MB 310 - Finance

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Groups costs according to their shared characteristics. Which cost accounting configuration?

cost classification

You are the accounts receivable manager of an organization. The organization recently sold machinery to a customer. You need to register transactions for the sale of the machinery by using a free text invoice for fixed assets. Which transaction type should you use? A. Disposal B. Acquisition C. Value adjustments D. Depreciation

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 value models 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? A. Reclassify the fixed asset B. Change the fixed asset group and keep the same fixed asset number C. Copy the fixed asset D. Transfer the fixed asset

Send communication to the customers detailing their past-due invoices

Collection letter

(Confirmed sales order) What should you select to view the service fee that was added to the confirmed sales order?

the Charges button on the ribbon

What does the foreign currency revaluation process record in AR and AP?

unrealized gain/loss

A client has multiple legal entities set up in Dynamics 365 for Finance and Operations. All companies and data reside in Finance and Operations The client currently uses a separate reporting tool to perform their financial consolidation and eliminations. They want to use Finance and Operations instead. You need to configure the system and correctly perform eliminations. Solution: Select Consolidate online in Finance and Operations. Include eliminations during the process or as a proposal. Setup the transactions to post in the legal entity configured for consolidations. Does the solution meet the goal? A. Yes B. No

A client has multiple legal entities set up in Dynamics 365 for Finance and Operations. All companies and data reside in Finance and Operations. The client currently uses a separate reporting tool to perform their financial consolidation and eliminations. They want to use Finance and Operations instead. You need to configure the system and correctly perform eliminations. Solution: Set up Elimination rules in the system. Then, run an elimination proposal. Configure the rules to post to any company that has Use for financial elimination process selected in the legal entity setup. Does the solution meet the goal? A. Yes B. No

A client uses Dynamics 365 for Finance and Operations for accounts receivable. You need to configure the method of payment to enforce the accounts receivable clerk to enter the wire number for the received electronic payment. Which item should you set up as mandatory? A. Select payment reference B. Select bank transaction type C. Select Deposit slip D. Select Payment ID

A company is preparing to complete yearly budgets. The company plans to use the Budget module in Dynamics 365 for Finance and Operations for budget management You need to create the new budgets. Solution: Create budget plans for multiple scenarios. Does the solution meet the goal? A. Yes B. No

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 are configuring the year-end setup in Dynamics 365 for Finance and Operations. You need to configure the year-end setup to meet the following requirements: The accounting adjustments that are received in the first quarter must be able to be posted in to the previous year's Period 13. The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions. All dimensions from profit and loss must carry over into the retained earnings. All future and previous periods must have an On Hold status. Solution: Configure General ledger parameters. - Set the Delete close of year transactions option to Yes. - Set the Create closing transactions during transfer option to Yes. - Set the Fiscal year status to permanently closed option to No. Define the Year-end close template. - Designate a retained earnings main account for each legal entity. - Set the Financial dimensions will be used on the Opening transactions option to No. - Set the Transfer profit and loss dimensions' option to Close All. Set future Ledger periods to a status of On Hold. Does the solution meet the goal? A. Yes B. No

Users are posting project transactions and bank transactions incorrectly in the General journal. The client wants to prevent this from happening in the future You need to configure Dynamics 365 for Finance and Operations to limit the account type transactions to only ledger. What should you do? A. Use advanced ledger entries to define the account types that can be used in the General ledger journal. B. Create a journal template that has ledger as the account type and offset account type. C. Use journal control to specify which account types, are valid for the General ledger journal. D. Configure the voucher series associated with this journal to allow only ledger account types

You are configuring the Fixed assets module for a Dynamics 365 Finance and Operations environment, You need to set up the basic configuration to create a fixed asset. Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point. A. the number sequence B. the group C. the name D. the type E. the property type

ABC

An organization acquires a building. You need to register-and record the building as an asset building in Dynamics 365 Finance and Operations. What are three possible ways to achieve the goal? Each correct answer presents a complete solution. NOTE: Each correct selection is worth one point. A. Select an acquisition transaction type within a fixed asset journal. B. Select an account type of Fixed Asset and a transaction type of Acquisition with a General Journal. C. Use the sales order process to acquire the asset. D. Eliminate the project to a fixed asset. E. Create a sales invoice to record and register the fixed asset.

