2025/December Latest Braindump2go MB-310 Exam Dumps with PDF and VCE Free Updated Today! Following are some new Braindump2go MB-310 Real Exam Questions!
QUESTION 1
Case Study 1 – Fourth Coffee
Background
Fourth Coffee is a coffee and supplies manufacturer based in Seattle. The company recently purchased CompanyA, based in the United States, and CompanyB, based in Canada, in order to increase production of their award-winning espresso machine and distribution of their dark roast coffee beans, respectively.
Fourth Coffee has set up CompanyA and CompanyB in their Dynamics 365 Finance environment to gain better visibility into the companies’ profitability. CompanyA and CompanyB will continue to operate as subsidiaries of Fourth Coffee, but all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.
The current organizational chart is shown below:
Current environment
Systemwide setup
Dynamics 365 Finance in Microsoft Azure is used to manage the supply chain, retail, and financials.
All companies share a Chart of Accounts.
Two dimensions are used: Department and Division.
Budgeting is controlled at the department level.
Customers and vendors are defined as two groups: Domestic and International.
Mandatory credit check is set to No.
Consolidate online is used for the consolidation of all companies.
International main accounts are subject to foreign currency revaluation.
The purchasing budget is used to enforce purchasing limits.
General ledger accounts
Fourth Coffee
The base currency is USD.
Three item groups are used: coffee, supplies, and nonstock.
The standard sales tax method is used.
Acquiring fixed assets requires a purchase order.
All customer payment journals require a deposit slip.
CustomerX is a taxable company.
CustomerY is a tax-exempt company.
CustomerZ is a taxable company.
VendorA is a Colombian supplier of coffee beans and belongs to the international vendor group.
VendorB is a Peruvian supplier of coffee machine filters and belongs to the international vendor group.
VendorC is a Texas supplier of espresso valves and belongs to the domestic vendor group.
CompanyA
The base currency is USD.
It consists of a marketing department and a digital division.
A 4-5-4 calendar structure is used.
The standard sales tax method is used.
CompanyB
The base currency is CAD.
The conditional sales tax method is used.
Requirements
Reporting
A consolidated Fourth Coffee financial report is required in USD currency.
Fourth Coffee and its subsidiaries need to be able to report sales by item type.
Year-end adjustments need to be reported separately in a different period to view financial reporting inclusive and exclusive of year-end adjustments.
Issues
User1 observes that a General journal was used in error to post to the Domestic Accounts Receivable trade account.
User2 has to repeatedly reclassify vendor invoice journals in Fourth Coffee Company that are posted to the marketing department and digital division.
When User3 posts an Accounts receivable payment journal, a deposit slip is not generated.
User4 observes an increase in procurement department expenses for supplies.
User5 observes that sales tax is not calculating on a sales order for CustomerZ.
User6 observes that sales tax is calculating for CustomerY.
User7 observes that the sales tax payment report is excluding posted invoice transactions.
User8 in CompanyA attempts to set up the sales tax receivable account on the sales tax posting form.
User9 in CompanyA needs to purchase three tablets by using a purchase order and record the devices as fixed assets.
CustomerX requires a credit check when making a purchase and is currently at their credit limit.
You need to correct the sales tax setup to resolve User5’s issue.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Populate the sales tax code on the sales order line.
B. Assign the sales tax group to CustomerY.
C. Assign the relevant sales tax code to both the sales tax and item sales tax groups.
D. Populate the item sales tax group field on the sales order line.
E. Populate the sales tax group field on the sales order line.
Answer: CDE
Explanation:
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/indirect-taxes-overview
QUESTION 2
Case Study 1 – Fourth Coffee
Background
Fourth Coffee is a coffee and supplies manufacturer based in Seattle. The company recently purchased CompanyA, based in the United States, and CompanyB, based in Canada, in order to increase production of their award-winning espresso machine and distribution of their dark roast coffee beans, respectively.
Fourth Coffee has set up CompanyA and CompanyB in their Dynamics 365 Finance environment to gain better visibility into the companies’ profitability. CompanyA and CompanyB will continue to operate as subsidiaries of Fourth Coffee, but all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.
The current organizational chart is shown below:
Current environment
Systemwide setup
Dynamics 365 Finance in Microsoft Azure is used to manage the supply chain, retail, and financials.
All companies share a Chart of Accounts.
Two dimensions are used: Department and Division.
Budgeting is controlled at the department level.
Customers and vendors are defined as two groups: Domestic and International.
Mandatory credit check is set to No.
Consolidate online is used for the consolidation of all companies.
International main accounts are subject to foreign currency revaluation.
The purchasing budget is used to enforce purchasing limits.
General ledger accounts
Fourth Coffee
The base currency is USD.
Three item groups are used: coffee, supplies, and nonstock.
The standard sales tax method is used.
Acquiring fixed assets requires a purchase order.
All customer payment journals require a deposit slip.
CustomerX is a taxable company.
CustomerY is a tax-exempt company.
CustomerZ is a taxable company.
VendorA is a Colombian supplier of coffee beans and belongs to the international vendor group.
VendorB is a Peruvian supplier of coffee machine filters and belongs to the international vendor group.
VendorC is a Texas supplier of espresso valves and belongs to the domestic vendor group.
CompanyA
The base currency is USD.
It consists of a marketing department and a digital division.
A 4-5-4 calendar structure is used.
The standard sales tax method is used.
CompanyB
The base currency is CAD.
The conditional sales tax method is used.
Requirements
Reporting
A consolidated Fourth Coffee financial report is required in USD currency.
Fourth Coffee and its subsidiaries need to be able to report sales by item type.
Year-end adjustments need to be reported separately in a different period to view financial reporting inclusive and exclusive of year-end adjustments.
Issues
User1 observes that a General journal was used in error to post to the Domestic Accounts Receivable trade account.
User2 has to repeatedly reclassify vendor invoice journals in Fourth Coffee Company that are posted to the marketing department and digital division.
When User3 posts an Accounts receivable payment journal, a deposit slip is not generated.
User4 observes an increase in procurement department expenses for supplies.
User5 observes that sales tax is not calculating on a sales order for CustomerZ.
User6 observes that sales tax is calculating for CustomerY.
User7 observes that the sales tax payment report is excluding posted invoice transactions.
User8 in CompanyA attempts to set up the sales tax receivable account on the sales tax posting form.
User9 in CompanyA needs to purchase three tablets by using a purchase order and record the devices as fixed assets.
CustomerX requires a credit check when making a purchase and is currently at their credit limit.
You need to troubleshoot the reporting issue for User7.
Why are some transactions being excluded?
