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Case study
Case Study 5
Background First Up Consultants is a global finance and accounting company. Financial needs at organizations ate constantly changing. When global companies become too large, it becomes too difficult for them to scale to meet then 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 then 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.
Ledger Humongous Insurance is a US-based company and operates its fiscal year from January 1 to December M. Humongous insurance reports across an 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 1. One of Humongous Insurance's companies provides insurance to government clients and must separate that particular company into its owm subsidiary. 2. The Humongous subsidiary will operate in China, which requires a fiscal year from February 1 to January 31. - Transitions must be posted in the business of record. 3. Humongous insurance s subsidiary requires accounting entries to be posted from the subledger to the general ledger by 5:00 PM each day. 4. Trey Research requires accounting entries to be posted from the subledger to the ledger immediately.
Taxes 1. As part of the spinoff to a subsidiary, Humongous Insurance s subsidiaries taxes must be changed from US government rates to Chinese government rates. 2. Humongous Insurance's subsidiary must track use taxes that are not claimed or reported to the Chinese tax agency.
Fiscal calendars You must create three new fiscal calendars 1. A fiscal calendar named FebJan that runs from Feb 1 to Jan 31. 2. A fiscal calendar named AprMar that runs from April 1 to March 31. 3. A fiscal calendar named JanDec that runs from January 1 to December 31.
Accounts 1. Trey Research most track bank account balances and transactions for each province in which it operates. 2. The bank statement must be sent to the physical address of the home office.
Promotion 1. Humongous insurance s subsidiary plans to celebrate its new subsidiary status by sending out free gifts to existing policy based on the Tier of their policy. 2. Promotional Items are ordered for distribution and once received must be Tracked within Dynamics 365 Finance.
Reporting 1. 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. 2. 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 pain using the following requirements:
Credit card processing 1. Humongous Insurance requires all credit card transactions to include line-item details. 2. Humongous Insurance's subsidiary requires the shipping address merchant address, and lax information but cannot include any order line details. 3. Trey Research requires all credit card transactions include transaction date, transaction amount, description, and line-item details.
Compliance and compensation 1. Trey Research must be able to audit any modifications to its budget 2. Humongow Insurance employees must receive raises tour times pet budget cycle.
Question 1
Testlet 5Hotspot
HOTSPOT
You need to ensure accounting entries are transferred from subledgers to general ledgers.
How should you configure the batch transfer ruleTo answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
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Explanation
Box 1: Configure subledger transfer as a scheduled batch Humongous Insurance's subsidiary requires accounting entries to be posted from the subledger to the general ledger by 5:00 PM each day.
Box 2: Configure subledger transfer as Synchronous Trey Research requires accounting entries to be posted from the subledger to the ledger immediately. The following options are available for transferring subledger batches: Asynchronous ג€" Transfer of the subledger accounting entries to the general ledger is scheduled immediately. The General ledger voucher will be recorded as soon as resources are available to process the request on the server. Scheduled batch ג€" The subledger accounting entries that must be transferred are added to the processing queue in General ledger. The entries in the queue will be processed in the order that they are received in. Each General ledger voucher will update accounts at the scheduled time if resources are available to process the batch job on the server.
Incorrect: * synchrounous In version 8.1, changes were made to allow the transfer of rules, which deprecated the Synchronous option.
A company has recently deployed Microsoft Dynamics 365 Finance. You have been hired as a Systems Administrator. Your role will include the management of the Dynamics 365 system.
You need to configure the account structure.
For the Business Unit dimension, you need to ensure that all values and blank values are allowed.
Which of the following values should you include for the business unit dimension?
A
* (asterisk)
B
ALL
C
*; " " (asterisk and quotation marks separated by a comma)
D
*; " " (asterisk and quotation marks separated by a semicolon)
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Correct answerD
Question 3
Hotspot
HOTSPOT
You are the purchase manager of an organization. You purchase a laptop for your office for $2,000. You plan to create a purchase order and acquire the new fixed asset through the purchase order at time of invoicing.
You set up the system as follows: Fixed assets are automatically created during product receipt or vendor invoice posting and the capitalization threshold for the computers group (COMP) is set to $1,600.
