Microsoft Microsoft Certifications MB-310 Questions & Answers

• Question 11:

  DRAG DROP

  You are implementing revenue recognition functionality in Microsoft Dynamics 365 Finance.

  You need to configure revenue schedules to meet the following requirements:

  Agreement start and end dates must be determined by the system.

  Determine revenue price allocation across the occurrences based on contract terms.

  Which feature 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.

  Select and Place:

  

  Correct Answer:

  

  Explanation:

  Box 1: Automatic contract terms

  Agreement start and end dates must be determined by the system.

  Automatic contract terms – Select this check box if the contract start and end dates should automatically be set. These dates are automatically set only for released products of the Post contract support revenue type. The contract start date is

  automatically set to the sales order line's requested ship date, and the contract end date is automatically set to the start date plus the number of months or occurrences that is defined in the setup of the revenue schedule. For example, the

  product on the sales order line is for a one-year warranty. The default revenue schedule is 12M (12 months), and the Automatic contract terms check box is selected for this revenue schedule. If the sales order line has a requested ship date

  of December 16, 2019, the default contract start date is December 16, 2019, and the default contract end date is December 15, 2020.

  Box 2: Recognition basis

  Determine revenue price allocation across the occurrences based on contract terms.

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

  Incorrect:

  *

  Recognition convention

  Recognition convention – The recognition convention determines the dates that are set on the revenue schedule for the invoice.

  *

  Post contract support (PCS)

  Post contract support – The item supports other elements that are included in the sale to the customer. The revenue price is distributed across the essential and nonessential products that are included in the sale. Depending on setup, PCS

  items might not require that contract start and end dates be defined on the sales order line.

  Reference:

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

• Question 12:

  DRAG DROP

  A company uses the basic budgeting functionality in Dynamics 365 Finance. You are creating the budget in the system for the upcoming fiscal year.

  The company uses budget workflow approvals to process budget entries. The company plans to split a business unit named IT and Infrastructure into two business units: Business Applications and IT Infrastructure.

  You need to create the budget for the two business units based on 1.5.

  Which four 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.

  Select and Place:

  

  Correct Answer:

  

• Question 13:

  DRAG DROP

  A company uses Dynamics 365 Finance.

  You need to use the advanced bank reconciliation feature to reconcile bank transactions.

  In which order should you perform the actions? To answer, move all actions from the list of actions to the answer area and arrange them in the correct order.

  Select and Place:

  

  Correct Answer:

  

  Explanation:

  Step 1: Import an electronic bank statement Reconcile bank statements by using advanced bank reconciliation The Advanced bank reconciliation feature lets you import electronic bank statements and automatically reconcile them with bank transactions in Dynamics 365 Finance.

  Import an electronic bank statement You import your bank statements by using the Import statement action on the Bank statements page. On the bank statement, the bank account is identified through a combination of values that are set on the bank account details. These values include the bank name, bank account number, routing number, Society for Worldwide Interbank Financial Telecommunication (SWIFT) code, and International Bank Account Number (IBAN).

  Step 2: Validate the bank statement Validate the bank statement To validate a statement, on the Bank statements page, click Validate. Bank statements must be validated before they can be reconciled. This step is automatically completed if you set the Reconcile after import option to Yes at the time of import.

  Step 3: Reconcile the bank statement Reconcile the bank statement After you’ve imported an electronic bank statement and validated the statement on the Bank statements page, you can reconcile the bank statement by using the Bank reconciliation and Bank reconciliation worksheet pages.

  Step 4: Post the bank statement

  Post new transactions that are associated with the reconciliation

  Bank statement transactions that you marked as New on the reconciliation worksheet are posted on the Bank statement page.

  Post customer and vendor payment journals from bank statements and reconciliation worksheets

  In Dynamics 365 Finance version 10.0.36, the Generate customer and vendor payments from bank statement and reconciliation feature is available. This feature enhances the bank statement and reconciliation worksheet. You can post

  customer and vendor payment journals directly from selected bank statement lines.

  Reference:

  https://learn.microsoft.com/en-us/dynamics365/finance/cash-bank-management/reconcile-bank-statements-advanced-bank-reconciliation

• Question 14:

  DRAG DROP

  A company that manufactures consumer electronics goods uses Microsoft Dynamics 365 Finance.

  You need to configure capitalization thresholds for products based on the following requirements:

  

  In which order should you perform the actions? To answer, move all actions from the list of actions to the answer area and arrange them in the correct order.

  Select and Place:

  

  Correct Answer:

  

  Explanation:

  Step 1: Create fixed asset groups

  Complete the following prerequisites before you set up business rules for fixed assets.

  Configure capitalization thresholds fixed asset group business rule

  *

  Set up fixed asset groups for legal entities.

  *

  Etc.

  Step 2: Define an organization-wide identifier for fixed assets.

  Create an organization-wide fixed asset identifier

  Set up an organization-wide fixed asset identifier. You must associate the organization-wide fixed asset identifier with a fixed asset group for a legal entity. After you create an organization-wide fixed asset identifier, you can create a monetary

  threshold and qualifier questions to help the system classify a fixed asset for the organization.