A. User7 is running the report in CompanyB.
B. User7 is running the report in CompanyA.
C. The report is correctly excluding CustomerY transactions.
D. The report is correctly excluding CustomerZ transactions.
Answer: C
QUESTION 3
Case Study 1 – Fourth Coffee
Background
Fourth Coffee is a coffee and supplies manufacturer based in Seattle. The company recently purchased CompanyA, based in the United States, and CompanyB, based in Canada, in order to increase production of their award-winning espresso machine and distribution of their dark roast coffee beans, respectively.
Fourth Coffee has set up CompanyA and CompanyB in their Dynamics 365 Finance environment to gain better visibility into the companies’ profitability. CompanyA and CompanyB will continue to operate as subsidiaries of Fourth Coffee, but all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.
The current organizational chart is shown below:
Current environment
Systemwide setup
Dynamics 365 Finance in Microsoft Azure is used to manage the supply chain, retail, and financials.
All companies share a Chart of Accounts.
Two dimensions are used: Department and Division.
Budgeting is controlled at the department level.
Customers and vendors are defined as two groups: Domestic and International.
Mandatory credit check is set to No.
Consolidate online is used for the consolidation of all companies.
International main accounts are subject to foreign currency revaluation.
The purchasing budget is used to enforce purchasing limits.
General ledger accounts
Fourth Coffee
The base currency is USD.
Three item groups are used: coffee, supplies, and nonstock.
The standard sales tax method is used.
Acquiring fixed assets requires a purchase order.
All customer payment journals require a deposit slip.
CustomerX is a taxable company.
CustomerY is a tax-exempt company.
CustomerZ is a taxable company.
VendorA is a Colombian supplier of coffee beans and belongs to the international vendor group.
VendorB is a Peruvian supplier of coffee machine filters and belongs to the international vendor group.
VendorC is a Texas supplier of espresso valves and belongs to the domestic vendor group.
CompanyA
The base currency is USD.
It consists of a marketing department and a digital division.
A 4-5-4 calendar structure is used.
The standard sales tax method is used.
CompanyB
The base currency is CAD.
The conditional sales tax method is used.
Requirements
Reporting
A consolidated Fourth Coffee financial report is required in USD currency.
Fourth Coffee and its subsidiaries need to be able to report sales by item type.
Year-end adjustments need to be reported separately in a different period to view financial reporting inclusive and exclusive of year-end adjustments.
Issues
User1 observes that a General journal was used in error to post to the Domestic Accounts Receivable trade account.
User2 has to repeatedly reclassify vendor invoice journals in Fourth Coffee Company that are posted to the marketing department and digital division.
When User3 posts an Accounts receivable payment journal, a deposit slip is not generated.
User4 observes an increase in procurement department expenses for supplies.
User5 observes that sales tax is not calculating on a sales order for CustomerZ.
User6 observes that sales tax is calculating for CustomerY.
User7 observes that the sales tax payment report is excluding posted invoice transactions.
User8 in CompanyA attempts to set up the sales tax receivable account on the sales tax posting form.
User9 in CompanyA needs to purchase three tablets by using a purchase order and record the devices as fixed assets.
CustomerX requires a credit check when making a purchase and is currently at their credit limit.
You need to determine why CustomerX is unable to confirm another sales order.
What are two possible reasons? Each answer is a complete solution.
NOTE: Each correct selection is worth one point.
A. The credit limit parameter is set to Balance + All.
B. The credit limit is set to 0.
C. An inventory item is out of stock.
D. The inventory safety stock is set to 0.
Answer: AC
QUESTION 4
Case Study 1 – Fourth Coffee
Background
Fourth Coffee is a coffee and supplies manufacturer based in Seattle. The company recently purchased CompanyA, based in the United States, and CompanyB, based in Canada, in order to increase production of their award-winning espresso machine and distribution of their dark roast coffee beans, respectively.
Fourth Coffee has set up CompanyA and CompanyB in their Dynamics 365 Finance environment to gain better visibility into the companies’ profitability. CompanyA and CompanyB will continue to operate as subsidiaries of Fourth Coffee, but all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.
The current organizational chart is shown below:
Current environment
Systemwide setup
Dynamics 365 Finance in Microsoft Azure is used to manage the supply chain, retail, and financials.
All companies share a Chart of Accounts.
Two dimensions are used: Department and Division.
Budgeting is controlled at the department level.
Customers and vendors are defined as two groups: Domestic and International.
Mandatory credit check is set to No.
Consolidate online is used for the consolidation of all companies.
International main accounts are subject to foreign currency revaluation.
The purchasing budget is used to enforce purchasing limits.
General ledger accounts
Fourth Coffee
The base currency is USD.
Three item groups are used: coffee, supplies, and nonstock.
The standard sales tax method is used.
Acquiring fixed assets requires a purchase order.
All customer payment journals require a deposit slip.
CustomerX is a taxable company.
CustomerY is a tax-exempt company.
CustomerZ is a taxable company.
VendorA is a Colombian supplier of coffee beans and belongs to the international vendor group.
VendorB is a Peruvian supplier of coffee machine filters and belongs to the international vendor group.
VendorC is a Texas supplier of espresso valves and belongs to the domestic vendor group.
CompanyA
The base currency is USD.
It consists of a marketing department and a digital division.
A 4-5-4 calendar structure is used.
The standard sales tax method is used.
CompanyB
The base currency is CAD.
The conditional sales tax method is used.
Requirements
Reporting
A consolidated Fourth Coffee financial report is required in USD currency.
Fourth Coffee and its subsidiaries need to be able to report sales by item type.
Year-end adjustments need to be reported separately in a different period to view financial reporting inclusive and exclusive of year-end adjustments.
Issues
User1 observes that a General journal was used in error to post to the Domestic Accounts Receivable trade account.
User2 has to repeatedly reclassify vendor invoice journals in Fourth Coffee Company that are posted to the marketing department and digital division.
When User3 posts an Accounts receivable payment journal, a deposit slip is not generated.
User4 observes an increase in procurement department expenses for supplies.
User5 observes that sales tax is not calculating on a sales order for CustomerZ.
User6 observes that sales tax is calculating for CustomerY.
User7 observes that the sales tax payment report is excluding posted invoice transactions.
User8 in CompanyA attempts to set up the sales tax receivable account on the sales tax posting form.
User9 in CompanyA needs to purchase three tablets by using a purchase order and record the devices as fixed assets.
CustomerX requires a credit check when making a purchase and is currently at their credit limit.
Hotspot Question
You need to configure settings to resolve User1’s issue.
Which settings should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Answer:
QUESTION 5
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You are configuring the year-end setup in Dynamics 365 Finance.
