MB-310 : Microsoft Dynamics 365 Finance : Part 06

MB-310 : Microsoft Dynamics 365 Finance : Part 06

1. HOTSPOT

   A client needs to configure Accounts payment vendor methods of payment to meet the following business requirements:

   – Configure the electronic method of payment to create one electronic payment for all of the invoices due.
   – Configure the system to ensure that all payments made with an electronic method of payment also forces the user to select which payment has been used.

   You display the Methods of payment setup screen.

   

   Use the drop-down menus to select the answer choice that answers each question based on the information presented in the graphic.

   NOTE: Each correct selection is worth one point.

   

   

2. DRAG DROP

   A client wants to use Dynamics 365 Finance invoice validation functionality.

   You need to recommend the invoice validation functionality that meets their requirements.

   Which functionality should you recommend for each requirement? To answer, drag the appropriate functionality to the correct requirement. 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.

   

   

3. HOTSPOT

   You need to configure invoice validation for vendors in Dynamics 365 Finance.

   You are viewing the Accounts payable parameter for Invoice validation.

   

   Use the drop-down menus to select the answer choice that answers each question based on the information presented in the graphic.

   NOTE: Each correct selection is worth one point.

   

   

4. QUESTION NO: 86

   You are setting up the Accounts payable module and vendor invoice policies for an organization.

   You need to set up vendor invoice policies that run when vendor invoices are posted in the system.

   In which two ways can you set up the policies? Each correct answer presents a complete solution.

   NOTE: Each correct selection is worth one point.

   • Set up invoice matching validation for vendor invoice policy.
   • Configure the vendor invoice workflow to run the policies.
   • Run the policies when you post a vendor invoice by using the Vendor invoice page and when you open the Vendor invoice policy violations page.
   • Apply the policies to invoices that were created in the invoice register or invoice journal.

5. A company has many customers who are not paying invoices on time.

   You need to use the collection letter functionality to manage customer delinquencies.

   What are two possible ways to achieve the goal? Each correct answer presents part of the solution.

   NOTE: Each correct selection is worth one point.

   • Cancel the collection letters after they are created and posted.
   • Print all of the collection letters.
   • Delete the collection letters after posting when an error occurs.
   • Post the collection letters.

6. 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

   Fourth Coffee is a coffee and supplies manufacturer based in Seattle. The company recently purchased Company A, based in the United States, and Company B, based in Canada, in order to increase production of their award-winning espresso machine and distribution of their dark roast coffee beans, respectively.

   Fourth Coffee has set up Company A and Company B in their Dynamics 365 Finance and Operations environment to gain better visibility into the companies’ profitability. Company A and Company B will continue to operate as subsidiaries of Fourth Coffee, but all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.

   The current organizational chart is shown below:

   

   Current environment

   Systemwide setup

   – Dynamics 365 Finance in Microsoft Azure is used to manage the supply chain, retail, and financials.
   – All companies share a Chart of Accounts.
   – Two dimensions are used: Department and Division.
   – Budgeting is controlled at the department level.
   – Customers and vendors are defined as two groups: Domestic and International.
   – Mandatory credit check is set to No.
   – Consolidate online is used for the consolidation of all companies.
   – International main accounts are subject to foreign currency revaluation.
   – The purchasing budget is used to enforce purchasing limits.

   General ledger accounts

   

   Fourth Coffee

   – The base currency is USD.
   – Three item groups are used: coffee, supplies, and nonstock.
   – The standard sales tax method is used.
   – Acquiring fixed assets requires a purchase order.
   – All customer payment journals require a deposit slip.
   – Customer X is a taxable company.
   – Customer Y is a tax-exempt company.
   – Customer Z is a taxable company.
   – Vendor A is a Colombian supplier of coffee beans and belongs to the international vendor group.
   – Vendor B is a Peruvian supplier of coffee machine filters and belongs to the international vendor group.
   – Vendor C is a Texas supplier of espresso valves and belongs to the domestic vendor group.

