MB-310 Manage Budgeting Practice Test 4 — 15 Questions

Question 1

A Contoso finance specialist is configuring budget control for a new fiscal year. The company wants to ensure that when a purchase requisition is submitted, the system checks whether sufficient budget remains. The budget manager selects the budget control rule and the budget funds available definition. However, when a test purchase requisition is submitted, no budget check occurs. What is the most likely cause?

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

Accepted Answer

Budget control is not enabled for the legal entity.. Budget control in Dynamics 365 Finance is enabled at the legal entity level via the Budget control configuration page. Enabling this parameter activates the budget check for all applicable source documents, including purchase requisitions. Without it, no validation occurs regardless of rules or funds-available definitions. Therefore, the missing activation is the root cause.

Answer

The budget funds available definition does not include the correct budget model.

Answer

The purchase requisition workflow is not configured to include a budget check task.

Answer

The purchase requisition was created with a budget-checking override.

Question 2

A Contoso budget manager needs to register a new budget register entry that combines multiple ledger accounts and dimensions in one transaction. They must ensure the entry can be posted and tracked as a single document. Which configuration should they use?

Accepted Answer

Create a budget register entry with multiple lines for the different accounts and dimensions, then post it.. A budget register entry supports multiple lines, each with its own account and dimension combination, and posts as one document. This allows the budget manager to record budget amounts for several accounts together while maintaining a single reference for tracking and auditing. Other methods either split the transaction or use a different transaction type that does not provide the same combined entry.

Answer

Configure a budget control rule that aggregates accounts, then post individual entries per account.

Answer

Use a budget transfer to combine accounts, then post the transfer as a budget register entry.

Answer

Create a budget register entry with a single line, then split it after posting.

Question 3

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'.

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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 4

A finance user needs to review the budget versus actual expenditures for a specific department for the current year. Which Dynamics 365 Finance feature should they use?

Accepted Answer

Budget vs. actuals inquiry. The Budget vs. actuals inquiry is the standard feature for comparing budgeted amounts to actual expenditures. It allows filtering by dimensions such as department and by period, providing a clear view of remaining budget and spending. Other options are configuration or transaction entry pages that do not offer this comparative analysis.

Answer

Budget planning

Answer

Budget control configuration

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Budget register entries

Question 5

A company is implementing budget control in Dynamics 365 Finance. They need to ensure that budget checks are performed for purchase requisitions and purchase orders. Which two configurations are required? (Choose two.)

Accepted Answer

Enable budget control for the legal entity.. To have budget checks performed on purchase requisitions and purchase orders, you must enable budget control for the legal entity and define budget control rules that cover the relevant accounts and dimensions. These two steps activate the budget checking engine and specify the scope of transactions that will be validated against available budget.

Answer

Create a budget model and assign it to the budget control configuration.

Answer

Set up budget transfer rules.

Answer

Configure budget planning stages.

Question 6

A Contoso controller needs to ensure that only budget amounts entered by users assigned to the 'BudgetManager' security role are included when a budget register entry is posted, while amounts from other roles are held for review. The budget register entry uses a workflow that is already active. Which configuration should the controller use to enforce this requirement?

Accepted Answer

Create a budget register entry workflow that uses a conditional decision based on the originator's security role, and route entries from other roles to a review task.. The requirement is to include only amounts entered by users in the BudgetManager role and hold others for review. A budget register entry workflow with a conditional decision based on the originator's role accomplishes this by routing entries from other roles to a review task. Budget control and approver settings deal with budget availability and over-budget approvals, not with filtering by submitting user role.

Answer

Assign the BudgetManager role to the workflow's approval step and set the workflow to reject entries from other roles.

Answer

Enable budget control on the BudgetManager role and configure the budget manager as the budget control approver.

Answer

Configure budget control on the BudgetManager role and set the budget threshold to 100 percent.

Question 7

You are configuring budget control for a new legal entity in Microsoft Dynamics 365 Finance. The organization requires that budget checks occur for purchase requisitions and vendor invoices, and that over-budget warnings are displayed to users without preventing posting. Which two configuration actions must you perform to meet these requirements? (Choose two.)

Accepted Answer

Set the budget control rule's over-budget permission to Warn instead of Deny.. To enforce budget checks on purchase requisitions and vendor invoices, budget control must be enabled and the relevant budget control rule activated. To allow over-budget transactions with warnings rather than blocking them, the over-budget permission on the rule must be set to Warn. These two actions together satisfy the requirements without unnecessary configuration.