You need to automatically create a fixed asset record when you post an acquisition transaction for the asset after you post the invoice.
How should you configure the fixed asset parameters to meet the criteriaTo answer, select the appropriate option in the answer area.
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You are managing credit and collections.
You need to set up mandatory credit limits for all customer documents.
Solution: Select None as the credit type in the Accounts receivable parameters form. Select the Mandatory credit limit check box in the Customers form.
Does the solution meet the goal?
A
Yes
B
No
Reveal answer detailsClose answer details
Correct answerB
Explanation
Instead: Solution: Select the Balance + All credit type in the Accounts receivable parameters form. Select the Mandatory credit limit check box in the Customers form.
Note: Select from the following options:
None - Do not check credit limits. You can override this option for a specific customer by selecting the Mandatory credit limit check box in the Customers form. If you do this, the credit limit is checked against the customer balance.
Balance - The credit limit is checked against the customer balance.
Balance + packing slip or product receipt - The credit limit is checked against the customer balance and deliveries.
Balance + All - The credit limit is checked against the customer balance, deliveries, and open orders.
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?
A
Set up a new chart of accounts specifically for foreign currency transactions.
B
Disable the Awareness between ledger settlement and year-end close feature.
C
Ensure all transactions are posted within the same fiscal year before settling them.
D
Enable the Post foreign currency realized gains/losses for ledger settlements feature.
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Correct answerD
Question 6
Single choice
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?
A
Associate the vendor record to the tax authority.
B
Set up a customer record for the tax authority.
C
Associate the vendor record to the settlement period.
D
Set up the jurisdiction and associate the jurisdiction to the tax authority.
Reveal answer detailsClose answer details
Correct answerA
Explanation
Sales tax authorities are entities to which collected sales tax needs to be reported and paid. You can pay sales taxes to the authority directly or through a vendor account that you create for the sales tax authority. If you do this, the company can use its usual payment routines to pay the sales tax authority on time. If you do not set up the tax authority as a vendor, someone must prepare a manual payment to the tax authority on the appropriate due date. This task uses the USMF demo company.
Go to Tax > Indirect taxes > Sales tax > Sales tax authorities. Click New. In the Authority field, type a value. In the Name field, type a value. In the Vendor account field, click the drop-down button to open the lookup. In the list, find and select the desired record. In the list, click the link in the selected row. Select the report layout for your country/region, if one is available. If the report layouts do not correspond to the requirements of the sales tax authority, use default layout. Enter values in the Rounding form and the Round-off fields to specify how the tax total amount to be paid should be rounded. Any rounding differences will be posted to Accounts for automatic transactions set up in General ledger. In the Round-off field, enter a number. Click Save.
Fourth Coffee is a coffee and supplies manufacturer based in Seattle. The company recently purchased CompanyA, based in the United States, and CompanyB, based in Canada, in order to increase production of their award-winning espresso machine and distribution of their dark roast coffee beans, respectively.
Fourth Coffee has set up CompanyA and CompanyB in their Dynamics 365 Finance environment to gain better visibility into the companies' profitability. CompanyA and CompanyB will continue to operate as subsidiaries of Fourth Coffee, but all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.
The current organizational chart is shown below:
Current environment
Systemwide setup
1. Dynamics 365 Finance in Microsoft Azure is used to manage the supply chain, retail, and financials. 2. All companies share a Chart of Accounts. 3. Two dimensions are used: Department and Division. 4. Budgeting is controlled at the department level. 5. Customers and vendors are defined as two groups: Domestic and International. 6. Mandatory credit check is set to No.
7. Consolidate online is used for the consolidation of all companies. 8. International main accounts are subject to foreign currency revaluation. 9. The purchasing budget is used to enforce purchasing limits.
