MB-310 — Microsoft Dynamics 365 Finance Functional Consultant Study Guide

Question 35

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 manage a Dynamics 365 Finance implementation. You must provide the budget versus actual reporting in near real time. You need to configure the ledger budgets and forecasts workspace to track expenses over budget and revenue under budget. Solution: Configure an expense dimension set. Configure the set show amounts field value to per budget cycle. Does the solution meet the goal?

Question 37

A company uses Dynamics 365 Finance. All customer balances must be posted to an accounts receivable trading main account. You need to configure the customer posting profile. Which posting profile field value should you use?

Question 1

A company plans to implement financial management with Dynamics 365 Finance. The company must be able to view cost changes for manufactured items without affecting the current active costs. You need to configure the costing versions. Which type of costing version should you configure?

Question 24

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 task can this vendor perform?

Question 26

A company has implemented Dynamics 365 Finance. The company requires better visibility into their cash flow and wants to reconcile bank accounts daily with a timely view of check deposits. You need to configure the bank accounts for more accurate timing of cash flow. What should you configure?

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 company uses Dynamics 365 Finance. The customer payment journal must only be available for selection by the accounts receivable user group. You need to configure the accounts receivable journal name to meet the requirement. Solution: Configure the posting restriction. Does the solution meet the goal?

Question 22

A company uses Dynamics 365 Finance. A customer invoice is due on or before the tenth day of the following month. You need to configure the payment setup. Which payment configuration should you use?

Question 33

A company uses Dynamics 365 Finance for their accounts payable processing. One vendor offers a special installment term which allows the company to invoice with three equal installment payments. The first payment is due 60 days after the invoice date. The second payment is due 90 days after the invoice date. The last payment is due 120 days after the invoice date. The company pays their invoice on the due date to take advantage of the terms. You need to configure the terms of payment and payment schedule for the vendor master record. How should you configure and assign the vendor master record?

Question 42

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 uses Dynamics 365 Finance. The company must release all customer orders that are on hold for a specific customer. You need to process the release. Solution: Change the terms of payment. Does the solution meet the goal?

Question 47

The controller at a company has multiple employees who enter standard General ledger journals. The controller wants to review these journal entries before they are posted. Currently, journals entries are posted without review. You need to configure Dynamics 365 Finance to help set up a system led review process to meet the controller’s needs. Which functionality should you configure?

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 company uses Dynamics 365 Finance. The company sells extended warranty services that use a project fee journal. You need to recognize unearned revenue for the extended warranty service over time. Solution: Configure the project ledger posting for the fee category to post to the unearned revenue account, set up a deferral template, configure the deferral default for the general journal, and use the general journal with the deferral process to create a deferral schedule and recognize the unearned revenue from it. Does the solution meet the goal?

Question 48

HOTSPOT - Case study - This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided. To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study. At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section. To start the case study - To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question. Background - Tailspin Toys is a toy manufacturing company that sells to distributors and customers through a business-to-consumer website. Tailspin Toys has been using custom-developed software for their accounting and supply chain management needs. Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States. Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization. Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes. Current environment - Vendors - • Tailspin Toys works with local and foreign vendors. • The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys. • The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts. • For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week. • Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year. • Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses. • The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account. • The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors. Reporting - • Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements. Budget planning - • The finance department oversees all budget planning. • The finance department estimates the baseline for all budgets and distributes them to the respective departments. • Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly. Expenses - Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown. Asset leasing - Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments. Requirements - Consolidation - • Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys’ leadership. • Consolidated results are needed in multiple reporting currencies. Expenses - • Utility bills must be allocated to allow each department to expense the correct amount. Reports - • Leadership requires financial reports to come to their inbox automatically as one at the end of every month. Vendors - • The system must show accounts payable liability by type of vendor similar to how it works in the current system. • The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments. • The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined. Budgets - • A new organizational hierarchy is required for budget planning purposes. • Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget. Asset leasing - • The CFO must automatically process payments and journal entries for the leased properties. • Management must view payment forecasts based on leased assets. Issues - Accounts payable issues - • Vendor liability information for local and foreign vendors is not separated in the system. • The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program. • The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing. • The accounts payable manager must automate the current process of vendor payment proposals. Other issues - • The differences resulting from consolidating subsidiaries with foreign currencies are not considered. • User A confirmed they did not receive an alert before running out of their budget. • Expense reports for the manufacturing and sales departments do not contain utility bill expenses. • The accounting manager reported that there is no batch journal created for the monthly lease expenses. You need to resolve the issue related to monthly lease expenses. How should you configure asset leasing? To answer, select the appropriate options in the answer area. NOTE: Each correct selection is worth one point.