ABD

A legal entity has locations and customers in multiple states within the United States. You need to ensure that taxable customers are charged sales tax for taxable items in their delivery location. Which three settings must you configure? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point. A. the Sales tax group on the Customer record B. the Terms of delivery setup C. the Item Sales tax group on the Item record D. the Sales reporting codes E. the Sales tax codes

ABE

A company is preparing to complete a year-end close process. You need to configure the Dynamics 365 for Finance and Operations General ledger module. Which three configurations must you use? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point. A. Configure the Fiscal year close parameters B. Configure the ledger calendar for the new fiscal year C. Configure the transfer balance D. Validate the main account type E. Create the next fiscal year

ADE

Implement a user-defined setting for grouping and quantification of main accounts for reporting purposes

Account type

The system must automatically post year-end results to account 30016 during year-end close

Accounts for automatic transactions

Allow budget amounts that are prepared at a lower level in the organization to be consolidated at a higher level

Aggregate

Allocate budget plan lines to the destination scenario based on the percentages and financial dimensions that are defined in a selected budget allocation term

Allocate to Dimension

Allow the user to specify dimension values when this main account is used, splitting out the posted value by percentage by dimension

Allocation terms

You must automatically split the dollar amount in half between DimensionA and DimensionB when the journal is posted

Allocation terms

You need to restrict a user from posting an invoice that has discrepancies without authorization. Which option should you use?

Allow with warning

Cost object

Any type of object that is selected for cost control. Costs or revenues are either directly posted on or allocated to ________. Some typical ________ are: products departments projects cost centers Managers use ________ to quantify costs, but also drive profitability analysis.

(Accrual schemes) Applicable function area

Apply the scheme to both revenue and costs

(Journal type) Post retail transactions

Approval

(Journal type) Calculate the depreciation bonus recovery register

Assessed Tax

Use the system to automatically calculate a late charge

Auto charges

A client has multiple legal entities set up in Dynamics 365 for Finance and Operations. All companies and data reside in Finance and Operations The client currently uses a separate reporting tool to perform their financial consolidation and eliminations. They want to use Finance and Operations instead. You need to configure the system and correctly perform eliminations. Solution: Create a separate company in which you manually create the eliminations. Then, use that company in Financial reporting or in the consolidation process. Does the solution meet the goal? A. Yes B. No

A client has unique accounting needs that sometimes require posting definitions. You need to implement posting definitions. In which situation should you implement posting definitions? A. when financial dimensions need to default from the main account onto an invoice B. when using encumbrance accounting for purchase orders C. when the system needs to automatically post a transaction to the accounts receivable account on invoice posting D. when creating one offset ledger entry based on transaction type

A client is using the budget planning process in Dynamics 365 for Finance and Operations. Your client requires the ability to plan for a one-year, three-year, and five-year budget. You need to configure the various year length options to be used in the budgeting module. What should you do? A. Configure budget control. B. Configure budget codes. C. Configure budget allocation terms. D. Configure budget cycles.

A company is preparing to complete yearly budgets. The company plans to use the Budget module in Dynamics 365 for Finance and Operations 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? A. Yes B. No

A company is preparing to complete yearly budgets. The company plans to use-pie Budget module in Dynamics 365 for Finance and Operations for budget management You need to create the new budgets. Solution: Create budget plans to define the revenues for a budget Does the solution meet the goal? A. Yes B. No

A public sector company is configuring encumbrance for managing capital budgets. The finance department needs to configure posting definitions for bank transactions. You need to configure Dynamics 365 for Finance and Operations for cash settlements. What should you do? A. Configure general ledger year-end close. B. Configure combined deposit amounts. C. Configure budget appropriations. D. Configure advanced ledger entries.

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 are configuring the year-end setup in Dynamics 365 for Finance and Operations. You need to configure the year-end setup to meet the following requirements: The accounting adjustments that are received in the first quarter must be able to be posted in to the previous year's Period 13. The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions. All dimensions from profit and loss must carry over into the retained earnings. All future and previous periods must have an On Hold status. Solution: Configure General ledger parameters. Set the Delete close of year transactions option to Yes. Set the Create closing transactions during transfer option to Yes. Set the Fiscal year status to permanently closed option to Yes. Define the Year-end close template. Designate a retained earnings main account for each legal entity. Set the Financial dimensions will be used on the Opening transactions option to Yes. Set the Transfer profit and loss dimensions' option to Close All. Set future Ledger periods to a status of On Hold. Does the solution meet the goal? A. Yes B. No

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 are configuring the year-end setup in Dynamics 365 for Finance and Operations. You need to configure the year-end setup to meet the following requirements: The accounting adjustments that are received in the first quarter must be able to be posted in to the previous year's Period 13. The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions. All dimensions from profit and loss must carry over into the retained earnings. All future and previous periods must have an On Hold status. Solution: Configure General ledger parameters. - Set the Delete close of year transactions option to No. - Set the Create closing transactions during transfer option to No. - Set the Fiscal year status to permanently closed option to No. Define the Year-end close template. - Designate a retained earnings main account for each legal entity. - Set the Financial dimensions will be used on the Opening transactions option to No. - Set the Transfer profit and loss dimensions' option to Close All. Set future Ledger periods to a status of On Hold. Does the solution meet the goal? A. Yes B. No

You work for a company that receives invoices in foreign currencies. You need to configure the currency exchange rate providers and exchange rate types. What should you do? A. Use a developer to write the HTML key values code to configure the currency exchange rate providers. Then, use the provider for importing a currency exchange rate type. B. Configure exchange rate provider, create exchange rate type, and import the currency exchange rates. C. Select the appropriate HTML key values from the available exchange rate providers. Then, use the provider for importing one currency exchange rate type. D. Use a developer to write the XML key values code to configure the currency exchange rate providers. Then, use the provider for importing a currency exchange rate type.