General ledger accounts
Fourth Coffee
1. The base currency is USD. 2. Three item groups are used: coffee, supplies, and nonstock. 3. The standard sales tax method is used. 4. Acquiring fixed assets requires a purchase order. 5. All customer payment journals require a deposit slip. 6. CustomerX is a taxable company. 7. CustomerY is a tax-exempt company. 8. CustomerZ is a taxable company. 9. VendorA is a Colombian supplier of coffee beans and belongs to the international vendor group. 10. VendorB is a Peruvian supplier of coffee machine filters and belongs to the international vendor group. 11. VendorC is a Texas supplier of espresso valves and belongs to the domestic vendor group.
CompanyA
1. The base currency is USD. 2. It consists of a marketing department and a digital division. 3. A 4-5-4 calendar structure is used. 4. The standard sales tax method is used.
CompanyB
1. The base currency is CAD. 2. The conditional sales tax method is used.
Requirements
Reporting
1. A consolidated Fourth Coffee financial report is required in USD currency. 2. Fourth Coffee and its subsidiaries need to be able to report sales by item type. 3. Year-end adjustments need to be reported separately in a different period to view financial reporting inclusive and exclusive of year-end adjustments.
Issues
1. User1 observes that a General journal was used in error to post to the Domestic Accounts Receivable trade account. 2. User2 has to repeatedly reclassify vendor invoice journals in Fourth Coffee Company that are posted to the marketing department and digital division. 3. When User3 posts an Accounts receivable payment journal, a deposit slip is not generated. 4. User4 observes an increase in procurement department expenses for supplies. 5. User5 observes that sales tax is not calculating on a sales order for CustomerZ. 6. User6 observes that sales tax is calculating for CustomerY. 7. User7 observes that the sales tax payment report is excluding posted invoice transactions. 8. User8 in CompanyA attempts to set up the sales tax receivable account on the sales tax posting form. 9. User9 in CompanyA needs to purchase three tablets by using a purchase order and record the devices as fixed assets. 10. CustomerX requires a credit check when making a purchase and is currently at their credit limit.
Question 7
Testlet 1Multiple choice
You need to view the results of Fourth Coffee Holding Company's consolidation.
Which three places show the results of financial consolidation? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A
a financial report run against the company Fourth Coffee
B
a trial balance in the Fourth Coffee Holding Company
C
a trial balance in the company Fourth Coffee
D
a financial report run against the Fourth Coffee Holding Company
E
the consolidations form in Fourth Coffee Holding Company
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Correct answersB, D, E
Explanation
all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.
Question 8
Single choice
You are configuring Dynamics 365 Finance.
You need to implement posting definitions for all available transaction types.
For which type of transactions can you implement posting definitions?
A
Accounts payable, Accounts receivable, Bank, Budget, Payroll, and Purchasing
B
Accounts payable, Bank, Budget, Fixed assets, and Payroll
C
Accounts payable, Accounts receivable, Fixed assets, Payroll, and Purchasing
D
Accounts payable, Accounts receivable, Budget, and Fixed assets
Reveal answer detailsClose answer details
Correct answerA
Explanation
A is correct. Navigate to Posting Definitions page, click new and select the Module field to open the available list. You will note that there is no option to select "Fixed Assets". This rules out B, C and D.
Question 9
Single choice
A client is using the budget planning process in Dynamics 365 Finance.
Your client requires the ability to plan for a one-year, three-year, and five year-budget.
You need to configure the various year length options to be used in the budgeting module.
You are a Dynamics 365 Finance consultant. You plan to configure the allocation base, cost behavior, and cost distribution.
Which three actions do these configurations accomplishEach correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A
Spread costs from one cost object to one or more other cost objects by applying a relevant allocation base.
B
Measure and quantify activities, such as machine hours that are used, kilowatt hours that are consumed, or square footage that is occupied.
C
Spread the balance of the cost from one cost object to one or more other cost objects by applying a relevant allocation base.
D
Control which journals can be used in the costing process.
E
Classify costs according to their behavior in relation to changes in key business activities.
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Correct answersA, B, E
Explanation
Cost distribution: used to distribute cost from one cost object to one or more other cost objects by applying a relevant allocation base Allocation base: used to measure and quantify activities, such as machine hours that are used, kilowatt hours that are consumed, or square footage that is occupied. It's used as basis for allocating costs to one or more cost objects Cost behavior: classifies costs according to their behavior in relation to changes in key business activities
Your role of Systems Administrator includes the management of your company's Microsoft Dynamics 365 Finance system.
