MB-310 Practice Test 3 — 25 Questions

Question 1

You are configuring the vendor invoice workflow to route invoices for approval based on the invoice amount. You need to ensure that invoices over $10,000 require approval by the accounts payable manager, while invoices under $10,000 are auto-approved. Which TWO configuration steps are required to achieve this? (Choose two.)

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

Accepted Answer

Configure the approval element with an assignment of 'User' and specify the accounts payable manager as the approver.. To route vendor invoices by amount, the workflow must include a conditional decision that evaluates the invoice total and branches accordingly. The approval element on the high-value branch must be assigned to the accounts payable manager. Together, these elements ensure invoices over $10,000 are routed for approval while lower-value invoices follow an auto-approval path.

Answer

Create a vendor invoice matching policy that rejects invoices over $10,000.

Answer

Enable the 'Require approval' parameter in Accounts payable parameters for all vendor invoices.

Answer

Set up a spending limit on the accounts payable manager's user record to enforce the $10,000 threshold.

Question 2

A US-based legal entity in Dynamics 365 Finance uses the calendar year as its fiscal year, and its fixed asset books are configured to automatically create depreciation adjustments when the fiscal calendar changes. In March, the company's leadership approves a change to the corporate fiscal calendar: the fiscal year will now begin on July 1 instead of January 1, effective immediately for the current year. The fixed asset manager must update the fiscal calendar in Dynamics 365 Finance so that depreciation projections and journal entries align with the new fiscal year. What is the FIRST action the manager should take?

Accepted Answer

In General ledger > Calendars > Fiscal calendars, select the existing calendar, and then create a new fiscal year with a July 1 start date.. Fiscal year boundaries for fixed assets are driven by the fiscal calendar referenced by the ledger and book. The correct approach is to add a new fiscal year with the July 1 start date inside the existing fiscal calendar, preserving historical periods and Calendar ID references. Replacing the calendar or altering depreciation profiles does not correctly shift period boundaries.

Answer

Run the Fixed asset calendar synchronization batch job to automatically shift all periods by six months.

Answer

Create a new fiscal calendar with a July 1 start date and assign it to the Fixed asset ledger.

Answer

Reconfigure each fixed asset book's depreciation profile to use a July 1 fiscal year start date.

Question 3

A company uses Dynamics 365 Finance with multiple legal entities. The corporate controller needs to consolidate financial results from two subsidiary legal entities into a parent legal entity. The subsidiaries use different chart of accounts, but the parent requires consolidated reporting using its own chart of accounts. The subsidiaries have transactions in different currencies. Which consolidation method should be used to meet these requirements?

Accepted Answer

Use the 'Consolidate online' feature with the 'Consolidate' option in General ledger, mapping subsidiary accounts to parent accounts and specifying exchange rates.. The 'Consolidate online' feature in General ledger is designed to consolidate multiple subsidiary legal entities into a parent legal entity. It supports mapping different charts of accounts via consolidation accounts and handles currency translation using specified exchange rates. This method is efficient for subsidiaries within the same Dynamics 365 Finance instance and meets all the stated requirements.

Answer

Use the 'Consolidate with import' feature, exporting subsidiary balances to Excel and importing them into the parent with manual account mapping.

Answer

Create a financial dimension for each subsidiary and use dimension-based reporting to combine balances.

Answer

Set up intercompany accounting between the subsidiaries and the parent, and use intercompany journals to transfer balances.

Question 4

A subscription billing company needs to recognize revenue for a subscription that spans multiple periods. The subscription starts on January 1 and ends on December 31, with a total contract value of $12,000. Revenue should be recognized evenly over the subscription period. Which revenue recognition method should the functional consultant configure?

Accepted Answer

Straight line. Straight line revenue recognition is the appropriate method for subscriptions where revenue is earned evenly over the contract period. It allocates an equal amount to each period, ensuring consistent revenue recognition. The other methods are used for different scenarios, such as project-based or milestone-based contracts, and would not evenly distribute revenue.

