MB-310 Practice Test 2 — 30 Questions

Question 1

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 2

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 3

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 4

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 5

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 6

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 7

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 8

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.

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On the Vendor group definition.

Answer

In the General Ledger currency settings.

Question 9

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 10

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 11

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 12

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

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Financial dimension sets

Answer

Allocation rules

Question 13

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 14

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 15

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.

Question 16

An organization plans to implement budget control in Microsoft Dynamics 365 Finance. You must define the rules for checking budget funds prior to posting documents. Which component must you configure to establish these validation parameters?

Accepted Answer

Budget control configuration. Configuring budget control rules requires establishing a budget control configuration that defines which financial dimensions are checked, the budget funds availability rules, and the documents and journals subjected to validation. This ensures that organizational spending aligns strictly with approved financial targets before any transaction is successfully committed in the system.

Answer

Budget planning process workflow

Answer

Budget register entry transaction definition

Answer

Financial dimension configuration for integrating applications

Question 17

Your company requires specific documents to be evaluated against budget funds before they affect the general ledger. Which TWO source documents can be configured for budget control validation in Microsoft Dynamics 365 Finance? Select two.

Accepted Answer

Purchase requisitions. Purchase requisitions and purchase orders are core commitment-phase documents natively integrated with budget control in Microsoft Dynamics 365 Finance. Including these ensures that management can reserve budget funds early in the procurement lifecycle, preventing unauthorized financial commitments before invoices are ever received or posted.

Answer

Customer free text invoices

Answer

Fixed asset depreciation proposals

Answer

Bank deposit slips

Question 18

Refer to the exhibit. An accountant attempts to modify the acquisition price on a fixed asset record after posting a monthly depreciation run, resulting in the displayed error message. How should you resolve this issue?

Accepted Answer

Create and post an acquisition adjustment transaction through a fixed asset journal to modify the asset book value safely.. Once transactions such as depreciation are posted against a fixed asset book, core acquisition amounts are locked to maintain audit integrity. To correct or adjust the value, you must utilize designated adjustment journals rather than altering the original acquisition record directly.

Answer

Delete all posted depreciation transactions from the general ledger, update the acquisition record, and repost the depreciation.

Answer

Change the asset status from Open to Suspended in the parameters table, make the correction, and reset the status.

Answer

Perform a total asset disposal, create a new fixed asset ID with the correct value, and reacquire the asset.

Question 19

Your company uses vendor payment proposals in Microsoft Dynamics 365 Finance to select invoices for payment. During proposal generation, you need to ensure that invoices eligible for cash discounts are prioritized, and payments are restricted to a maximum total disbursement amount. Where should you configure these specific selection criteria?

Accepted Answer

In the Vendor payment proposal criteria dialog box when generating the payment.. Vendor payment proposals utilize proposal parameters and criteria filters to determine which invoices are selected during batch processing. Configuring minimum and maximum payment limits alongside cash discount preferences ensures cash flow optimization and adherence to liquidity targets established by treasury management.

Answer

In the Accounts payable parameters under the Payment tab.

Answer

In the Methods of payment setup form under Accounts payable setup.

Answer

In the Cash discounts form by assigning priority numbers to each discount term.

Question 20

A company uses Dynamics 365 Finance Accounts Payable. The AP manager is configuring the Vendor invoice matching policy to enforce two-way matching for a specific vendor. The manager needs to ensure that the system validates the invoice against the purchase order and prevents posting if the quantity or price variance exceeds the tolerance. Which two configurations must the manager set up to achieve this? (Choose two.)

Accepted Answer

Create an invoice matching policy with a two-way matching rule and assign it to the vendor record.. To enforce two-way matching with tolerance-based posting prevention, the AP manager must create an invoice matching policy with a two-way matching rule and assign it to the vendor. Additionally, price and quantity tolerances must be defined in that policy so the system knows when a variance is acceptable and when it should block posting. These two configurations together provide the required control.

Answer

Enable the Match invoice totals and Match invoice lines options in the Accounts payable parameters.

Answer

Enable the Invoice matching validation option in the Procurement and sourcing parameters for the vendor's procurement category.

Answer

Configure the Vendor collaboration workspace to require the vendor to confirm invoice quantities before posting.