An organization is setting up cost accounting. You need to set up fiscal calendars for Dynamics 365 for Finance and Operations. What are three uses for fiscal calendars? Each correct answer presents a complete solution. NOTE: Each correct selection is worth one point. A. standard work hours B. financial transactions C. fixed asset depreciation D. budget cycles E. shift work hours

BCD

A company provides employee life insurance to all full-time employees. Employee life insurance policies are paid twice a year to the insurance company. Transactions for current employees must be recognized in the general ledger twice a month with an employee's pay. Transactions for new employees must be recognized in the general ledger based upon the employee's first pay date. You need to configure accrual schemes for the new fiscal year. Which two configurations should you use? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point. A. For new employees, use a Credit accrual scheme. In the ledger accrual, set the offset to the first day of the fiscal year. B. For current employees, use a Credit accrual scheme. In the ledger accrual, set the offset to the employee's first pay date. C. For new employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the employee's first pay date. D. For current employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the first day of the fiscal year.

You are configuring automatic bank reconciliation functionality for a company that has multiple bank accounts, The company wants to import their bank statements. You need to import electronic bank statements to reconcile the bank accounts. Which three actions can you perform? Each correct answer presents a complete solution. NOTE: Each correct selection is worth one point. A. Select all the bank accounts for the bank statement files, and then upload all files B. Select Account reconciliation on the bank account form C. Import bank statements from the Data management workspace D. Navigate to Import statement on the Bank Statements page of Cash and Bank Management E. Select Import statement for multiple bank accounts in all legal entities, and then upload a zip file

BDE

You are configuring the Accounts payable module for a company. The company needs to set a limit on the charges they will pay for specific items. You need to set up the limit for charges. Which two actions should you perform? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point. A. Define the maximum charge amount on the vendor record. B. Enter the maximum amount when you set up the charges code. C. Use budget control with the specified charges code. D. Set the maximum charge amount in the Accounts payable parameters, E. Enable invoice matching validation in the Accounts payable parameters.

(Journal type) Set funds for a specific purpose

Budget

A client has one legal entity and the following four dimensions configured: Business Unit, Cost Center, Department, and Division. You need to configure the client's system to run the trial balance inquiry in the General ledger module so that it displays the trial balance two ways: •Include the main account and all four dimensions. •Include the main account and only the business unit and cost center dimensions. What should you configure? A. two account structures B. all financial dimensions by using the group dimension functionality C. two financial dimension sets D. two derived financial dimension hierarchies

A client is implementing Accounts payable. The client wants to establish three-way matching for 100 of their 5,000 stocked items from a specific vendor. The client requires the ability to have items that require only two-way matching and specific items that require three-way matching. You need to configure the system in the most efficient manner to achieve these requirements. What should you do? A. Configure a company matching policy of a three-way match. B. Configure a company matching policy of two-way matching and specify the items that require a three-way match. C. Configure a company matching policy of two-way matching and set the matching policy for specific item, and vendor combination level to three-way matching. D. Configure a company matching policy of non-required and specify the items that require a three-way match. E. Configure a company matching policy of two-way matching and specify the vendors that require a three-way match

A company plans to create a new allocation rule for electric utilities expenses. The allocation rule must meet the following requirements: * Distribute overhead utility expense to each department. * Define how and in what proportion the source amounts must be distributed on various destination lines. You need to configure the allocation rule. Which allocation method should you use? A. Fixed percentage B. Equally C. Basis D. Fixed weight

You are configuring inter-company accounting for a multi-company enterprise. You need to set up: the Due to and Due from accounts. Which main account type should you use? A. Expense B. Asset C. Balance sheet D. Liability E. Profit and loss

You are configuring budgeting components in Dynamics 365 for Finance and Operations. 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. A. Cost management budget, including Production and Resource groups B. Sales budget, including Campaigns and Events C. Workforce budget, including Compensation groups and Positions D. Project budget, including Items and Fees E. Ledger budget, including Revenue and Expense types

CDE

Transfer amounts that were budgeted at a higher level to a lower level of the organization for detailed review and adjustment before they can receive upper-level approval

