MB-310 Free Practice Questions — Page 7

Question 62

HOTSPOT - You need to configure credit card processing for all three companies. 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:

Question 63

HOTSPOT - You are implementing a Dynamics 365 Finance general ledger module for a client that has multiple legal entities. The client has the following requirements: ✑ Post journal entries for all companies from one legal entity. ✑ Configure automatic creation of due to/due from transactions based on when LegalEntityA transacts with LegalEntityB. ✑ Automatically split the dollar amount in half between DimensionA and DimensionB when the journal is posted. ✑ Set up fixed or variable allocations, and then review the allocations in a journal before posting. ✑ Automatically post yearend results to account 30016 during yearend close. You need to configure the system. Which system capability should you configure? To answer, select the appropriate configuration in the answer area. NOTE: Each correct selection is worth one point. Hot Area:

Question 64

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 a default offset account on the journal name. Does the solution meet the goal?

Question 65

HOTSPOT - A company implements the general ledger module of Dynamics 365 Finance. The company must allocate the advertising expense based on a department's sales in proportion to the total sales. You need to configure the allocation rule. How should you complete the configuration? To answer, select the appropriate options in the answer area. NOTE: Each correct selection is worth one point.

Question 66

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 - Adventure Works Cycles is a North American-based company that sells and fixes bicycles. The company is modernizing its business processes by implementing Dynamics 365 Finance. The company recently expanded its business into bicycle leasing. The leasing business is expanding into Canada due to high demand. Adventure Works Cycles has one legal entity, two cost centers, and three divisions within each cost center. The company also has a centralized budgeting process to the lowest level. The operating currency of the legal entity is the US dollar (USD). Adventure Works Cycles operates on a 4-5-4 calendar, which is used to make sure that the sales are evenly distributed across all months, including weekends. Current Environment - • Adventure Works Cycles tracks its international vendors in a separate payable account from its domestic vendors. • Only bicycle frame inventory is configured with a separate item model group that requires registration. • A thirteenth month is required for year-end transactions. • Only members from the accounts payable team are able to post transactions to a prior period after the period is closed to the company. • Fourth Coffee is a Canadian-based coffee chain whose operating currency is the Canadian dollar (CAD). Fourth Coffee entered into a lease agreement for 150 branded bicycles totaling CAD75,000. • Adventure Works Cycles frequently receives invoices in foreign currencies. Requirements - • Three-way matching is required only on competition bicycles priced over USD3,000 that are purchased from Fabrikam, Inc., in Europe. • Domestic customers and international customers must be managed in the following ways: o Domestic customer receivables must post to account 1200. o International customer receivables must post to account 1201. o Domestic customers must have a payment term of net 30. o International customers must have a payment term of net 15. o Domestic customer revenue must post to account 4000. o International customer revenue must post to account 4001. • Adventure Works Cycles must be able to use the cash flow forecasting capability in Finance. • The system must enable tracking and charging interest for customer accounts that are not current. • Automatic charges must be configured on vendor invoices for bicycle tires. The cost must be added to each item on the vendor invoice. • Adventure Works Cycles must be able to terminate leases for bicycles at any time. • Adventure Works Cycles must be able to closely track its budget by enforcing the budget at the cost center level. • The system must run Vendor aging reports by listing the transactions that are included in the reports' balance, unsettled payments, and aging period descriptions. Issues - • The accounts payable clerk processes an invoice for bicycle frames and a partial invoice for helmets. The clerk observes that the quantities on the vendor invoices are incorrect. The invoices require the correct line quantity selections so that the invoices process accurately. • The accounts payable clerk processes an invoice and observes that the product receipt quantity match for bicycle seat posts ordered from Fabrikam, Inc., is blank. However, the invoice passes validation. • The accounts payable manager observes that a sales order is posted to the prior period that is closed. • During foreign currency revaluation of the Accounts payable subledger, posting occurred only if the result was a loss. • On a vendor invoice for bicycle tires, the automatic charge is charged as an expense. • Due to a breach of contract, a member of the finance team needs to terminate a bicycle lease. However, the Termination proposal button is unavailable. • The accounts payable clerk is unable to review payments that have not been settled on the Vendor aging report. You need to address the requirement for the Vendor aging report. What should you do?

Question 67

A company uses Dynamics 365 Finance. The company must approve the expense invoice at the line level. You need to enter the expense invoice into the system to allow workflow approval at the line level. Which vendor invoice method should you use?

Question 68

A company implements basic budgeting functionality in Dynamics 365 Finance. The company wants to allocate budget register entries for payroll expense amounts to each department based on a predetermined percentage. You need to configure the allocation. Which functionality should you use?

Question 69

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 address the requirement for allocating the utility bills. Which allocation method should you use?

Question 70

A company uses Microsoft Dynamics 365 Finance. The system displays the following error when you try to acquire a fixed asset: Account for the transaction type, value model, does not exist for fixed asset ASSET-001. You need to resolve the error. What should you do?

Question 71

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 company uses Dynamics 365 Finance. The customer payment journal must only be available for selection by the accounts receivable user group. You need to configure the accounts receivable journal name to meet the requirement. Solution: Configure the journal control. Does the solution meet the goal?