Answer

Percentage of completion

Answer

Milestone

Answer

Completed contract

Question 5

An organization using Microsoft Dynamics 365 Finance wants to ensure that when a purchase requisition is submitted, it is checked against the available budget before it can proceed to approval. They have already configured budget control and enabled it for the legal entity. What must be configured next to enforce this check specifically on purchase requisitions?

Accepted Answer

Create a budget control rule that includes the Purchasing expenditure type and the appropriate budget dimensions.. To enforce budget check on purchase requisitions, a budget control rule must be created that includes the Purchasing expenditure type and the relevant dimensions. Budget control parameters and budget groups are supporting configurations, but the rule is what determines which documents are checked. Workflows are separate from budget control. Therefore, creating the appropriate budget control rule is the necessary next step.

Answer

Configure the budget control parameters to enable budget check for purchase requisitions.

Answer

Set up a budget group for purchase requisitions and assign it to the budget control configuration.

Answer

Activate the budget control workflow for purchase requisitions in the workflow editor.

Question 6

A fixed asset has been fully depreciated but is still in use. The company decides to sell the asset for $5,000. The asset's value model has a net book value of $0. Which transaction type should be used to record the sale and remove the asset from the fixed asset subledger?

Accepted Answer

Disposal - sale. Disposal - sale is the transaction type designed to record the sale of a fixed asset. It removes the asset's cost and accumulated depreciation, records the cash proceeds, and posts any gain or loss to the appropriate ledger accounts. For a fully depreciated asset sold for $5,000, the gain is $5,000. Other transaction types like scrap or write down do not handle sales proceeds and would not correctly remove the asset from the subledger.

Answer

Write up

Answer

Write down

Answer

Disposal - scrap

Question 7

A fixed asset accountant needs to record the acquisition of a new server that was purchased on credit. Which journal type should be used in Dynamics 365 Finance to record the acquisition and ensure the correct ledger accounts are updated?

Accepted Answer

Fixed asset journal. The Fixed asset journal is the correct journal type for recording asset acquisitions. It updates both the fixed asset value model and the general ledger, ensuring that depreciation can be calculated and that the balance sheet reflects the new asset. Other journal types do not provide this integrated update, so they would leave the subledger and ledger out of balance.

Answer

Inventory to fixed asset journal

Answer

General journal

Answer

Project management and accounting journal

Question 8

A functional consultant is configuring a new legal entity in Dynamics 365 Finance. The organization wants to ensure that when users enter a main account, they are also required to specify a cost center financial dimension. The chart of accounts has already been created, and financial dimensions have been set up. Which configuration should the consultant apply to enforce this requirement?

Accepted Answer

Create an account structure that includes the Main account and Cost center dimensions, and mark the Cost center dimension as mandatory in the account structure.. Account structures are the primary mechanism to enforce which dimensions are required for a main account. By adding the Cost center dimension to the account structure and marking it as mandatory, any journal entry or document that uses a main account from that structure must include a cost center. This ensures consistent dimension capture without custom code.

Answer

Set up a custom validation rule on the Main account form using a data entity.

Answer

Configure a financial dimension set that includes Cost center and assign it to the main account.

Answer

Enable the 'Require dimensions' parameter in General ledger parameters and select Cost center.

Question 9

You are configuring a new fixed asset group for office furniture. The company policy requires that depreciation be calculated using the reducing balance method with a 20% annual rate, and that a half-year convention be applied in the first year of service. Which two parameters must you configure in the fixed asset group or book to meet these requirements? (Choose two.)

Accepted Answer

Depreciation convention set to Half year on the depreciation book.. To meet the policy, you must create a depreciation profile with the Reducing balance method and 20% rate, and set the depreciation convention to Half year on the depreciation book. These two configurations ensure the correct calculation method and first-year proration. The fixed asset group then references the book containing these settings.

Answer

Service life set to 5 years on the fixed asset group.

Answer

Depreciation profile with method set to Straight line and percentage set to 20%.

Answer

Fixed asset group's depreciation rate set to 20% in the Fixed asset groups form.

Question 10

An accounts payable clerk must process a weekly payment run that pays all approved vendor invoices due within the next seven days while excluding invoices on payment hold. The clerk wants the system to generate the payment lines automatically rather than entering them manually. Which feature should the clerk use?