You need to configure the year-end setup to meet the following requirements:
The accounting adjustments that are received in the first quarter must be able to be posted into the previous year’s Period 13.
The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions.
All dimensions from profit and loss must carry over into the retained earnings.
All future and previous periods must have an On Hold status.
Solution:
Configure General ledger parameters.
– Set the Delete close of year transactions option to Yes.
– Set the Create closing transactions during transfer option to Yes.
– Set the Fiscal year status to permanently closed option to No.
Define the Year-end close template.
– Designate a retained earnings main account for each legal entity.
– Set the Financial dimensions will be used on the Opening transactions option to No.
– Set the Transfer profit and loss dimensions’ option to Close All.
Set future Ledger periods to a status of On Hold.
Does the solution meet the goal?
A. Yes
B. No
Answer: A
Explanation:
For profit and loss accounts, you can select to maintain the financial dimensions (Close all) when the balances are moved to Retained earnings.
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/tasks/close-fiscal-year
QUESTION 6
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You are configuring the year-end setup in Dynamics 365 Finance.
You need to configure the year-end setup to meet the following requirements:
The accounting adjustments that are received in the first quarter must be able to be posted into the previous year’s Period 13.
The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions.
All dimensions from profit and loss must carry over into the retained earnings.
All future and previous periods must have an On Hold status.
Solution:
Configure General ledger parameters.
– Set the Delete close of year transactions option to Yes.
– Set the Create closing transactions during transfer option to Yes.
– Set the Fiscal year status to permanently closed option to Yes.
Define the Year-end close template.
– Designate a retained earnings main account for each legal entity.
– Set the Financial dimensions will be used on the Opening transactions option to Yes.
– Set the Transfer profit and loss dimensions to Close All.
Set all prior and future Ledger periods to a status of On Hold.
Does the solution meet the goal?
A. Yes
B. No
Answer: B
Explanation:
Set the Financial dimensions will be used on the Opening transactions should be set to NO. Opening transactions are Balance sheet accounts only. They don’t need financial dimensions. Dimensions only apply to Profit & Loss accounts.
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/general-ledger/year-end-close
QUESTION 7
A company plans to create a new allocation rule for electric utilities expenses.
The allocation rule must meet the following requirements:
– Distribute overhead utility expense to each department.
– Define how and in what proportion the source amounts must be distributed on various destination lines.
You need to configure the allocation rule.
Which allocation method should you use?
A. Distribute the source document amount equally
B. Fixed weight
C. Equally
D. Basis
Answer: D
Explanation:
This variable method is used when the allocation depends on the actual ledger balance, based on filter criteria. For example, advertising expenses can be allocated based on each department’s sales in proportion to the total departmental sales.
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/general-ledger/ledger-allocation-rules
QUESTION 8
You are configuring intercompany accounting for a multicompany enterprise.
You need to set up the Due to and Due from accounts.
Which main account type should you use?
A. Profit and loss
B. Expense
C. Balance sheet
D. Liability
E. Asset
Answer: C
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/general-ledger/intercompany-accounting-setup
QUESTION 9
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A client has multiple legal entities set up in Dynamics 365 Finance. All companies and data reside in Dynamics 365 Finance.
The client currently uses a separate reporting tool to perform their financial consolidation and eliminations. They want to use Dynamics 365 Finance instead.
You need to configure the system and correctly perform eliminations.
Solution: Select Consolidate online in Dynamics 365 Finance. Include eliminations during the process or as a proposal. Set up the transactions to post in the legal entity configured for consolidations.
Does the solution meet the goal?
A. Yes
B. No
Answer: B
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/consolidation-elimination-overview
QUESTION 10
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A client has multiple legal entities set up in Dynamics 365 Finance. All companies and data reside in Dynamics 365 Finance.
The client currently uses a separate reporting tool to perform their financial consolidation and eliminations. They want to use Dynamics 365 Finance instead.
You need to configure the system and correctly perform eliminations.
Solution: Select Consolidate with import.
Does the solution meet the goal?
A. Yes
B. No
Answer: B
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/consolidation-elimination-overview
QUESTION 11
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A client has multiple legal entities set up in Dynamics 365 Finance. All companies and data reside in Dynamics 365 Finance.
The client currently uses a separate reporting tool to perform their financial consolidation and eliminations. They want to use Dynamics 365 Finance instead.
You need to configure the system and correctly perform eliminations.
Solution: Create a separate company in which you manually create the eliminations. Then, use that company in financial reporting or in the consolidation process.
Does the solution meet the goal?
A. Yes
B. No
Answer: A
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/consolidation-elimination-overview
QUESTION 12
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A client has multiple legal entities set up in Dynamics 365 Finance. All companies and data reside in Dynamics 365 Finance.
The client currently uses a separate reporting tool to perform their financial consolidation and eliminations. They want to use Dynamics 365 Finance instead.
You need to configure the system and correctly perform eliminations.
Solution: Set up Elimination rules in the system. Then, run an elimination proposal. Configure the rules to post to any company that has Use for financial elimination process selected in the legal entity setup.
Does the solution meet the goal?
A. Yes
B. No
Answer: A
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/consolidation-elimination-overview
QUESTION 13
You work for a company that receives invoices in foreign currencies.
You need to configure the currency exchange rate providers and exchange rate types.
What should you do?
A. Configure exchange rate provider, create exchange rate type, and import the currency exchange rates.
B. Select the appropriate HTML key values from the available exchange rate providers. Then, use the provider for importing one currency exchange rate type.
C. Use a developer to write the HTML key values code to configure the currency exchange rate providers. Then, use the provider for importing a currency exchange rate type.
D. Use a developer to write the XML key values code to configure the currency exchange rate providers. Then, use the provider for importing a currency exchange rate type.
Answer: A
Explanation:
https://community.dynamics.com/365/financeandoperations/b/365operationsbysandeepchaudhury/posts/configure-currency-exchange-rate-providers-and-import-exchange-rates-automatically-in-dynamics-365-for-finance-and-operations
QUESTION 14
Users are posting project transactions and bank transactions incorrectly in the General journal. The client wants to prevent this from happening in the future.
You need to configure Dynamics 365 Finance to limit the account type transactions to only ledger.
What should you do?
A. Use journal control to specify which account types are valid for the General ledger journal.
B. Use advanced ledger entries to define the account types that can be used in the General ledger journal.
C. Configure the voucher series associated with this journal to allow only ledger account types.
D. Create a journal template that has ledger as the account type and offset account type.
Answer: A
Explanation:
Journal control – You can set up restrictions on the company and account type, and also the segment values.
