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 managing credit and collections.
You need to set up mandatory credit limits for all customer documents.
Solution: Select None as the credit type in the Accounts receivable parameters form.
Select the Mandatory credit limit check box in the Customers form.
Does the solution meet the goal?
A. Yes
B. No
Show Answer
Correct Answer: B
Explanation: Selecting Credit type = None disables credit limit checking. Even if the Mandatory credit limit check option is enabled for the customer, no credit limit checks will be performed when the global credit type is set to None. To enforce mandatory credit limits for customer documents, the credit type must be set to a checking mode such as Balance or Balance + All.
Question 115
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?
A. an Advanced ledger entry workflow that uses the organizational hierarchy for journal posting, associated with the Advanced ledger journal name
B. an alert that is sent to the controller when a journal name is created
C. a Ledger daily journal workflow that uses the organizational hierarchy for journal posting, associated with the General ledger journal name
D. signing limit policies with the controller when a journal name is created
Show Answer
Correct Answer: C
Explanation: Standard General ledger journals use the Ledger daily journal workflow for approval before posting. Associate the workflow with the General ledger journal name and configure it to route approvals through the organizational hierarchy so the controller reviews entries before posting. Advanced ledger entry workflow is intended for Advanced ledger functionality rather than standard general ledger journals. Alerts and signing limit policies do not provide the required journal approval workflow.
Question 116
DRAG DROP
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A company uses Dynamics 365 Finance.
You need to use the advanced bank reconciliation feature to reconcile bank transactions.
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.
Show Answer
Correct Answer: 1. Import an electronic bank statement.
2. Validate the bank statement.
3. Reconcile the bank statement.
4. Post the bank statement.
Explanation: In Dynamics 365 Finance advanced bank reconciliation, you first import the electronic statement, validate it, perform reconciliation, and finally post the reconciled bank statement.
Question 117
HOTSPOT
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A company uses Dynamics 365 Finance.
The company has prepaid insurance expenses at the beginning of the calendar year that cover the entire year. The company must expense the prepaid insurance automatically and equally during a month-end process.
You need to configure the accrual scheme.
How should you configure the accrual scheme? To answer, select the appropriate options in the answer area.
NOTE: Each correct answer is worth one point.
Show Answer
Correct Answer: Debit: Insurance expense account
Credit: Prepaid insurance account
Accrual basis: Calendar
Post in week, month, or quarter: End
Explanation: Monthly recognition of a prepaid insurance asset requires debiting insurance expense and crediting the prepaid insurance asset. A calendar-based accrual spreads the amount evenly across calendar months, with posting at the end of each month for month-end processing.
Question 118
HOTSPOT
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A company uses Microsoft Dynamics 365 Finance to manage their computer hardware and support services.
A customer purchases the following three items on a sales order:
• laptop
• two tutoring sessions for use within the first year after purchase
• one-year warranty
Which item should you consider for the revenue recognition process? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: At the time of invoicing: Laptop
On a schedule that is based on occurrence: Tutoring sessions
Explanation: The laptop is recognized when control transfers at invoicing/shipment. Tutoring sessions are recognized as the service is delivered based on occurrences. A standard one-year warranty is typically an assurance-type warranty and is not treated as a separate revenue recognition performance obligation.
Question 119
You need to ensure the budget only reflects a single annual cost of living increase for Humongous Insurance employees.
What should you do? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A. Align the calendar year to a single budget cycle.
B. Align a calendar year to multiple budget cycles.
C. Align the fiscal year to a single budget cycle.
D. Align the fiscal year to multiple budget cycles.
Show Answer
Correct Answer: A, C
Explanation: To ensure only one annual cost-of-living increase is reflected in the budget, the budget cycle should align to a single yearly period. Either aligning the calendar year to a single budget cycle or aligning the fiscal year to a single budget cycle achieves this. Using multiple budget cycles could cause the annual increase to be reflected more than once. In the described environment, the parent company's fiscal year is January 1 to December 31, so calendar and fiscal year alignment are effectively equivalent.
Question 120
A company uses Dynamics 365 Finance to include multiple business units as a financial dimension.
All customer payment journals must be posted to the headquarters’ business unit financial dimension.
You need to configure the accounts receivable journal name.
What should you configure?
A. Journal control
B. Posting restriction
C. Default financial dimension
D. Journal approval
Show Answer
Correct Answer: C
Explanation: Configure the journal name's Default financial dimension so the headquarters Business Unit dimension is populated automatically for customer payment journals. Posting restrictions control who can post or posting permissions, not financial dimension values. Journal approval governs workflow, and journal control does not enforce this for customer payment journals.
Question 121
A company uses expense management in Dynamics 365 Finance. The company has two legal entities.
CompanyA reimburses employees for travel-related expenses. CompanyB plans to reimburse remote employees monthly for travel-related expenses. All employees are required to complete expense reports.
You need to configure the expense type that can be used for both companies.
Which expense type category should you use?
A. Case
B. Shared
C. Project
D. Procurement
Show Answer
Correct Answer: B
Explanation: Use the Shared expense type category. Shared expense categories are available across multiple legal entities and can be used by both CompanyA and CompanyB, making them appropriate when the same expense type must be configured for use in multiple companies. Project categories are for project-related expenses, Procurement relates to purchasing, and Case is not the appropriate category for shared employee expense reimbursement.
Question 122
You are implementing Dynamics 365 Finance.
You commonly complete the sale of goods across international borders.
You need to configure the system.
What should you use?
A. bank statements
B. purchase agreement
C. letters of credit
D. promissory note
Show Answer
Correct Answer: C
Explanation: Letters of credit are the standard financial instrument used to facilitate international trade by providing a bank-backed payment guarantee between buyer and seller. In Dynamics 365 Finance, letters of credit support cross-border trade transactions. Bank statements reconcile cash, purchase agreements manage procurement terms, and promissory notes are payment promises without the same trade finance function.
Question 123
HOTSPOT
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A company is implementing Microsoft Dynamics 365 Finance.
The company is implementing the Fixed asset module and requires the following configuration:
• Set the threshold for fixed asset acquisitions at $10,000.
• Fixed asset acquisitions must be allowed from purchasing.
You need to configure the system.
Which parameter should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Capitalization threshold
Allow asset acquisition from purchasing
Explanation: Use the Capitalization threshold parameter to set the $10,000 capitalization limit, and enable Allow asset acquisition from purchasing to permit fixed asset acquisitions through purchasing.
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