MB-310 Practice Test 9 — 10 Questions

Question 1

A budget analyst at Contoso needs to transfer budget amounts between two main accounts within the same department for the current fiscal year. Which budget register entry type should the analyst use?

Accepted Answer

Transfer. Transfer entries are the correct mechanism for moving budget amounts between accounts without altering the total budget. They are designed for reallocations and provide a clear audit trail. Other entry types like original budget, revision, and encumbrance serve different purposes and would not correctly reflect the transfer.

Answer

Revision

Answer

Original budget

Answer

Encumbrance

Question 2

A company in Dynamics 365 Finance wants to track the depreciation of its fixed assets for both book and tax purposes. The controller asks the functional consultant to explain how the system supports this dual reporting requirement without duplicating asset records. Which statement best describes the recommended approach?

Accepted Answer

Use multiple books or value models on a single fixed asset record, each configured with its own depreciation profile and posting layer.. The recommended approach is to attach multiple books or value models to a single fixed asset record, each with its own depreciation profile and posting layer. This allows book and tax depreciation to be tracked independently from the same asset, avoiding duplicate records and supporting dual reporting requirements efficiently.

Answer

Post book depreciation to the general ledger and tax depreciation to a separate legal entity, then consolidate the entities for reporting.

Answer

Enable the Dual depreciation feature in Fixed assets parameters, which automatically creates a parallel tax ledger for every book transaction.

Answer

Create two separate fixed asset records for each physical asset, one for book and one for tax, and link them using a parent-child relationship.

Question 3

A US-based legal services firm posts a free-text invoice for $12,000 with payment terms of 2/10, Net 30. The customer emails on day 8 asking to take the discount, but the payment will not arrive until day 15. A collections clerk wants to grant the discount anyway to preserve the relationship. Which Accounts receivable setup should the clerk use to allow the discount after the discount date without editing the original invoice?

Accepted Answer

Use the Allow cash discount after discount date option on the open transaction before applying the payment.. The Allow cash discount after discount date flag on the open customer transaction is the supported mechanism to accept a discount past its expiration. It preserves the original invoice date and due date while posting the discount to the correct ledger account, which is exactly what the legal firm needs when the customer pays late yet still expects the early-payment discount.

Answer

Create a new payment term with the discount calculated on the net amount and assign it to the customer master.

Answer

Change the invoice date to day 15 so the discount window recalculates.

Answer

Post a credit note for the discount amount and apply it against the open invoice.

Question 4

A company uses budget planning in Dynamics 365 Finance. The budget planning process includes multiple stages with workflows. The finance team wants to ensure that when a budget plan is rejected at any stage, it is returned to the originator for revision, and that the originator can resubmit it without creating a new budget plan. Which configuration should you implement?

Accepted Answer

Configure the budget planning workflow to have a rejection action that returns the budget plan to the originator.. To return a rejected budget plan to the originator, the budget planning workflow must be configured with a rejection action that routes the plan back to the originator. This allows the originator to edit and resubmit the same budget plan, preserving the plan's history and data. The stage rules must also permit editing at the origination stage. This is the standard configuration for iterative budget planning.

Answer

Configure the budget planning workflow to have a rejection action that returns the budget plan to the previous stage.

Answer

Create a new budget planning stage specifically for rejected budget plans.

Answer

Set the budget planning stage rule to allow editing of the budget plan after rejection.

Question 5

A public sector organization uses Dynamics 365 Finance budgeting. They need to enforce that purchase orders cannot exceed the available budget for a specific combination of main account and department. Which configuration should they implement?

Accepted Answer

Configure budget control with the 'Prevent' option for the main account and department dimension combination.. Budget control in Dynamics 365 Finance checks transactions against available budget and can be configured to prevent, warn, or allow. The 'Prevent' option stops a transaction from being submitted or posted if it would exceed the remaining budget for the specified dimensions. This is the correct configuration to enforce a hard limit on purchase orders for a main account and department combination.

Answer

Enable budget control for the main account and department, and set the budget control rule to 'Warning'.

Answer

Use budget planning to allocate funds, and rely on workflow approval to prevent overspending.

Answer

Create a budget transfer to increase the budget before entering the purchase order.