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/general-journal-processing
QUESTION 15
You are configuring vendor collaboration security roles for external vendors. You manually set up a vendor contact.
You need to assign the Vendor (external) role to this vendor.
Which tasks can this vendor perform?
A. Add a new or existing contact person to the vendor accounts that they are a contact for
B. View consignment inventory
C. Request a new user account for a contact person by using the Provision user action
D. View and modify contact person information, such as the person’s title, email address, and telephone number
Answer: B
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/supply-chain/procurement/set-up-maintain-vendor-collaboration
QUESTION 16
A client uses Dynamics 365 Finance for accounts receivable.
You need to configure the method of payment to enforce the accounts receivable clerk to enter the wire number for the received electronic payment.
Which item should you set up as mandatory?
A. Select bank transaction type
B. Select payment reference
C. Select Payment ID
D. Select Deposit slip
Answer: B
Explanation:
https://docs.microsoft.com/en-us/dynamics365/finance/localizations/tasks/set-up-mandatory-payment-references
QUESTION 17
You are configuring the Accounts payable module for a company.
The company needs to set a limit on the charges they will pay for specific items.
You need to set up the limit for charges.
Which two actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Enable invoice matching validation in the Accounts payable parameters
B. Enter the maximum amount when you set up the charges code
C. Use budget control with the specified charges code
D. Set the maximum charge amount in the Accounts payable parameters
E. Define the maximum charge amount on the vendor record
Answer: AB
QUESTION 18
You are configuring vendor collaboration security roles for external vendors. You manually set up a vendor contact.
You need to assign the Vendor (external) role to this vendor.
Which tasks can this vendor perform?
A. Delete any contact person that they have created.
B. Deny or allow a contact person’s access to documents on the vendor collaboration interface that are specific to the vendor account.
C. View and modify contact person information, such as the person’s title, email address, and telephone number.
D. View consignment inventory.
Answer: D
Explanation:
Note:
There are several versions of this question in the exam. The question has two possible correct answers:
1. View consignment inventory.
2. Maintain vendor collaboration invoices.
Other incorrect answer options you may see on the exam include the following:
1. Add a new or existing contact person to the vendor accounts that they are a contact for.
2. Request a new user account for a contact person by using the Provision user action.
3. Deny or allow a contact person’s access to documents on the vendor collaboration interface that are specific to the vendor account.
4. Maintain vendor collaboration invoices.
Reference:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/supply-chain/procurement/set-up-maintain-vendor-collaboration
QUESTION 19
SIMULATION
You are a functional consultant for Contoso Entertainment System USA (USMF).
You plan to run several reports in USMF that list all the write-off transactions.
You need to replace the write-off reason used by the system for USMF to use a reason of “Bad debts.
To complete this task, sign in to the Dynamics 365 portal.
Answer:
You need to add a write-off reason for USMF and set it as the default.
1. Go to Navigation pane > Modules > Credit and collections > Setup > Accounts receivable parameters.
2. Click the Collections tab.
3. Click the Edit icon in the Write-Off section.
4. Add a new Write-Off reason if it doesn’t exist.
5. Tick the “Default” checkbox next to the new Write-Off reason.
6. Click the Save button to save the changes.
QUESTION 20
An organization acquires a building.
You need to register and record the building as an asset building in Dynamics 365 Finance.
What are three possible ways to achieve the goal? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A. Select an account type of Fixed Asset and a transaction type of Acquisition with a General Journal
B. Eliminate the project to a fixed asset
C. Create a sales invoice to record and register the fixed asset
D. Select an acquisition transaction type within a fixed asset journal
E. Use the sales order process to acquire the asset
Answer: ABD
Explanation:
https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/enter-fixed-asset-transactions
QUESTION 21
You are the accounts receivable manager of an organization. The organization recently sold machinery to a customer.
You need to register a transaction for the sale of the machinery by using a free text invoice for fixed assets.
Which transaction type should you use?
A. Acquisition
B. Value adjustments
C. Depreciation
D. Disposal
Answer: D
Explanation:
For free text invoices, the fixed asset transaction type is always Disposal – sale.
https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/enter-fixed-asset-transactions:
QUESTION 22
You are the controller for an organization. The company purchased six service trucks. You observe that your accountant set up Fixed assets ?vehicles in the wrong fixed asset group.
You need to achieve the following:
– Change the fixed asset group so that the existing fixed asset transactions for the original fixed asset are canceled and regenerated for the new fixed asset.
– Ensure that all books for the existing fixed asset are created for the new fixed asset. Any information that was set up for the original fixed asset is copied to the new fixed asset.
– Close the old fixed asset number in the old fixed assets group and create a new fixed asset number in the new fixed assets group.
– Ensure that the historical transactions are transferred to the new fixed asset.
– Ensure Historical Depreciation expense entries do not change.
What should you do?
A. Reclassify the fixed asset
B. Change the fixed asset group and keep the same fixed asset number
C. Copy the fixed asset
D. Transfer the fixed asset
Answer: A
Explanation:
https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/tasks/reclassify-fixed-assets
QUESTION 23
You are configuring budgeting components in Dynamics 365 Finance.
You need to configure multiple budgets.
What are three budgeting options you can use? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A. Cost management budget, including Production and Resource groups
B. Sales budget, including Campaigns and Events
C. Workforce budget, including Compensation groups and Positions
D. Project budget, including Items and Fees
E. Ledger budget, including Revenue and Expense types
Answer: CDE
QUESTION 24
A client is using the budget planning process in Dynamics 365 Finance.
Your client requires the ability to plan for a one-year, three-year, and five year-budget.
You need to configure the various year length options to be used in the budgeting module.
What should you do?
A. Configure budget control
B. Configure budget codes
C. Configure budget cycles
D. Configure budget allocation terms
Answer: C
Explanation:
Budget cycle time span
After basic budgeting is configured, you can define the time, or the starting and ending periods, for budgeting and budget control on the Budget cycle time span page. Budget cycles often correspond to fiscal calendars but can span fiscal years.
https://docs.microsoft.com/en-us/dynamics365/finance/budgeting/budget-control-overview-configuration
QUESTION 25
A company plans to use Dynamics 365 Finance.
You need to configure basic budgeting.
Which set of actions must you perform?
A. Define a budget journal
Define budgeting parameters and number sequences
Create budget models
Define budget codes
Create budgeting workflows
B. Define a budget journal
Define budgeting parameters and number sequences
Define budgeting dimensions
Create budget models and codes
C. Define budget exchange rate types
Define budgeting parameters and number sequences
Define budgeting dimensions
Create budget models
Define budget codes
D. Define budget exchange rate types
Define budgeting parameters and number sequences
Define financial dimensions
Create budget models
Define budget codes
Answer: D
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/basic-budgeting-overview-configuration
QUESTION 26
You are configuring the Fixed assets module for a Dynamics 365 Finance environment.
