HOTSPOT -
A rental service company with complex accrual requirements has accrual schemes set up in its implementation.
You need to ensure that all transactions for the company use an accrual scheme.
Which actions should you perform? To answer, select the appropriate configuration in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
Show Answer
Correct Answer: Create ledger journals:
Enter start date or end date for the accrual scheme to apply the defined frequency.
Perform inquiries:
View the accrual transactions only after the accrual scheme transfers them to journal lines.
Explanation: Accrual schemes are enforced on journal lines by defining the accrual period (start/end dates), which drives automatic accrual generation. Accrual results are not visible in standard inquiries until the scheme processes and transfers accruals into journal lines, at which point they can be reviewed.
Question 165
You need to ensure the promotional gifts are posted to the correct account.
What should you use?
A. Field groups
B. Classification groups
C. Customer credit groups
D. Item groups
E. Bank groups
Show Answer
Correct Answer: D
Explanation: Promotional gifts are physical inventory items whose financial postings (receipt, issue, expense) are controlled through inventory posting profiles. Item groups determine which ledger accounts are used for inventory and expense postings in Dynamics 365 Finance, ensuring promotional gifts are posted to the correct account.
Question 166
You need to configure the posting groups for Humongous Insurance s subsidiary.
Which ledger posting group field should you use?
A. Sales tax payable
B. Sales tax receivable
C. Customer case discount
D. Use tax payable
E. Use tax expense
Show Answer
Correct Answer: D
Explanation: The requirement is to configure a ledger posting group field to track use taxes that the subsidiary must pay to the tax authority but that are not reported or reclaimed as sales tax. In Dynamics 365 Finance, such taxes are posted to the **Use tax payable** account, which represents the liability for use tax under reverse-charge or similar scenarios. Therefore, the correct field is Use tax payable.
Question 167
You need to determine the cause of the issue that User1 reports.
What are two possible causes for the issue? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. The account structure is in draft status.
B. The financial dimensions were created in the incorrect legal entity.
C. User1's security is incorrectly set up.
D. The account structure has an asterisk for all dimensions.
E. The account structure has quotations for all dimensions.
Show Answer
Correct Answer: A, D
Explanation: An account structure in Draft status is not active, so the system continues using an older structure, which can cause unexpected or irrelevant dimensions to appear. Additionally, using an asterisk (*) for all dimensions makes the account structure overly permissive, allowing all dimension values to be entered or displayed without restriction.
Question 168
You are implementing Dynamics 365 Finance. You configure an invoice validation policy to use three-way matching and use a three percent tolerance for invoice totals.
A user enters a vendor invoice journal. The invoice validation policy is not applied.
You need to troubleshoot the policy.
What is the issue with the policy?
A. Validation is only performed on vendor invoice entries.
B. The tolerance percentage is too high.
C. Validation is only performed on invoice register entries.
D. Validation is configured to check for price and quantity.
Show Answer
Correct Answer: A
Explanation: Invoice validation policies, including three-way matching and tolerances, are applied when invoices are entered through vendor invoice entry forms that support purchase order matching. They are not applied to invoices entered through a vendor invoice journal, which is why the policy is not triggered in this scenario.
Question 169
You need to configure Accounts Receivable to take pre-orders.
Which feature should you use?
A. Settle cloud transactions
B. Accounting source explorer
C. Settle open transactions
D. Customer aging report
E. Voucher transactions
Show Answer
Correct Answer: C
Explanation: To take pre-orders in Accounts Receivable, you need the ability to apply customer prepayments against future invoices. This is handled through **Settle open transactions**, which allows prepayments (open customer transactions) to be settled against invoices once they are posted. The other options are reporting or inquiry tools and do not enable pre-order or prepayment processing.
Question 170
DRAG DROP -
You have implemented Dynamics 365 Finance.
You must implement interest fees to encourage customers to pay on time.
You need to configure interest fees.
Which functionality should be configured? To answer, drag the appropriate functionality to the correct scenario. Each functionality 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.
NOTE: Each correct selection is worth one point.
Select and Place:
Show Answer
Correct Answer: A long-standing customer must have their interest fee waived:
Credit note
A customer’s interest fee was waived last month but did not pay their balance – an interest fee must be reinstated:
Invoice
Explanation: Waiving an interest fee is done by issuing a credit note to offset the interest charge. If an interest fee was previously waived and must be reinstated, the system creates an invoice to re‑charge the amount and settle it against the earlier waiver, rather than recreating the original interest note.
Question 171
HOTSPOT -
You manage fixed assets in Dynamics 365 Finance.
You have the following requirements:
✑ Purchase a fixed asset on a purchase order by using a procurement category.
✑ Purchase a fixed asset on a purchase order by using an item number.
✑ Post specific tax transactions for fixed assets by using a journal.
You need to associate the appropriate process in the system with the corresponding business requirement.
Which actions should you perform? To answer, select the appropriate configuration in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
Show Answer
Correct Answer: Configure Business Rules for fixed asset determination
Select new fixed asset on purchase order line
Create a journal and assign the tax posting layer
Explanation: Procurement categories require fixed asset determination rules to auto-assign asset groups.
Item-based purchases create or link the asset directly from the purchase order line.
Posting tax-only fixed asset transactions requires a journal configured with the Tax posting layer.
Question 172
You maintain account control and bank balances for a company. You have a $100,000 credit limit from a bank.
You must prevent the bank account from going below the defined credit limit when a transaction is posted.
You need to configure the bank account credit limit.
What should you do?
A. Add גˆ’$100,000 in the bank credit limit.
B. Add $100,000 in the bank credit limit.
C. Define a credit limit of $100,000 on the invoicing vendor account
D. Set the Control Balance option to credit in the General ledger account associated with the bank account.
Show Answer
Correct Answer: A
Explanation: To prevent the bank balance from going below an allowed overdraft, the bank credit limit must be entered as a negative value representing how far the balance may drop. With a $100,000 credit limit, the correct configuration is to enter −$100,000 as the bank credit limit. The other options either use the wrong sign, apply to vendors instead of bank accounts, or are unrelated to credit limit enforcement.
Question 173
DRAG DROP -
You are using Microsoft Excel to complete budget planning for the next fiscal year.
Budget template data must be gathered in real time from Dynamics 365 Finance during the budget planning process.
You need to create a budget planning template by using Microsoft Excel.
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.
Select and Place:
Show Answer
Correct Answer: Generate the template.
Add data connector fields.
Upload the template.
Explanation: In Dynamics 365 Finance, you first generate the Excel budget planning template from the defined layout. Then you modify the Excel file by adding data connector or calculated fields as needed. Finally, you upload the customized Excel file back to Dynamics 365 so it can be used in budget planning with live data.
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