Microsoft Microsoft Certifications MB-310 Questions & Answers

• Question 91:

  HOTSPOT

  Your company uses Dynamics 365 Finance:

  You must record an interest expense that occurs every month: It must be recorded the same way each month. Your manager wants each interest posting to use the number scheme “INT-XXXX”, with XXXX representing a sequential number.

  You need to configure the system.

  What should you create? To answer, select the appropriate options in the answer area.

  NOTE: Each correct selection is worth one point.

  Hot Area:

  

  Correct Answer:

  

  Explanation:

  Box 1: Posting definition

  Set up interest on the posting profile

  In the Navigation pane, go to Modules > Credit and collections > Setup > Customer posting profiles.

  Click Edit.

  In the Setup fastTab, in the Interest code field, select an interest code from the drop-down list. If you do not want interest calculated for transactions using this posting profile, leave the field blank. The Table restriction fastTab allows you to

  change the way that interest is processed. If this field is set to Yes, then interest will be calculated for this posting profile.

  Box 2: Number sequence for the voucher

  Numbering documents and vouchers chronologically

  In some countries, there is a legal requirement to number documents and related vouchers in chronological order. The chronology must be supported by periods. All of the numbers that belong to earlier periods must be less than the numbers

  that belong to later periods. To meet this requirement, chronological numbering functionality has been implemented.

  Reference:

  https://learn.microsoft.com/en-us/dynamics365/finance/accounts-receivable/tasks/process-interest

  https://learn.microsoft.com/en-us/dynamics365/finance/accounts-receivable/chrono-numbers

• Question 92:

  HOTSPOT

  A company charges customers for freight costs. These charges are not added to the items on the order.

  You need to configure the charge code for Accounts receivable.

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

  NOTE: Each correct selection is worth one point.

  Hot Area:

  

  Correct Answer:

  

  Explanation:

  Box 1: Customer/Vendor

  Set up charges codes for Accounts receivable, example:

  Your customer pays the charge. Therefore, it's added to the sales order totals. You set up the following posting information:

  In the Type field in the Debit section, select Customer/Vendor to add the invoice charge to the customer's account.

  In the Type field in the Credit section, select Ledger account. Then, in the Account field, select the main account for revenue from invoice charges.

  Box 2: Ledger account

  Reference:

  https://learn.microsoft.com/en-us/dynamics365/finance/accounts-receivable/create-charges-codes

• Question 93:

  HOTSPOT

  A company manufactures and installs units for industrial manufacturing plans.

  Revenue for the units recognized based on a median price when the unit install. A three-year warranty is sold with each unit. Revenue for the warranty is recognized equally in each year the warranty covers.

  You need to configure and process revenue recognition.

  Which parameter should you configure? To answer select he appropriate options in the answer area.

  NOTE: Each correct selection is worth one point.

  Hot Area:

  

  Correct Answer:

  

  Explanation:

  Box 1: Exclude from Carve-out

  Exclude from carve out – Set this option to Yes to indicate that the item's median price can't be adjusted below the minimum percentage that is defined or above the maximum percentage. Any revenue price will be derived from the revenue

  price of another released product that is included on the sales order. If this option is set to No, the item's median price can be adjusted or carved out. Note that if you sell more than one item that is set up as median price, at least one released

  product must be set up where the Exclude from carve out option is set to No. In that way, there is at least one item that any differences in the revenue price can be allocated to.

  Box 2: Recognition basis

  Recognition basis – The recognition basis determines how the revenue price is allocated across the occurrences.

  Monthly by days – The amount is allocated based on the actual days in each calendar month.

  Monthly – The amount is allocated equally across the number of months that is defined in the occurrences.

  Occurrences – The amount is allocated equally across the occurrences, but it can include an extra period if you select Actual start date as the recognition convention.

  Etc.

  Reference:

  https://learn.microsoft.com/en-us/dynamics365/finance/accounts-receivable/revenue-recognition-setup

• Question 94:

  HOTSPOT

  You need to perform financial consolidation and elimination for Munson's.

  How should you perform consolidation for each part of the organization? To answer, select the appropriate options in the answer area.

  NOTE: Each correct selection is worth one point.

  Hot Area:

  

  Correct Answer:

  

  Explanation:

  Box 1: Legal entity configured for elimination

  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.

  Elimination transactions are required when a parent legal entity does business with one or more subsidiary legal entities and uses consolidated financial reporting. Consolidated financial statements must include only transactions that occur

  between the consolidated organization and other entities outside that organizations. Therefore, transactions between legal entities that are part of the same organization must be removed, or eliminated, from the general ledger, so they don't

  appear on financial reports.

