MB-310 Implement and Manage Accounts Payable and Expenses Practice Test 4 — 15 Questions

Question 1

A vendor invoice for 1,200 EUR is posted on March 15 with an exchange rate to USD of 1.10, resulting in a payable of 1,320 USD. The invoice remains unpaid at the end of the month. On March 31, the exchange rate is 1.15. The accounts payable manager runs the foreign currency revaluation for accounts payable. Which ledger account is debited by the revaluation posting, and for what amount?

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

Accepted Answer

Unrealized loss account, 60 USD. When the EUR-to-USD rate increases after invoice posting, the USD-equivalent payable grows, creating an unrealized loss. Foreign currency revaluation for accounts payable debits the unrealized loss account and credits the vendor balance for the 60 USD difference. This keeps the payable aligned with the current rate without modifying the original invoice or the vendor master.

Answer

Unrealized gain account, 60 USD

Answer

Vendor balance account, 1,380 USD

Answer

Vendor balance account, 60 USD

Question 2

A new accounts payable clerk must record a vendor invoice that is not tied to a purchase order. The clerk needs the invoice to be available for a payment proposal in the next payment run. Which journal type should the clerk use to enter the invoice?

Accepted Answer

Vendor invoice journal. The vendor invoice journal is the correct entry point for a non-PO vendor invoice because it immediately posts to the vendor balance and creates an open payable. Only posted, open vendor transactions are considered by the payment proposal. The invoice register holds invoices before approval, so it would not make the invoice available in time.

Answer

General journal

Answer

Invoice register journal

Answer

Vendor disbursement journal

Question 3

A Dynamics 365 Finance accounts payable manager needs to configure the system so that vendor invoices entered in the pending vendor invoice form can be posted only after a three-way matching check against the purchase order and product receipt. The matching must block posting when the net unit price variance exceeds 5 percent. What should the manager configure first?

Accepted Answer

Set up an invoice matching policy with a three-way matching requirement and assign a price tolerance of 5 percent.. Three-way matching and price tolerances are both defined inside an invoice matching policy. The policy is attached to a vendor or item and determines whether the system requires purchase order, product receipt, and invoice alignment. Setting a 5 percent price tolerance within that policy causes the system to hold or block posting when the calculated variance exceeds the limit, which is exactly what the manager needs.

Answer

Configure a procurement category hierarchy and assign it to the vendor record.

Answer

Create a vendor posting profile that requires approval before posting pending vendor invoices.

Answer

Enable the Invoice register journal and set the journal name to require approval before transfer.

Question 4

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.

Answer

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

Answer

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

Answer

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

Question 5

A company uses the Expense management module. An employee submits an expense report that includes a hotel charge of 500 USD. The expense policy requires a receipt for any expense over 100 USD. The employee did not attach a receipt. The policy is configured with the 'Receipt required' rule and the 'Warn' action. What happens when the employee submits the report?

Accepted Answer

The report is submitted with a warning message, and the approver can see the policy violation.. Expense policies in Dynamics 365 Finance can be configured with actions such as Warn, Deny, or Allow. When the action is Warn, the employee can still submit the report, but a warning is displayed and the violation is visible to the approver. This allows the business to enforce awareness without hard-blocking submission, leaving the final decision to the approver.

Answer

The report is automatically rejected and returned to the employee.

Answer

The report is blocked and cannot be submitted until a receipt is attached.

Answer

The report is submitted without any notification because the amount is under the policy limit.

Question 6

An accounts payable clerk in Dynamics 365 Finance needs to record a vendor invoice that has no purchase order reference, and the invoice must be posted immediately to the vendor balance without going through a pending invoice approval. Which journal should the clerk use?

Accepted Answer

Vendor invoice journal. The vendor invoice journal posts vendor invoices directly to the ledger and vendor balance without requiring a purchase order or a pending invoice workflow. It is the standard journal for recording non-PO invoices that must be recognized immediately. The invoice register and invoice pool are intermediate stages that delay posting, and the disbursement journal records payments rather than invoice expenses.

Answer

Vendor invoice pool journal

Answer

Vendor disbursement journal

Answer

Invoice register journal

Question 7

A company is configuring expense management in Dynamics 365 Finance. Controllers want to ensure that expense reports submitted by employees are routed to the correct approver and that certain categories require a receipt. Which two configurations should the functional consultant set up? (Choose two.)

Accepted Answer

Set the Receipt required option on the relevant expense categories in the Expense management setup.. Approval routing is controlled by the expense report workflow, where approval elements can be conditioned on report total or cost center. Mandatory receipts are controlled per expense category through the Receipt required setting. Together these two configurations ensure reports reach the right approver and that receipts are enforced for the categories the controllers choose.

Answer

Create a new expense policy that restricts the maximum amount per expense line to zero.

Answer

Configure per diem locations and assign them to the employees who travel.

Answer

Assign each employee a default expense category in the worker record.

Question 8

A vendor invoice for 100 units of an item is entered for a purchase order line that has a confirmed quantity of 100 units, but the product receipt was posted for only 80 units. The invoice matching policy for the legal entity requires three-way matching and has 'Allow matching discrepancies' disabled. A user attempts to post the invoice. What happens when the user clicks Post?

