MB-310 Free Practice Questions — Page 4

Question 32

You configure the basic budgeting functionality of Dynamics 365 Finance. You add budget values and actuals in the system. You need to compare the budget values with the actual values. Which three actions should you perform? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point.

Question 33

DRAG DROP - A company uses basic budgeting functionality in Dynamics 365 Finance. The company has four sales territories in the same legal entity. Each territory uses its own budget model. Users view budget versus actual values for each sales territory. Users must be able to view budget versus actual values for all four territories in the same inquiry. You need to configure the basic budgeting functionality for the view. 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.

Question 34

HOTSPOT - Case study - This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided. To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study. At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section. To start the case study - To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question. Background - Tailspin Toys is a toy manufacturing company that sells to distributors and customers through a business-to-consumer website. Tailspin Toys has been using custom-developed software for their accounting and supply chain management needs. Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States. Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization. Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes. Current environment - Vendors - • Tailspin Toys works with local and foreign vendors. • The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys. • The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts. • For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week. • Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year. • Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses. • The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account. • The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors. Reporting - • Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements. Budget planning - • The finance department oversees all budget planning. • The finance department estimates the baseline for all budgets and distributes them to the respective departments. • Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly. Expenses - Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown. Asset leasing - Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments. Requirements - Consolidation - • Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys’ leadership. • Consolidated results are needed in multiple reporting currencies. Expenses - • Utility bills must be allocated to allow each department to expense the correct amount. Reports - • Leadership requires financial reports to come to their inbox automatically as one at the end of every month. Vendors - • The system must show accounts payable liability by type of vendor similar to how it works in the current system. • The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments. • The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined. Budgets - • A new organizational hierarchy is required for budget planning purposes. • Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget. Asset leasing - • The CFO must automatically process payments and journal entries for the leased properties. • Management must view payment forecasts based on leased assets. Issues - Accounts payable issues - • Vendor liability information for local and foreign vendors is not separated in the system. • The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program. • The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing. • The accounts payable manager must automate the current process of vendor payment proposals. Other issues - • The differences resulting from consolidating subsidiaries with foreign currencies are not considered. • User A confirmed they did not receive an alert before running out of their budget. • Expense reports for the manufacturing and sales departments do not contain utility bill expenses. • The accounting manager reported that there is no batch journal created for the monthly lease expenses. You need to resolve the issue related to vendor liability information. How should you configure the accounts payable module? To answer, select the appropriate options in the answer area. NOTE: Each correct selection is worth one point.

Question 35

A company uses Dynamics 365 Finance for their accounts payable processing. One vendor offers a special installment term which allows the company to invoice with three equal installment payments. The first payment is due 60 days after the invoice date. The second payment is due 90 days after the invoice date. The last payment is due 120 days after the invoice date. The company pays their invoice on the due date to take advantage of the terms. You need to configure the terms of payment and payment schedule for the vendor master record. How should you configure and assign the vendor master record?

Question 36

A company uses Dynamics 365 Finance. Accounts payable clerks observe that due dates and cash discount dates are incorrect on posted invoices. You need to correct the due dates and cash discount dates. What should you edit?

Question 37

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 manage a Dynamics 365 Finance implementation. You must provide the budget versus actual reporting in near real time. You need to configure the ledger budgets and forecasts workspace to track expenses over budget and revenue under budget. Solution: Configure an expense dimension set. Configure the set show amounts field value to per budget cycle. Does the solution meet the goal?

Question 38

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 manage a Dynamics 365 Finance implementation. You must provide the budget versus actual reporting in near real time. You need to configure the ledger budgets and forecasts workspace to track expenses over budget and revenue under budget. Solution: Configure an expense dimension set, expense budget threshold, revenue dimension set, and revenue budget threshold percent field values on the Configure my workspace form. Does the solution meet the goal?

Question 39

A company uses Dynamics 365 Finance. All customer balances must be posted to an accounts receivable trading main account. You need to configure the customer posting profile. Which posting profile field value should you use?