Question 6

A consultant is setting up fixed assets in Dynamics 365 Finance for a new legal entity. The company wants to use the fixed asset module to track assets for both financial reporting and tax reporting, with different depreciation methods for each. Which two configurations are required to support this requirement? (Choose two.)

Accepted Answer

Associate both value models with the fixed asset record.. To track fixed assets for both financial and tax reporting with different depreciation methods, you need separate value models for each book and you must associate both value models with each fixed asset. This allows the system to calculate depreciation independently for each book using the respective methods. Fixed asset groups and fiscal calendars are not the determining factors for multiple depreciation methods.

Answer

Create separate fixed asset groups for financial and tax reporting.

Answer

Enable the 'Create depreciation adjustment with basis adjustment' parameter.

Answer

Set up a separate fiscal calendar for each value model.

Question 7

A junior consultant is reviewing budget register entries in Microsoft Dynamics 365 Finance for a client. The client wants to know which entry type increases the available budget balance for a department without requiring a transfer from another department. Which budget register entry type should the consultant identify as increasing available budget?

Accepted Answer

Original budget. Original budget entries are the primary method for loading an approved budget into the system, thereby increasing available budget balances. Transfers, encumbrances, and budget reservations either move funds between dimensions or reduce availability. Only an original budget entry adds new spending authority without drawing from another budget source.

Answer

Transfer

Answer

Budget reservation

Answer

Encumbrance

Question 8

A Contoso finance team discovers that a posted vendor invoice did not undergo budget control even though budget control is enabled for the account structure. The team confirms the invoice was posted through the Accounts payable module. What is the most likely reason the budget check was bypassed?

Accepted Answer

The invoice line used a main account that is excluded from budget control in the budget control configuration.. Budget control checks transactions only for main accounts that are included in a budget control rule. If a vendor invoice uses a main account that is not part of any rule, the transaction will not be checked, even if budget control is enabled for the account structure. This explains a single invoice bypassing control while other transactions are checked. The fix is to add the main account to the appropriate budget control rule.

Answer

The invoice was posted by a user who is not assigned to a budget control user group.

Answer

The vendor invoice was posted with a posting date in a period where budget control is turned off.

Answer

The Budget control configuration is not activated for the current fiscal year.

Question 9

A company has a fixed asset that was acquired with a cost of 50,000 and has accumulated depreciation of 30,000. The company decides to sell the asset for 25,000. The Fixed asset posting profile for disposal-sale is configured with a main account for gain/loss. What is the correct accounting entry for this disposal in Dynamics 365 Finance?

Accepted Answer

Debit Cash 25,000, Debit Accumulated depreciation 30,000, Credit Fixed asset 50,000, Credit Gain on disposal 5,000.. The disposal-sale transaction must remove the asset's original cost and accumulated depreciation, record the cash proceeds, and post the difference between net book value and proceeds to the gain/loss account. With a net book value of 20,000 and proceeds of 25,000, the result is a gain of 5,000, making the entry that debits cash and accumulated depreciation, credits fixed asset, and credits gain correct.

Answer

Debit Accumulated depreciation 30,000, Debit Loss on disposal 20,000, Credit Fixed asset 50,000.

Answer

Debit Cash 25,000, Debit Loss on disposal 5,000, Credit Fixed asset 30,000.

Answer

Debit Cash 25,000, Credit Fixed asset 25,000.

Question 10

A new Accounts payable clerk at Contoso, a legal entity in Dynamics 365 Finance, tries to enter a vendor invoice for a vendor that was created yesterday. The clerk can see the vendor in the Vendors list but receives a message that the vendor is on hold and the invoice cannot be posted. The vendor's on-hold status was set during creation because the vendor's tax registration number had not yet been verified. The clerk needs to post the invoice today without deleting the vendor. What should you do?

Accepted Answer

Change the vendor's On hold status to No on the Vendor details page in the Invoice and delivery FastTab.. The vendor hold status is designed to prevent specific transactions (invoice, payment, etc.) for a vendor. The Invoice and delivery FastTab on the Vendor details page contains the On hold fields. Clearing the Invoice hold allows the clerk to post the pending invoice without altering the vendor's identity or history, which is the correct and least disruptive fix.

Answer

Post the invoice using the Vendor invoice pool, which bypasses the hold status.

Answer

Set the vendor's Default invoice type to Credit note, then change it back after posting.

Answer

Delete the vendor and recreate it without a hold status.