Accepted Answer

Posting is blocked with a matching discrepancy error because the invoice quantity exceeds the received quantity and discrepancies are not allowed.. Three-way matching compares the vendor invoice against both the purchase order and the product receipt. Because the received quantity is lower than the invoiced quantity and the matching policy disallows discrepancies, the system blocks posting and reports a matching failure. The invoice can only be posted after the receipt is corrected or the invoice quantity is reduced to match what was actually received.

Answer

The invoice is posted and an inventory adjustment is created for the missing 20 units.

Answer

The invoice posts only after the user approves it through the invoice matching workflow regardless of the discrepancy setting.

Answer

The invoice posts, but the quantity discrepancy is recorded on the purchase order for later review.

Question 9

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

Question 10

A legal firm uses Dynamics 365 Finance for accounts payable. When a new vendor is created, the firm must ensure that all future vendor invoices for that vendor are automatically eligible for 1099 reporting. Which configuration should you set on the vendor record?

Accepted Answer

On the Vendor master, in the Tax 1099 section, set the Report 1099 field to Yes and assign the appropriate 1099 box.. The Report 1099 field on the vendor record, along with the associated 1099 box, is the correct configuration to make a vendor reportable for 1099 purposes. When set to Yes, it ensures that all posted invoices for that vendor are automatically included in 1099 reporting without requiring per-invoice changes. This meets the requirement of automatic eligibility upon vendor creation.

Answer

On the Vendor master, set the Vendor group to a group that has the '1099' purpose assigned.

Answer

On the Vendor master, set the Tax exempt number for the vendor.

Answer

On the Vendor master, set the Default description to include '1099'.

Question 11

A vendor invoice for $12,000 has a payment term of Net 30. The accounting manager wants the system to automatically apply a 2% early payment discount if the invoice is paid within 10 days. The discount is not currently being calculated on the payment proposal. You need to configure the system so the discount is calculated and posted correctly. What should you do first?

Accepted Answer

Set up a cash discount code in Accounts payable > Payment setup > Cash discounts and assign it to the vendor invoice.. Cash discounts in Dynamics 365 Finance are defined through cash discount codes, which store the discount percentage, the number of days the discount is available, and the ledger accounts for the discount. Assigning the code to the vendor or invoice enables the payment proposal and payment journal to calculate and post the discount. Without this setup, no discount logic is applied.

Answer

Configure a payment schedule in Accounts payable > Payment setup > Payment schedules and attach it to the vendor.

Answer

Create a payment fee in Accounts payable > Payment setup > Payment fee and assign it to the vendor.

Answer

Set the vendor's default payment method to a method that supports cash discounts.

Question 12

A company uses invoice matching on purchase orders. A vendor invoice for a purchase order has a quantity of 100 units at $10 each, but the product receipt shows 95 units received. The invoice matching policy is set to three-way matching with a quantity tolerance of 2%. The invoice is currently on hold. You need to determine why the invoice is on hold and what action will release it. What is the correct explanation?

Accepted Answer

The quantity difference is 5%, which exceeds the 2% tolerance, so the invoice is on hold and must be manually approved or the receipt quantity updated.. Three-way matching compares the invoice quantity to the product receipt quantity. With a 2% tolerance, a 5% difference (100 vs 95 units) exceeds the allowed variance, so the system places the invoice on hold. Releasing the hold requires either manual approval of the discrepancy or correcting the receipt quantity to match the invoice within tolerance.

Answer

The invoice is on hold because the vendor is blocked for invoice posting.

Answer

The invoice is on hold because the price tolerance was exceeded, not the quantity tolerance.

Answer

The invoice is on hold because three-way matching requires a purchase order, product receipt, and invoice, and the product receipt is missing.

Question 13

A company wants employees to submit expense reports through the Expense Management workspace, and the controller must approve reports before reimbursement. Employees should only be able to select expense categories assigned to their policy. Which setup controls which expense categories an employee can choose on an expense report?

Accepted Answer

The expense policy assigned to the employee, which includes the allowed expense categories.. Expense policies define the categories employees may select and the rules that apply to them. Assigning the correct policy to an employee limits the category list on the expense report and ties into workflow so the controller can approve before reimbursement. Per diem and cost center settings support calculations and posting but do not control category availability.

Answer

The expense report workflow configuration that lists categories for each approver.

Answer

The expense category assigned to the employee's default cost center.

Answer

The per diem configuration for the employee's location.

Question 14

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.

Answer

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

Answer

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

Answer

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 15

A vendor invoice for $12,000 is posted in Legal entity A. The shared service center in Legal entity B must pay this invoice on behalf of Legal entity A using centralized payments. You configure the payment journal in Legal entity B and select the invoice for payment. Which configuration must be in place so that the accounting entries are recorded correctly in Legal entity A while the payment is processed from Legal entity B?

Accepted Answer

Set up the vendor in Legal entity A with the 'Centralized payment' option enabled and define the intercompany relationship with Legal entity B.. Centralized payments let one legal entity pay invoices that belong to another legal entity. The originating vendor must have the centralized payment option enabled, and intercompany accounting must be configured between the two legal entities. When the payment journal is posted in the processing entity, the system automatically generates the corresponding vendor and ledger entries in the originating entity.

Answer

Enable the 'Centralized payments' option in the Accounts payable parameters of Legal entity A and set Legal entity B as the payment processing entity.

Answer

Create a duplicate vendor record in Legal entity B and manually post a balancing journal entry in Legal entity A after payment.

Answer

Configure the payment journal in Legal entity B to use a ledger account from Legal entity A through the 'Offset account' field on each journal line.