MB-310 Practice Test 2 — 25 Questions

Question 1

A shared-services accounts payable team is preparing to run a weekly vendor payment proposal for 400 vendors. The team wants the proposal to consider only invoices that are due within the next ten days and only for vendors assigned to the 'Domestic' vendor group, and to exclude any invoice that is already in a payment hold. Which TWO parameters or filters must the team configure on the Vendor payment proposal to achieve this? (Choose two.)

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

Accepted Answer

Set the 'From date' and 'To date' fields on the proposal to the ten-day due-date window.. The payment proposal is driven by a query, and the two controls that shape its selection are the due-date range and vendor-level filters such as vendor group. Setting the from and to dates confines the proposal to the ten-day window, and filtering on the Domestic vendor group restricts it to the intended vendors. Payment status, on-hold inclusion, and payment schedules do not produce the requested selection.

Answer

Set the 'Payment status' field on the proposal to 'Approved'.

Answer

Configure a payment schedule on each vendor's payment terms to spread the invoices across the ten days.

Answer

Enable the 'Include invoices on hold' parameter so those invoices appear in the proposal and can be reviewed.

Question 2

A multinational company in Dynamics 365 Finance has a fixed asset book configured with a reducing balance depreciation method and a Half year (start of year) convention. An accountant notices that for an asset placed in service on October 15, the first depreciation journal posted a full half-year of depreciation in the current fiscal year, and the remaining half will be applied in the final year of the asset's life. The controller wants to understand why this happened and whether it is correct. What should the functional consultant explain?

Accepted Answer

The Half year (start of year) convention assumes the asset was placed in service at the start of the fiscal year, so a full half-year of depreciation is taken in the acquisition year and the remaining half in the disposal year.. The Half year (start of year) convention assumes the asset entered service at the beginning of the fiscal year of acquisition, producing a half-year of depreciation in that year and the remaining half in the final year. This behavior is expected and is independent of the reducing balance method, which only governs how the rate is applied to net book value.

Answer

The Half year (start of year) convention applies a full year of depreciation in the acquisition year and a half year in the following year.

Answer

The system miscalculated because reducing balance methods ignore conventions and should always prorate depreciation by the number of days in service.

Answer

The depreciation profile is misconfigured; the Half year convention should only be used with the straight line method and not with reducing balance.

Question 3

Refer to the exhibit.

Accepted Answer

The main account intervals overlap between two active budget control rules.. The exhibit illustrates a budget control configuration error where a main account interval overlaps across different budget control rules or contains conflicting active status flags. Budget control requires mutually exclusive and unambiguous rule definitions to evaluate financial dimensions and accounts correctly. Resolving overlapping intervals or missing group assignments ensures that transactions are evaluated against a single, definitive budget rule.

Answer

The budget cycle time span has expired and must be extended in the budget parameters.

Answer

The default currency exchange rate type is missing from the ledger configuration.

Answer

The budget manager security role lacks permission to modify budget control rules.

Question 4

A legal entity in Dynamics 365 Finance uses a fiscal calendar with 12 monthly periods. A new fixed asset is placed in service on March 18. The asset's value model is configured with a depreciation convention of 'Half year' and a depreciation profile using the Straight line service life method. The asset's service life is 5 years. How will depreciation be calculated for the first fiscal year?

Accepted Answer

Half of the annual depreciation amount is taken in the first fiscal year, and the remaining half is taken in the final fiscal year.. The Half year convention in Dynamics 365 Finance assumes an asset is placed in service at the midpoint of the fiscal year, so half of the annual depreciation is recognized in the first year and the remaining half in the final year. This applies regardless of the actual acquisition date, simplifying first-year and last-year calculations for assets using this convention.

Answer

Depreciation is prorated based on the number of days from March 18 to the end of the fiscal year.

Answer

No depreciation is taken in the first fiscal year; depreciation begins in the next fiscal year.

Answer

A full year of depreciation is taken in the first year, starting from March.

Question 5

You are setting up budget control for a new fiscal year in Microsoft Dynamics 365 Finance. The finance director wants to prevent any purchase order from exceeding the available budget for the MainAccount dimension. What should you do first?

Accepted Answer

Define a budget model and budget codes for the fiscal year.. Budget models and budget codes are the foundation of budgeting in Dynamics 365 Finance. They define the budget types and the specific budgets that will be used for control. Once these are in place, you can create budget control rules that include the MainAccount dimension and configure the budget check to enforce the budget.

Answer

Enable budget control on the Purchase order journal name.

Answer

Create a budget control rule that includes the MainAccount dimension and set the budget check to 'Enforce'.

Answer

Configure the budget control parameters to allow over-budget entries.

Question 6

When defining financial dimensions, what is the purpose of the 'Use values from' field in the Financial dimension setup?