   Company A

   – The base currency is USD.
   – It consists of a marketing department and a digital division.
   – A 4-5-4 calendar structure is used.
   – The standard sales tax method is used.

   Company B

   – The base currency is CAD.
   – The conditional sales tax method is used.

   Requirements

   Reporting

   – A consolidated Fourth Coffee financial report is required in USD currency.
   – Fourth Coffee and its subsidiaries need to be able to report sales by item type.
   – Year-end adjustments need to be reported separately in a different period to view financial reporting inclusive and exclusive of year-end adjustments.

   Issues

   – User1 observes that a General journal was used in error to post to the Domestic Accounts Receivable trade account.
   – User2 has to repeatedly reclassify vendor invoice journals in Fourth Coffee Company that are posted to the marketing department and digital division.
   – When User3 posts an Accounts receivable payment journal, a deposit slip is not generated.
   – User4 observes an increase in procurement department expenses for supplies.
   – User5 observes that sales tax is not calculating on a sales order for Customer Z.
   – User6 observes that sales tax is calculating for Customer Y.
   – User7 observes that the sales tax payment report is excluding posted invoice transactions.
   – User8 in Company A attempts to set up the sales tax receivable account on the sales tax posting form.
   – User9 in Company A needs to purchase three tablets by using a purchase order and record the devices as fixed assets.
   – Customer X requires a credit check when making a purchase and is currently at their credit limit.

   1. You need to determine why Customer X is unable to confirm another sales order.

      What are two possible reasons? Each answer is a complete solution.

      NOTE: Each correct selection is worth one point.

      • The credit limit parameter is set to Balance + All.
      • The credit limit is set to 0.
      • An inventory item is out of stock. 
      • The inventory safety stock is set to 0.

   2. HOTSPOT

      You need to prevent a reoccurrence of User2’s issue.

      How should you configure the system? To answer, select the appropriate options in the answer area.

      NOTE: Each correct selection is worth one point.

      

      

   3. HOTSPOT

      The posting configuration for a purchase order is shown as follows:

      

      Use the drop-down menus to select the answer choice that answers each question based on the information presented in the graphic.

      NOTE: Each correct selection is worth one point.

      

      

7. 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

   Munson’s Pickles and Preserves Farm grows and distributes produce, jellies, and jams. The company’s corporate headquarters is located in Dallas, TX. Munson’s has one operations center and seven regional distribution centers in the United States.

   The company has two wholly owned subsidiaries that operate in Canada. The Canadian entity owns an entity in France.

   Munson’s plans to expand into Latin America by purchasing the last 25 percent of a subsidiary that they own in Costa Rica. This process is expected to complete within the next two years.

   The company plans to implement Dynamics 365 Finance and Dynamics 365 Supply Chain to meet their growing business needs.

   Current environment. General

   Munson’s uses a mix of internally-developed legacy systems that handle their finance and distribution activities. The company has an isolated CRM system.

   – Both Canadian subsidiaries have two departments: marketing and operations.
   – Financial reporting is difficult due to data residing in disparate systems.
   – Financial reporting is currently performed by using Microsoft Excel.
   – Pre-orders in the current system are difficult to track because the order management system is not integrated with the finance system.
   – Pickle sales post to one revenue account, but this does not allow for targeted reporting by pickle cut and type.

   Current environment. Organization

   The following chart shows Accounting/Reporting Currencies and Tax ID, if applicable.

   – Typically, vendor invoices are received prior to receipt of product.
   – The following fixed assets are sold for a loss:
   1. BUILD-100
   2. CAR-1233
   – At the regional distribution centers, the value for physical inventory does not match the inventory in the financial system.
   – Munson’s rents their corporate office. Rent is not paid by purchase order. Rent is due once a quarter.
   – Allocations are performed manually.
   – Barrels are inventoried by site and warehouse.
   – Munson’s has multiple depreciation and tax books for all of their fixed asset equipment.
   – Budgets are posted at the department level for each legal entity.