You need to configure posting definitions. You need to determine which transaction types you can configure posting definitions for.
For which of the following can you NOT configure posting definitions
A
Fixed assets
B
Accounts payable
C
Payroll
D
Accounts receivable
E
Budget
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Correct answerA
Question 12
Single choice
A company implements basic budgeting functionality in Dynamics 36S Finance.
The company wants to allocate budget register entries for payroll expense amounts to each department based on a predetermined percentage.
You need to configure the allocation.
Which functionality should you use?
A
Budget transfer rule
B
Budget control
C
Allocation term
D
Period allocation key
Reveal answer detailsClose answer details
Correct answerC
Question 13
Single choice
You work as the Finance Manager for a company. The company uses Microsoft Dynamics 365 Finance for its accounting system.
The company has a main office and eight branch offices. Three more branch offices are currently under construction.
You need to ensure that advertising expenses are balanced across the eight branch offices. The advertising costs will be balanced across all eleven branch offices when the three new offices are complete.
Which option should you select in the ledger allocation configuration?
A
Fixed percentage
B
Basis
C
Fixed weight
D
Equally
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Correct answerD
Question 14
Multiple choice
Your role of Systems Administrator includes the management of your company's Microsoft Dynamics 365 Finance system.
You have assigned the Vendor (external) security role to a vendor that will work with purchase orders.
Which two of the following actions can the vendor perform (Choose two)
A
Respond to and view information about purchase orders.
B
Request a new user account for a contact person by using the Provision user action.
C
Add a new or existing contact person to the vendor accounts that they are a contact for.
D
Request that a contact person's user account be inactivated.
E
Maintain vendor collaboration invoices.
Reveal answer detailsClose answer details
Correct answersA, E
Question 15
Hotspot
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.
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Explanation
Components of ledger allocation rules Each allocation rule has four components: general, source, destination, and offset. An additional component, ledger allocation bases rules, is required if Basis is used as the allocation method. Each component provides a critical piece of the information that is required in order to process allocations.
Box 1: Sales revenue account Source
The company must allocate the advertising expense based on a department's sales in proportion to the total sales.
Note: Source - This component is where the user specifies the source data for the allocation. Allocation can be based on ledger balances (Data source = Ledger) or fixed amounts (Data source = Fixed value). When Data source is set to Ledger, source filter criteria must be defined for the ledger allocation rule (for example, for the advertising expenses).
Box 2: Sales revenue account Offset
Note: Offset - This component defines how main accounts and dimensions should be determined for the offset entries that balance the destination entries. User-defined options are typically used instead of accounts and dimensions that are based on the source. When Data source is set to Fixed value, Source can't be used as an option.
Box 3: Advertising expense account with the department financial dimension Destination
The company must allocate the advertising expense based on a department's sales in proportion to the total sales.
Note: Destination - This component defines how the result of the allocation calculation should be distributed and accounted for. For example, there can be one destination line for each department.
Box 4: Basis Ledger Allocation method
The company must allocate the advertising expense based on a department's sales in proportion to the total sales.
Note: Dynamics 365 Finance, Ledger allocation rules Ledger allocation rules are used to automatically calculate and generate allocation journals and account entries for the allocation of ledger balances or fixed amounts. Allocation methods can be variable or fixed.
*-> Basis - This variable method is used when the allocation depends on the actual ledger balance, based on filter criteria. For example, advertising expenses can be allocated based on each department's sales in proportion to the total departmental sales.
Fixed percentage and Fixed weight - For these methods, the allocation percentage or weight is defined directly for the rule. For example, advertising expenses can be allocated so that Department A receives 70 percent of the advertising expense and Department B receives 30 percent.
Equally - This method distributes the amount equally to each defined destination. For example, if destinations are defined for Department A and Department B, advertising expenses can be allocated so that both Department A and Department B receive 50 percent of the advertising expense.
Munson's Pickles and Preserves Farm grows and distributes produce, jellies, and jams. The company's corporate headquarters is located in Dallas, TX. Munson's has one operations center and seven regional distribution centers in the United States.