Question 18

DRAG DROP - A company uses Dynamics 365 Finance. The company requires prepayment for a purchase order. You need to create a prepayment that is associated with the purchase order. Which four 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.

Question 43

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 uses Dynamics 365 Finance. The company must release all customer orders that are on hold for a specific customer. You need to process the release. Solution: Change the value of the account status. Does the solution meet the goal?

Question 27

HOTSPOT - Case study - This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided. To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study. At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section. To start the case study - To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question. Background - Adventure Works Cycles is a North American-based company that sells and fixes bicycles. The company is modernizing its business processes by implementing Dynamics 365 Finance. The company recently expanded its business into bicycle leasing. The leasing business is expanding into Canada due to high demand. Adventure Works Cycles has one legal entity, two cost centers, and three divisions within each cost center. The company also has a centralized budgeting process to the lowest level. The operating currency of the legal entity is the US dollar (USD). Adventure Works Cycles operates on a 4-5-4 calendar, which is used to make sure that the sales are evenly distributed across all months, including weekends. Current Environment - • Adventure Works Cycles tracks its international vendors in a separate payable account from its domestic vendors. • Only bicycle frame inventory is configured with a separate item model group that requires registration. • A thirteenth month is required for year-end transactions. • Only members from the accounts payable team are able to post transactions to a prior period after the period is closed to the company. • Fourth Coffee is a Canadian-based coffee chain whose operating currency is the Canadian dollar (CAD). Fourth Coffee entered into a lease agreement for 150 branded bicycles totaling CAD75,000. • Adventure Works Cycles frequently receives invoices in foreign currencies. Requirements - • Three-way matching is required only on competition bicycles priced over USD3,000 that are purchased from Fabrikam, Inc., in Europe. • Domestic customers and international customers must be managed in the following ways: o Domestic customer receivables must post to account 1200. o International customer receivables must post to account 1201. o Domestic customers must have a payment term of net 30. o International customers must have a payment term of net 15. o Domestic customer revenue must post to account 4000. o International customer revenue must post to account 4001. • Adventure Works Cycles must be able to use the cash flow forecasting capability in Finance. • The system must enable tracking and charging interest for customer accounts that are not current. • Automatic charges must be configured on vendor invoices for bicycle tires. The cost must be added to each item on the vendor invoice. • Adventure Works Cycles must be able to terminate leases for bicycles at any time. • Adventure Works Cycles must be able to closely track its budget by enforcing the budget at the cost center level. • The system must run Vendor aging reports by listing the transactions that are included in the reports' balance, unsettled payments, and aging period descriptions. Issues - • The accounts payable clerk processes an invoice for bicycle frames and a partial invoice for helmets. The clerk observes that the quantities on the vendor invoices are incorrect. The invoices require the correct line quantity selections so that the invoices process accurately. • The accounts payable clerk processes an invoice and observes that the product receipt quantity match for bicycle seat posts ordered from Fabrikam, Inc., is blank. However, the invoice passes validation. • The accounts payable manager observes that a sales order is posted to the prior period that is closed. • During foreign currency revaluation of the Accounts payable subledger, posting occurred only if the result was a loss. • On a vendor invoice for bicycle tires, the automatic charge is charged as an expense. • Due to a breach of contract, a member of the finance team needs to terminate a bicycle lease. However, the Termination proposal button is unavailable. • The accounts payable clerk is unable to review payments that have not been settled on the Vendor aging report. You need to set up the system to process the Fourth Coffee lease agreement. How should you set up the system? To answer, select the appropriate options in the answer area. NOTE: Each correct selection is worth one point.