MB-310Free trial

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 configuring Dynamics 365 Finance.

You need to implement advanced bank reconciliation.

Which three actions should you perform? Each correct answer presents part of the solution.

NOTE: Each correct selection is worth one point.

DRAG DROP

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

Tailspin Toys is a toy manufacturing company that sells to distributors and customers through a business-to-consumer website. Tailspin Toys has been using custom-developed software for their accounting and supply chain management needs.

Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States. Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization.

Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes.

Current environment

Vendors

• Tailspin Toys works with local and foreign vendors.
• The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys.
• The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts.
• For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week.
• Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year.
• Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses.
• The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account.
• The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors.

Reporting

• Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements.

Budget planning

• The finance department oversees all budget planning.
• The finance department estimates the baseline for all budgets and distributes them to the respective departments.
• Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly.

Expenses

Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown.

Asset leasing

Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments.

Requirements

Consolidation

• Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys’ leadership.
• Consolidated results are needed in multiple reporting currencies.

Expenses

• Utility bills must be allocated to allow each department to expense the correct amount.

Reports

• Leadership requires financial reports to come to their inbox automatically as one at the end of every month.

Vendors

• The system must show accounts payable liability by type of vendor similar to how it works in the current system.
• The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments.
• The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined.

Budgets

• A new organizational hierarchy is required for budget planning purposes.
• Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget.

Asset leasing

• The CFO must automatically process payments and journal entries for the leased properties.
• Management must view payment forecasts based on leased assets.

Issues

Accounts payable issues

• Vendor liability information for local and foreign vendors is not separated in the system.
• The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program.
• The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing.
• The accounts payable manager must automate the current process of vendor payment proposals.

Other issues

• The differences resulting from consolidating subsidiaries with foreign currencies are not considered.
• User A confirmed they did not receive an alert before running out of their budget.
• Expense reports for the manufacturing and sales departments do not contain utility bill expenses.
• The accounting manager reported that there is no batch journal created for the monthly lease expenses.

You need to resolve the accounts payable manager issue and resolve the user acceptance testing bug reported by the accounts payable clerk.

How should you configure the system? To answer, move the appropriate Value to the correct Parameter. You may use each Value once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content.

NOTE: Each correct selection is worth one point.

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 -

Tailspin Toys is a toy manufacturing company that sells to distributors and customers through a business-to-consumer website. Tailspin Toys has been using custom-developed software for their accounting and supply chain management needs.

Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States. Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization.

Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes.

Current environment -

Vendors -
• Tailspin Toys works with local and foreign vendors.
• The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys.
• The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts.
• For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week.
• Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year.
• Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses.
• The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account.
• The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors.

Reporting -
• Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements.

Budget planning -
• The finance department oversees all budget planning.
• The finance department estimates the baseline for all budgets and distributes them to the respective departments.
• Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly.

Expenses -
Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown.

Asset leasing -
Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments.

Requirements -

Consolidation -
• Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys’ leadership.
• Consolidated results are needed in multiple reporting currencies.

Expenses -
• Utility bills must be allocated to allow each department to expense the correct amount.

Reports -
• Leadership requires financial reports to come to their inbox automatically as one at the end of every month.

Vendors -
• The system must show accounts payable liability by type of vendor similar to how it works in the current system.
• The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments.
• The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined.

Budgets -
• A new organizational hierarchy is required for budget planning purposes.
• Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget.

Asset leasing -
• The CFO must automatically process payments and journal entries for the leased properties.
• Management must view payment forecasts based on leased assets.

Issues -

Accounts payable issues -
• Vendor liability information for local and foreign vendors is not separated in the system.
• The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program.
• The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing.
• The accounts payable manager must automate the current process of vendor payment proposals.

Other issues -
• The differences resulting from consolidating subsidiaries with foreign currencies are not considered.
• User A confirmed they did not receive an alert before running out of their budget.
• Expense reports for the manufacturing and sales departments do not contain utility bill expenses.
• The accounting manager reported that there is no batch journal created for the monthly lease expenses.

You need to address the requirement for allocating the utility bills.

Which allocation method should you use?

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

Tailspin Toys is a toy manufacturing company that sells to distributors and customers through a business-to-consumer website. Tailspin Toys has been using custom-developed software for their accounting and supply chain management needs.

Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States. Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization.

Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes.

Current environment

Vendors

• Tailspin Toys works with local and foreign vendors.
• The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys.
• The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts.
• For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week.
• Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year.
• Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses.
• The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account.
• The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors.

Reporting

• Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements.

