MB-310 Practice Test 13 — 15 Questions

Question 1

A subscription billing company sells a 12-month support plan billed monthly in advance. The customer cancels after month 4 and is entitled to a prorated credit for the unused months. The billing specialist must generate the credit without leaving the recurring billing schedule open and must ensure revenue is not recognized for the cancelled period. Which action should the specialist take?

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

Accepted Answer

Use the Cancel subscription billing action on the billing schedule and specify the credit start date.. Cancelling a subscription billing schedule from a specified date is the standard way to stop future billings and issue a prorated credit for the unused term. It also reverses deferred revenue for the cancelled periods, which satisfies the requirement that revenue not be recognized after cancellation. Manual credits or holds do not provide the same integrated revenue and schedule handling.

Answer

Delete the remaining billing schedule lines and post a manual credit note for the unused months.

Answer

Set the billing schedule status to On hold and issue a separate free-text credit memo.

Answer

Create a new billing schedule with negative quantities for the unused months.

Question 2

A fixed asset in Dynamics 365 Finance has a net book value of $10,000. The company decides to sell the asset for $12,000. Which transaction type should be used to record the sale?

Accepted Answer

Disposal - sale. When selling a fixed asset, the correct transaction type is 'Disposal - sale'. This records the proceeds, removes the asset's cost and accumulated depreciation, and posts any gain or loss to the designated accounts. The other transaction types are for different purposes: scrap for no proceeds, write down for impairment, and manual depreciation for adjusting depreciation expense.

Answer

Write down adjustment

Answer

Manual depreciation

Answer

Disposal - scrap

Question 3

A vendor invoice for $12,000 is posted in Legal entity A. The shared service center in Legal entity B must pay this invoice on behalf of Legal entity A using centralized payments. You configure the payment journal in Legal entity B and select the invoice for payment. Which configuration must be in place so that the accounting entries are recorded correctly in Legal entity A while the payment is processed from Legal entity B?

Accepted Answer

Set up the vendor in Legal entity A with the 'Centralized payment' option enabled and define the intercompany relationship with Legal entity B.. Centralized payments let one legal entity pay invoices that belong to another legal entity. The originating vendor must have the centralized payment option enabled, and intercompany accounting must be configured between the two legal entities. When the payment journal is posted in the processing entity, the system automatically generates the corresponding vendor and ledger entries in the originating entity.

Answer

Enable the 'Centralized payments' option in the Accounts payable parameters of Legal entity A and set Legal entity B as the payment processing entity.

Answer

Create a duplicate vendor record in Legal entity B and manually post a balancing journal entry in Legal entity A after payment.

Answer

Configure the payment journal in Legal entity B to use a ledger account from Legal entity A through the 'Offset account' field on each journal line.

Question 4

A legal firm processes vendor invoices centrally in its US legal entity (LE-US) but needs the related expense and payment to be recorded in the Canadian legal entity (LE-CA) to reduce intercompany reconciliation effort. The vendor is defined in both legal entities and the invoice has already been posted in LE-US. You need to configure the system so the invoice can be posted once in LE-US and automatically create the corresponding vendor invoice and liability in LE-CA. What should you do?

Accepted Answer

Set up intercompany accounting with a 'Vendor invoice' posting type and the corresponding original and destination legal entities.. Intercompany accounting is the mechanism that automatically mirrors a transaction posted in one legal entity into another legal entity. Configuring the vendor invoice posting type with the correct original and destination legal entities lets the LE-US invoice generate the LE-CA vendor invoice and liability without duplicate data entry, while a posting profile or reporting tool cannot create cross-entity documents.

Answer

Enable the 'Accounting source explorer' parameter on the Accounts payable parameters page in LE-US.

Answer

Create a vendor collaboration workspace and invite the vendor to submit the invoice directly to LE-CA.

Answer

Define a vendor posting profile in LE-CA and assign the vendor to it, then manually post a new invoice in LE-CA.

Question 5

An accounts payable clerk needs to record a vendor invoice that was received without a purchase order. The invoice is for office supplies and should be recorded directly against an expense account. Which transaction type should the clerk use in Dynamics 365 Finance?

Accepted Answer

A vendor invoice journal entry with a ledger account line for the expense.. The vendor invoice journal is designed for entering vendor invoices that are not associated with a purchase order. It lets the clerk record the vendor liability and the expense account directly. Purchase order based invoices use the pending vendor invoice form, while employee reimbursements use expense reports, so the invoice journal is the appropriate choice here.

Answer

A purchase order with a procurement category for office supplies.

Answer

A pending vendor invoice with a purchase order reference.

Answer

An expense report submitted through the Expense management module.

