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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 Finance.
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 into 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 all prior and future Ledger periods to a status of On Hold.
  Does the solution meet the goal?

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.
Hot Area:

You are implementing Dynamics 365 Finance.

Subledger entries must transfer automatically to the general ledger.

You need to configure a batch transfer rule.

Which two options should you select? Each correct answer presents a complete solution.

NOTE: Each correct selection is worth one point

A customer uses bank reconciliation functionality in Dynamics 365 Finance.

The customer finds a transaction in a closed fiscal period that must be corrected.

You need to correct the transaction.

How should you make this correction?

You are implementing Dynamics 365 Finance.

You commonly complete the sale of goods across international borders.

You need to configure the system.

What should you use?

The controller at a company has multiple employees who enter standard General ledger journals. The controller wants to review these journal entries before they are posted. Currently, journals entries are posted without review.

You need to configure Dynamics 365 Finance to help set up a system led review process to meet the controller s needs.

Which functionality should you configure?

You are implementing Dynamics 365 Finance.

Sales tax should be calculated when the sales orders are entered. During testing, you find the sales tax is not calculating as expected.

You need to validate sales tax has been set up correctly.

Which two actions should you do? Each correct answer presents part of the solution.

NOTE: Each correct selection is worth one pint.

A company uses Dynamics 365 Finance to include multiple business units as a financial dimension.

All customer payment journals must be posted to the headquarters’ business unit financial dimension.

You need to configure the accounts receivable journal name.

What should you configure?

A company has implemented Dynamics 365 Finance.

The company has three different banks where they hold funds. Each bank holds three separate accounts, totaling nine accounts for the company. The system must use default the bank information when a new account is created. All bank balances for a single bank account must be updated simultaneously.

You need to configure the system.

Which two entities should you use? Each correct answer presents part of the solution.

NOTE: Each correct selection is worth one point.

A company has implemented Dynamics 365 Finance.

The company requires better visibility into their cash flow and wants to reconcile bank accounts daily with a timely view of check deposits.

You need to configure the bank accounts for more accurate timing of cash flow.

What should you configure?

A company uses Microsoft Dynamics 365 Finance. You are evaluating delinquent customers. You examine aging balances and determine that a customer's balance must be written off.

You need to use journal lines to perform the write-off process.

Which two journal line types will be created? Each correct answer presents part of the solution.

NOTE: Each correct selectin is worth one point.

A company has implemented Dynamics 365 Finance.

The company pays taxes quarterly to the states of Florida, Nebraska, and Washington. These states have been set up as tax authorities within Dynamics 365 Finance.

You need to configure the system to remit tax payments.

What should you do?

HOTSPOT -
A rental service company hires you to configure their system to implement accrual schemes.
You need to configure the accrual schemes for the company for both rentals and associated expenses.
Which configuration and transaction options should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:

You are configuring taxes in Dynamics 365 Finance for a client.

Vendor invoices require a five percent sales tax calculation. Per government rules, the client can recover only 60 percent of this five percent sales tax amount against certain commodities. The remaining 40 percent is non-recoverable.

You need to configure the sales taxes to post to the expense account.

Where should you configure the sales tax percentage?

You have implemented Dynamics 365 Finance.

You must update the fiscal year to a 4-4-5 quarterly configuration.

You need to configure the fiscal year.

What should you do?

The controller at a company has multiple employees who enter standard General ledger journals. The controller wants to review these journal entries before they are posted. Currently, journals entries are posted without review.

You need to configure Dynamics 365 Finance to help set up a system led review process to meet the controller s needs.

Which functionality should you configure?

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 posting restrictions on the general journal.

Does the solution meet the goal?

You are implementing Dynamics 365 Finance.

You need to enable electronic fund transfers (EFT) for vendors.

Which three steps must you complete? Each correct answer presents pail of the solution.

NOTE: Each correct selection is worth one point.

The JAX sales tax group include the following tax codes:

• Jacksonville
• Duval CT
• FL
• FL Special 1
• FL Special 2
• FL Special 3
• FL Special 5

The default item sales tax group includes the following tax codes:

• Jacksonville
• Duval CT
• FL
• FL Special 1
• FL Special 2
• FL Special 3
• FL Special 4
• Lake Worth
• Palm Beach CT

You assign the JAX sales tax group as the sales tax group, and default item sales tax group on the sales order.

You need to select the tax code used for tax calculation on the sales order.

What should you choose?

A United States-based company uses Dynamics 365 Finance to collect and report sales tax. The company has a main account for each state where they collect and report sales tax.

The system must transfer the tax liability for each state to their respective main account automatically every month when they run the settle and post sales tax process.

You need to configure Dynamics 365 Finance.

What should you do?

A company uses Microsoft Dynamics 365 Finance.

The system displays the following error when you try to acquire a fixed asset:

Account for the transaction type, value model, does not exist for fixed asset ASSET-001.

You need to resolve the error.

What should you do?

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 posting of sales orders to a closed period.

What should you do?

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.

HOTSPOT

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 validate the sales tax Postings for Tennessee and Alabama.

Which tax selections meet the requirement? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

A company plans to implement Dynamics 365 Finance. The company manages a high volume of customers.

The finance team wants to enable the following capabilities for each set of customers:

• Create sales budgets.
• Generate trade statistics such as weekly sales.
• Define ledger posting.
• Define terms of payment.

You need to select functionality that defines clusters of customers.

Which configuration should you select?