Question 40

DRAG DROP - Case study - This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided. To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study. At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section. To start the case study - To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question. Background - Tailspin Toys is a toy manufacturing company that sells to distributors and customers through a business-to-consumer website. Tailspin Toys has been using custom-developed software for their accounting and supply chain management needs. Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States. Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization. Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes. Current environment - Vendors - • Tailspin Toys works with local and foreign vendors. • The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys. • The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts. • For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week. • Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year. • Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses. • The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account. • The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors. Reporting - • Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements. Budget planning - • The finance department oversees all budget planning. • The finance department estimates the baseline for all budgets and distributes them to the respective departments. • Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly. Expenses - Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown. Asset leasing - Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments. Requirements - Consolidation - • Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys’ leadership. • Consolidated results are needed in multiple reporting currencies. Expenses - • Utility bills must be allocated to allow each department to expense the correct amount. Reports - • Leadership requires financial reports to come to their inbox automatically as one at the end of every month. Vendors - • The system must show accounts payable liability by type of vendor similar to how it works in the current system. • The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments. • The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined. Budgets - • A new organizational hierarchy is required for budget planning purposes. • Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget. Asset leasing - • The CFO must automatically process payments and journal entries for the leased properties. • Management must view payment forecasts based on leased assets. Issues - Accounts payable issues - • Vendor liability information for local and foreign vendors is not separated in the system. • The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program. • The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing. • The accounts payable manager must automate the current process of vendor payment proposals. Other issues - • The differences resulting from consolidating subsidiaries with foreign currencies are not considered. • User A confirmed they did not receive an alert before running out of their budget. • Expense reports for the manufacturing and sales departments do not contain utility bill expenses. • The accounting manager reported that there is no batch journal created for the monthly lease expenses. You need to configure the system to support the vendor incentive program. How should you configure the charges codes? To answer, move the appropriate Account to the correct Transaction Type. You may use each Account once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point.

Question 41

HOTSPOT - Case study - This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided. To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study. At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section. To start the case study - To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question. Background - Tailspin Toys is a toy manufacturing company that sells to distributors and customers through a business-to-consumer website. Tailspin Toys has been using custom-developed software for their accounting and supply chain management needs. Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States. Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization. Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes. Current environment - Vendors - • Tailspin Toys works with local and foreign vendors. • The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys. • The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts. • For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week. • Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year. • Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses. • The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account. • The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors. Reporting - • Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements. Budget planning - • The finance department oversees all budget planning. • The finance department estimates the baseline for all budgets and distributes them to the respective departments. • Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly. Expenses - Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown. Asset leasing - Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments. Requirements - Consolidation - • Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys’ leadership. • Consolidated results are needed in multiple reporting currencies. Expenses - • Utility bills must be allocated to allow each department to expense the correct amount. Reports - • Leadership requires financial reports to come to their inbox automatically as one at the end of every month. Vendors - • The system must show accounts payable liability by type of vendor similar to how it works in the current system. • The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments. • The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined. Budgets - • A new organizational hierarchy is required for budget planning purposes. • Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget. Asset leasing - • The CFO must automatically process payments and journal entries for the leased properties. • Management must view payment forecasts based on leased assets. Issues - Accounts payable issues - • Vendor liability information for local and foreign vendors is not separated in the system. • The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program. • The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing. • The accounts payable manager must automate the current process of vendor payment proposals. Other issues - • The differences resulting from consolidating subsidiaries with foreign currencies are not considered. • User A confirmed they did not receive an alert before running out of their budget. • Expense reports for the manufacturing and sales departments do not contain utility bill expenses. • The accounting manager reported that there is no batch journal created for the monthly lease expenses. You need to configure vendor payments for Tailspin Toys. How should you complete the configuration? To answer, select the appropriate options in the answer area. NOTE: Each correct selection is worth one point.