   Requirements. Sales

   – Customers should be able to pre-order for fall release of pickles.
   – Three-way matching must be enforced for all purchases.
   – Fixed asset sale transactions require a ledger account entered at the time of transaction.
   – Fixed assets purchased must be automatically created in fixed asset module. This includes inventory items and write in purchase orders/non-inventoried items.
   – One dollar from every sale needs must be tracked and donated at the end of each month to a charitable organization.
   – Purchasing budgets must be enforced at the main account level.

   Requirements. Finances

   – Accounts payable must be able to enter vendor invoices on the day they were received to be settled against when product is received.
   – Accounts payable must be able to enter vendor invoices to accrue expense without specifying a purchase order at the time of entry.
   – Postage expenses must be split evenly across the regional distribution centers automatically.
   – Administrative expenses must be distributed across the regional distribution centers by percentage of fulfillment orders monthly.
   – Pickling machines depreciation must be uniquely recorded for visibility but not post to the ledger.

   Issues

   – During implementation testing, User1 indicates that after packing slips are generated for purchase orders, there are no ledger postings.
   – User2 indicates that fixed assets purchased on a purchase order do not show up in the Fixed Assets module.
   – User3 reports that they are seeing inconsistent application of the one-dollar donation from all sales orders.
   – User4 in the Canadian subsidiary is able to purchase supplies for marketing despite exceeding the marketing department budget.
   – User5 reports that when purchasing a non-inventoried computer, the system is automatically assigning it to the buildings fixed asset group.

   1. You need to recommend a solution to prevent User3’s issue from recurring.

      What should you recommend?

      • Configure automatic charge codes.
      • Create a service item.
      • Configure a sales order template.
      • Create a procurement category.

   2. DRAG DROP

      You need to configure the system to meet invoicing requirement.

      Which features should you use? To answer, drag the appropriate features to the correct requirements. Each feature 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.

      

      

8. 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

   Alpine Ski House has three partially owned franchises and 10 fully owned resorts throughout the United States and Canada. Alpine Ski House’s percentage ownership of the franchises is between two and 10 percent.

   Alpine Ski House is undergoing an implementation of Dynamics 365 Finance and Dynamics 365 Supply Chain Management to transform their financial management and logistics capabilities across the franchises. Implementation is complete for Alpine Ski House’s corporate offices, two US franchises, and one Canadian franchise. The remaining franchises are in varying stages of the implementation. Two new resort projects are in the budget planning stages and will open in the next fiscal year.

   Current environment

   Organization and general ledger

   – Each franchise is set up as a legal entity in Dynamics 365 Finance.
   – Alpine Ski House Corporate uses financial dimensions for their fully owned resorts.
   – Each resort is a financial dimension named resort.
   – Each fully owned resort has two divisions: marketing and operations.
   – Only Profit and Loss account postings require the division dimension.
   – Corporate handles the advertising and administration of the fully owned resorts.
   – Corporate uses Dynamics 365 Project Management and Accounting to manage construction of new resorts.

   Budgeting

   – Organizational budgeting is decentralized but rolls up to one organizational corporate budget.
   – Each resort manager performs budgeting in Dynamics 365 Finance.
   – Budget preparation begins this month. All operational resorts will submit their budgets in two weeks.

   Sales and tax

   – Sales tax is configured and used by all resorts that operate in the United States.
   – You configure one US sales tax vendor account and assign the vendor account to the settlement periods for reporting.
   – You use accounts receivable charges to track donations.

   Existing purchasing contracts

   – Each franchise resort has an individual contract with a local supplier of their choosing to purchase at least $10,000 worth of suppliers during the calendar year.
   – The franchise resorts in one US state receive a two percent discount on meat and vegetable purchases in excess of $8,000 per year.
   – A franchise resort in Utah has agreed to purchase 1,000 units of beef at market price from a local supplier.
   – Alpine Ski House uses a vendor collaboration portal to track purchase orders and requests for quotes.
   – Vendors request access to the vendor collaboration portal by using a workflow which runs on a nightly schedule.

