MB-310 Practice Test 6 — 10 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