MB-310 Implement and Manage Accounts Payable and Expenses Practice Test 2 — 15 Questions

Question 1

A Dynamics 365 Finance consultant is setting up vendor payments for a legal entity that pays vendors in a foreign currency. The bank account used for payment is in the company currency. The treasurer wants the payment journal to calculate and post exchange differences automatically when the payment settles the invoice. What should the consultant verify?

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

Accepted Answer

That the vendor record has a currency assigned and that the payment journal uses the bank account currency, allowing the system to post exchange differences on settlement.. Exchange differences arise when an invoice and its payment are recorded at different exchange rates. The system determines the invoice currency from the vendor record and the payment currency from the bank account. When the payment settles the invoice, the difference between the two rates is calculated and posted to the configured exchange difference accounts. Verifying the vendor currency and the bank account currency ensures this calculation occurs correctly.

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That the vendor posting profile includes a summary account for realized gains and losses.

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That the payment journal name is restricted to the vendor currency rather than the company currency.

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That the vendor record has a payment fee configured for foreign currency transactions.

Question 2

A legal entity uses centralized payments and needs to pay invoices for vendors that belong to a different legal entity. The accountant configures the vendor for centralized payments in the paying legal entity. Which additional setup is required so the payment proposal can select the other legal entity's open invoices?

Accepted Answer

Create an intercompany accounting relationship between the two legal entities and enable centralized payments for the vendor in each entity.. Centralized payments let one legal entity pay invoices that belong to another. This requires an intercompany relationship between the entities and the vendor to be enabled for centralized payments in both the paying and invoiced entities. With that configuration, the payment proposal in the paying entity can select and settle the other entity's open vendor transactions.

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Set the vendor's default payment method to 'Centralized' and assign a single bank account shared across all legal entities.

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Enable the 'Cross-company payment' parameter in the Accounts payable parameters and select the vendors to include.

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Post a manual journal in the invoiced legal entity to transfer the vendor balance to the paying legal entity before running the proposal.

Question 3

A company uses Dynamics 365 Finance for accounts payable. The accounts payable manager wants to ensure that when a vendor invoice is posted, the system automatically checks that the invoice total does not exceed the total of the matched purchase order lines by more than 5%. Which configuration should you set up?

Accepted Answer

On the Accounts payable parameters page, enable 'Match invoice totals' and then on the Vendor master, in the 'Invoice matching' FastTab, set the 'Invoice total tolerance' to 5%.. Invoice total matching is enabled in Accounts payable parameters, but the tolerance percentage is set on the Vendor master under Invoice matching. Setting 'Match invoice totals' to Yes and then configuring a 5% invoice total tolerance on the vendor record ensures that the system automatically checks that the invoice total does not exceed the matched PO lines total by more than 5% during posting.

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On the Accounts payable parameters page, set the 'Match invoice totals' option to Yes and define a tolerance percentage of 5%.

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On the Accounts payable parameters page, enable 'Match invoice totals' and then on the Item model group, set the 'Invoice total tolerance' to 5%.

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On the Vendor master, set the 'Invoice matching' FastTab to 'Two-way matching' and specify a 5% tolerance.

Question 4

A company wants to streamline the process of paying multiple vendor invoices in a single payment. The accounting team currently creates individual payments for each invoice, which results in higher bank fees. You need to configure the system to combine invoices for the same vendor into one payment. What should you use?

Accepted Answer

Payment proposal with the 'Group by vendor' option enabled.. The payment proposal in Accounts payable allows you to select multiple invoices and group them by vendor, creating a single payment for each vendor. This reduces bank fees and simplifies reconciliation. The 'Group by vendor' option is specifically designed to combine invoices into one payment.

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Payment schedule with multiple installments.

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Vendor payment journal with the 'One payment per invoice' setting.

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Vendor collaboration workspace to approve invoices for payment.

Question 5

A company's accounts payable team needs to pay multiple posted vendor invoices for the same vendor using a single payment. The invoices were posted at different times and have different due dates. The payment proposal must include all open invoices and generate one vendor payment. Which configuration in the Vendor payment proposal should the team use?

Accepted Answer

Set the 'Summarize vendor payments by' field to 'Vendor' in the payment proposal.. The Vendor payment proposal groups open transactions based on the summarization settings. Choosing to summarize by vendor combines all eligible invoices for a vendor into a single payment line, which reduces administrative effort and matches common business practice. Other settings like payment specification or terms do not achieve this aggregation.

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Configure the vendor's 'Payment method' to 'Check' and enable 'Consolidate payments'.

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Set the 'Payment specification' to 'Invoice' in the Vendor payment journal.