  Step 3: Define and configure the procurement categories and link to the products

  Create an organization-wide fixed asset rule

  Use this procedure to create a rule for determining when a product qualifies as a fixed asset for your whole organization. You can create rules for specific procurement categories, and you can create qualifiers that capture information from the

  worker, such as the intended usage or the expected lifespan of the asset, which help the system determine the correct fixed asset group for a product.

  Click Procurement and sourcing > Setup > Fixed assets > Business rules for fixed assets determination.

  On the Business rules for fixed assets determination form, click New.

  Enter a unique short name and an optional detailed description for the rule.

  On the Procurement categories tab, click Add. Select a procurement category to which this rule applies. The rule automatically applies to all subcategories of the selected procurement category.

  Etc

  Step 4: Define an organization-wide business rule for fixed asset determination.

  Create a fixed asset rule for a legal entity

  Use this procedure to create a fixed asset rule for a legal entity that must comply with local statutory requirements that differ from the organization's requirements for determining fixed assets. You can also create a rule for a legal entity without

  a corresponding organization-wide rule.

  Click Procurement and sourcing > Setup > Fixed assets > Business rules for fixed assets determination.

  On the Business rules for fixed assets determination form, click New.

  In the left pane, enter a unique short name and an optional detailed description.

  On the Procurement categories tab, click Add. Select one or more procurement category codes to which the rule applies. The rule automatically applies to all subcategories of the selected procurement categories.

  Etc.

  Reference:

  https://learn.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/key-tasks-set-up-business-rules-for-fixed-asset-determination

• Question 15:

  DRAG DROP

  A company uses basic budgeting functionality in Dynamics 365 Finance. The company has four sales territories in the same legal entity. Each territory uses its own budget model. Users view budget versus actual values for each sales territory.

  Users must be able to view budget versus actual values for all four territories in the same inquiry.

  You need to configure the basic budgeting functionality for the view.

  Which three actions should you perform in sequence?

  To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.

  Select and Place:

  

  Correct Answer:

  

  Explanation:

  Step 1: Create a new budget model.

  You can use a single budget model for all or some of the budgets, or you can create a budget model for each budget.

  Step 2: Add four sales territories budget model's as submodels.

  A budget model can contain many submodels, which you attach to the budget model on the Submodel FastTab. For example, you could create a budget that has submodels that represent the various departments of the legal entity.

  Step 3: Run budget versus actual for the new budget model, including the submodel

  Reference:

  https://learn.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/create-budget-models

• Question 16:

  DRAG DROP

  A company uses Dynamics 365 Finance for expense management.

  The company has multiple legal entities and multiple departments. Each department may have a different expense policy that may conflict with the legal entity expense policy.

  You need to configure prioritization of department expense policy over legal entity expense policy.

  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.

  Select and Place:

  

  Correct Answer:

  

  Explanation:

  Step 1: Create an organization hierarchy for the departments.

  Internal organizations in your business, such as regional offices, can be represented as additional legal entities, or as operating units of the main legal entity. An operating unit is not required to be a legally defined organization. Operating units

  are used to control economic resources and operational processes in the business. For example, departments and cost centers are operating units.

  Step 2: Add a department organization hierarchy into the Expenditure internal control organization hierarchy purpose

  When you create an organization hierarchy in Microsoft Dynamics AX, you must assign a purpose to the hierarchy. The purpose that you assign to a hierarchy determines the types of organizations that can be included in the hierarchy. The

  purpose also defines the application scenarios that the hierarchy can be used in.

  The following table lists the processes that you can control by using policies. It also includes the hierarchy purpose that corresponds to each process.

  *

  Process: Expenses Description: Controls the process for expense reports. Hierarchy purpose: Expenditure internal control

  *

  Etc.

  Step 3: Set the order of precedence parameter.

  After the organizations are defined, you can set up the order of precedence for the policies.

  Reference:

  https://learn.microsoft.com/en-us/dynamics365/fin-ops-core/fin-ops/organization-administration/plan-organizational-hierarchy

  https://learn.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/organization-hierarchies

  https://learn.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/set-up-policy-parameters

• Question 17:

  DRAG DROP

  A company is implementing Dynamics 365 Finance.

  The company maintains two different bank accounts from the same bank.

  You need to set up and generate positive pay for the bank accounts.

  Which four 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.

  Select and Place:

  

  Correct Answer:

  

  Explanation:

  Step 1: Set up a transformation input format file for the bank.

  Set up a positive pay format

  Positive pay files are created by using data entities. Before you can generate a positive pay file, you must set up a transformation input format that will be used to translate the check information into a format that can communicate with the

  bank. On the Positive pay format page, you can create a file format identifier and a description. The transformation input format must be of the XML type.

  Incorrect:

  * Set up a transformation input format file for each bank account.

  Step 2: Set up the numbering sequence on the Cash and Bank management parameters page.