Question 6

A company uses Dynamics 365 Finance to bill customers for recurring maintenance services. The billing schedule must generate invoices monthly, but the amount must be prorated for the first and last periods based on the number of days. The consultant sets up a billing schedule with a monthly frequency. Which configuration should the consultant use to ensure proration occurs correctly?

Accepted Answer

Set the Prorate option to Yes on the billing schedule line and define the start date and end date on the billing schedule.. The Prorate option on the billing schedule line automatically calculates prorated amounts for the first and last periods based on the schedule's start and end dates. This ensures accurate billing for partial months without manual intervention. Other options either change the billing frequency, rely on manual adjustments, or disable proration, none of which meet the requirement.

Answer

Use a billing schedule with a monthly frequency and set the Prorate option to No, then create separate billing schedule lines for the first and last periods with adjusted amounts.

Answer

Set the Billing frequency to Daily and manually adjust the invoice amounts for the first and last periods.

Answer

Configure a billing schedule with a monthly frequency and set the Invoice now option to Yes for all periods.

Question 7

A company reimburses employees for travel expenses through the Expense management module. The controller wants to ensure that when an employee submits an expense report, the system automatically routes it to the employee's cost center manager first and then to the corporate travel approver, without the employee choosing approvers. Which configuration should the functional consultant implement?

Accepted Answer

Configure an expense report workflow with a hierarchical assignment step for the cost center manager followed by a participant step for the travel approver.. Expense report workflows support hierarchical assignment types that resolve the approver from the employee's position and cost center, so a manager step followed by a participant step for the travel approver creates the required automatic two-stage route. Approval limits and delegation settings affect thresholds or temporary reassignment but cannot construct an organizational approval chain on their own.

Answer

Create a workflow for expense reports that uses the 'Expense report line review' assignment type and set the participant to the travel approver.

Answer

Enable the 'Delegate' option on the expense report parameters so employees can forward reports to their manager.

Answer

Set the 'Approval limit' on the employee's expense category to zero so every report requires approval.

Question 8

A Dynamics 365 Finance consultant is configuring the Accounts receivable module for a company that sells to other businesses. The company wants to automatically place a customer on credit hold when their overdue balance exceeds a specific threshold. The consultant needs to set up the credit management functionality. Which configuration should the consultant perform first?

Accepted Answer

Enable the Credit management feature in Feature management and configure credit management parameters.. The Credit management feature must be enabled and its parameters configured before any credit limits, rules, or customer credit groups can be set up. This provides the framework for automatically placing customers on credit hold when overdue balances exceed a threshold. Aging periods, collection letters, and payment methods do not automate credit holds based on balance thresholds.

Answer

Create a collection letter sequence and assign it to the customer's posting profile.

Answer

Configure credit card processing for the customer and set up payment terms to require prepayment.

Answer

Set up aging period definitions in Accounts receivable parameters and assign them to customer posting profiles.

Question 9

A new Accounts payable clerk in your organization attempts to create a vendor invoice but cannot see the 'Post' button. The clerk's security role is 'Accounts payable clerk'. What is the most likely cause?

Accepted Answer

The 'Accounts payable clerk' role does not include the duty to post vendor invoices.. The Post button is hidden when the user's security role lacks the privilege to post vendor invoices. The Accounts payable clerk role typically includes duties for invoice entry but not posting. To resolve, assign a role or duty that includes posting privileges, such as 'Accounts payable administrator' or a custom role with the 'Post vendor invoices' privilege.

Answer

The legal entity is not enabled for invoice posting.

Answer

The vendor invoice workflow is not activated.

Answer

The clerk's user account is not assigned to the correct company.

Question 10

A company pays a vendor in a foreign currency. The invoice is posted in EUR, but the company's accounting currency is USD. When the payment is made, the exchange rate has changed, resulting in a realized gain or loss. You need to ensure that the realized gain or loss is automatically posted to the correct ledger account. What should you configure?

Accepted Answer

Configure the exchange rate gain/loss accounts in General ledger > Currency > Exchange rate gain/loss accounts.. Realized exchange rate gains and losses are posted to accounts defined in General ledger > Currency > Exchange rate gain/loss accounts. These accounts are used when settling foreign currency transactions at a different rate than the original invoice. Configuring them correctly ensures accurate financial reporting.

Answer

Set the vendor's currency to USD to avoid exchange rate differences.

Answer

Set up a realized gain/loss account in the Accounts payable posting profile for the vendor.

Answer

Assign a financial dimension to the vendor that corresponds to the gain/loss account.