Budget planning

• The finance department oversees all budget planning.
• The finance department estimates the baseline for all budgets and distributes them to the respective departments.
• Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly.

Expenses

Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown.

Asset leasing

Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments.

Requirements

Consolidation

• Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys’ leadership.
• Consolidated results are needed in multiple reporting currencies.

Expenses

• Utility bills must be allocated to allow each department to expense the correct amount.

Reports

• Leadership requires financial reports to come to their inbox automatically as one at the end of every month.

Vendors

• The system must show accounts payable liability by type of vendor similar to how it works in the current system.
• The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments.
• The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined.

Budgets

• A new organizational hierarchy is required for budget planning purposes.
• Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget.

Asset leasing

• The CFO must automatically process payments and journal entries for the leased properties.
• Management must view payment forecasts based on leased assets.

Issues

Accounts payable issues

• Vendor liability information for local and foreign vendors is not separated in the system.
• The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program.
• The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing.
• The accounts payable manager must automate the current process of vendor payment proposals.

Other issues

• The differences resulting from consolidating subsidiaries with foreign currencies are not considered.
• User A confirmed they did not receive an alert before running out of their budget.
• Expense reports for the manufacturing and sales departments do not contain utility bill expenses.
• The accounting manager reported that there is no batch journal created for the monthly lease expenses.

You need to configure the system to meet the foreign currency consolidation requirements.

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

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

Tailspin Toys is a toy manufacturing company that sells to distributors and customers through a business-to-consumer website. Tailspin Toys has been using custom-developed software for their accounting and supply chain management needs.

Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States. Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization.

Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes.

Current environment

Vendors

• Tailspin Toys works with local and foreign vendors.
• The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys.
• The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts.
• For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week.
• Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year.
• Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses.
• The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account.
• The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors.

Reporting

• Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements.

Budget planning

• The finance department oversees all budget planning.
• The finance department estimates the baseline for all budgets and distributes them to the respective departments.
• Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly.

Expenses

Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown.

Asset leasing

Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments.

Requirements

Consolidation

• Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys’ leadership.
• Consolidated results are needed in multiple reporting currencies.

Expenses

• Utility bills must be allocated to allow each department to expense the correct amount.

Reports

• Leadership requires financial reports to come to their inbox automatically as one at the end of every month.

Vendors

• The system must show accounts payable liability by type of vendor similar to how it works in the current system.
• The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments.
• The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined.

Budgets

• A new organizational hierarchy is required for budget planning purposes.
• Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget.

Asset leasing

• The CFO must automatically process payments and journal entries for the leased properties.
• Management must view payment forecasts based on leased assets.

Issues

Accounts payable issues

• Vendor liability information for local and foreign vendors is not separated in the system.
• The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program.
• The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing.
• The accounts payable manager must automate the current process of vendor payment proposals.

Other issues

• The differences resulting from consolidating subsidiaries with foreign currencies are not considered.
• User A confirmed they did not receive an alert before running out of their budget.
• Expense reports for the manufacturing and sales departments do not contain utility bill expenses.
• The accounting manager reported that there is no batch journal created for the monthly lease expenses.

You need to resolve the issue related to monthly lease expenses.

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

NOTE: Each correct selection is worth one point.

HOTSPOT -
A client plans to use the cost accounting module in Dynamics 365 Finance.
You need to associate the correct definitions to the correct cost accounting concepts.
Which terms match the definitions? To answer, select the appropriate configuration in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:

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?

HOTSPOT

A company implements the general ledger module of Dynamics 365 Finance.

The company must allocate the advertising expense based on a department's sales in proportion to the total sales.

You need to configure the allocation rule.

How should you complete the configuration? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

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 -

Adventure Works Cycles is a North American-based company that sells and fixes bicycles. The company is modernizing its business processes by implementing Dynamics 365 Finance.

The company recently expanded its business into bicycle leasing. The leasing business is expanding into Canada due to high demand.

Adventure Works Cycles has one legal entity, two cost centers, and three divisions within each cost center. The company also has a centralized budgeting process to the lowest level.

The operating currency of the legal entity is the US dollar (USD).

Adventure Works Cycles operates on a 4-5-4 calendar, which is used to make sure that the sales are evenly distributed across all months, including weekends.