The company has two wholly owned subsidiaries that operate in Canada. The Canadian entity owns an entity in France.
Munson's plans to expand into Latin America by purchasing the last 25 percent of a subsidiary that they own in Costa Rica. This process is expected to complete within the next two years.
The company plans to implement Dynamics 365 Finance and Dynamics 365 Supply Chain to meet their growing business needs.
Current environment. General
Munson's uses a mix of internally-developed legacy systems that handle their finance and distribution activities. The company has an isolated CRM system.
1. Both Canadian subsidiaries have two departments: marketing and operations. 2. Financial reporting is difficult due to data residing in disparate systems. 3. Financial reporting is currently performed by using Microsoft Excel. 4. Pre-orders in the current system are difficult to track because the order management system is not integrated with the finance system. 5. Pickle sales post to one revenue account, but this does not allow for targeted reporting by pickle cut and type.
Current environment. Organization
The following chart shows Accounting/Reporting Currencies and Tax ID, if applicable.
1. Typically, vendor invoices are received prior to receipt of product.
2. The following fixed assets are sold for a loss: 2.1. BUILD-100 2.2. CAR-1233 3. At the regional distribution centers, the value for physical inventory does not match the inventory in the financial system. 4. Munson's rents their corporate office. Rent is not paid by purchase order. Rent is due once a quarter. 5. Allocations are performed manually. 6. Barrels are inventoried by site and warehouse. 7. Munson's has multiple depreciation and tax books for all of their fixed asset equipment. 8. Budgets are posted at the department level for each legal entity.
Requirements. Sales
1. Customers should be able to pre-order for fall release of pickles. 2. Three-way matching must be enforced for all purchases. 3. Fixed asset sale transactions require a ledger account entered at the time of transaction. 4. Fixed assets purchased must be automatically created in fixed asset module. This includes inventory items and write in purchase orders/non-inventoried items. 5. One dollar from every sale needs must be tracked and donated at the end of each month to a charitable organization. 6. Purchasing budgets must be enforced at the main account level.
Requirements. Finance
1. Accounts payable must be able to enter vendor invoices on the day they were received to be settled against when product is received. 2. Accounts payable must be able to enter vendor invoices to accrue expense without specifying a purchase order at the time of entry. 3. Postage expenses must be split evenly across the regional distribution centers automatically. 4. Administrative expenses must be distributed across the regional distribution centers by percentage of fulfillment orders monthly. 5. Pickling machines depreciation must be uniquely recorded for visibility but not post to the ledger.
Issues
1. During implementation testing, User1 indicates that after packing slips are generated for purchase orders, there are no ledger postings. 2. User2 indicates that fixed assets purchased on a purchase order do not show up in the Fixed Assets module. 3. User3 reports that they are seeing inconsistent application of the one-dollar donation from all sales orders. 4. User4 in the Canadian subsidiary is able to purchase supplies for marketing despite exceeding the marketing department budget. 5. User5 reports that when purchasing a non-inventoried computer, the system is automatically assigning it to the buildings fixed asset group.
Question 17
Testlet 2Single choice
You need to recommend a solution to prevent User3's issue from recurring.
What should you recommend?
A
Configure automatic charge codes.
B
Create a service item.
C
Configure a sales order template.
D
Create a procurement category.
Reveal answer detailsClose answer details
Correct answerA
Question 18
Single choice
You plan to manage delinquent customers by monitoring the collection process in Dynamics 365 Finance.
You need to use the Collections list page to monitor the collection process.
What must you do first?
A
Set up customer groups.
B
Set up customer pools.
C
Update financials.
D
Age customer balances.
Reveal answer detailsClose answer details
Correct answerB
Explanation
You can use customer pools, but you don't have to. But without aging the customers, you won't see the real results. References: https://docs.microsoft.com/en-us/dynamics365/finance/accounts-receivable/cm-collections-concepts
Question 19
Single choice
A company uses Microsoft Dynamics 365 Finance to manage fixed assets.
The company uses laptops for three years and then sells the laptops externally.