Copy from Budget Plan

Create a group of customers for a collection agent to monitor

Customer pools

A client has unique accounting needs that sometimes require posting definitions. You need to implement posting definitions. In which situation should you implement posting definitions? A. when financial dimensions need to default from the vendor record onto an invoice B. when only certain dimensions are allowed to post with certain mam account combinations C. when creating multiple balanced ledger entries based on transaction types or accounts D. when the system needs to automatically post a transaction to the accounts receivable account on invoice posting

An organization uses Dynamics 365 for Finance and Operations. Several posted journal entries contain invalid main account and dimension combinations. This leads to incorrect financial reporting. You need to prevent these invalid combinations. What should you do? A. Associate the correct main accounts to that financial dimension on the financial dimension setup form. B. Configure financial dimension sets to limit which financial dimensions are valid for which main accounts. C. Train users to select the Validate button in the current journal configuration so that the correct account and dimension combination is used. D. Configure the account structure to specify which financial dimensions are valid for which main accounts

You are configuring Dynamics 365 for Finance and Operations. You need to implement posting definitions for all available transaction types. For which type of transactions can you implement posting definitions? A. Accounts payable, Bank. Budget Fixed assets, and Payroll B. Accounts payable, Accounts receivable, Budget, and Fixed.assets C. Accounts payable, Accounts receivable, Fixed assets, Payroll, and Purchasing D. Accounts payable, Accounts receivable. Bank. Budget, Payroll, and Purchasing

You are configuring vendor collaboration security roles for external vendors. You manually set up a vendor contact. You need to assign the Vendor (external) role to this vendor. Which tasks can this vendor perform? A. Delete any contact person that they have created. B. Deny or allow a contact person's access to documents on the vendor collaboration interface that are specific to the vendor account C. View and modify contact person information, such as the person's title, email address, and telephone number. D. View consignment inventory.

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 value models 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. What should you do? A. Reclassify the fixed asset. B. Copy the fixed asset. C. Change the fixed asset group D. Transfer the fixed assets

Ensure that users must post a value in the debit or credit column based on configuration

Db/Cr requirement

Cost accounting ledger

Defined by calendar, currency, and cost element dimension, it controls processes and policies for measuring costs

Enable budget amounts that are prepared at a higher level in the organization to be spread out for more localized review

Distribute

Prevent user entered data and allow only system-generated transactions to post to this account

Do not allow manual entry

You need to configure invoice validation for two-way matching to match price totals. Which option should you choose?

Enable invoice matching validation, set Match invoice totals to yes, and set tolerance

You must post journal entries for all companies from one legal entity

Global journal entry

You must configure automatic creation of due to/due from transaction based on when LegalEntityA transacts with LegalEntityB

Intercompany journal

You must set up fixed or variable allocations, and then review the allocations in a journal before posting

Ledger allocation rules

Prompt specific dimension values when this main account is used, for each legal entity

Legal entity overrides/Default dimensions

Cost accounting

Lets you collect data from various sources, such as the GL, sub-ledgers, budgets, and statistical information. You can then analyze, summarize, and evaluate cost data.

(Workflow approval process permissions) Decision maker

Make a choice related to the document

(Journal type) Submit pay statements for payment

Payroll Disbursement

View a list of customers with colored indicators of a customer's payment status

Period definitions

(Financial dimension sets) Which options are available for balances when they are created?

Rebuild balances

(Workflow approval process permissions) Approver

Reject the document

(Confirmed sales order) What should you select to view the original document and print preview to reprint this document?

Sales order confirmation journal

(Accrual schemes) Accrual setup

Specify the frequency of the accruals

(Workflow approval process permissions) Originator

Start a workflow instance

Cost entry

The result of a transfer via data connectors from general ledger entries, cost allocations, and posted cost entries in cost journals

(Costing type) Planned cost

To support cost calculation simulation

(Costing type) Standard cost

To support standard cost inventory model

Cost element

Used as a function to track and categorize costs. There are two types: primary and secondary

allocation base

Used to measure and quantify activities, such as machine hours that are used. It's used as a basis for allocating costs to one or more cost objects.

(Journal type) Calculate internal cost rates by cost center

Vendor invoice pool Journal

Used to measure and quantify activities, such as machine hours that are used. Which cost accounting configuration?

allocation base

Used as a function to track and categorize costs. Which cost accounting configuration?

cost element

The result of a transfer via data connectors from general ledger entries, cost allocations, and posted cost entries in cost journals. Which cost accounting configuration?

cost entry

Anything that is selected for cost control. Costs or revenues are either directly posted on or allocated to these. Which cost accounting configuration?

cost object

Primary cost element

represent the cost flow from financial accounting to cost accounting the structure typically corresponds to the profit and loss account structure in the general ledger where a cost element can correspond to a main account

secondary cost element

represent the internal cost flow because these costs are only used in cost accounting they are used in cost roll-up rules to aggregate costs into meaningful buckets used by overhead calculation

MB 310 - Finance

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