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Enable 'Separate payment per invoice' in the Vendor payment terms.

Question 6

An accounts payable manager is configuring vendor payment fees in Dynamics 365 Finance. The organization charges a fee to vendors when payments are made by a specific payment method, and the fee must be posted to a dedicated ledger account. Which TWO setups are required to post vendor payment fees correctly? (Choose two.)

Accepted Answer

Configure the payment fee ledger posting so the fee is recorded to the dedicated fee account.. Vendor payment fees require a fee definition that specifies the amount or percentage and its ledger posting, plus assignment of that fee to the payment method used for the payment. Together these ensure the fee is calculated and posted to the dedicated account when the payment method is applied during payment processing.

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Create a separate vendor record for each fee and link it to the payment method.

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Enable the 'Calculate fees' parameter in the Accounts payable parameters form.

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Assign the fee to the vendor's invoice journal so it is added during invoice posting.

Question 7

A manufacturing company uses Dynamics 365 Finance with Accounts Payable. The controller wants to pay a vendor invoice in three installments over three months without creating separate invoices. The vendor agreement specifies that each installment is due on the 15th of the month. The AP clerk needs to configure the system so that the payment proposal picks up each installment on its due date. What should the clerk do?

Accepted Answer

Create a payment schedule on the vendor invoice with three lines, each with its own due date and percentage, and enable installment payments in the Accounts payable parameters.. A payment schedule on the vendor invoice is the correct feature for splitting one invoice into multiple installments with distinct due dates and amounts. When installment payments are enabled in Accounts payable parameters, the payment proposal treats each schedule line as a separate payment obligation, allowing the AP clerk to pay each installment on its due date without creating multiple invoices or manual adjustments.

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Set up a payment term with three installment lines under Accounts payable payment terms, and assign it to the vendor record.

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Use the Vendor payment proposal with a date range that spans three months and select the invoice three times, manually adjusting the payment amount each time.

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Split the vendor invoice into three separate invoices using the invoice journal, each with a different due date, and post them individually.

Question 8

A vendor submits an invoice for $12,000 with payment terms of 2% 10, Net 30. The accounting manager wants the system to automatically calculate and post the cash discount when the invoice is paid within the discount period. Which configuration should you set up on the vendor record to achieve this?

Accepted Answer

Assign a Cash discount code on the Vendor record's Invoice and Delivery tab.. To automatically calculate and post a cash discount, the vendor must be linked to a cash discount code via the Cash discount field on the vendor's Invoice and Delivery FastTab. This code defines the discount percentage, discount days, and posting accounts. Payment terms alone only establish due dates and do not trigger discount posting. Payment schedules and payment fees serve different purposes and cannot replicate this behavior.

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Set the Default payment terms on the vendor to 2% 10, Net 30 and enable the Calculate cash discount option on the Accounts payable parameters.

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Set the Payment schedule to a schedule that includes a discount line.

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Configure a Vendor payment fee that equals 2% of the invoice amount.

Question 9

A vendor invoice is entered with a total of $5,000, but the three-way matching policy requires that the invoice total must not exceed the sum of received quantities priced at the purchase order unit price. The received quantity is 100 units at $48 each, totaling $4,800. You need the system to hold the invoice from posting and route it for approval rather than reject it outright. Which matching policy configuration should you use?

Accepted Answer

Configure the invoice total matching policy with a tolerance percentage and set the 'Hold invoice' option so the invoice is placed on hold and sent to workflow.. Vendor invoice matching policies define tolerances and how discrepancies are handled. When a three-way matching policy includes an invoice total tolerance, an invoice exceeding that tolerance can be placed on hold. Combined with a vendor invoice workflow, the held invoice is routed for approval rather than rejected, giving reviewers the chance to accept or reject the discrepancy.

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Enable the 'Invoice matching' parameter in Accounts payable parameters and set the matching policy to 'Two-way matching' for this vendor.

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Set the 'Require approval' option on the purchase order line and configure the invoice to bypass matching entirely.

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Set the 'Post invoice with discrepancies' option on the vendor invoice and rely on the workflow to route it for approval.

Question 10

A company uses Dynamics 365 Finance to manage vendor invoices. They want to implement a three-way matching policy that requires purchase order, product receipt, and vendor invoice quantities to match before an invoice can be posted. Which two configurations are required to enforce this policy? (Choose two.)

Accepted Answer

Configure the 'Matching policy' on the Item model group to require product receipt matching.. Three-way matching requires that the item model group's matching policy be configured to require product receipt matching and that this group be assigned to the vendor. This combination ensures that the system validates purchase order, product receipt, and invoice quantities before allowing posting. Global parameters and workflows do not enforce matching; they only provide availability or approval routing.