You need to set up the basic configuration to create a fixed asset.
Which three settings are required? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. the property type
B. the group
C. the number sequence
D. the type
E. the name
Answer: BCE
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/fixed-assets/tasks/create-fixed-asset
QUESTION 27
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A company is preparing to complete yearly budgets.
The company plans to use the Budget module in Dynamics 365 Finance for budget management.
You need to create the new budgets.
Solution: Create budget plans for multiple scenarios.
Does the solution meet the goal?
A. Yes
B. No
Answer: A
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/budget-planning-overview-configuration
QUESTION 28
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A company is preparing to complete yearly budgets.
The company plans to use the Budget module in Dynamics 365 Finance for budget management.
You need to create the new budgets.
Solution: Create budget plans to define the revenues for a budget.
Does the solution meet the goal?
A. Yes
B. No
Answer: B
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/budget-planning-overview-configuration
QUESTION 29
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A company is preparing to complete yearly budgets.
The company plans to use the Budget module in Dynamics 365 Finance for budget management.
You need to create the new budgets.
Solution: Combine budgets from multiple legal entities to a master budget.
Does the solution meet the goal?
A. Yes
B. No
Answer: B
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/budget-planning-overview-configuration
QUESTION 30
A client has unique accounting needs that sometimes require posting definitions.
You need to implement posting definitions.
In which situation should you implement posting definitions?
A. when financial dimensions need to default from the vendor record onto an invoice
B. when only certain dimensions are allowed to post with certain main account combinations
C. when creating multiple balanced ledger entries based on transaction types or accounts
D. when the system needs to automatically post a transaction to the accounts receivable account on invoice posting
Answer: C
Explanation:
You have to generate multiple, balanced ledger entries based on attributes such as transaction types and accounts. Use posting profiles if you need only one offset ledger entry.
You have to support encumbrance accounting for purchase orders and pre-encumbrance accounting for purchase requisitions. Posting profiles cannot be used for encumbrance and pre-encumbrance accounting.
https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/about-posting-definitions
QUESTION 31
An organization is setting up a cost accounting.
You need to set up fiscal calendars for Dynamics 365 Finance.
What are three uses for fiscal calendars? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A. standard work hours
B. financial transactions
C. fixed asset depreciation
D. budget cycles
E. shift work hours
Answer: BCD
Explanation:
Select fiscal calendars for ledgers, fixed assets, and budget cycles Fiscal calendars are used with fixed asset depreciation, financial transactions, and budget cycles.
Reference:
https://docs.microsoft.com/en-us/dynamics365/finance/budgeting/fiscal-calendars-fiscal-years-periods
QUESTION 32
You are configuring automatic bank reconciliation functionality for a company that has multiple bank accounts. The company wants to import their bank statements.
You need to import electronic bank statements to reconcile the bank accounts.
Which three actions can you perform? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A. Select all the bank accounts for the bank statement files, and then upload all files
B. Select Account reconciliation on the bank account form
C. Import bank statements from the Data management workspace
D. Navigate to Import statement on the Bank Statements page of Cash and Bank Management
E. Select Import statement for multiple bank accounts in all legal entities, and then upload a zip file
Answer: BDE
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/cash-bank-management/reconcile-bank-statements-advanced-bank-reconciliation
QUESTION 33
You are an accounts receivable manager.
Your company instituted a two-level collection letter plan for a customer. The result was not as effective as your company had anticipated. Now you need to institute a plan that charges the overdue customer with a high-interest premium on the amount due.
What should you do?
A. Set up a customer accounts statement.
B. Set up interest adjustments.
C. Set up a collection letter note
D. Set up interest codes.
Answer: D
QUESTION 34
Your company creates a policy that requires invoice matching information on documents. Which three types of documents are used for invoice matching? Each correct answer presents part of the solution.
A. purchase order
B. vendor invoice
C. receipts list
D. purchase order confirmation
E. product receipt
Answer: ABE
QUESTION 35
You are training a new employee. They need to know the items that are required for posting an invoice register.
What are the two required items? Each correct answer presents part of the solution.
A. Pending vendor invoice
B. Vendor offset account
C. Vendor invoice number
D. Vender account number
Answer: CD
QUESTION 36
A legal entity has locations and customers in multiple states within the United States.
You need to ensure that taxable customers are charged sales tax for taxable items in their delivery location.
Which three settings must you configure? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. the Sales tax group on the Customer record
B. the Terms of delivery setup
C. the Item Sales tax group on the Item record
D. the Sales reporting codes
E. the Sales tax codes
Answer: ACE
Explanation:
Terms of delivery setup do not associate to a sales tax group.
However, item sales tax groups on the item record are critical to tax processing. if the item does not have a sales tax group taxes will never be charged.
https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/indirect-taxes-overview
https://learn.microsoft.com/en-us/dynamics365/commerce/sales-tax-config
QUESTION 37
You are configuring Dynamics 365 Finance.
You need to implement posting definitions for all available transaction types.
For which type of transactions can you implement posting definitions?
A. Accounts payable, Accounts receivable, Bank, Budget, Payroll, and Purchasing
B. Accounts payable, Bank, Budget, Fixed assets, and Payroll
C. Accounts payable, Accounts receivable, Fixed assets, Payroll, and Purchasing
D. Accounts payable, Accounts receivable, Budget, and Fixed assets
Answer: A
Explanation:
Navigate to Posting Definitions page, click new and select the Module field to open the available list. You will note that there is no option to select “Fixed Assets”.
QUESTION 38
A public sector company is configuring encumbrance for managing capital budgets.
The finance department needs to configure posting definitions for bank transactions.
You need to configure Dynamics 365 Finance for cash settlements.
What should you do?
A. Configure combined deposit amounts
B. Configure budget appropriations
C. Configure general ledger year-end close
D. Configure advanced ledger entries
Answer: A
Explanation:
Pooled cash accounting consists of amounts that are deposited by individual funds into a combined ledger account. This improves the control and custody over liquid assets, and promotes the efficient management of excess funds. These amounts can be managed by using a Treasurer’s fund. Therefore, the appropriate proportional amount of the pooled cash and investment balances must be reported for each fund that participates in the pool. To guarantee this, appropriate due-to and due-from entries must be added to the settlements that transfer amounts from one fund to another to accomplish the settlement.
https://docs.microsoft.com/en-us/dynamics365/finance/public-sector/posting-definitions-public-sector
QUESTION 39
An organization plans to set up intercompany accounting between legal entities within the organization.
