MB-310 Practice Test 8 — 10 Questions

Question 1

A company uses Dynamics 365 Finance and wants to ensure that when a fixed asset is sold, the gain or loss is automatically posted to the correct general ledger accounts. The consultant must configure the accounts that will be used for the disposal transaction. Where should the consultant define the ledger accounts for the disposal sale?

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

Accepted Answer

Fixed asset posting profile. The fixed asset posting profile is the central configuration that maps fixed asset transaction types to general ledger main accounts. For disposals, it specifies the accounts for the net book value, the sale proceeds, and the gain or loss. By setting up the disposal accounts in the posting profile, the system can automatically generate the correct ledger entries when a disposal-sale transaction is posted.

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Inventory posting profile

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Accounts payable posting profile

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General ledger posting profile

Question 2

A retail company uses Dynamics 365 Finance to manage vendor payments. The AP manager notices that a vendor invoice for $10,000 was posted with a payment term of Net 30, but the vendor offers a 2% discount if paid within 10 days. The manager wants the system to automatically calculate and apply the discount when the payment proposal includes the invoice within the discount period. What should the manager configure on the vendor invoice?

Accepted Answer

Set the payment term to 2/10 Net 30 and ensure the Cash discount field on the invoice line is populated with the discount percentage and date.. Cash discounts are configured through payment terms such as 2/10 Net 30 and can be overridden at the invoice line level. When the payment proposal selects an invoice within the discount date, Dynamics 365 Finance automatically calculates the discount and reduces the payment amount, ensuring the company captures the 2% savings without manual calculation.

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Create a separate vendor record for the discounted payments and assign the 2% discount as a default payment fee.

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Configure a vendor payment fee of -2% on the vendor record so that the payment proposal subtracts the discount from the payment amount.

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Enable the Cash discount administration parameter in Accounts payable parameters and set the discount grace period to 10 days.

Question 3

A legal firm uses Dynamics 365 Finance to reimburse attorneys for bar association dues and continuing legal education (CLE) courses. The firm's policy states that bar association dues must be reimbursed at 100%, while CLE courses require prior approval from a managing partner. The accounts payable manager needs to configure the system so that these rules are enforced automatically when expense reports are submitted. What should the manager configure?

Accepted Answer

Create an expense policy with two policy rules: one that sets a 100% reimbursement limit for the Bar Dues category, and another that requires a receipt and approval for the CLE category.. Expense policies in Dynamics 365 Finance are the correct mechanism to enforce category-specific reimbursement rules such as percentage limits, receipt requirements, and approval conditions. By creating a policy with a 100% limit for Bar Dues and an approval-required rule for CLE, the AP manager ensures the system validates each expense line against firm policy at submission, preventing non-compliant reimbursements without manual intervention.

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Create a workflow for expense reports that routes Bar Dues and CLE lines to the managing partner for approval before any reimbursement is processed.

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Configure the vendor record for the bar association and CLE provider with a default payment term that automatically approves reimbursement at submission.

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Set up a per diem rule for each attorney that covers bar dues and CLE costs, and assign the per diem to the corresponding expense categories.

Question 4

A consultant is implementing subscription billing for a company that offers software as a service (SaaS). The company wants to bill customers in advance for a 12-month subscription, but wants to recognize revenue monthly over the subscription period. The consultant sets up a billing schedule with a yearly frequency and a 12-month duration. Which additional configuration is required to defer revenue and recognize it monthly?

Accepted Answer

Set up a revenue deferral schedule and assign it to the item group used for the subscription.. Revenue deferral schedules in Subscription billing allow you to defer revenue from an invoice and recognize it over a specified schedule. Assigning a deferral schedule to the item group ensures that when the annual invoice is posted, the revenue is deferred and then recognized monthly. This aligns with the requirement to bill annually but recognize revenue monthly.

Answer

Configure a billing schedule with a yearly frequency and enable the Invoice now option for all periods.

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Change the billing schedule frequency to monthly and set the Prorate option to Yes.

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Set up a collection letter sequence to remind customers of the annual payment.

Question 5

A company is setting up fixed assets in Dynamics 365 Finance. They need to create a new asset that will be depreciated using the reducing balance method. Which two configurations are required to enable this? (Choose two.)

Accepted Answer

Create a depreciation profile with the method 'Reducing balance' and set the percentage.. To enable reducing balance depreciation, you must first create a depreciation profile with the reducing balance method and set the percentage. Then, you assign that profile to a value model or depreciation book that is linked to the fixed asset. These two steps ensure the system calculates depreciation using the reducing balance method. The other options either misplace the method configuration or confuse posting profiles with depreciation profiles.

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Set up a fixed asset group with the 'Reducing balance' depreciation method.