  Assign the positive pay format to a bank account

  For each bank account that you want to generate positive pay information for, you must assign the positive pay format that you specified in the previous section. On the Bank accounts page, select the positive pay format that corresponds to

  the bank account. In the Positive pay start date field, enter the first date to generate positive pay files. It's important that you enter a date in this field. Otherwise, the first positive pay file that you generate will include all checks that have ever

  been created for this bank account.

  Step 3: Generate the positive pay file for the bank accounts.

  Generate a positive pay file for multiple bank accounts

  To generate a positive pay file for multiple bank accounts, use the Generate a positive pay file periodic task. Select the positive pay format for the file, and specify whether to generate the file for all legal entities or for a selected legal entity.

  You can also generate the positive pay file for all bank accounts that use the specified positive pay format or for a selected bank account.

  Incorrect:

  * Generate the positive pay file for each bank account.

  Step 4: Confirm a positive pay file Confirm a positive pay file After the checks that are listed in a positive pay file have been paid, you receive a confirmation number from your bank. You can then confirm the positive pay file. On the Positive pay file summary page, select a positive pay file that has a status of Created, and then select the Enter confirmation action. When you confirm a positive pay file, the confirmation number that you received from the bank is recorded.

  Reference: https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/set-up-generate-positive-pay-files

• Question 18:

  DRAG DROP

  You need to configure revenue recognition.

  Which revenue type is associated with the line of business? To answer, drag the appropriate revenue types to the correct lines of business. Each revenue 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.

  Select and Place:

  

  Correct Answer:

  

  Explanation:

  Box 1: Essential

  Current environment. Revenue allocation

  The company reports the following revenue allocation percentages:

  Web design – 60 percent.

  Video platform – 5 percent

  Essential – The item is a primary source of an organization's revenue. This value is the default setting.

  Box 2: Non-essential

  Nonessential – The item isn't a primary source of an organization's revenue. When the median price settings are used, the price is 'carved out' to the median price and then allocated. For example, an essential item has a fixed price that must

  be recognized for revenue. If there is a discount, the discount might be carved out of the essential item revenue, but only up to the fixed price amount. The rest of the discount is taken out of the revenue for nonessential items. Alternatively,

  the discount might not be carved out of the essential item revenue.

  Incorrect:

  Post contract support – The item supports other elements that are included in the sale to the customer. The revenue price is distributed across the essential and nonessential products that are included in the sale. Depending on setup, PCS

  items might not require that contract start and end dates be defined on the sales order line.

  Reference:

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

• Question 19:

  DRAG DROP

  You are setting up a process to track, record, and analyze costs associated with the products and activities for a nonmanufacturing organization.

  You need to configure the prerequisite setup for the standard costing version for the current period.

  In which order should you perform the actions? To answer, move all actions from the list of actions to the answer area and arrange them in the correct order.

  Select and Place:

  

  Correct Answer:

  

  Explanation:

  Prerequisites for standard costs overview

  To set up standard costs, follow these basic steps.

  1.

  Create an item model group for standard costs.

  2.

  Define ledger accounts that are related to standard cost variances.

  3.

  Assign ledger accounts to item postings that are related to standard cost variances.

  4.

  Define inventory parameters that are related to standard costs.

  Reference: https://learn.microsoft.com/en-us/dynamics365/supply-chain/cost-management/prerequisites-standard-costs

• Question 20:

  DRAG DROP

  A company is implementing Microsoft Dynamics 365 Finance.

  The company is configuring the fixed asset functionality and has the following requirements:

  1.

  Manually add an additional depreciation amount the first year a machine is put in service.

  2.

  Depreciate a company vehicle based on the number of miles it has traveled.

  You need to configure the depreciation for the assets.

  Which depreciation method should you useTo answer, drag the appropriate depreciation methods to the correct assets. Each method 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.

  Select and Place:

  

  Correct Answer:

  

  Box 1: Bonus

  Manually add an additional depreciation amount the first year a machine is put in service.

  For bonus depreciation, you can take extra or bonus depreciation amounts during the first year that the asset is put in service and depreciated. Bonus depreciation must be taken before any other depreciation calculations.

  Box 2: Consumption

  Depreciate a company vehicle based on the number of miles it has traveled.

  If you set up a depreciation profile for fixed assets and select Consumption in the Method field on the Depreciation profiles page, fixed assets are assigned to the depreciation profile based on their usage. You don't have to set up percentages

  and intervals on the Depreciation profiles page. After you create a depreciation profile that uses the Consumption method, you can set up the method in various ways.

  Incorrect:

  *

  When you set up a fixed asset depreciation profile and select 150% 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. This 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 30 percent (150% 5).

  *

  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.

  The difference in the depreciation amount that is calculated between straight line service life remaining and straight line service life is when there is an adjustment posted to the asset.

  To set up straight line service life depreciation, you must also select options in the Depreciation year and Period frequency fields in the Depreciation profiles page.

  Reference: https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/bonus-depreciation https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/consumption-depreciation