available on expense lines.. Expense categories with the Billable option enabled expose the Customer and Project fields on expense lines, allowing employees to charge expenses to the appropriate client and project. This configuration directly supports the firm's policy of distinguishing client-billable from internal expenses within the same expense report, while internal lines can still use the default department.

Answer

Create a separate expense report for billable and internal expenses, and assign different workflows to each report type.

Answer

Enable the Itemized expenses parameter and create a project category for each billable expense type.

Answer

Set up a per diem rule for billable expenses and assign the customer and project as default dimensions on the employee record.

Question 12

A company uses invoice matching on purchase orders. A vendor invoice for a purchase order has a quantity of 100 units at $10 each, but the product receipt shows 95 units received. The invoice matching policy is set to three-way matching with a quantity tolerance of 2%. The invoice is currently on hold. You need to determine why the invoice is on hold and what action will release it. What is the correct explanation?

Accepted Answer

The quantity difference is 5%, which exceeds the 2% tolerance, so the invoice is on hold and must be manually approved or the receipt quantity updated.. Three-way matching compares the invoice quantity to the product receipt quantity. With a 2% tolerance, a 5% difference (100 vs 95 units) exceeds the allowed variance, so the system places the invoice on hold. Releasing the hold requires either manual approval of the discrepancy or correcting the receipt quantity to match the invoice within tolerance.

Answer

The invoice is on hold because the vendor is blocked for invoice posting.

Answer

The invoice is on hold because the price tolerance was exceeded, not the quantity tolerance.

Answer

The invoice is on hold because three-way matching requires a purchase order, product receipt, and invoice, and the product receipt is missing.

Question 13

You are configuring budget control for a new legal entity in Microsoft Dynamics 365 Finance. The organization requires that budget checks occur for purchase requisitions and vendor invoices, and that over-budget warnings are displayed to users without preventing posting. Which two configuration actions must you perform to meet these requirements? (Choose two.)

Accepted Answer

Set the budget control rule's over-budget permission to Warn instead of Deny.. To enforce budget checks on purchase requisitions and vendor invoices, budget control must be enabled and the relevant budget control rule activated. To allow over-budget transactions with warnings rather than blocking them, the over-budget permission on the rule must be set to Warn. These two actions together satisfy the requirements without unnecessary configuration.

Answer

Define a budget model for each department and assign it to the budget control rule.

Answer

Create a budget transfer entry to move funds between departments before each purchase requisition.

Answer

Set the budget control configuration's threshold to zero so that all transactions are checked.

Question 14

You are setting up budget control for a legal entity that uses multiple budget dimensions, including Department, CostCenter, and Purpose. The finance team wants budget checks to validate only the Department and CostCenter dimensions, ignoring Purpose. Which configuration should you modify to achieve this?

Accepted Answer

Budget control rule. Budget control rules determine the dimensions, time interval, and source documents that are subject to budget checks. To validate only Department and CostCenter while ignoring Purpose, you configure the budget control rule to include those dimensions and exclude Purpose. Other configurations such as budget models, codes, or planning processes do not influence which dimensions are checked.

Answer

Budget planning process

Answer

Budget model

Answer

Budget code

Question 15

An accounts payable clerk in Dynamics 365 Finance needs to record a vendor invoice that has no purchase order reference, and the invoice must be posted immediately to the vendor balance without going through a pending invoice approval. Which journal should the clerk use?

Accepted Answer

Vendor invoice journal. The vendor invoice journal posts vendor invoices directly to the ledger and vendor balance without requiring a purchase order or a pending invoice workflow. It is the standard journal for recording non-PO invoices that must be recognized immediately. The invoice register and invoice pool are intermediate stages that delay posting, and the disbursement journal records payments rather than invoice expenses.

Answer

Vendor invoice pool journal

Answer

Vendor disbursement journal

Answer

Invoice register journal