An exchange rate provider has been configured for Dynamics 365 Finance.
Foreign currency transactions using the Euro and the US dollar use a fixed exchange rate for European Central Bank holidays and all days between April 1 and
June 30. Foreign currency transactions from March 1 to June 30 fail to post.
You need to reconfigure the system to post transactions for this period.
Which two configuration changes should you make to the ledgers? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Add a key named FloatCurrencies and set the value to True.
B. Set Create necessary currency pairs to True.
C. Set Import as of start date to Apr01.
D. Add a key named BaseCurrency and value of US
E. Set Prevent import on national holiday to True.
Show Answer
Correct Answer: B, D
Explanation: Transactions are failing because required exchange rates are not available for the full posting period. Setting **Create necessary currency pairs** to True ensures that missing currency pairs (such as EUR/USD) are automatically generated so rates can be applied. Defining the **BaseCurrency** key (USD) is required by the exchange rate provider so that rates are correctly interpreted and applied. Other options do not resolve missing rates for March or would further restrict imports.
Question 175
You plan to manage delinquent customers by monitoring the collection process in Dynamics 365 Finance.
You need to use the Collections list page to monitor the collection process.
What must you do first?
A. Set up customer groups.
B. Set up customer pools.
C. Update financials.
D. Age customer balances.
Show Answer
Correct Answer: D
Explanation: The Collections list page relies on aged customer balance data (aging snapshots) to display overdue amounts and delinquent customers. Before you can effectively monitor the collection process, customer balances must be aged so the system can calculate and show past-due information. Customer pools are optional filters and are not mandatory to use the Collections list page.
Question 176
You are implementing Dynamics 365 Finance.
You must configure a more accurate cash flow forecast related to sales tax. The sales tax calculation should be based on the expected transaction amounts and dates.
You need to configure the cash flow forecast.
Which setup should you use?
A. Bridging accounts
B. Sales forecast defaults
C. Dependent accounts
D. Purchasing forecast defaults
Show Answer
Correct Answer: C
Explanation: To forecast sales tax cash flows based on expected transaction amounts and dates, you configure **Dependent accounts** in cash flow forecasting. This setup links a primary account (such as sales or purchases) to a dependent account (such as sales tax payable), allowing the system to calculate and time the tax cash flow as a percentage of the underlying transactions. Sales forecast defaults only affect sales order forecasting, not tax calculation.
Question 177
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 client wants general journals to be used only to post ledger-type transactions.
You need to set up journal configuration to achieve the requirement.
Solution: Set up the journal control to specify the account structure and ledger segment.
Does the solution meet the goal?
A. Yes
B. No
Show Answer
Correct Answer: B
Explanation: The requirement is to restrict general journals so they can be used only for ledger-type transactions. This is controlled by Journal control using **account types**, not by specifying the account structure or ledger segment. Account structures/segments define valid combinations, not transaction usage. Therefore, the proposed solution does not meet the goal.
Question 178
HOTSPOT -
A company is implementing Dynamics 365 Finance.
The company must be able to record sales orders in the following currencies: USD. EUR. and GBP.
✑ Company A uses USD as the accounting and reporting currency.
✑ Company B uses GBP as the accounting and reporting currency.
✑ Each company is consolidated into Company CON that uses EUR as the accounting and reporting currency.
Assets and liabilities are revalued at the current exchange rate.
You need to configure the system to meet the requirements.
Which option should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
Show Answer
Correct Answer: An imported exchange rate for EUR to USD dated yesterday
Set the Use for financial elimination process to Yes for both legal entities Company A and Company B
Explanation: Open AR from Company A (USD) must be translated to the consolidation currency (EUR) using a current rate, which requires an up‑to‑date imported exchange rate. For intercompany eliminations, both participating legal entities must be enabled for the financial elimination process so elimination rules can be applied during consolidation.
Question 179
You need to ensure that captured employee mobile receipts automatically match the transactions to resolve the User1 issue.
Which feature should you enable?
A. Define expense policy for receipts
B. Expense reports re-imagined
C. Expense management workspace
D. Show receipts during itemization
Show Answer
Correct Answer: B
Explanation: The "Expense reports re‑imagined" feature enhances expense management by improving mobile receipt capture and enabling automatic matching of captured receipts to credit card transactions using improved matching logic. This directly resolves issues with receipts not auto‑matching to transactions.
Question 180
DRAG DROP -
You need to configure the system to for existing purchasing contracts.
Which commitment types should you use? To answer, drag the appropriate commitment types to the correct requirements. Each commitment type 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: Local supplier agreement: Value
Utah agreement: Product quantity
Explanation: A local supplier agreement typically commits to a total spend regardless of items, which uses a Value commitment. The Utah agreement requires committing to specific items and amounts, which uses a Product quantity commitment.
Question 181
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. a Ledger daily journal workflow that uses the organizational hierarchy for journal posting, associated with the General ledger journal name
B. a saved query in the Voucher inquiries form for the controller to view all general journals posted to the ledger
C. a manual journal approval with the journal assigned to the user group that the employees are assigned to
D. the controller's security rote so that he has approval privileges for General ledger journals
Show Answer
Correct Answer: A
Explanation: To ensure journal entries are reviewed before posting, Dynamics 365 Finance requires a workflow-based approval process. Configuring a Ledger daily journal workflow and associating it with the General ledger journal name enforces review and approval before posting. The workflow can route journals to the controller (via organizational hierarchy or explicit assignment), preventing posting without approval. Other options only provide visibility or security permissions and do not enforce a pre-posting review.
Question 182
A company manufactures air filtering units for industrial manufacturing plants.
During the acquisition of one of the components that is used in the unit an agreement is reached that the $25,000 component will be paid for in the following schedule:
✑ The first payment will be $10,000.
✑ The remaining balance will be distributed equally and due on the 15th of the month for the next three months.
You need to configure the system for the payment schedule.
What should you do?
A. Use the Specified allocation method.
B. Enter $25,000 in the Amount of Transaction Quantity field.
C. Specify a fixed quantity payment of 5.
D. Set the Fixed allocation method Fixed Amount field for the monthly amount.
Show Answer
Correct Answer: A
Explanation: The payment schedule requires an unequal first payment ($10,000) followed by equal payments of the remaining balance over the next three months. The Specified allocation method is designed for non‑uniform payment amounts and allows you to explicitly define an initial payment and subsequent installments, whereas fixed or quantity-based methods assume uniform distribution.
Question 183
DRAG DROP -
You are implementing Dynamics 365 Finance.
You must associate items with an item model group. An inventory close must not be required.
You need to configure the item model group.
Which costing method should you use? To answer, drag the appropriate costing method to the correct system behavior. Each costing method 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: Inventory unit cost based on an expected cost:
Standard cost
Purchase cost changes but inventory cost does not:
Moving average
Explanation: Standard cost uses predefined (expected) costs independent of actual purchase prices. Moving average recalculates an average for future issues, but inventory already issued is not revalued when purchase prices change, so prior inventory cost does not change and no inventory close is required.
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