   Intercompany setup

   Vendor123 resides in US franchise Company1 and is set up for intercompany transactions. Customer345 resides in Canada franchise Company1 and is set up for intercompany transactions.

   Requirements

   Franchises

   – Each franchise must pay two percent of monthly sales to Alpine Ski House Corporate.
   – Each franchise must report their own financials to Alpine Ski House Corporate monthly.
   – US franchises require a three-way-match on all purchases, with a 1-percent price tolerance.
   – Canadian franchises require a three-way-match on all purchases except paper products, which have a 10-percent price tolerance.

   Corporate

   – Advertising costs must be balanced across the 10 resorts monthly. These costs must be split across the 12 resorts once construction of the final two resorts is completed.
   – Administration costs must be split across the 10 resorts proportional to the amount of sales generated.
   – One percent of all pack and individual ski pass sales must be donated quarterly to an environmental protection organization.
   – The finance department must be able to see purchasing contracts and discounts for vendors based on volume spend.

   Employees

   All employee expense reports that contain the word entertainment must be reviewed for audit purposes. If a journal is posted incorrectly, the entire journal and not just the incorrect line must be fully reversed for audit purposes.

   Resorts

   All resorts must use Dynamics 365 Finance for budgeting and must first be approved by the regional manager. Purchased fixed assets must automatically be acquired at product receipt.

   Issues

   – User1 reports that irrelevant dimensions display in the drop down when entering a General journal.
   – User2 reports that dimension 00 is being used for all balance sheet accounts.
   – User3 tries to generate the quarterly sales tax liability payment for a specific state but does not see any payables available for that state’s vendor.
   – User4 receives a call from a vendor who cannot access the vendor collaboration portal but needs immediate access.
   – User5 notices a large amount of entertainment expenses being posted without an audit review.
   – User6 needs to have visibility into the increase in budget that is necessary to staff the two new resorts opening next year.
   – User7 needs to use Dynamics 365 Finance for situational budgeting planning with the ability to increase and decrease the existing plans by certain percentages.
   – User8 made a mistake while posting a 1,000-line journal and reverses the entire journal but cannot find the lines that included errors during the reversal.
   – User9 made a mistake while posting a 55-line journal and reverses the entire journal.
   – User10 realizes that the purchase of five new computers did not acquire five new fixed assets upon receipt.

   1. 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.

      

   2. You need to prevent the issue from reoccurring for User5.

      What should you do?

      • Use the audit list search query type.
      • Set up the aggregate query type for entertainment expenses.
      • Set up the sampling query type for entertainment expenses.
      • Add more keywords to the audit policy.

9. 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 is preparing to complete yearly budgets.

   The company plans to use the Budget module in Dynamics 365 Finance for budget management.

   You need to create the new budgets.

   Solution: Combine budgets from multiple legal entities to a master budget.

   Does the solution meet the goal?

   • Yes
   • No

10. A company configures budget controls at the beginning of the year.

    Which three budget control transaction actions occur when the budget control is turned off mid-year. Each correct answer presents part of the solution.

    NOTE: Each correct selection is worth one point.

    • Activities are unrecorded for budget control purposes.
    • Budget register entries that have been posted after budget control is turned off will not be considered for budget control.
    • Posted documents might incorrectly reflect any relieving amounts or balances in inquiries and reports that are related to budget control.
    • Budget checks are performed.
    • You can view the budget reporting through financial reports.

11. HOTSPOT

    You are the purchase manager of an organization. You purchase a laptop for your office for $2,000. You plan to create a purchase order and acquire the new fixed asset through the purchase order at time of invoicing.

    You set up the system as follows: Fixed assets are automatically created during product receipt or vendor invoice posting and the capitalization threshold for the computers group (COMP) is set to $1,600.