Accepted Answer

To enable the system to pull dimension values from an existing system entity.. The 'Use values from' field allows a financial dimension to draw its valid values from an existing entity, such as 'Customers' or 'Projects'. This automation eliminates the need for manual data entry and ensures consistency across the system. By linking the dimension to a master data entity, any changes made to the master entity are automatically reflected in the dimension, reducing maintenance overhead for administrators.

Answer

To define the default ledger account for the dimension.

Answer

To create a custom dimension that is independent of any system entity.

Answer

To determine which users can enter values for this dimension.

Question 7

A Contoso controller needs to ensure that only budget amounts entered by users assigned to the 'BudgetManager' security role are included when a budget register entry is posted, while amounts from other roles are held for review. The budget register entry uses a workflow that is already active. Which configuration should the controller use to enforce this requirement?

Accepted Answer

Create a budget register entry workflow that uses a conditional decision based on the originator's security role, and route entries from other roles to a review task.. The requirement is to include only amounts entered by users in the BudgetManager role and hold others for review. A budget register entry workflow with a conditional decision based on the originator's role accomplishes this by routing entries from other roles to a review task. Budget control and approver settings deal with budget availability and over-budget approvals, not with filtering by submitting user role.

Answer

Assign the BudgetManager role to the workflow's approval step and set the workflow to reject entries from other roles.

Answer

Enable budget control on the BudgetManager role and configure the budget manager as the budget control approver.

Answer

Configure budget control on the BudgetManager role and set the budget threshold to 100 percent.

Question 8

A multinational company is implementing budget control in Dynamics 365 Finance. The company wants to ensure that budget checks are performed for purchase requisitions and purchase orders, and that over-budget transactions are prevented from posting. The company also wants to allow certain users to override budget check failures. Which two configurations are required to meet these requirements? (Choose two.)

Accepted Answer

Enable budget control for the legal entity and select the source documents 'Purchase requisition' and 'Purchase order'.. To perform budget checks on purchase requisitions and purchase orders, you must enable budget control for the legal entity and select those source documents in the budget control configuration. To allow specific users to override budget check failures, you must create a budget control user group and assign those users to it. These two configurations together meet the stated requirements.

Answer

Set up budget control to use a budget model that contains the current budget balances.

Answer

Configure budget control rules to include the main accounts used by purchase requisitions and purchase orders.

Answer

Configure the budget control parameters to allow overrides for all users by default.

Question 9

Which TWO actions should you perform when setting up a new legal entity that requires a different fiscal calendar than existing entities? (Choose two)

Accepted Answer

Create a new Fiscal calendar in the General ledger module. When configuring a new legal entity with unique reporting needs, the fiscal calendar is a foundational component. You must define the calendar and periods first, then map it to the Ledger form. This separation of fiscal calendars from legal entities allows for flexibility in global organizations where different subsidiaries may have different tax reporting cycles or operational business years, ensuring accurate financial period closing processes across the enterprise.

Answer

Update the default fiscal calendar in Legal entity settings

Answer

Define a new Chart of accounts for the entity

Answer

Configure a new Batch group for the entity

Question 10

Which THREE steps are necessary to set up Budget planning for a new fiscal year? (Choose three)

Accepted Answer

Configure the Budget planning process.. Setting up budget planning involves a sequence of configuration tasks: defining the planning process, establishing the document layouts, and configuring the stages of the workflow. These components work together to provide a structured environment for users to input, review, and approve budget proposals. Without these three components, the system lacks the foundational structure required to aggregate data and progress the budget from a draft state to a finalized, approved, and ready-to-use budget ledger.

Answer

Manually update the exchange rates in the General ledger.

Answer

Enable budget control for all legal entities immediately.

Question 11

An enterprise client using Microsoft Dynamics 365 Finance wants to configure budget planning stages and workflows. Which TWO actions must you complete to ensure budget planners can successfully submit worksheets for review? Each correct answer represents part of the solution.

Accepted Answer

Associate a workflow configuration to each budget planning stage where review is required.. Successfully submitting budget planning worksheets requires both an active workflow assigned to the appropriate budget planning stage and configured stage security policies. Without the workflow, submission paths are missing, and without stage security, users cannot modify or submit data based on their organizational roles.

Answer

Assign user security roles directly to the budget planning process header configuration.

Answer

Generate a recurring batch job to automatically validate all budget planning scenarios daily.

Answer

Set the budget cycle time span status to archived for all prior fiscal years.

Question 12

What is the purpose of the 'Vendor invoice' journal?

Accepted Answer

To record invoices that are not associated with purchase orders.. The vendor invoice journal is used to manually record invoices that are not associated with a purchase order. It allows for the direct entry of vendor invoices into the system so that they can be paid and tracked in the accounts payable sub-ledger. This is essential for invoices related to expenses like rent, utilities, or services where a formal purchase order process may not be required.

Answer

To create payments for vendors.

Answer

To automatically post all vendor invoices to the bank.

Answer

To manage vendor master data.

Question 13

A company needs to pay a vendor in a currency different from the accounting currency. Where is the currency set for the vendor?

