Practice Free MB-310 Exam Online Questions

Topic 1, Fourth Coffee Case Study

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 . How ever, 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.

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Background

Fourth Coffee is a coffee and supplies manufacturer based in Seattle. The company recently purchased CompanyA, based in the United States, and CompanyB, 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 CompanyA and CompanyB in their Dynamics 365 Finance environment to gain better visibility into the companies’ profitability. CompanyA and CompanyB 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.

* CustomerX is a taxable company.

* CustomerY is a tax-exempt company.

* CustomerZ is a taxable company.

* VendorA is a Colombian supplier of coffee beans and belongs to the international vendor group.

* VendorB is a Peruvian supplier of coffee machine filters and belongs to the international vendor group.

* VendorC is a Texas supplier of espresso valves and belongs to the domestic vendor group.

CompanyA

* 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.

CompanyB

* 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 CustomerZ.

* User6 observes that sales tax is calculating for CustomerY.

* User7 observes that the sales tax payment report is excluding posted invoice transactions.

* User8 in CompanyA attempts to set up the sales tax receivable account on the sales tax posting form.

* User9 in CompanyA needs to purchase three tablets by using a purchase order and record the devices as fixed assets.

* CustomerX requires a credit check when making a purchase and is currently at their credit limit.

HOTSPOT

You need to configure settings to resolve User1’s issue.

Which settings should you use? To answer, select the appropriate options in the answer area. NOTE: Each correct selection is worth one point.

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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 managing credit and collections.

You need to set up mandatory credit limits for all customer documents.

Solution: Select the Balance + packing slip credit type in the Accounts receivable parameters form.

Select the Mandatory credit limit check box in the Customers form.

Does the solution meet the goal?

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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?

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You need to ensure Trey Research meets the compliance requirement.

Which budget technology should you implement? Each correct answer presents a complete solution. NOTE: Each correct selection is worth one point

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You need to ensure Trey Research meets the compliance requirement.

Which budget technology should you implement? Each correct answer presents a complete solution. NOTE: Each correct selection is worth one point

Reveal Solution Hide Solution

Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution. Determine whether the solution meets 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 customer uses Dynamics 365 Finance.

The controller notices incorrect postings to the ledger entered via journal.

The system must enforce the following:

✑ Expense accounts (6000-6998) require department, division, and project with all transactions. Customer dimension is optional.

✑ Revenue accounts (4000-4999) require department and division and allow project and customer dimensions.

✑ Liability accounts (2000-2999) should not have any dimensions posted.

✑ Expense account (6999) requires department, division, project and customer dimensions with all transactions.

You need to configure the account structure to meet the requirements.

Solution:

✑ Configure one account structure.

✑ Configure an advanced rule for Liability accounts (2000-2999) not to display any dimensions when selected.

✑ Configure an advanced rule for Expense account (6999) to require customer.

✑ Configure the structure with all dimension fields containing quotations.

Does the solution meet the goal?

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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?

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Topic 7, Misc. Questions

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 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?

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Topic 7, Misc. Questions

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 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?

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HOTSPOT

A food manufacturer uses commodities such as beans, corn, and chili peppers as raw materials. The prices of the commodities fluctuate frequently. The manufacturer wants to use cost versions to simulate these fluctuations.

You need to set up cost versions and prices to accomplish the manufacturer’s goal.

For which purpose should you use each costing type? To answer, select the appropriate options in the answer area. NOTE: Each correct selection is worth one point.

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