Question 11

A legal entity in Dynamics 365 Finance needs to reclassify a fixed asset from the Furniture group to the Office Equipment group because the asset was misclassified at acquisition. The asset has never been depreciated. Which transaction type should the functional consultant use to move the asset to the correct fixed asset group without changing its net book value?

Accepted Answer

Reclassification. Reclassification is designed specifically to change an asset's classification, such as moving it to a different fixed asset group or value model, while preserving the net book value. Because the asset has not been depreciated, there is no accumulated depreciation to transfer, and the reclassification posts the necessary book entries to reflect the new group without altering the financial value.

Answer

Acquisition adjustment

Answer

Disposal - sale

Answer

Write-down adjustment

Question 12

A company wants employees to submit expense reports through the Expense Management workspace, and the controller must approve reports before reimbursement. Employees should only be able to select expense categories assigned to their policy. Which setup controls which expense categories an employee can choose on an expense report?

Accepted Answer

The expense policy assigned to the employee, which includes the allowed expense categories.. Expense policies define the categories employees may select and the rules that apply to them. Assigning the correct policy to an employee limits the category list on the expense report and ties into workflow so the controller can approve before reimbursement. Per diem and cost center settings support calculations and posting but do not control category availability.

Answer

The expense report workflow configuration that lists categories for each approver.

Answer

The expense category assigned to the employee's default cost center.

Answer

The per diem configuration for the employee's location.

Question 13

A manufacturing company uses purchase orders with three-way matching in Dynamics 365 Finance. A vendor invoice for 1,200 units arrives, but the related product receipt covers only 1,000 units. The matching policy is configured with a quantity tolerance of 0 percent. The accounts payable clerk tries to post the invoice and receives a matching discrepancy. The controller asks how to release the invoice for payment without weakening the matching policy for all future invoices. What should the clerk do?

Accepted Answer

Add a manual matching exception on the vendor invoice matching details form for the short-received quantity.. A manual matching exception is the targeted control that releases a single invoice despite a quantity discrepancy without altering the corporate matching policy. Workflow approval, item model group settings, and editing the invoice quantity either do not affect matching or distort the vendor liability, so the exception record is the correct approach for a one-off short receipt.

Answer

Change the invoice quantity to 1,000 units on the vendor invoice line before posting.

Answer

Increase the quantity tolerance percentage on the Item model group assigned to the purchased item.

Answer

Approve the invoice in the 'Pending vendor invoices' list by clicking 'Approve' on the workflow work item.

Question 14

A financial analyst needs to post a journal entry that includes a main account and a financial dimension value that is not currently valid for that account. The analyst receives an error stating the account and dimension combination is invalid. The dimension value exists and is active. Which configuration should be reviewed to allow the combination?

Accepted Answer

The account structure assigned to the ledger, specifically whether an advanced rule allows that dimension value for the main account.. Advanced rules extend account structures by specifying which dimension values are allowed for particular main accounts. When a value is not permitted, the system rejects the combination even if the dimension value itself is active. Reviewing the advanced rule for the main account and dimension identifies the restriction, and updating the rule to include the value allows the journal entry to post.

Answer

The ledger calendar for the legal entity, specifically the period status for the posting date.

Answer

The financial dimension set assigned to the journal name, specifically the default dimension value.

Answer

The posting profile for the journal, specifically the summary account for the main account.

Question 15

A company uses Dynamics 365 Finance and has a legal entity in the United States (USMF) and one in the United Kingdom (GBMF). The US entity sells goods to the UK entity. The US entity wants to record the intercompany sale and the UK entity wants to record the intercompany purchase. Both entities use the same chart of accounts but different accounting currencies (USD and GBP). The intercompany accounting relationship is set up with the 'Intercompany' option enabled. When the US entity creates and posts an intercompany sales order, what happens in the UK entity?

Accepted Answer

An intercompany purchase order is automatically created in the UK entity, and it is automatically confirmed and posted if the 'Auto-post' option is enabled.. When an intercompany sales order is posted in the US entity, the system automatically creates an intercompany purchase order in the UK entity. If the intercompany relationship is configured with the 'Auto-post' option enabled for purchase orders, the system will automatically confirm and post the purchase order. This ensures that both sides of the transaction are recorded without manual intervention. The accounting currency difference is handled by the system using the exchange rate defined in the intercompany relationship.

Answer

An intercompany purchase order is automatically created in the UK entity, but it must be manually confirmed and posted.

Answer

An intercompany purchase order is automatically created in the UK entity, but it uses the US entity's accounting currency (USD) instead of the UK entity's accounting currency (GBP).

Answer

An intercompany purchase order is not automatically created; the UK entity must manually create a purchase order and link it to the sales order.