Answer

Define a budget model for each department and assign it to the budget control rule.

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Create a budget transfer entry to move funds between departments before each purchase requisition.

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Set the budget control configuration's threshold to zero so that all transactions are checked.

Question 8

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 9

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 10

You are setting up budget control for a legal entity that uses multiple budget dimensions, including Department, CostCenter, and Purpose. The finance team wants budget checks to validate only the Department and CostCenter dimensions, ignoring Purpose. Which configuration should you modify to achieve this?

Accepted Answer

Budget control rule. Budget control rules determine the dimensions, time interval, and source documents that are subject to budget checks. To validate only Department and CostCenter while ignoring Purpose, you configure the budget control rule to include those dimensions and exclude Purpose. Other configurations such as budget models, codes, or planning processes do not influence which dimensions are checked.

Answer

Budget planning process

Answer

Budget model

Answer

Budget code

Question 11

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 12

A Dynamics 365 Finance user needs to transfer budget amounts from one department to another within the same fiscal year. The organization uses budget register entries for all budget adjustments. Which budget code should the user select to record this transfer?

Accepted Answer

Transfer. A budget transfer moves budget amounts from one department to another without changing the total budget. The Transfer budget code is specifically intended for this purpose. Original budget is for initial setup, Revision changes total budget, and Encumbrance reserves funds for commitments. Therefore, Transfer is the correct budget code for this scenario.

Answer

Encumbrance

Answer

Revision

Answer

Original budget

Question 13

A Contoso budget manager needs to allow department managers to draft budget plan lines and attach supporting documentation, but the lines must not affect the approved budget until a controller reviews and approves them. The budget planning workflow already includes a controller approval task. Which configuration should you apply to the budget planning stage that department managers use?

Accepted Answer

On the budget planning stage, clear the option that posts the budget plan to the budget register.. The budget planning stage controls whether lines that are entered during that stage are posted to the budget register. When the posting option is cleared, department managers can enter and attach documentation without affecting approved budget amounts. The controller's approval task in the workflow then allows the stage that posts to the register to run, so only approved lines update budget balances.

Answer

Create a separate budget planning process for each department and set the budget planning stage to use a different budget register entry.

Answer

Configure the budget planning stage to post to the budget register and rely on the workflow rejection to reverse entries if the controller declines.

Answer

Set the stage's budget planning workflow to use a manual task and mark the stage as read-only.

Question 14

An organization using Microsoft Dynamics 365 Finance wants to ensure that when a purchase requisition is submitted, it is checked against the available budget before it can proceed to approval. They have already configured budget control and enabled it for the legal entity. What must be configured next to enforce this check specifically on purchase requisitions?

Accepted Answer

Create a budget control rule that includes the Purchasing expenditure type and the appropriate budget dimensions.. To enforce budget check on purchase requisitions, a budget control rule must be created that includes the Purchasing expenditure type and the relevant dimensions. Budget control parameters and budget groups are supporting configurations, but the rule is what determines which documents are checked. Workflows are separate from budget control. Therefore, creating the appropriate budget control rule is the necessary next step.

Answer

Configure the budget control parameters to enable budget check for purchase requisitions.

Answer

Set up a budget group for purchase requisitions and assign it to the budget control configuration.

Answer

Activate the budget control workflow for purchase requisitions in the workflow editor.

Question 15

A Fabrikam controller creates a budget transfer in the budget register. The transfer moves 50,000 from the Operations budget account to the Marketing budget account. Both accounts are under budget control with the same budget model and budget cycle. After posting the transfer, the controller notices that budget control availability for Operations decreased, but Marketing availability did not increase. What is the most likely cause?

Accepted Answer

The transfer line for Marketing used a budget class of Transfer In, but the budget account's dimension combination did not match the budget account defined in the budget control rule.. Budget control matches register entries to rules by the budget account dimension combination. A transfer-in line whose dimensions do not match a budget account in the rule is not counted toward Marketing's available budget, while the transfer-out line that does match reduces Operations. Verifying the dimension combination on the transfer line against the budget control rule resolves the discrepancy.

Answer

The budget transfer used a budget register entry type that is excluded from budget control.

Answer

The Marketing budget account is not included in the budget control rule's budget group.

Answer

Budget control checks only decrease entries, so increases are never reflected in availability until the next budget cycle.