Accepted Answer

Vendor payment proposal. The vendor payment proposal reads open vendor transactions, applies selection criteria such as due date and payment status, and writes the resulting payment lines into a payment journal. Invoices on payment hold are excluded from selection, so the clerk can generate the weekly run automatically and then post it after review.

Answer

Vendor settlement

Answer

Vendor invoice journal

Answer

Vendor disbursement journal

Question 11

A finance user needs to review the budget versus actual expenditures for a specific department for the current year. Which Dynamics 365 Finance feature should they use?

Accepted Answer

Budget vs. actuals inquiry. The Budget vs. actuals inquiry is the standard feature for comparing budgeted amounts to actual expenditures. It allows filtering by dimensions such as department and by period, providing a clear view of remaining budget and spending. Other options are configuration or transaction entry pages that do not offer this comparative analysis.

Answer

Budget planning

Answer

Budget control configuration

Answer

Budget register entries

Question 12

A company wants to charge a $15 wire transfer fee each time a vendor is paid by wire. The fee should be automatically added to the payment journal line when the wire payment method is used. What should you configure?

Accepted Answer

A vendor payment fee in the Payment fee setup, linked to the wire payment method and the vendor's bank account.. Payment fees in Dynamics 365 Finance are configured in the Payment fee setup, where you define the fee amount or percentage and associate it with a payment method, such as wire transfer. When a payment journal line uses that method, the fee is automatically calculated and added, ensuring consistent charging without manual intervention.

Answer

A bank transaction type of 'Fee' on the vendor's bank account.

Answer

A miscellaneous charge on the vendor record under the Invoice tab.

Answer

A ledger accrual account for wire fees with a periodic journal entry.

Question 13

A new accounts payable clerk at your company processes a vendor invoice that includes a line for office supplies. The clerk needs to assign the correct main account and include a cost center financial dimension before posting. Which configuration element determines that the main account 601200 'Office Supplies Expense' must be accompanied by a cost center dimension, and prevents posting if it is missing?

Accepted Answer

An account structure that includes the Main Account and Cost Center dimensions and is assigned to the legal entity's ledger.. Account structures are the mechanism that controls which main account and dimension combinations are valid, and whether a dimension is required. When the structure includes Main Account and Cost Center, and the Cost Center is marked as required, the ledger will reject any posting that omits it. Assigning the structure to the legal entity's ledger activates this validation for all transactions, including vendor invoices.

Answer

A ledger accrual scheme that references the Office Supplies main account and a cost center.

Answer

A posting profile configured on the vendor group with a summary account for Cost Center.

Answer

A financial dimension set that includes Cost Center and is linked to the vendor master record.

Question 14

A wholesale distributor wants to automatically place a customer on credit hold when an invoice becomes 60 days past due. The credit manager needs the hold to prevent new sales orders from being confirmed but still allow payments to be posted. Which configuration should the credit manager set up?

Accepted Answer

Configure a credit management blocking rule with a 60-day past-due condition and a blocking type of All.. Credit management blocking rules are the automated mechanism that evaluates conditions such as days past due and assigns a blocking status. Setting a rule for 60 days past due with a blocking type of All prevents new sales orders from being confirmed while permitting payments, which is exactly the behavior the credit manager requires.

Answer

Set the customer's credit limit to zero.

Answer

Enable the Credit limit check parameter on the Accounts receivable parameters form.

Answer

Create a collection letter sequence that triggers at 60 days past due.

Question 15

A Contoso financial analyst is preparing the annual budget and needs to enter original budget amounts for several departments. The organization wants the amounts to be available for budget control as soon as they are entered. Which budget register entry type should the analyst use?

Accepted Answer

Original budget. The original budget entry type is the correct choice for entering the initial approved budget for a fiscal year. When posted, original budget register entries increase available budget and are immediately considered by budget control rules. Transfer, revision, and encumbrance entry types serve different purposes and would not properly establish the initial budget amounts.