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Create a depreciation book with the 'Reducing balance' method and attach it to the asset.

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Configure the fixed asset posting profile to use the reducing balance method.

Question 6

A company uses Dynamics 365 Finance to process vendor payments. The treasury team wants to generate a payment proposal for a specific vendor group that includes only invoices due in the next 14 days, and they want to exclude any invoices that are on hold. After the proposal is generated, they need to review and remove selected invoices before posting. What should they do?

Accepted Answer

Create a payment journal, use the Vendor payment proposal function with a due date filter and a vendor group filter, then manually delete unwanted lines before posting.. The Vendor payment proposal function inside a payment journal is designed exactly for this scenario. It accepts filters such as vendor group and due date, automatically excludes invoices that are on hold, and produces editable journal lines. Because the lines are editable before posting, the team can review the proposal and remove specific invoices, which satisfies both the filtering and the manual review requirements.

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Use the Settle transactions form on the vendor record to mark invoices for payment, then post a payment journal without a proposal.

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Run the Vendor aging report filtered by due date, then create a manual payment journal and enter each invoice line by hand.

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Configure a payment schedule on the vendor record and let the system post payments automatically when invoices become due.

Question 7

A vendor invoice is entered with a total of $10,000. The vendor offers a cash discount of 1% if paid within 10 days. The invoice is paid on day 8. The payment journal is created without manually adjusting the amount. What will be the result when the payment is posted?

Accepted Answer

The payment will be $9,900 and the discount of $100 will be posted to the cash discount account.. When a vendor has a cash discount code and payment is made within the discount period, the system automatically reduces the payment amount by the discount and posts the discount to the cash discount ledger account. In this scenario, the payment becomes $9,900 and $100 is posted to the discount account. Manual adjustment is not required.

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The payment will be $10,000 and the discount will be ignored because the invoice was not marked for discount.

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The payment will be $9,900 but the discount will be posted as a debit to the vendor account.

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The payment will be $10,000 and the discount will be posted as a separate credit to the vendor.

Question 8

A controller is reviewing a vendor invoice that was posted with an incorrect expense amount. The invoice is already posted and the accounting period is still open. The controller needs to correct the expense account and amount while preserving a clear audit trail, and the vendor balance must also be adjusted. Which action should the controller take?

Accepted Answer

Reverse the posted vendor invoice and then enter a new vendor invoice with the corrected expense amount and account.. The supported correction for a posted vendor invoice is to reverse it and then enter a corrected invoice. Reversal creates offsetting ledger and subledger entries, so the vendor balance is restored, and the new invoice records the correct expense account and amount. Both documents remain in the system, providing the audit trail the controller needs. Direct edits or deletions of posted transactions are not allowed.

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Post a general journal entry to move the amount between the expense accounts and leave the vendor balance unchanged.

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Delete the posted vendor invoice and re-enter it with the correct information.

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Edit the posted vendor invoice journal and change the expense amount and main account directly.

Question 9

A company is implementing Dynamics 365 Finance and needs to ensure that when a purchase order invoice is posted, the expense is allocated to the correct department and cost center. The company uses financial dimensions for Department and Cost Center. The vendor invoice must inherit these dimensions from the purchase order line. What should you configure to achieve this?

Accepted Answer

Configure the purchase order line to include the Department and Cost Center dimensions, and ensure that the invoice line inherits them.. The correct approach is to enter the Department and Cost Center dimensions on the purchase order line. When the invoice is generated from the purchase order, the invoice line inherits these dimensions by default. This ensures the expense is allocated correctly without manual re-entry. The system's default behavior carries dimensions from PO to invoice.

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Set up a financial dimension defaulting rule on the vendor account.

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Set up a posting definition to split the expense based on the Department dimension.

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Create an account structure that includes Department and Cost Center, and set them as mandatory.

Question 10

A company uses Dynamics 365 Finance. They need to automatically create collection activities when customer invoices become overdue. Collection activities should be generated based on aging periods, and the system must prevent duplicate activities for the same invoice. Which configuration should you use?

Accepted Answer

Configure collection activities in the Collections page and enable the 'Create collection activities automatically' parameter, then define aging period definitions.. To automatically create collection activities based on aging periods and avoid duplicates, you must configure the collections parameters to enable automatic activity creation and define aging period definitions. The system uses these definitions to identify overdue invoices and then creates activities, checking for existing open activities. Collection letters, workflows, and interest codes serve different purposes and do not fulfill the requirement.

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Create a workflow for collection letters that triggers when an invoice is overdue.

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Set up interest codes and assign them to customer posting profiles to generate activities.

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Set up collection letter sequences and assign them to customer posting profiles.