    You need to automatically create a fixed asset record when you post an acquisition transaction for the asset after you post the invoice.

    How should you configure the fixed asset parameters to meet the criteria? To answer, select the appropriate option in the answer area.

    NOTE: Each correct selection is worth one point.

    

    

12. You are setting up the yearly budget for an organization for the year 2019.

    You need to set up the budget register entries.

    Which two fields must be set up when creating register entries? Each correct answer presents part of the solution.

    NOTE: Each correct selection is worth one point.

    • Budget cycle
    • Budget manager
    • Budget code
    • Budget model

13. DRAG DROP

    A client is implementing fixed assets in Dynamics 365 Finance.

    You need to specify which parameters should be configured to meet the business requirements.

    Which parameters meet the requirements? To answer, drag the appropriate parameters to the correct requirements. Each parameter 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.

    

    

14. You are configuring the basic budgeting for a Dynamics 365 Finance environment.

    You need to configure the types of entries allowed.

    Which two configurations can you use? Each correct answer presents a complete solution.

    NOTE: Each correct selection is worth one point.

    • The budget register entry journals require both Expense and Revenue amount types.
    • Budget register entry line needs a main account and amount to be valid.
    • Budget register entry journals must be allocated across all fiscal periods.
    • Budget register entry lines must select only one account structure.
    • The budget register entries can contain either Expense or Revenue amount types.

15. A company is preparing to complete yearly budgets.

    The company plans to use the Budget module in Dynamics 365 Finance for budget management.

    You need to create the new budgets.

    What should you do?

    • Create budget plans for multiple scenarios.
    • Create budget plans to define the revenues for a budget.
    • Combine previous year budgets into a single budget.

16. An organization acquires a building.

    You need to register and record the building as an asset building in Dynamics 365 Finance.

    What are three possible ways to achieve the goal? Each correct answer presents a complete solution.

    NOTE: Each correct selection is worth one point.

    • Select an account type of Fixed Asset and a transaction type of Acquisition with a General Journal
    • Eliminate the project to a fixed asset
    • Create a sales invoice to record and register the fixed asset
    • Select an acquisition transaction type within a fixed asset journal
    • Use the sales order process to acquire the asset

17. You are the accounts receivable manager of an organization. The organization recently sold machinery to a customer.

    You need to register a transaction for the sale of the machinery by using a free text invoice for fixed assets.

    Which transaction type should you use?

    • Acquisition
    • Value adjustments
    • Depreciation
    • Disposal

18. You are the controller for an organization. The company purchased six service trucks. You observe that your accountant set up Fixed assets – vehicles in the wrong fixed asset group.

    You need to achieve the following:

    – Change the fixed asset group so that the existing fixed asset transactions for the original fixed asset are canceled and regenerated for the new fixed asset.
    – Ensure that all books for the existing fixed asset are created for the new fixed asset. Any information that was set up for the original fixed asset is copied to the new fixed asset.
    – Close the old fixed asset number in the old fixed assets group and create a new fixed asset number in the new fixed assets group.
    – Ensure that the historical transactions are transferred to the new fixed asset.
    – Ensure Historical Depreciation expense entries do not change.

    What should you do?

    • Reclassify the fixed asset
    • Change the fixed asset group and keep the same fixed asset number
    • Copy the fixed asset
    • Transfer the fixed assets

19. DRAG DROP

    You are creating a budget for an organization.

    The organization requires that allocations be performed automatically as part of budget planning.

    You need to invoke allocations at a specific budget planning stage.

    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.

    

    

20. You are configuring budgeting components in Dynamics 365 Finance.

    You need to configure multiple budgets.

    What are three budgeting options you can use? Each correct answer presents a complete solution.

    NOTE: Each correct selection is worth one point.

    • Cost management budget, including Production and Resource groups
    • Sales budget, including Campaigns and Events
    • Workforce budget, including Compensation groups and Positions
    • Project budget, including Items and Fees
    • Ledger budget, including Revenue and Expense types