Answer

Revision

Answer

Encumbrance

Answer

Transfer

Question 16

A company is setting up a new fixed asset and wants to record the acquisition cost, but the asset will not be placed in service until a later date. The accountant needs to record the acquisition now and begin depreciating when the asset is placed in service. Which field on the fixed asset value model should be configured to control when depreciation starts?

Accepted Answer

Depreciation starting date. The depreciation starting date on the value model controls when depreciation begins. By setting it to the future in-service date, the acquisition can be recorded now while depreciation starts later. Other fields such as acquisition date, depreciation period, and service life affect reporting, calendar alignment, and duration, but not the start of depreciation.

Answer

Acquisition date

Answer

Service life

Answer

Depreciation period

Question 17

A company is setting up a fixed asset that was acquired in a foreign currency. The company's accounting currency is USD, and the asset was purchased for 10,000 EUR. The exchange rate at acquisition was 1.2 USD/EUR. The company wants to ensure that the asset's historical cost in USD is correctly recorded and that any subsequent exchange rate fluctuations do not affect the asset's depreciation. Which setup should be used?

Accepted Answer

Record the acquisition in the fixed asset journal with the USD equivalent using the exchange rate at acquisition, and do not revalue the fixed asset for exchange rate changes.. Fixed assets in Dynamics 365 Finance are recorded in the accounting currency using the exchange rate at the acquisition date. The historical cost is fixed, and subsequent exchange rate movements do not affect the asset's value or depreciation. This treatment is consistent with accounting standards for property, plant, and equipment.

Answer

Record the acquisition in the fixed asset journal with the EUR amount and let the system convert using the daily exchange rate.

Answer

Set up the fixed asset in EUR and use a reporting currency for USD.

Answer

Use a revaluation group to periodically adjust the asset's value for exchange rate changes.

Question 18

A user in the Accounts payable department is trying to post an invoice journal for a vendor, but the system returns the error 'Posting has been cancelled because the accounting distribution is not fully allocated.' The invoice total is $12,000, but the distribution lines only sum to $10,000. What is the most likely cause of this error?

Accepted Answer

The accounting distribution lines for the invoice do not sum to the invoice total amount.. The error occurs because the accounting distribution lines total $10,000 while the invoice amount is $12,000. Dynamics 365 Finance requires that the sum of all accounting distributions equals the transaction amount before posting. The user must review and adjust the distribution lines to match the invoice total, ensuring the distribution is fully allocated.

Answer

The vendor's default posting profile is configured to require a purchase order.

Answer

The invoice journal line does not have a financial dimension value for the main account.

Answer

The ledger account for the expense is blocked for manual entry.

Question 19

A company is setting up a new fixed asset value model for office furniture. The company wants to use the straight-line depreciation method over a useful life of 10 years. The asset will be acquired on January 1 for USD 12,000. The company uses a calendar year fiscal period. What will be the annual depreciation expense for this asset?

Accepted Answer

USD 1,200. The straight-line depreciation method allocates the depreciable basis evenly over the useful life of the asset. With an acquisition cost of USD 12,000, no salvage value, and a useful life of 10 years, the annual depreciation is USD 12,000 / 10 = USD 1,200. The system will post this amount each year, assuming a full year of depreciation in the first year, depending on the depreciation convention.

Answer

USD 2,400

Answer

USD 1,000

Answer

USD 100

Question 20

A company uses Dynamics 365 Finance. You need to set up a customer payment proposal that includes only invoices with a due date on or before a specified date, and you want to automatically write off any cash discount that is not taken. Which configuration should you use?

Accepted Answer

Create a payment proposal with the Due date criteria and set the Post date and the Write off cash discount option on the payment proposal.. Payment proposals allow filtering by due date and include a Write off cash discount option. When enabled, any cash discount not taken is written off during payment posting. This is the correct configuration to include invoices due on or before a date and automatically write off unclaimed discounts.

Answer

Create a payment proposal with the Due date criteria and configure the Accounts payable parameters to write off cash discounts for all payments.

Answer

Create a payment proposal with the Due date criteria and set the Cash discount date criteria to include only invoices past the discount date.

Answer

Create a payment proposal with the Due date criteria and enable the Take cash discount option on the payment proposal.