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Set the 'Invoice matching' field on the Vendor record to 'Three-way matching'.

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Enable the 'Vendor invoice matching' workflow in Accounts payable.

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Enable the 'Match product receipt' option in the Accounts payable parameters.

Question 11

A user needs to process a vendor payment proposal that includes only invoices with a due date on or before the end of the current month. The user also wants to exclude any invoices that are on hold. Which two settings should the user configure in the Vendor payment proposal form?

Accepted Answer

Set the 'From date' and 'To date' in the proposal to the current month's start and end dates.. To include only invoices due on or before the end of the current month, the user must set both the From date and To date in the payment proposal to cover the current month. Invoices on hold are automatically excluded from payment proposals, so no additional setting is needed. Other fields like Minimum payment date or a single due date filter do not achieve the desired result.

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Set the 'Minimum payment date' to the end of the current month.

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Select the 'Due date' filter and enter the current month's end date in the criteria.

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Enable the 'Exclude on-hold invoices' option in the proposal criteria.

Question 12

A vendor invoice is entered in Dynamics 365 Finance with a total of $1,200. The invoice has two lines: one for $800 and one for $400. The invoice matching policy requires a two-way match with a price tolerance of 5% and a quantity tolerance of 10%. The purchase order line for the $800 item has a unit price of $820. The $400 line matches exactly. What is the matching result and what action should the AP clerk take?

Accepted Answer

The invoice passes matching automatically because both price and quantity are within tolerance, and no clerk action is required.. Two-way matching compares invoice line price and quantity to the purchase order. The price difference on the $800 line is within the 5% tolerance, and the other line matches exactly. Therefore, the invoice passes matching automatically and can be posted without manual adjustment.

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The invoice fails matching because the price difference exceeds the tolerance; the clerk must adjust the invoice line price or request a purchase order change.

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The invoice is placed on hold because the quantity tolerance is exceeded; the clerk must confirm receipt of goods before posting.

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The invoice fails matching because the total invoice amount exceeds the purchase order total; the clerk must reduce the invoice amount.

Question 13

A company uses Dynamics 365 Finance to process vendor payments. They want to apply a one-time 2% early payment discount to a specific vendor invoice, but the vendor's default payment terms do not include a discount. The AP manager needs to apply the discount only to this invoice without changing the vendor's default terms. What should the AP manager do?

Accepted Answer

Modify the invoice's payment terms directly on the vendor invoice to include the 2% discount, then post and pay.. To apply an early payment discount to a single invoice, the AP manager can edit the payment terms on that invoice to include the discount. This overrides the vendor's default terms for that transaction only. The payment proposal will then calculate the discount if paid within the discount period, and the ledger will record the discount correctly.

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Set up a cash discount in the Accounts payable parameters and apply it manually during payment proposal.

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Create a new payment term with the 2% discount and assign it to the vendor record, then process the payment.

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Use the 'Vendor transactions' form to manually adjust the invoice balance by 2% before payment.

Question 14

A company is configuring the Accounts payable module in Dynamics 365 Finance. They need to set up vendor payment fees that will be automatically applied when payments are generated. The fees should be calculated based on the payment method and should post to a specific ledger account. Which two configurations are required to achieve this? (Choose two.)

Accepted Answer

Set up a payment fee in the Vendor payment fee form, specifying the fee amount and the ledger account for posting.. To automate vendor payment fees, you must first define the fee in the Vendor payment fee form, including the amount and ledger account. Then, you must associate that fee with the relevant payment method in the Payment method form. This ensures the fee is applied when payments are generated using that method.

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Configure the fee in the Accounts payable parameters under the 'Payment' tab.

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Set up a ledger posting profile for the fee in the Vendor posting profile form.

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Create a new payment term that includes the fee as a surcharge.

Question 15

A company requires that vendor invoices for services be approved by the department manager before they can be posted. Which configuration must be enabled in Accounts payable parameters?

Accepted Answer

Activate 'Vendor invoice workflow' in the Accounts payable parameters.. Activating the vendor invoice workflow is the primary mechanism to enforce hierarchical approval logic in Dynamics 365. When enabled, the invoice status transitions from 'Draft' to 'In Review', preventing posting until final approval. This ensures internal controls are satisfied by verifying that expenses align with departmental budgets and service expectations before financial impacts are recorded in the general ledger.

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Enable the 'Post invoice automatically' parameter.

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Configure the 'Allow invoice matching' parameter.

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Set the 'Financial dimensions' validation to Mandatory.