Accepted Answer

On the Vendor record.. The currency for a vendor is defined on the vendor master record. This setting drives the currency used for all invoices and payments related to that vendor. By setting it correctly at the master level, the system automatically handles the conversion to the accounting currency based on the exchange rates defined in the system, ensuring multi-currency transactions are recorded accurately and financial statements reflect the correct valuation.

Answer

In the Accounts payable parameters.

Answer

On the Vendor group definition.

Answer

In the General Ledger currency settings.

Question 14

Your organization requires a specific currency conversion rate for intercompany transactions that differs from the daily market rate. Where should this be configured?

Accepted Answer

Currency exchange rate types.. The currency exchange rate type is a critical setup for multi-currency organizations. By creating a specific rate type for intercompany transactions, you ensure that internal transfers use a predefined, consistent rate, avoiding market volatility. This maintains the integrity of internal financial reporting and prevents exchange rate fluctuations from impacting the performance metrics of individual business units during internal settlement processes.

Answer

General Ledger parameters.

Answer

Legal entity setup.

Answer

Intercompany accounting rules.

Question 15

When setting up a new legal entity, which component is required to enable financial transactions?

Accepted Answer

A ledger configuration.. A legal entity must be linked to a chart of accounts, a fiscal calendar, and a currency to function within the financial modules. These three components define the basic accounting framework. Without these, the system cannot assign transactions to ledger accounts or calculate the fiscal impact, which is essential for reporting and maintaining the basic legal and financial obligations of the new entity.

Answer

A default vendor group.

Answer

A bank account.

Answer

A workflow configuration.

Question 16

When configuring a bank reconciliation, what is the purpose of the 'Bank statement format'?

Accepted Answer

To translate the electronic bank file into a format the system can process.. The bank statement format defines how the data from the bank's electronic file is parsed into the Dynamics 365 system. This mapping is essential for the automated bank reconciliation process, which matches bank transaction records against the ledger entries. By correctly configuring this format, the system can interpret the incoming data, significantly reducing the manual effort required to reconcile accounts and ensuring high accuracy in cash flow reporting.

Answer

To define the look and feel of the printed bank statement report.

Answer

To encrypt the connection between the bank and Dynamics 365.

Answer

To set the interest rate for the bank account balance.

Question 17

Your company uses the accrual basis of accounting. You need to ensure that expenses are recognized in the period they are incurred, even if the invoice is paid later. Which feature should you configure to automate this?

Accepted Answer

Accrual schemes. The Accrual schemes feature in Dynamics 365 Finance allows users to automatically distribute revenue or expenses over multiple periods. This is essential for compliance with accounting standards like GAAP or IFRS, which mandate matching revenues and expenses to the periods in which they occur. Configuring these schemes reduces manual journal entries and minimizes human error during month-end closing processes, ensuring consistency in financial reporting.

Answer

General journal templates

Answer

Financial dimension sets

Answer

Allocation rules

Question 18

A user is receiving an error when trying to close the fiscal year. The error states that the opening transactions cannot be created because the account structure is incomplete. What should you check first?

Accepted Answer

Verify active account structures. The fiscal year closing process requires that all dimensions used in the previous year are currently active and included in an active account structure for the opening year. If a dimension was deactivated or removed from a structure, the system cannot generate the opening balance entries. Checking the active account structures ensures that the system has a valid path to post the calculated balances into the new fiscal year.

Answer

Check the Main account setup

Answer

Review Ledger parameters

Answer

Check User permissions

Question 19

Refer to the exhibit. An accountant reports that they are still able to post invoices exceeding $100.00 without being blocked. Based on the provided policy JSON, why is this occurring?

Accepted Answer

The action is set to 'Warn', which allows users to bypass the validation.. The policy action is configured as 'Warn' rather than 'Reject' or 'Block'. In Dynamics 365 Finance, a 'Warn' action displays a notification to the user but does not prevent the document from being saved or posted. To stop the transaction entirely, the policy action must be updated to a restrictive level, ensuring strict adherence to the defined financial threshold and preventing manual overrides.

Answer

The rule_type is set to InvoiceTotal instead of LineItem.

Answer

The enforce_on field is missing the 'Journal_Invoices' parameter.

Answer

The threshold value is a string, which causes the rule to be ignored.

Question 20

A company requires that all expense reports are reviewed by a manager before they are posted to the General Ledger. Which configuration fulfills this requirement?

Accepted Answer

Configure an Expense management workflow.. Expense management workflows are the standard way to enforce the manager review requirement. By creating a workflow that includes an approval step assigned to the worker's manager, the system enforces the hierarchy before the document is finalized. This control is critical for preventing unauthorized spending and ensuring that all expenses comply with company policy prior to financial recognition in the ledger.

Answer

Enable the Expense report validation flag in Parameters.

Answer

Assign the Manager role to the employee's user profile.

Answer

Set the Posting profile to Require Approval.