You need to process laptop sales.
What should you do?
A
Create a fixed asset disposal journal.
B
Use a free text invoice to record the sale.
C
Create a sales order for the sale of the asset.
D
Use an inventory movement journal to record the disposal.
Reveal answer detailsClose answer details
Correct answerB
Question 20
Single choice
A company has recently deployed Microsoft Dynamics 365 Finance. You have been hired as a Systems Administrator. Your role will include the management of the Dynamics 365 system.
The company has several departments. You need to configure allocations for the departments. The company has the following requirements for the allocations:
1. The allocations should be fixed or variable. 2. Allocation journal entries must be automatically created for review before posting.
You need to configure the system to meet the requirements.
What should you configure?
A
Transfer balance
B
Allocation terms
C
Ledger settlements
D
Ledger allocation rules
Reveal answer detailsClose answer details
Correct answerD
Question 21
Single choice
You use Dynamics 365 Finance for daily bank reconciliation.
You must use the BAI2 bank statement format.
You need to configure the import bank statement format for the bank reconciliation process.
What should you do?
A
Import the bank statement as a template for the bank statement format.
B
Set up a batch job to import the bank statement.
C
Set up an import project for the bank statement in a Data management workspace using files provided by Microsoft.
D
Set up a journal name to import a bank statement transaction.
Reveal answer detailsClose answer details
Correct answerC
Explanation
Set up advanced bank reconciliation import by using Electronic reporting
Set up the Electronic reporting configuration Go to Workspaces > Electronic reporting. On the tile for the Microsoft configuration provider, select Repositories. Select Global, and then select Open. If a connection to the repository must be established, select the blue link in the dialog box. In the configuration list, find Bank statement model > Bank statement model of BAI2. Select the BAI2 format. On the Versions FastTab, select the latest version, and then select Import.
Set up the bank statement format Go to Cash and bank management > Setup > Advanced bank reconciliation setup > Bank statement format. Select New. Set the Statement format and Name fields. Select the Generic electronic import format checkbox. Set the Import format configuration field to the BAI2 format.
Set up the bank account Go to Cash and bank management > Bank accounts > Bank accounts. Open the bank account. On the Reconciliation FastTab, set the Advanced bank reconciliation option to Yes. Set the Statement format field to the BAI2 format that was created earlier.
Import the bank statement Go to Cash and bank management > Bank statement reconciliation > Bank statements. At the top of the Bank statements page, select Import statement. Set the Bank account field to the bank account in the statement. Set the Statement format field to the BAI2 format that was created earlier. Select Browse, and select the BAI file. Select Upload. Select OK to import the selected file.
You work as the Finance Manager for a company. The company uses Microsoft Dynamics 365 Finance for its accounting system.
You need to configure a budget in Dynamics 365 Finance. The budget must include details about planned hours, expenses, fees, and items.
Which of the following budget options should you configure?
A
Workforce budget
B
Fixed asset budget
C
Project budget
D
Demand forecasting
Reveal answer detailsClose answer details
Correct answerC
Question 23
Lab simulation
Simulation
You are a functional consultant for Contoso Entertainment System USA (USMF).
You need to implement a quarterly accruals scheme for USMF. The accrual scheme settings must match the settings of the monthly and annual accrual schemes.
To complete this task, sign in to the Dynamics 365 portal.
Reveal model answerClose model answer
Look at the monthly and annual accrual scheme settings. Create a quarterly accrual scheme with the same settings by using the following instructions:
1. Go to Navigation pane > Modules > General ledger > Journal setup > Accrual schemes. 2. Select New. 3. In the Accrual identification field, type a value. 4. In the Description of accrual scheme field, type a value. 5. In the Debit field, specify the desired values. The main account defined will replace the debit main account on the journal voucher line and it will also be used for the reversal of the deferral based on the ledger accrual transactions. 6. In the Credit field, specify the desired values. The main account defined will replace the credit main account on the journal voucher line and it will also be used for the reversal of the deferral based on the ledger accrual transactions. 7. In the Voucher field, select how you want the voucher determined when the transactions are posted. 8. In the Description field, type a value to describe the transactions that will be posted. 9. In the Period frequency field, select how often the transactions should occur. 10. In the Number of occurrences by period field, enter a number. 11. In the Post transactions field, select when the transactions should be posted, such as Monthly.