Current Environment -

• Adventure Works Cycles tracks its international vendors in a separate payable account from its domestic vendors.
• Only bicycle frame inventory is configured with a separate item model group that requires registration.
• A thirteenth month is required for year-end transactions.
• Only members from the accounts payable team are able to post transactions to a prior period after the period is closed to the company.
• Fourth Coffee is a Canadian-based coffee chain whose operating currency is the Canadian dollar (CAD). Fourth Coffee entered into a lease agreement for 150 branded bicycles totaling CAD75,000.
• Adventure Works Cycles frequently receives invoices in foreign currencies.

Requirements -

• Three-way matching is required only on competition bicycles priced over USD3,000 that are purchased from Fabrikam, Inc., in Europe.
• Domestic customers and international customers must be managed in the following ways: o Domestic customer receivables must post to account 1200. o International customer receivables must post to account 1201. o Domestic customers must have a payment term of net 30. o International customers must have a payment term of net 15. o Domestic customer revenue must post to account 4000. o International customer revenue must post to account 4001.
• Adventure Works Cycles must be able to use the cash flow forecasting capability in Finance.
• The system must enable tracking and charging interest for customer accounts that are not current.
• Automatic charges must be configured on vendor invoices for bicycle tires. The cost must be added to each item on the vendor invoice.
• Adventure Works Cycles must be able to terminate leases for bicycles at any time.
• Adventure Works Cycles must be able to closely track its budget by enforcing the budget at the cost center level.
• The system must run Vendor aging reports by listing the transactions that are included in the reports' balance, unsettled payments, and aging period descriptions.

Issues -

• The accounts payable clerk processes an invoice for bicycle frames and a partial invoice for helmets. The clerk observes that the quantities on the vendor invoices are incorrect. The invoices require the correct line quantity selections so that the invoices process accurately.
• The accounts payable clerk processes an invoice and observes that the product receipt quantity match for bicycle seat posts ordered from Fabrikam, Inc., is blank. However, the invoice passes validation.
• The accounts payable manager observes that a sales order is posted to the prior period that is closed.
• During foreign currency revaluation of the Accounts payable subledger, posting occurred only if the result was a loss.
• On a vendor invoice for bicycle tires, the automatic charge is charged as an expense.
• Due to a breach of contract, a member of the finance team needs to terminate a bicycle lease. However, the Termination proposal button is unavailable.
• The accounts payable clerk is unable to review payments that have not been settled on the Vendor aging report.

You need to address the requirement for the Vendor aging report.

What should you do?

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

Adventure Works Cycles is a North American-based company that sells and fixes bicycles. The company is modernizing its business processes by implementing Dynamics 365 Finance.

The company recently expanded its business into bicycle leasing. The leasing business is expanding into Canada due to high demand.

Adventure Works Cycles has one legal entity, two cost centers, and three divisions within each cost center. The company also has a centralized budgeting process to the lowest level.

The operating currency of the legal entity is the US dollar (USD).

Adventure Works Cycles operates on a 4-5-4 calendar, which is used to make sure that the sales are evenly distributed across all months, including weekends.

Current Environment

• Adventure Works Cycles tracks its international vendors in a separate payable account from its domestic vendors.
• Only bicycle frame inventory is configured with a separate item model group that requires registration.
• A thirteenth month is required for year-end transactions.
• Only members from the accounts payable team are able to post transactions to a prior period after the period is closed to the company.
• Fourth Coffee is a Canadian-based coffee chain whose operating currency is the Canadian dollar (CAD). Fourth Coffee entered into a lease agreement for 150 branded bicycles totaling CAD75,000.
• Adventure Works Cycles frequently receives invoices in foreign currencies.

Requirements

• Three-way matching is required only on competition bicycles priced over USD3,000 that are purchased from Fabrikam, Inc., in Europe.
• Domestic customers and international customers must be managed in the following ways:
o Domestic customer receivables must post to account 1200.
o International customer receivables must post to account 1201.
o Domestic customers must have a payment term of net 30.
o International customers must have a payment term of net 15.
o Domestic customer revenue must post to account 4000.
o International customer revenue must post to account 4001.
• Adventure Works Cycles must be able to use the cash flow forecasting capability in Finance.
• The system must enable tracking and charging interest for customer accounts that are not current.
• Automatic charges must be configured on vendor invoices for bicycle tires. The cost must be added to each item on the vendor invoice.
• Adventure Works Cycles must be able to terminate leases for bicycles at any time.
• Adventure Works Cycles must be able to closely track its budget by enforcing the budget at the cost center level.
• The system must run Vendor aging reports by listing the transactions that are included in the reports' balance, unsettled payments, and aging period descriptions.

