Free MB-310 Mock Exam – Practice Online Confidently

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 client wants general journals to be used only to post ledger-type transactions. You need to set up journal configuration to achieve the requirement. Solution: Set up the journal control to specify the account structure and ledger segment. Does the solution meet the goal?

Introductory Info 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 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 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. Question 

You need to configure the system to resolve User8's issue. What should you select?

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 -

First Up Consultants is a global engineering and consulting organization based in Atlanta. The organization assists customers with various implementation projects. The organization provides both consulting services and custom software development.

First Up Consultants was recently acquired by a Canadian engineering firm that uses Dynamics 365 Finance. The firm requires First Up Consultants to transition to the solution by 2022.

First Up Consultants employs consultants that travel globally, which requires extensive expense management capabilities. First Up Consultants offers software as a service (SaaS) products to customers by using monthly and quarterly subscriptions.

Current environment. Travel and expense

The company is currently in Phase 2 of their Dynamics 365 Finance implementation.

• Consultants submit all travel receipts by using inter-office mail to the team admin for processing, but First Up Consultants wants to modernize this experience.

• Expense reports are manually approved and signed by the employee’s manager.

Current environment. Finance -

• First Up Consultants operates on a 4-5-4 calendar.

• Accounting for revenue has been difficult with the SaaS offerings. This has led to implementing Dynamics 365 Finance Revenue recognition.

• Revenue recognition has been live for 3 months.

• Adatum Corporation pays quarterly for use of the First Up Consultants web design application, starting from the day of use.

• Fourth Coffee pays monthly for use of the First Up Consultants photograph editing application with a contract starting August 1 and payment starting September 1.

• Adventure Works Cycles pays per use of the First Up Consultant video platform.

• A blocking rule is set up to prevent a sales order from processing if a customer exceeds a credit limit.

• Customer credit is set up at the account level for VanArsdel, Ltd.

• Tailspin Toys is owned by Wingtip Toys. The companies have a credit limit of $60.000 and $100,000, respectively.

Current environment. Revenue allocation

The company reports the following revenue allocation percentages:

Current environment. Tax -

VAT tax recovery is required for eligible international business trip expenses. Bank reconciliation is manual and performed by using monthly mailed account statements.

The company collects sales taxes from the following states:

Requirements -

Travel and expense -

• First Up Consultants requires that employees start using corporate cards for all travel expenses.

• All expenses over $50 require a receipt.

• Beer cannot be expensed.

• Employees may use the corporate card for personal expenses during work travel, but expenses must be categorized correctly.

• Client entertainment expenses totaling more than $250 must be audited.

• Employees require a mobile expense experience.

• Expense report entries must be validated when a transaction line is entered.

• Employees require the ability to capture receipts by using a mobile device.

• First Up Consultants requires the ability to reimburse employees in their paychecks for expenses incurred on personal cards.

Financials -

• A virtual thirteenth month is required for year-end transactions.

• Each day, a validation file must go to First Up Consultants bank detailing all vendor checks paid.

• Except fees, all matched transactions must clear automatically during bank reconciliation.

• The accounts payable team must verify expense reports prior to posting.

• Only payables are allowed to be posted to a prior period up to seven days into the new period.

Issues -

• User1 installed the Expense Management Service add-in and implemented the auto-match and create expense from receipt features, but the receipt images do not match the corporate card transactions.

• Employee1 submits an expense report for a business trip to Europe, but the report is not visible on the expense tax recovery page.

• Employees provided feedback that the system lets them know of an expense report policy violation only after the entire expense report is submitted.

• Members of the finance department observe sales orders that posted into a closed period.

• The finance team observed that for sales order invoice 1234, the price incorrectly posts to a revenue account when it should be deferring.

• Employee2 purchased supplies for a holiday party and needs to be reimbursed.

• A customer orders software licenses for the offices in Tennessee and Alabama.

• Expense reports for unapproved items are posting.

• VanArsdel, Ltd. exceeded its credit limit but the sales order was processed.

• Tailspin Toys purchases $70,000 in custom software development.

You need to address the employees issue regarding expense report policy violations.

Which parameter should you use?

Introductory Info 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 -

First Up Consultants is a global finance and accounting company.

Financial needs at organizations are constantly changing. When global companies become too large, it becomes too difficult for them to scale to meet their global operational needs. First Up Consultants provides `Finance as a Service` capabilities.

Some large corporations complement their existing finance staff by engaging select services of First Up Consultants. Other large corporations outsource their entire finance operation to First Up Consultants.

First Up Consultants has hundreds of customers at any time. One such customer, Humongous Insurance, is updating its Dynamics Finance 365 implementation.

Another customer, Trey Research, is setting up its first Dynamics 365 Finance implementation.

Current environment -

Ledger -

Humongous Insurance is a US-based company and operates its fiscal year from January 1 to December 31. Humongous Insurance reports across all its subsidiaries in consolidated financial reports.

Trey Research is a Canadian-based company that operates its fiscal year from April 1 to March 31.

Humongous Insurance employees receive an annual cost of living increase.

Requirements -

Ledger -

One of Humongous Insurance's companies provides insurance to government clients and must separate that particular company into its own subsidiary.

The Humongous subsidiary will operate in China, which requires a fiscal year from February 1 to January 31.

Transactions must be posted in the business of record.

Humongous Insurance's subsidiary requires accounting entries to be posted from the subledger to the general ledger by 5:00 PM each day.

Trey Research requires accounting entries to be posted from the subledger to the ledger immediately.

Fiscal calendars -

You must create three new fiscal calendars:

A fiscal calendar named FebJan that runs from Feb 1 to Jan 31.

A fiscal calendar named AprMar that runs from April 1 to March 31.

A fiscal calendar named JanDec that runs from January 1 to December 31.

Accounts -

Trey Research must track bank account balances and transactions for each province in which it operates.

The bank statement must be sent to the physical address of the home office.

Promotion -

Humongous Insurance's subsidiary plans to celebrate its new subsidiary status by sending out free gifts to existing policyholders based on the tier of their policy.

Promotional items are ordered for distribution and once received must be tracked within Dynamics 365 Finance.

Taxes -

As part of the spinoff to a subsidiary, Humongous Insurance's subsidiaries taxes must be changed from US government rates to Chinese government rates.

Humongous Insurance's subsidiary must track use taxes that are not claimed or reported to the Chinese tax agency.

Reporting -

The CEO of Humongous Insurance needs to view the insurance products that customers plan to purchase. The report must show all transactions made over the last two years.

The corporate vice president of Humongous Insurance's subsidiary needs to view the forecasted cash impact of specific products purchased. The report must show only new transactions.

Expenses -

Expenses must be paid using the following requirements:

Credit card processing -

Humongous Insurance requires all credit card transactions to include line-item details.

Humongous Insurance's subsidiary requires the shipping address, merchant address, and tax information, but cannot include any order line details.

Trey Research requires all credit card transactions include transaction date, transaction amount, description, and line-item details.

Compliance and compensation -

Trey Research must be able to audit any modifications to its budget.

Humongous Insurance employees must receive raises four times per budget cycle. Question

HOTSPOT 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.

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 uses Dynamics 365 Finance.

The company must release all customer orders that are on hold for a specific customer.

You need to process the release.

Solution: Change the value of the account status.

Does the solution meet the goal?