MB-310 Practice Test 5 — 10 Questions

Question 1

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.

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

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To encrypt the connection between the bank and Dynamics 365.

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To set the interest rate for the bank account balance.

Question 2

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.

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General journal templates

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Financial dimension sets

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Allocation rules

Question 3

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.

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Check the Main account setup

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Review Ledger parameters

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Check User permissions

Question 4

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.

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The rule_type is set to InvoiceTotal instead of LineItem.

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The enforce_on field is missing the 'Journal_Invoices' parameter.

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

Question 5

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.

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Enable the Expense report validation flag in Parameters.

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

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Set the Posting profile to Require Approval.

Question 6

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.

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Budget planning process workflow

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Budget register entry transaction definition

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Financial dimension configuration for integrating applications

Question 7

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.

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Customer free text invoices

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Fixed asset depreciation proposals

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Bank deposit slips

Question 8

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.

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

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

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

Question 9

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.

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In the Accounts payable parameters under the Payment tab.

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

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

Question 10

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.

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

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

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