Automatic transactions between legal entities must meet the following requirements:
– Provides systemwide integration and streamlining to save time
– Minimizes errors and create an audit trail with full visibility into business activities and transaction histories within the legal entities
You need to set up intercompany accounting and create pairs of legal entities that can transact with each other, clearly defining the originating company and the destination company.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Select intercompany journal names.
B. Configure intercompany accounting in both the originating entity and destination entity.
C. Create intercompany main accounts to use for the due to and due from accounting entries.
D. Define intercompany accounting setup by creating legal entity pairs defining originating and destination companies.
E. Configure intercompany accounting in the destination entity only.
Answer: ACD
Explanation:
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/intercompany-accounting-setup
QUESTION 40
SIMULATION
You are a functional consultant for Contoso Entertainment System USA (USMF).
You need to implement a quarterly accruals scheme for USMF. The accrual scheme settings must match the settings of the monthly and annual accrual schemes.
To complete this task, sign in to the Dynamics 365 portal.
Answer:
Look at the monthly and annual accrual scheme settings. Create a quarterly accrual scheme with the same settings by using the following instructions:
1. Go to Navigation pane > Modules > General ledger > Journal setup > Accrual schemes.
2. Select New.
3. In the Accrual identification field, type a value.
4. In the Description of accrual scheme field, type a value.
5. In the Debit field, specify the desired values. The main account defined will replace the debit main account on the journal voucher line and it will also be used for the reversal of the deferral based on the ledger accrual transactions.
6. In the Credit field, specify the desired values. The main account defined will replace the credit main account on the journal voucher line and it will also be used for the reversal of the deferral based on the ledger accrual transactions.
7. In the Voucher field, select how you want the voucher determined when the transactions are posted.
8. In the Description field, type a value to describe the transactions that will be posted.
9. In the Period frequency field, select how often the transactions should occur.
10. In the Number of occurrences by period field, enter a number.
11. In the Post transactions field, select when the transactions should be posted, such as Monthly.
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/tasks/create-accrual-schemes
QUESTION 41
SIMULATION
You are a functional consultant for Contoso Entertainment System USA (USMF).
USMF plans to implement a new manufacturing department that will be based in Australia.
You need to create a draft account structure for the new department. The account structure must use the same account structure as a department named Manufacturing India and be named Manufacturing Australia.
To complete this task, sign in to the Dynamics 365 portal.
Answer:
You need to create an account structure with the same structure as the department named Manufacturing India by using the following instructions.
1. Go to Navigation pane > Modules > General ledger > Chart of accounts > Structures > Configure account structures.
2. On the Action pane, click New to open the drop dialog.
3. In the Account structure field, type a name to describe the purpose of the account structure.
4. In the Description field, type a description to specify the purpose of the account structure.
5. Click Create.
6. In the Segments and allowed values, click Add segment.
7. In the dimensions list, select the dimension to add to the account structure.
8. At the end of the list, click Add segment.
9. Repeat step 6 to 9 as needed.
10. In the Allowed value details section, select the segment to edit the allowed values. For example, click the Main Account field.
11. In the Operator field, select an option, such as is between and includes.
12. In the Value field, type a value. For example, 600000.
13. In the through field, type a value. For example, 699999.
14. In the Allowed value details section, click Apply.
15. Repeat step 10 to 15 as needed.
16. In the Allowed value details section, click Add new criteria.
17. In the Operator field, select an option, such as is between and includes.
18. In the Value field, type a value. For example, 033.
19. In the through field, type a value. For example, 034.
20. Click Apply.
21. In the grid, select the segment to edit the allowed values. For example, Cost Center.
22. In the CostCenter field, type a value. For example, 007..021.
23. In the Segments and allowed values, click Add.
24. In the MainAccount field, type a value. For example, 600000..699999
25. In the grid, select the segment to edit the allowed values. For example, Department.
26. In the Department field, type a value. For example, 032.
27. In the CostCenter field, type a value. For example, 086.
28. On the Action pane, click Validate.
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/tasks/create-account-structures
QUESTION 42
You are the accounts payable manager at you company.
Per the agreement with your supplier, you need to create a payment schedule against an invoice of 10.000 USD to be paid at 2,000 USD each month until the balance is paid.
Which three setup criteria can you define on the payment Schedule form? Each correct answer presents part of the solution.
A. amount of each installment
B. due date of each installment
C. number of installments
D. terms of payment
E. payment days
Answer: ACD
QUESTION 43
You are creating a posting a sales tax transaction.
The sales tax percentage is incorrect for the current transaction and will need to be revised prior to posting a transaction.
You need to correct the sales tax percentage for this order and all future order.
Where should you make the configuration change?
A. Item sales tax groups
B. Sales tax authorities
C. Sales tax groups
D. Sales tax codes
Answer: D
QUESTION 44
A company provides employee life insurance to all full-time employees. Employee life insurance policies are paid twice a year to the insurance company.
Transactions for current employees must be recognized in the general ledger twice a month with an employee’s pay. Transactions for new employees must be recognized in the general ledger based upon the employee’s first pay date.
You need to configure accrual schemes for the new fiscal year.
Which two configurations should you use? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. For new employees, use a Credit accrual scheme. In the ledger accrual, set the offset to the first day of the fiscal year.
B. For current employees, use a Credit accrual scheme. In the ledger accrual, set the offset to the employee’s first pay date.
C. For new employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the employee’s first pay date.
D. For current employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the first day of the fiscal year.
Answer: CD
Explanation:
For both current and new employees, it has to be Debit accrual scheme. The financial impact has to be same and only the date has to be different.
QUESTION 45
An organization uses Dynamics 365 Finance.
Several posted journal entries contain invalid main account and dimension combinations. This leads to incorrect financial reporting.
You need to prevent these invalid combinations.
What should you do?
A. Configure the account structure to specify which financial dimensions are valid for which main accounts.
B. Train users to select the Validate button in the current journal configuration so that the correct account and dimension combination is used.
C. Configure financial dimension sets to limit which financial dimensions are valid for which main accounts.
D. Associate the correct main accounts to that financial dimension on the financial dimension setup form.
Answer: A
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/general-ledger/configure-account-structures
QUESTION 46
SIMULATION
You are a functional consultant for Contoso Entertainment System USA (USMF).
You need to assign the Accountant closing role for the USMF legal entity to an employee named Theresa Jayne.
To complete this task, sign in to the Dynamics 365 portal.