  Incorrect:

  *

  Legal entity configured for partial ownership

  *

  Dimension configured for partial ownership

  Box 2: Legal entities configured to consolidate in Canadian dollars (CAD) and then to US dollars (USD)

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

  Legal entity setup

  Before you process a consolidation, you must set up the legal entity. You can run consolidation as many times as you require, and all data will be translated from the source company's accounting currency to the currency that is defined for the

  consolidation company. Therefore, for the following organizational structure, if you must translate all North American companies first to US dollars (USD) and then to euros (EUR), the currency of the parent company, you must have at least

  two consolidation companies.

  In the preceding organizational structure, you must have a legal entity for the North American consolidation, because consolidations always consolidate from the accounting currency of the source company to the currency of the consolidation

  company. In the example, if all companies are included in a single consolidation, the Mexican subsidiary will be translated from Mexican pesos (MXN) to EUR, not from MXN to USD to EUR.

  Box 3: Financial dimension as sites

  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.

  Online financial consolidations, Financial dimensions

  On the Financial dimensions tab, you define the dimensions that should be included in the consolidation company. To select a dimension, set the Specification field to Dimension, and then define the order of the dimension in the consolidation

  company.

  Reference:

  https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/elimination-rules

  https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/financial-consolidations-currency-translation

  https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/consolidate-online#financial-dimensions

• Question 95:

  HOTSPOT

  A company is configuring the Microsoft Dynamics 365 Finance Fixed asset module.

  You must configure depreciation for fixed assets. The company has the following assets and requirements:

  

  You need to configure the assets to meet the depreciation requirements.

  Which depreciation method should you useTo answer, select the appropriate options in the answer area.

  NOTE: Each correct selection is worth one point.

  Hot Area:

  

  Correct Answer:

  

  Box 1: Double declining balance When you set up a fixed asset depreciation profile and select 200% reducing balance in the Method field on the Depreciation profiles page, fixed assets that are assigned the depreciation profile are depreciated by the same percentage in

  each depreciation period. The percentage is calculated based on the service life of the asset. For example, if an asset has a service life of five years, the percentage is calculated as 40 percent (

  5 · 200% This method is also known as double declining balance.

  Box 2: Straight line When you set up a fixed asset depreciation profile and select Straight line service life in the Method field in the Depreciation profiles page, the assets that have this depreciation profile assigned to them are depreciated based on the total service life of the asset. This generally is the same depreciation amount in each depreciation period.

  Reference:

  ◌ֳ

  ).

  https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/200-percent-reducing-balance-depreciation https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/straight-line-service-life-depreciation

• Question 96:

  HOTSPOT

  A company is implementing Dynamics 365 Finance.

  The company purchases fixed assets using a purchase order. The company must post tax-specific transactions related to the fixed assets so the transactions can be reported separately.

  You need to configure the system.

  What should you configureTo answer, select the appropriate options in the answer area.

  NOTE: Each correct selection is worth one point.

  Hot Area:

  

  Correct Answer:

  

  Box 1: Depreciation methods

  When you use a method where the asset is automatically created and acquired, you can set up the system to verify whether the purchase amount of the fixed asset meets a specified capitalization threshold for asset depreciation. If so, the

  Depreciation option will be selected in the books for the asset when it is created from Accounts payable.

  Box 2: Posting layers

  Post fixed asset transactions to posting layers.

  Fixed asset journals are defined by using the Journal names page at General ledger > Journal setup > Journal names. Each journal that you can post depreciations in is defined by its journal name for only one posting layer.

  Reference:

  https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/acquire-assets-procurement

  https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/post-fixed-asset-transactions-posting-layers

• Question 97:

  HOTSPOT

  A company uses Dynamics 365 Finance.

  The company requires a receipt for any employee expense that is $25 of more.

  You need to configure an expense management policy.

  How should you configure the expense receipt required rule detail? To answer, select the appropriate options in the answer area.

  

  NOTE: Each correct selection is worth one point.

  Hot Area:

  

  Correct Answer:

  

  Reference: https://www.loganconsulting.com/blog/expense-management-using-policies-in-microsoft-dynamics-365/

• Question 98:

  HOTSPOT

  A company uses Dynamics 365 Finance to manage fixed assets. The company's fiscal year is set as the calendar year.

  The company requires two books for each fixed asset. The company has the following requirements for the books:

  

  You need to configure a fixed asset group book setup to meet the requirements.

  Which depreciation conventions and depreciation profiles should you useTo answer, select the appropriate options in the answer area.

