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 manual journal approval with the journal assigned to the controller’s user group
D. the controller’s security role so that he has approval privileges for General ledger journals
Show Answer
Correct Answer: A
Explanation: In Dynamics 365 Finance, journal review and approval before posting is handled through workflows. To ensure the controller reviews General ledger journal entries before posting, you must configure a General ledger (advanced ledger entry) workflow and associate it with the journal name. This creates a system‑led approval process that routes journals for review based on organizational hierarchy or assigned approvers. Manual journal approval via user groups is legacy AX functionality and is not the recommended or fully supported approach in Dynamics 365 Finance.
Question 135
DRAG DROP
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A company is implementing Microsoft Dynamics 365 Finance.
The company has multiple vehicles. You depreciate all vehicles by using the straight-line service life depreciation method. The same ledger account is used to record the transaction when vehicle assets are acquired.
You need to configure the vehicles as fixed assets in the system.
Which feature should you use? To answer, drag the appropriate features to the correct requirements. Each feature may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
Show Answer
Correct Answer: Ledger accounts for acquisition: Posting profile
All vehicles with same depreciation: Fixed asset groups
Explanation: Posting profiles define the ledger accounts used for fixed asset acquisition postings. Fixed asset groups control shared depreciation methods and parameters for multiple assets, such as vehicles using the same straight-line service life.
Question 136
You are using Microsoft Dynamics 365 Finance.
You need to acquire a fixed asset.
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. Use a sales invoice.
B. Select a fixed asset account type and transaction type acquisition in a general journal.
C. Select a fixed asset procurement category on the purchase order line.
D. Use a budget plan.
E. Eliminate an investment project once it is finished.
Show Answer
Correct Answer: B, C, E
Explanation: Fixed assets can be acquired in Dynamics 365 Finance by posting an acquisition directly in a general journal using a fixed asset account and acquisition transaction type, by procuring the asset through a purchase order using a fixed asset procurement category, or by capitalizing costs from an investment project when the project is completed (eliminating the investment project). The other options do not create fixed asset acquisitions.
Question 137
A company implements basic budgeting functionality in Dynamics 365 Finance in multiple departments that belong to the same legal entity.
Managers must be able to identify and track budgets by department.
You need to configure the system.
What should you configure?
A. Budget model with sub-models
B. Budget transfer rules
C. Budget codes and budget types
D. Budget entries workflows
Show Answer
Correct Answer: A
Explanation: In Dynamics 365 Finance basic budgeting, a budget model defines how budgets are organized. Using sub-models under a budget model allows budgets to be segmented and tracked by departments within the same legal entity, enabling managers to identify and manage departmental budgets. The other options control processing or metadata, not structural separation by department.
Question 138
HOTSPOT -
A company uses Dynamics 365 Finance.
The company requires a receipt for any employee expense that is $25 of more.
You need to configure an expense management policy.
How should you configure the expense receipt required rule detail? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
Show Answer
Correct Answer: Where: Transaction amount
Operator: Greater than or equal to
Value: 25
And: Receipt attached = No
Do the following:
Do not allow users to submit or approve and display error message.
Explanation: The requirement is to enforce a receipt for expenses of $25 or more. The condition checks when the transaction amount is greater than or equal to 25 and no receipt is attached. To strictly require compliance, the policy must block submission (and approval) with an error message until a receipt is provided.
Question 139
HOTSPOT -
You are implementing Microsoft Dynamics 365 Finance.
You need to implement processes for updating fixed assets and creating fixed asset transactions.
Which process 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: Change the dimension value for one or more value models
Mass transfer
Change the depreciation convention for one or more assets
Mass update
Change the asset group and ensure transactions are updated
Reclassification
Explanation: Mass transfer updates financial dimensions on existing value models. Mass update changes asset master data such as depreciation conventions across multiple assets. Reclassification changes the asset group and re-posts transactions based on the new group.
Question 140
A company uses Microsoft Dynamics 365 Finance to manage fixed assets.
The company uses laptops for three years and then sells the laptops externally.
You need to process laptop sales.
What should you do?
A. Create a fixed asset disposal journal.
B. Use a free text invoice to record the sale.
C. Create a sales order for the sale of the asset.
D. Use an inventory movement journal to record the disposal.
Show Answer
Correct Answer: B
Explanation: When fixed assets such as laptops are sold externally to a customer in Dynamics 365 Finance, Microsoft recommends using a free text invoice. A free text invoice integrates with Accounts Receivable, creates a customer invoice, and automatically posts the disposal through the fixed asset posting profile (Disposal – sale), recognizing any gain or loss. A fixed asset disposal journal is more suitable for internal disposals or cash-based transactions without customer invoicing.
Question 141
HOTSPOT -
Your company uses Dynamics 365 Finance:
You must record an interest expense that occurs every month: It must be recorded the same way each month. Your manager wants each interest posting to use the number scheme “INT-XXXX”, with XXXX representing a sequential number.
You need to configure the system.
What should you create? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Interest payment:
Voucher template
Numbering scheme:
Number sequence for the voucher
Explanation: A voucher template ensures the monthly interest expense is recorded consistently with the same posting structure. A voucher number sequence allows configuring a custom format such as INT-XXXX with sequential numbering for each posting.
Question 142
A company uses Microsoft Dynamics 365 Finance to manage customer support contracts.
You need to validate a revenue recognition schedule for a customer.
In which two pages can you view the revenue recognition schedule? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point
A. the revenue schedules details
B. an invoiced sales order
C. the revenue schedules
D. an invoiced purchase order
E. the revenue recognition schedule
Show Answer
Correct Answer: B, E
Explanation: In Dynamics 365 Finance, revenue recognition schedules can be reviewed directly from the invoiced sales order, where the deferral and recognition entries originate. They can also be viewed on the Revenue recognition schedule page, which is specifically designed to display and validate the detailed revenue recognition timeline. Other options are either setup or overview pages, or unrelated to sales revenue.
Question 143
HOTSPOT
-
A company manufactures and installs units for industrial manufacturing plans.
Revenue for the units recognized based on a median price when the unit install. A three-year warranty is sold with each unit. Revenue for the warranty is recognized equally in each year the warranty covers.
You need to configure and process revenue recognition.
Which parameter should you configure? To answer select he appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Exclude from carve-out
Recognition basis
Explanation: Exclude from carve-out prevents the item’s median price from being reallocated beyond the configured percentage during allocation. Recognition basis is used to validate how and when amounts are posted during revenue recognition (for example, point in time for the unit and over time for the warranty).
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