Answer:
1. Navigate to System administration > Security > Assign users to roles
2. Select the `Accountant Closing’ role.
3. Click the “Manually assign / exclude users” button
4. Select the Theresa Jayne user account and click the “Assign to role” button.
5. Click the “Assign organizations” button
6. Select the “Grant access to specific organizations” option
7. Select the USMF legal entity and click the “Grant” button.
https://www.dynamics-tips.com/system-administration/security-roles
QUESTION 47
SIMULATION
You are a functional consultant for Contoso Entertainment System USA (USMF).
You need to create a report that contains the sales tax settlements for the state of California during the quarter that began on January 1, 2017. To validate you results, save the file in Microsoft Excel format to the Downloads\Report folder.
To complete this task, sign in to the Dynamics 365 portal.
Answer:
1. Navigate to Tax > Declarations > Report sales tax for settlement period.
2. Enter the `From’ date.
3. Select the settlement period (Quarter).
4. Click `OK’.
5. Select Yes in the Create electronic tax document field.
6. Select the Downloads\Report folder and file format.
7. Click `OK’.
QUESTION 48
A client has one legal entity and the following four dimensions configured: Business Unit, Cost Center, Department, and Division.
You need to configure the client’s system to run the trial balance inquiry in the General ledger module so that it displays the trial balance two ways:
– Include the main account and all four dimensions.
– Include the main account and only the business unit and cost center dimensions.
What should you configure?
A. two account structures
B. two derived financial dimension hierarchies
C. all financial dimensions by using the group dimension functionality
D. two financial dimension sets
Answer: D
QUESTION 49
You need to make adjustments to your ledger balances before year-end close. Which methods can be used to accomplish this goal?
A. Use typical journal entries and a closing sheet
B. Use a costing sheet and a typical journal entry
C. Use a trial balance and a typical journal entry
D. Use a closing sheet and a trial balance
Answer: AD
QUESTION 50
You open up the Financial period close workspace and see an exclamation point icon next to one of your tasks.
What does the exclamation point icon next to the task mean?
A. That task has not been completed yet
B. The task has been completed
C. The tasks depends on other incomplete tasks
D. The task is past due
Answer: D
QUESTION 51
A company configures budget controls at the beginning of the year.
Which three budget control transaction actions occur when the budget control is turned off mid-year. Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Activities are unrecorded for budget control purposes.
B. Budget register entries that have been posted after budget control is turned off will not be considered for budget control.
C. Posted documents might incorrectly reflect any relieving amounts or balances in inquiries and reports that are related to budget control.
D. Budget checks are performed.
E. You can view the budget reporting through financial reports.
Answer: ABC
Explanation:
After budget control is turned on and active, and after transactions are posted, it should not be turned off mid-year. When budget control is turned off, activities aren’t recorded for budget control purposes, and budget checks are no longer performed. Therefore, documents that have already been posted might not correctly reflect any relieving amounts or balances in inquiries and reports that are related to budget control. These include budget control statistics for any downstream or adjusting documents and journals. Additionally, note that transactions, including budget register entries, that have been posted before budget control is turned on aren’t considered for budget control.
https://docs.microsoft.com/en-us/dynamics365/finance/budgeting/budget-control-overview-configuration
QUESTION 52
You are setting up the yearly budget for an organization for the year 2019.
You need to set up the budget register entries.
Which two fields must be set up when creating register entries? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Budget cycle
B. Budget manager
C. Budget code
D. Budget model
Answer: CD
Explanation:
https://docs.microsoft.com/en-us/dynamics365/finance/budgeting/basic-budgeting-overview-configuration
QUESTION 53
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You are configuring the year-end setup in Dynamics 365 Finance.
You need to configure the year-end setup to meet the following requirements:
The accounting adjustments that are received in the first quarter must be able to be posted into the previous year’s Period 13.
The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions.
All dimensions from profit and loss must carry over into the retained earnings.
All future and previous periods must have an On Hold status.
Solution:
Configure General ledger parameters.
– Set the Delete close of year transactions option to No.
– Set the Create closing transactions during transfer option to No.
– Set the Fiscal year status to permanently closed option to No.
Define the Year-end close template.
– Designate a retained earnings main account for each legal entity.
– Set the Financial dimensions will be used on the Opening transactions option to No.
– Set the Transfer profit and loss dimensions to Close All.
Set all prior and future Ledger periods to a status of On Hold.
Does the solution meet the goal?
A. Yes
B. No
Answer: B
Explanation:
Setting the year to permanently closed means that the closing can’t be run again.
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/general-ledger/year-end-close
QUESTION 54
A company is preparing to complete a year-end close process.
You need to configure the Dynamics 365 Finance General ledger module.
Which three configurations actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Configure the Fiscal year close parameters
B. Configure the ledger calendar for the new fiscal year
C. Configure the transfer balance
D. Validate the main account type
E. Create the next fiscal year
Answer: ADE
Explanation:
This question is asking about configuring the system. Answers A (Configure the Fiscal year close parameters), D (Validate the main account type) and E (Create the next fiscal year) are required to configure the system.
The next step after configuring the system would be Answer C (Set up the year end close template).
After the system is configured, the year-end close process can be run. On the Year-end close page, a template can be defined for the group of legal entities for which the year-end close process will be run. The template will be reused at each year-end close, but can be modified if your organization changes.
Reference:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/general-ledger/year-end-close
QUESTION 55
You set up and activate a new budget planning process. Next, you generate the original budget plan from the general ledger data.
The department managers need to enter their requested amounts for the budget plan. Where should the department managers enter the data?
A. in the Budget planning template
B. in the Excel worksheet that is accessed from the budget plan lines
C. in a new Budget register entry
D. in the Justification sheet that is accessed from the budget plan lines
Answer: B
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/budget- planning-overview-configuration
QUESTION 56
You are creating a budget register entry.
You need to transfer 6,000.00 USD from account 604578 in department 10 to department 20.
What should you do?
A. Create a new transfer journal name that is linked to the transfer budget code
B. Create a new transfer journal name that is linked to the transfer budget model
C. Select the transfer budget model on the header of the budget register entry
D. Select the transfer budget code on the header of the budget register entry
Answer: D
QUESTION 57
You want to reserve budget funds for planned expenditures. The funds have been requested but not yet approved from a purchase order.
You need to set up a budget code for these types of scenarios.
Which budget type should you assign to the budget code to accomplish this goal?
A. transfer
B. encumbrance
C. original budget
D. pre-encumbrance
Answer: D
QUESTION 58
You are configuring account structures and advanced rules in Dynamics 365 Finance.
All balance sheet accounts require Business Unit and Department dimensions.
The Shareholder distribution account requires an additional dimension for Principal.
You need to set up the account structures.