  NOTE: Each correct selection is worth one point.

  Hot Area:

  

  Correct Answer:

  

  Box 1: None

  You can select either Calendar or Fiscal in the Depreciation year field in the Depreciation profiles page. The selection defines the options that are available in the

  Period frequency field.

  If you select Fiscal in the Depreciation year field, the straight line service life depreciation is used. It is calculated based on the fiscal year, which is defined by the fiscal calendar that is specified for the book, or by the fiscal calendar that is

  selected in the Ledger page. Fiscal calendars are set up in the Fiscal calendars page.

  Note: If you select Calendar, you can select from the following depreciation conventions.

  Half year

  Full month

  Mid quarter

  Mid month (1st of month)

  Mid month (15th of month)

  Half year (start of year)

  Half year (next year)

  Box 2: Straight line service life - Fiscal period

  When you set up a fixed asset depreciation profile and select Straight line service life in the Method field in the Depreciation profiles page, the assets that have this depreciation profile assigned to them are depreciated based on the total

  service life of the asset. This generally is the same depreciation amount in each depreciation period.

  You can select either Calendar or Fiscal in the Depreciation year field in the Depreciation profiles page.

  Incorrect:

  Not Straight line life remaining:

  When you set up a fixed asset depreciation profile and select Straight line life remaining in the Method field on the Depreciation profiles page, the depreciation of fixed assets that are assigned to the depreciation profile is based on the

  remaining service life of the asset.

  Box 3: Half year (start of year)

  Box 4: 200% reducing balance - Yearly

  To set up 200% reducing balance depreciation, you must also select options in the Depreciation year field and the Period frequency field on the Depreciation profiles page. The options that are available in the Period frequency field vary,

  depending on the value that you select in the Depreciation year field.

  Reference:

  https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/depreciation-methods-conventions https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/straight-line-service-life-depreciation https://docs.microsoft.com/en-us/

  dynamics365/finance/fixed-assets/200-percent-reducing-balance-depreciation

• Question 99:

  HOTSPOT

  You are implementing Dynamics 365 Finance.

  You must manage aging customer balances by sending communications to the customers detailing their past due invoices and automatically including a late charge.

  You need to configure Dynamics 365 Finance functionality.

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

  NOTE: Each correct selection is worth one point.

  Hot Area:

  

  Correct Answer:

  

  Box 1: Collection letters Control collection letters at the customer level If collection letters are set up at the transaction level, multiple letters might be generated for a customer, based on transaction aging. If transactions appear in different letter sequences, separate collection letters will be generated for each group of overdue transactions for the customer. Therefore, an individual customer might receive, for example, one collection letter for transactions that are 60 days overdue and another collection letter for transactions that are 90 days overdue. Incorrect:

  * Not Aged balances

  View the balances on the Aged balances list and on the Collection page

  Go to Credit and collections > Collections > Aged balances. The list page shows the balances for the customer. The aging icon shows the aging period for the oldest transaction.

  Select a customer with a balance.

  Expand the Aging fact box area to view the aged balances. The aging period definition for the fact box is taken from the default aging period definition specified in the parameters. You can change it using the Collect menu.

  Recommended content

  Create a free text in

  Box 2: Charges

  To define auto charges by channel in Commerce, follow these steps.

  1.

  Go to Accounts receivable > Charges setup > Auto charges.

  2.

  Etc.

  Reference: https://docs.microsoft.com/en-us/dynamics365/finance/accounts-receivable/tasks/process-collection-letters https://docs.microsoft.com/en-us/dynamics365/commerce/auto-charges-by-channel

• Question 100:

  HOTSPOT

  A company manufactures air filtering units for industrial manufacturing plants.

  The company offers specific incentives if customers pay within a certain number of days to include:

  1.

  10 percent off if paid in full within 5 days

  2.

  5 percent off if paid in full within 10 days

  Customers who pay by electronic funds transfer (EFT) will be charged $15 per transfer.

  You need to configure the system.

  Which option should you use? To answer, select the appropriate configuration in the answer area.

  NOTE: Each correct selection is worth one point.

  Hot Area:

  

  Correct Answer:

  

  Box 1: Cash discount

  Cash discounts are setup and shared for Accounts payable and Accounts receivable. The cash discount available can be defined on the customer invoice or vendor invoice, and will be taken if the invoice is paid within the cash discount date.

  Box 2: Payment fee

  You can create payment fees for customer payments.

  Reference:

  https://docs.microsoft.com/en-us/dynamics365/finance/cash-bank-management/cash-discounts