A company uses Dynamics 365 Finance for expense management.
The company has multiple legal entities and multiple departments. Each department may have a different expense policy that may conflict with the legal entity expense policy.
You need to configure prioritization of department expense policy over legal entity expense policy.
Which three actions should you perform in sequence?
To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
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Explanation
Step 1: Create an organization hierarchy for the departments.
Internal organizations in your business, such as regional offices, can be represented as additional legal entities, or as operating units of the main legal entity. An operating unit is not required to be a legally defined organization. Operating units are used to control economic resources and operational processes in the business. For example, departments and cost centers are operating units.
Step 2: Add a department organization hierarchy into the Expenditure internal control organization hierarchy purpose
When you create an organization hierarchy in Microsoft Dynamics AX, you must assign a purpose to the hierarchy. The purpose that you assign to a hierarchy determines the types of organizations that can be included in the hierarchy. The purpose also defines the application scenarios that the hierarchy can be used in.
The following table lists the processes that you can control by using policies. It also includes the hierarchy purpose that corresponds to each process.
* Process: Expenses Description: Controls the process for expense reports. Hierarchy purpose: Expenditure internal control
* Etc.
Step 3: Set the order of precedence parameter. After the organizations are defined, you can set up the order of precedence for the policies.
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?
A
a Ledger daily journal workflow that uses the organizational hierarchy for journal posting, associated with the General ledger journal name
B
a saved query in the Voucher inquiries form for the controller to view all general journals posted to the ledger
C
a manual journal approval with the journal assigned to the user group that the employees are assigned to
D
the controller's security rote so that he has approval privileges for General ledger journals
Reveal answer detailsClose answer details
Correct answerA
Explanation
Some organizations require that journals be approved by a user other than the person who entered the journal. To set up an approval process, you can create a workflow. A workflow represents a business process. It defines how a document flows through the system and indicates who must complete a task or approve a document. References: https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/set-up-general-ledger-workflows
Question 29
Hotspot
HOTSPOT
A company uses Dynamics 365 Finance.
The company requires two-way, net unit price matching for all vendors. The company also requires three-way matching for new vendors during observation periods.
You need to configure invoice matching and validation.
How should you complete the configuration?
To answer, select the appropriate options in the answer area.
NOTE: Each correct selection s worth one point.
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Question 30
Hotspot
HOTSPOT
A rental service company with complex accrual requirements has accrual schemes set up in its implementation. They want to use defined accrual schemes to perform transactions.
You need to use an accrual scheme to create transactions for this company.
Which actions should you performTo answer, select the appropriate configuration in the answer area.
NOTE: Each correct selection is worth one point.
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Question 31
Lab simulation
Simulation
You are a functional consultant for Contoso Entertainment System USA (USMF).
You need to create a report that contains the sales tax settlements for the state of California during the quarter that began on January 1, 2017. To validate you results, save the file in Microsoft Excel format to the Downloads\Report folder.
To complete this task, sign in to the Dynamics 365 portal.
Reveal model answerClose model answer
1. Navigate to Tax > Declarations > Report sales tax for settlement period. 2. Enter the `From' date. 3. Select the settlement period (Quarter). 4. Click `OK'. 5. Select Yes in the Create electronic tax document field. 6. Select the Downloads\Report folder and file format. 7. Click `OK'.
Case study
Case Study 5
Background First Up Consultants is a global finance and accounting company. Financial needs at organizations ate constantly changing. When global companies become too large, it becomes too difficult for them to scale to meet then 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 then 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.
Ledger Humongous Insurance is a US-based company and operates its fiscal year from January 1 to December M. Humongous insurance reports across an 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 1. One of Humongous Insurance's companies provides insurance to government clients and must separate that particular company into its owm subsidiary. 2. The Humongous subsidiary will operate in China, which requires a fiscal year from February 1 to January 31. - Transitions must be posted in the business of record. 3. Humongous insurance s subsidiary requires accounting entries to be posted from the subledger to the general ledger by 5:00 PM each day. 4. Trey Research requires accounting entries to be posted from the subledger to the ledger immediately.
