You need to configure budget planning for Alpine Ski House Corporate.
Which two components should you configure? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. budget control workflow
B. budget planning hierarchy
C. organizational hierarchy
D. operational budget register entry
E. budget planning workflow
Show Answer
Correct Answer: B, E
Explanation: Budget planning requires configuring a budget planning hierarchy to define how planning data is organized and rolled up across the organization, and a budget planning workflow to manage submission, review, and approval of budget plans. Budget control workflow is for budget control processes rather than planning, the organizational hierarchy is separate from the planning configuration, and an operational budget register entry is used for recording budget amounts rather than configuring the planning process.
Question 165
HOTSPOT -
A company is implementing Microsoft Dynamics 365 Finance. The company plans to implement the Fixed asset module.
You have the following requirements:
✑ Post transactions to the tax depreciation book at the same interval as the primary book.
✑ Tax transactions must be journalized without being recorded in the general ledger.
You need to configure the fixed asset books.
Which configuration option should you use? To answer, drag the appropriate configurations to the correct requirements. Each configuration 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: Post transactions to the tax depreciation book at the same interval as the primary book. → Derived
Tax transactions must be journalized without being recorded in the general ledger. → Posting layer
Explanation: Derived books inherit postings from the primary book, keeping posting intervals synchronized. Posting layer configuration (with posting to the general ledger disabled, which sets the layer to None) supports journalizing tax book transactions without recording them in the general ledger.
Question 166
A company uses Dynamics 365 Finance. The company is based in the United States and sells a product online. The product is shipped to the United States,
Canada, and Mexico. The product is sourced from Brazil.
Legal entities must be set up for each country/region. One ledger account must be used to track sales tax payable.
You need to configure the system to track Use Tax.
Which two parameters should you configure? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. single sales tax code for Brazil
B. ledger posting group
C. single sales tax code for the United States
D. taxation rule
E. tax code for each legal entity
Show Answer
Correct Answer: B, E
Explanation: Use tax in Dynamics 365 Finance is configured on sales tax codes, so each legal entity requires its own tax code configuration (including the Use tax setting). To satisfy the requirement that all sales/use tax payable posts to one ledger account, configure the appropriate ledger posting group to map posting to the single ledger account. Taxation rules are not the core configuration for enabling use tax tracking in the standard sales tax framework.
Sources:
https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/indirect-taxes-overview
Question 167
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: Use a voucher template to select the defined accrual scheme.
Perform inquiries: Use the accrual transaction inquiry to find the transactions for the accrual scheme.
Explanation: A voucher template ensures the predefined accrual scheme is consistently applied when creating ledger journals. The accrual transaction inquiry is the dedicated inquiry for reviewing transactions generated and managed by an accrual scheme.
Question 168
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: Item groups determine inventory posting behavior in Dynamics 365 Finance by linking items to inventory posting profiles and the appropriate ledger accounts. Assigning promotional gifts to the correct item group ensures their inventory receipts and issues are posted to the intended accounts.
Question 169
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 appropriate ledger posting group field is 'Use tax payable'. This field specifies the main account used to post use tax liabilities owed to the tax authority, which fits the scenario of tracking use taxes that must be remitted. The other options relate to sales tax accounts or cash discounts rather than use tax liability.
Question 170
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: A draft account structure is not active, so users will continue using the currently active structure and not see expected dimension behavior. An asterisk (*) in an account structure allows any value for that financial dimension, which can cause users to see all dimension values instead of restricted ones. Financial dimensions are shared across legal entities, so creating them in the 'wrong' legal entity is not generally the cause, quotations relate to allowing blank values, and security setup does not determine account structure dimension restrictions.
Question 171
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: Vendor invoice validation policies (including three-way matching) are not applied when entering invoices through the vendor invoice journal. They are applied during vendor invoice entry against purchase orders, not journal entries. A 3% tolerance is a valid configuration and the issue is the entry method, not the tolerance or matching setup.
Question 172
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: The relevant Accounts Receivable capability for handling prepayments or pre-orders is settling open transactions. Pre-orders commonly involve applying a customer payment or deposit against an invoice when it is created, which is done through the 'Settle open transactions' feature. The other options are reporting, investigation, or accounting analysis features rather than transaction settlement.
Question 173
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: In Dynamics 365 Finance, waiving an interest note is done by creating a credit note. Reinstating a previously waived interest fee creates a debit invoice that is settled against the waived charges rather than restoring the original interest note.
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