MB-310 Practice Question: Implement and Manage Accounts Payable and Expenses
A consulting firm uses Dynamics 365 Finance for expense management. Employees often submit expense reports that include both client-billable and internal expenses. The firm's policy requires that client-billable expenses be charged to a specific customer and project, while internal expenses are charged to a default department. The expense management administrator needs to ensure that employees can select the customer and project on expense lines when the expense is billable. What should the administrator configure?
⚠ Common exam trap
The trap here is assuming that splitting reports or using per diems can handle billable customer and project assignment, when only the Billable option on expense categories exposes those fields.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Configure expense categories with the Billable option enabled and set up the project and customer dimensions to be available on expense lines.
Expense categories with the Billable option enabled expose the Customer and Project fields on expense lines, allowing employees to charge expenses to the appropriate client and project. This configuration directly supports the firm's policy of distinguishing client-billable from internal expenses within the same expense report, while internal lines can still use the default department.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create a separate expense report for billable and internal expenses, and assign different workflows to each report type.
Why it's wrong here
Splitting expense reports by type does not provide the mechanism to select a customer and project on individual lines. While workflows can route reports differently, they do not enable the billable functionality or the customer/project fields, so employees would still be unable to designate billable expenses correctly within a single report.
- ✗
Enable the Itemized expenses parameter and create a project category for each billable expense type.
Why it's wrong here
Itemized expenses allow splitting an expense line into sub-lines for different receipt items, but they do not provide customer and project selection for billable expenses. Project categories classify project transactions but do not by themselves enable the billable flag or customer/project fields on expense lines, so this configuration does not meet the requirement.
- ✗
Set up a per diem rule for billable expenses and assign the customer and project as default dimensions on the employee record.
Why it's wrong here
Per diem rules calculate daily allowances and have no relationship to billable customer or project assignment. Default dimensions on the employee record would apply uniformly and not allow per-line selection of customer and project for billable expenses, so this approach fails to give employees the needed flexibility.
- ✓
Configure expense categories with the Billable option enabled and set up the project and customer dimensions to be available on expense lines.
Why this is correct
In Dynamics 365 Finance, expense categories can be marked as billable, which exposes the Customer and Project fields on expense report lines. By enabling the Billable option on the relevant categories and ensuring project and customer dimensions are available, the administrator allows employees to charge client-billable expenses to the correct customer and project while internal expenses remain on the default department.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
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