Issues

• The accounts payable clerk processes an invoice for bicycle frames and a partial invoice for helmets. The clerk observes that the quantities on the vendor invoices are incorrect. The invoices require the correct line quantity selections so that the invoices process accurately.
• The accounts payable clerk processes an invoice and observes that the product receipt quantity match for bicycle seat posts ordered from Fabrikam, Inc., is blank. However, the invoice passes validation.
• The accounts payable manager observes that a sales order is posted to the prior period that is closed.
• During foreign currency revaluation of the Accounts payable subledger, posting occurred only if the result was a loss.
• On a vendor invoice for bicycle tires, the automatic charge is charged as an expense.
• Due to a breach of contract, a member of the finance team needs to terminate a bicycle lease. However, the Termination proposal button is unavailable.
• The accounts payable clerk is unable to review payments that have not been settled on the Vendor aging report.

You need to configure the ledger for the year-end requirements and address the issues experienced at month-end close.

How should you configure the ledger?

To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

DRAG DROP

A company uses Dynamics 365 Finance. The company plans to use batch transfers to improve business processes.

The company has the following requirements based on different scenarios it has experienced:

• Resolve conflicts in the general ledger that are due to frequent transfers.
• Implement near real-time transfers from the subledger to the general ledger.

You need to configure transfer settings for batch transfers to meet the requirements.

Which configurations should you recommend for each scenario? To answer, move the appropriate configurations to the correct scenarios. You may use each configuration once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content.

NOTE: Each correct selection is worth one point.

DRAG DROP

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

Adventure Works Cycles is a North American-based company that sells and fixes bicycles. The company is modernizing its business processes by implementing Dynamics 365 Finance.

The company recently expanded its business into bicycle leasing. The leasing business is expanding into Canada due to high demand.

Adventure Works Cycles has one legal entity, two cost centers, and three divisions within each cost center. The company also has a centralized budgeting process to the lowest level.

The operating currency of the legal entity is the US dollar (USD).

Adventure Works Cycles operates on a 4-5-4 calendar, which is used to make sure that the sales are evenly distributed across all months, including weekends.

Current Environment

• Adventure Works Cycles tracks its international vendors in a separate payable account from its domestic vendors.
• Only bicycle frame inventory is configured with a separate item model group that requires registration.
• A thirteenth month is required for year-end transactions.
• Only members from the accounts payable team are able to post transactions to a prior period after the period is closed to the company.
• Fourth Coffee is a Canadian-based coffee chain whose operating currency is the Canadian dollar (CAD). Fourth Coffee entered into a lease agreement for 150 branded bicycles totaling CAD75,000.
• Adventure Works Cycles frequently receives invoices in foreign currencies.

Requirements

• Three-way matching is required only on competition bicycles priced over USD3,000 that are purchased from Fabrikam, Inc., in Europe.
• Domestic customers and international customers must be managed in the following ways:
o Domestic customer receivables must post to account 1200.
o International customer receivables must post to account 1201.
o Domestic customers must have a payment term of net 30.
o International customers must have a payment term of net 15.
o Domestic customer revenue must post to account 4000.
o International customer revenue must post to account 4001.
• Adventure Works Cycles must be able to use the cash flow forecasting capability in Finance.
• The system must enable tracking and charging interest for customer accounts that are not current.
• Automatic charges must be configured on vendor invoices for bicycle tires. The cost must be added to each item on the vendor invoice.
• Adventure Works Cycles must be able to terminate leases for bicycles at any time.
• Adventure Works Cycles must be able to closely track its budget by enforcing the budget at the cost center level.
• The system must run Vendor aging reports by listing the transactions that are included in the reports' balance, unsettled payments, and aging period descriptions.

Issues

• The accounts payable clerk processes an invoice for bicycle frames and a partial invoice for helmets. The clerk observes that the quantities on the vendor invoices are incorrect. The invoices require the correct line quantity selections so that the invoices process accurately.
• The accounts payable clerk processes an invoice and observes that the product receipt quantity match for bicycle seat posts ordered from Fabrikam, Inc., is blank. However, the invoice passes validation.
• The accounts payable manager observes that a sales order is posted to the prior period that is closed.
• During foreign currency revaluation of the Accounts payable subledger, posting occurred only if the result was a loss.
• On a vendor invoice for bicycle tires, the automatic charge is charged as an expense.
• Due to a breach of contract, a member of the finance team needs to terminate a bicycle lease. However, the Termination proposal button is unavailable.
• The accounts payable clerk is unable to review payments that have not been settled on the Vendor aging report.

You need to re-run foreign currency revaluation and correct the issue.