What are two possible ways to achieve the goal? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A. Create a new main account for each of the company’s principals. Then, create an account structure for all balance sheet accounts that includes the required dimension.
B. Create a new main account for Shareholder distribution. Add an advanced rule for the Principal dimension.
C. Create an account structure for all the balance sheet accounts. Set up an advanced rule for the Shareholder distribution account for the Principal dimension.
D. Create an account structure for balance sheet accounts without Shareholder distribution. Then, create a second account structure for Shareholder distribution that includes all required dimensions.
Answer: CD
Explanation:
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/configure-account-structures
QUESTION 59
A client uses the standard trial balance in Dynamics 365 Finance.
The client has the following requirements:
– ability to run the trial balance by main account, department, and division
– ability to run the trial balance by just main account and department
You need to ensure that these options are visible in the trial balance report parameters.
What should you configure?
A. ledger validation
B. financial dimensions for department and division
C. financial dimension sets
D. account structure
Answer: C
Explanation:
A dimension set is an ordered list of financial dimensions that can be used to summarize General ledger data in a user-defined way. A primary use of dimension sets is to define a trial balance.
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/financial-dimension-sets
QUESTION 60
SIMULATION
You are a functional consultant for a legal entity named Contoso Group (GLCO).
You plan to sell new products that will increase in quality over time.
You need to implement a solution that uses the Last in, First out (LIFO) inventory model for GLCO.
To complete this task, sign in to the Dynamics 365 portal.
Answer:
You need to configure an Inventory Model Group for the new products.
1. For inventory model groups, navigate to Inventory management | Setup | Inventory | Item model groups.
2. Click “New” to create a new inventory model group.
3. In the “Cost method and cost recognition” section, configure the “Inventory Model” setting to Last in, First out (LIFO).
4. Click “Save” to save the inventory model group.
QUESTION 61
SIMULATION
You are a functional consultant for Contoso Entertainment System USA (USMF).
You need to generate a trial balance report for the period of January 1, 2017 to December 31, 2017. To validate you results, save the file in Microsoft Excel format to the Downloads\Trial folder.
To complete this task, sign in to the Dynamics 365 portal.
Answer:
1. Click General ledger > Reports > Transactions > Trial Balance
2. Enter the Start and End dates for the report.
3. Click Destinations … to specify how you want to `print’ the report.
4. Select File as the destination.
5. Select the Downloads\Trial folder for the location.
6. Select Microsoft Excel for the file format.
7. Click OK to close the `Print destination settings’ form.
8. Click OK to `print’ (save) the report to the selected destination.
QUESTION 62
A client is implementing Accounts payable. The client wants to establish three-way matching for 100 of their 5,000 stocked items from a specific vendor.
The client requires the ability to have items that require only two-way matching and specific items that require three-way matching.
You need to configure the system in the most efficient manner to achieve these requirements.
What should you do?
A. Configure a company matching policy of a three-way match
B. Configure a company matching policy of non-required and specify the items that require a three-way match
C. Configure a company matching policy of two-way matching and set the matching policy for specific item and vendor combination level to three-way matching
D. Configure a company matching policy of two-way matching and specify the items that require a three-way match
E. Configure a company matching policy of two-way matching and specify the vendors that require a three-way match
Answer: C
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/accounts-payable/tasks/set-up-accounts-payable-invoice-matching-validation
QUESTION 63
Hotspot Question
A client plans to use the cost accounting module in Dynamics 365 Finance.
You need to associate the correct definitions to the correct cost accounting concepts.
Which terms match the definitions? To answer, select the appropriate configuration in the answer area.
NOTE: Each correct selection is worth one point.
Answer:
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/cost-accounting/terms-cost-accounting
QUESTION 64
Hotspot Question
A client plans to use Dynamics 365 Finance for year-end 1099 reporting in the United States.
You are viewing a vendor master data record on the 1099 FastTab.
Use the drop-down menus to select the answer choice that answers each question based on the information presented in the graphic.
NOTE: Each correct selection is worth one point.
Answer:
QUESTION 65
Drag and Drop Question
You need to set up a process of tracking, recording, and analyzing costs associated with the products or activities of a nonmanufacturing organization.
You need to configure the prerequisite setup for the standard costing version for the current period.
In which order should you perform the actions? To answer, move all actions from the list of actions to the answer area and arrange them in the correct order.
Answer:
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/supply-chain/cost-management/prerequisites-standard-costs
QUESTION 66
Drag and Drop Question
A retail company has outlets in multiple locations. Taxes vary depending on the location.
You need to configure the various components of the tax framework.
In which order should you perform the actions? To answer, move all actions from the list of actions to the answer area and arrange them in the correct order.
Answer:
Explanation:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/general-ledger/indirect-taxes-overview
QUESTION 67
Hotspot Question
A client wants to ensure that transactions posted to the General Ledger have the correct combination of account number and dimensions.
The Services Industry P&L Account Structure has the following information:
Use the drop-down menus to select the answer choice that answers each question based on the information presented in the graphic.
NOTE: Each correct selection is worth one point.
Answer:
Explanation:
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/configure-account-structures
QUESTION 68
Hotspot Question
A rental service company with complex accrual requirements has accrual schemes set up in its implementation. They want to use defined accrual schemes to perform transactions.
You need to use an accrual scheme to create transactions for this company.
Which actions should you perform? To answer, select the appropriate configuration in the answer area.
NOTE: Each correct selection is worth one point.
Answer:
QUESTION 69
Drag and Drop Question
You are configuring a Dynamics 365 Finance environment for intercompany accounting. You create the following legal entities:
– CompanyA
– CompanyB
You need to configure intercompany accounting for both legal entities.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
NOTE: More than one order of answer choices is correct. You will receive credit for any of the correct orders you select.
Answer:
Explanation:
First, you must create the intercompany main accounts to use for the Due to and Due from accounting entries.
Next, you must define a journal name. Set the Journal type field to Daily on the Journal names page
Finally, select which legal entity will receive the accounting for supporting amounts, such as cash discount or realized gains/losses for centralized payments.
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/intercompany-accounting-setup
QUESTION 70
Drag and Drop Question
You are a controller in an organization. You are identifying cost drivers to see how changes in business activities affect the bottom line of your organization. You need to assess cost object performance to analyze actual versus budgeted cost and how resources are consumed.
You need to demonstrate your understanding of cost accounting terminology.
Which component maps to the cost accounting terminology?
To answer, drag the appropriate component to the correct cost accounting terminology. Each source may be used once. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Answer:
Explanation:
https://docs.microsoft.com/en-us/dynamics365/finance/cost-accounting/terms-cost-accounting
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