MB-310 Implement and Manage Accounts Payable and Expenses Practice Test 3 — 15 Questions

Question 1

Refer to the exhibit. A user submits an expense report for $75.00 under the 'Meals' category. Based on the provided policy JSON, what is the outcome during the expense submission process?

Accepted Answer

The system prevents the user from submitting the expense report.. The policy enforces a hard limit of $50.00 for the Meals category. When the system evaluates the expense, it detects the $75.00 amount exceeds the configured threshold. Because the action is set to HardStop, the system prevents the user from submitting the report entirely. This demonstrates how D365 expense policies act as proactive audit controls to maintain compliance with corporate travel and entertainment spending limits.

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The expense is submitted with a warning, but requires supervisor approval.

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The expense is automatically reduced to $50.00 and submitted.

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The expense is submitted, but flagged for post-payment audit.

Question 2

Which TWO of the following are prerequisites for setting up a vendor payment run using the payment proposal feature? (Choose two)

Accepted Answer

Invoices must have a due date that falls within the proposal criteria.. To generate a payment proposal, the system must have identified vendor invoices that are due or have a discount date approaching. Additionally, the payment method must be correctly configured to define the bank account and file format for the electronic payment. Properly setting up these parameters ensures that the system can accurately filter invoices and create batch payments that meet the organization's cash flow strategy.

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Vendors must be marked as 'On hold' for payment.

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The Vendor invoice must be posted with a 'Disputed' status.

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The vendor must have a credit limit of zero.

Question 3

What is the purpose of the 'Vendor collaboration' module in Dynamics 365 Finance?

Accepted Answer

To facilitate communication and document exchange between the vendor and the buyer.. The Vendor collaboration module allows vendors to interact directly with the company through a portal. Vendors can view purchase orders, confirm delivery dates, and submit invoices. This functionality reduces manual administrative tasks for the accounts payable team and increases accuracy by allowing vendors to provide information directly, which then populates the application and streamlines the procurement and invoicing lifecycle.

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To allow vendors to update their own financial ledger accounts.

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To enable vendors to process and approve their own payments.

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To manage the vendor's internal inventory levels automatically.

Question 4

When setting up a vendor, what is the primary function of a 'Vendor group'?

Accepted Answer

To determine the default posting profile for the vendor.. A vendor group is a mandatory classification used to group vendors for common posting profiles, payment terms, and reporting. It determines which ledger accounts the vendor's transactions will post to by linking to the vendor posting profile. This setup ensures consistent accounting treatment across all vendors within a specific group, simplifying the management of accounts payable and improving the accuracy of financial reporting.

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To define the vendor's credit limit.

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To specify the vendor's primary contact person.

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To automatically apply discounts to all items.

Question 5

A company needs to pay multiple invoices for a single vendor in one payment. Which feature should they use to combine these invoices into a single payment?

Accepted Answer

Payment proposal.. The Payment proposal feature is designed to aggregate multiple open invoices for a vendor into a single payment batch. It allows users to filter by date, vendor, or other criteria, making it the most efficient way to manage bulk disbursements. This streamlines the accounts payable workload, reduces the number of individual bank transactions, and simplifies the reconciliation process at the end of the month.

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Vendor payment journal manual entry.

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Purchase order settlement.

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Vendor invoice journal.

Question 6

What is the primary benefit of using a 'Vendor posting profile'?

Accepted Answer

To automatically direct transactions to the correct General Ledger accounts.. The vendor posting profile is the bridge between the sub-ledger (Accounts Payable) and the General Ledger. It dictates which ledger accounts are hit when a vendor transaction is recorded (e.g., invoice, payment). Using posting profiles ensures that payables are consistently classified, making the financial statements accurate and reducing the effort required for manual month-end reconciliation or accounting corrections.

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To limit the number of vendors a user can pay.

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To calculate the exchange rate for foreign currency vendors.

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To define the vendor's payment terms.

Question 7

A company needs to pay a vendor in a currency different from the accounting currency. Where is the currency set for the vendor?

Accepted Answer

On the Vendor record.. The currency for a vendor is defined on the vendor master record. This setting drives the currency used for all invoices and payments related to that vendor. By setting it correctly at the master level, the system automatically handles the conversion to the accounting currency based on the exchange rates defined in the system, ensuring multi-currency transactions are recorded accurately and financial statements reflect the correct valuation.

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In the Accounts payable parameters.

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On the Vendor group definition.

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In the General Ledger currency settings.

Question 8

What is the purpose of the 'Vendor invoice' journal?

Accepted Answer

To record invoices that are not associated with purchase orders.. The vendor invoice journal is used to manually record invoices that are not associated with a purchase order. It allows for the direct entry of vendor invoices into the system so that they can be paid and tracked in the accounts payable sub-ledger. This is essential for invoices related to expenses like rent, utilities, or services where a formal purchase order process may not be required.

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To create payments for vendors.

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To automatically post all vendor invoices to the bank.

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To manage vendor master data.

Question 9

Refer to the exhibit. What is the cause of this error when posting a vendor invoice?

Accepted Answer

The invoice line is missing the required 'Department' dimension value.. The error occurs because the financial dimension 'Department' is mandatory for the specified ledger account 6001, but it was not provided on the invoice line. This violates the organization's financial dimension setup. To resolve this, the user must update the invoice line with the missing dimension. This error is a critical control, ensuring that all expenses are tagged with the correct cost center for accurate departmental budget reporting.

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The invoice is for a vendor that does not exist.

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The ledger account 6001 is missing the 'Department' dimension in its configuration.

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The 'Department' dimension is disabled in the system.

Question 10

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 11

What is the purpose of the 'Vendor payment fee' setup?

Accepted Answer

To add bank charges to the payment journal.. Vendor payment fees allow organizations to define charges associated with specific payment methods, such as bank processing fees for electronic transfers. These fees are automatically calculated and added to the vendor payment journal during the generation process. This ensures that the financial ledger accurately reflects the total cost of payments, including bank-related charges, which is vital for precise cash management and bank reconciliation.

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To charge vendors for late payments.

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To create a recurring payment schedule.

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To configure the discount amount for early payments.

Question 12

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 13

You are setting up a vendor that operates in multiple currencies. How should you define the currency for this vendor to ensure correct exchange rate usage?

Accepted Answer

On the Vendor record, under the General tab.. The vendor's currency is defined on the Vendor master record. This setting dictates the default currency for all purchase documents created for that vendor. Ensuring the correct currency is set is vital for accurate accounts payable reporting, as the system will use this currency to calculate revaluations and exchange rate gains or losses, maintaining financial accuracy in a global business environment.

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In the Posting profile assigned to the vendor.

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In the Terms of payment configuration.

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In the Account structure configuration.

Question 14

Where do you define the default accounts for vendor payments in Dynamics 365 Finance?

Accepted Answer

In the Vendor posting profile.. Default accounts for vendor payments are defined in the Vendor posting profile. The posting profile maps the vendor transactions to the correct General Ledger accounts, such as the AP trade account, when an invoice is posted or paid. This mapping is fundamental to the system's ability to maintain an accurate and balanced General Ledger, ensuring all financial activities are correctly categorized and traceable.

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In the Vendor group settings.

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In the Bank account configuration.

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In the Ledger parameters.

Question 15

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.