How should you run the revaluation to get the expected result?

To answer, move the appropriate methods to the correct scenarios. You may use each method once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content.

NOTE: Each correct selection is worth one point.

A company uses Dynamics 365 Finance.

A customer invoice is due on or before the tenth day of the following month.

You need to configure the payment setup.

Which payment configuration should you use?

A company operates in the United States and Japan. The accounting currency for the company is USD. The company imports exchange rates related to EUR into their system.

The company starts to conduct transactions with suppliers in Japanese yen (JPY). To ensure accurate reporting, the company configures exchange rates for USD to JPY on the Exchange rates page.

The company requires all JPY transactions are first converted to EUR and then to USD for reporting purposes.

You need to configure the currency setup.

What should you do?

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 operates in multiple currencies. The company is setting up currency revaluation posting profiles for General ledger, Accounts payable, Bank and Accounts receivable.

The company requires currency revaluation posting profiles to post unrealized and realized gains or losses to the correct accounts for applicable currencies.

You need to configure the currency revaluation posting profiles.

Solution:
• Configure posting profiles for unrealized gains and loses for all main accounts.
• Configure realized gain accounts for each currency
• Configure unrealized gains and losses for each vendor account.
• Set up a realized gains and losses posting profile for each customer group an bank account.

Does the solution meet the goal?

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 operates in multiple currencies. The company is setting up currency revaluation posting profiles for General ledger, Accounts payable, Bank and Accounts receivable.

The company requires currency revaluation posting profiles to post unrealized and realized gains or losses to the correct accounts for applicable currencies.

You need to configure the currency revaluation posting profiles.

Solution:
• Configure currency revaluation posting profiles for General ledger for each applicable main account for each currency.
• Select unrealized gain and loss accounts for all currencies.
• Configure realized gains and losses posting for all vendors.
• Configure realized gains and losses posting for each customer group.

Does the solution meet the goal?

An organization uses Dynamics 365 Finance.
Several posted journal entries contain invalid main account and dimension combinations. This leads to incorrect financial reporting.
You need to prevent these invalid combinations.
What should you do?

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 operates in multiple currencies. The company is setting up currency revaluation posting profiles for General ledger, Accounts payable, Bank and Accounts receivable.

The company requires currency revaluation posting profiles to post unrealized and realized gains or losses to the correct accounts for applicable currencies.

You need to configure the currency revaluation posting profiles.

Solution:
• Configure realized gains posting profiles for a specific main account and unrealized gains for all main accounts.
• Configure realized and unrealized gains or losses for all vendors.
• Configure unrealized and realized gains or losses posting profiles for all customers.
• Configure realized and unrealized gains or losses posting profiles for each bank account.

Does the solution meet the goal?

A company configures Dynamics 365 Finance to collect and report sales tax from customers.
The company calculates the sales tax amount needed to pay a vendor for taxable items and expenses.

The company is required by law to accrue and pay use tax. You add a new vendor in an existing region.

You need to configure the system to accrue use tax for the new vendor.

Which three actions should you take? Each correct answer presents part of the solution,

NOTE: Each correct selection is worth one point

You manage the ledger settlement process for a company in Dynamics 365 Finance.

The company requires an improved settlement process.

You enable the Awareness between ledger settlement and year-end close feature to include only unsettled ledger transactions in the opening balance during the year-end process.

The company must be able to settle transactions and handle realized gains and losses for foreign currency differences without any manual intervention.

You need to configure the system to meet the requirements.

What should you do?

HOTSPOT

You manage the consolidation an elimination process in Dynamics 365 Finance for a company.

The company must consolidate financial data from multiple subsidiaries that use different currencies and systems. The company must ensure that intercompany eliminations are correctly processed.

You need to setup and run the consolidation and elimination process in Finance.

How should you complete the configuration? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

DRAG DROP

You use Dynamics 365 Finance to manage the financial operations of a company.

You need to configure the financial period close workspace for the month-end financial close.

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.

NOTE: More than one order of answer choices is correct. You will receive credit for any of the correct orders you select.

HOTSPOT -
A client plans to use Dynamics 365 Finance for year-end 1099 reporting in the United States.
You are viewing a vendor master data record on the 1099 FastTab.

Use the drop-down menus to select the answer choice that answers each question based on the information presented in the graphic.
NOTE: Each correct selection is worth one point.
Hot Area:

A legal entity has locations and customers in multiple states within the United States.
You need to ensure that taxable customers are charged sales tax for taxable items in their delivery location.
Which three settings must you configure? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.