Taxes 1. As part of the spinoff to a subsidiary, Humongous Insurance s subsidiaries taxes must be changed from US government rates to Chinese government rates. 2. Humongous Insurance's subsidiary must track use taxes that are not claimed or reported to the Chinese tax agency.
Fiscal calendars You must create three new fiscal calendars 1. A fiscal calendar named FebJan that runs from Feb 1 to Jan 31. 2. A fiscal calendar named AprMar that runs from April 1 to March 31. 3. A fiscal calendar named JanDec that runs from January 1 to December 31.
Accounts 1. Trey Research most track bank account balances and transactions for each province in which it operates. 2. The bank statement must be sent to the physical address of the home office.
Promotion 1. Humongous insurance s subsidiary plans to celebrate its new subsidiary status by sending out free gifts to existing policy based on the Tier of their policy. 2. Promotional Items are ordered for distribution and once received must be Tracked within Dynamics 365 Finance.
Reporting 1. 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. 2. 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 pain using the following requirements:
Credit card processing 1. Humongous Insurance requires all credit card transactions to include line-item details. 2. Humongous Insurance's subsidiary requires the shipping address merchant address, and lax information but cannot include any order line details. 3. Trey Research requires all credit card transactions include transaction date, transaction amount, description, and line-item details.
Compliance and compensation 1. Trey Research must be able to audit any modifications to its budget 2. Humongow Insurance employees must receive raises tour times pet budget cycle.
Question 32
Testlet 5Hotspot
HOTSPOT
You need to configure credit card processing for all three companies
Which option should you useTo answer, select the appropriate options m the answer area
NOTE: Each correct selection is worth one point.
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Question 33
Single choice
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 manage a Dynamics 365 Finance implementation.
You must provide the budget versus actual reporting in near real time.
You need to configure the ledger budgets and forecasts workspace to track expenses over budget and revenue under budget.
Solution: Configure an expense dimension set, expense budget threshold, revenue dimension set, and revenue budget threshold percent field values on the Configure my workspace form.
Does the solution meet the goal?
A
Yes
B
No
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Correct answerB
Question 34
Single choice
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:
1. The accounting adjustments that are received in the first quarter must be able to be posted into the previous year's Period 13. 2. The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions. 3. All dimensions from profit and loss must carry over into the retained earnings. 4. All future and previous periods must have an On Hold status.
Solution:
Configure General ledger parameters. 1. Set the Delete close of year transactions option to No. 2. Set the Create closing transactions during transfer option to No. 3. Set the Fiscal year status to permanently closed option to No.
Define the Year-end close template. 1. Designate a retained earnings main account for each legal entity. 2. Set the Financial dimensions will be used on the Opening transactions option to No. 3. Set the Transfer profit and loss dimensions to Close All. 4. Set all prior and future Ledger periods to a status of On Hold.
Does the solution meet the goal?
A
Yes
B
No
Reveal answer detailsClose answer details
Correct answerB
Explanation
The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions.
You are a functional consultant for Contoso Entertainment System USA (USMF).
You need to automate the allocation of a prepaid expense of 2 percent of all product sales. The allocation must be posted to account number 222222.
To complete this task, sign in to the Dynamics 365 portal.
Reveal model answerClose model answer
You need to configure a prepayment percentage for all items. The instructions below are for a single item. For this question, you need to select 'All' for all items, enter 2 in the percentage field and select account number 222222 in the account field.
To set up prepayment percentages for items, customers, and vendors For an item, you can set up a default prepayment percentage for all customers, a specific customer, or a customer price group.
1. Choose the icon, enter Items, and then choose the related link. 2. Select an item, and then choose the Prepayment Percentages action. 3. On the Sales Prepayment Percentages page, fill in the fields as necessary. Hover over a field to read a short description.
You are a functional consultant for Contoso Entertainment System USA (USMF).
You plan to run several reports in USMF that list all the write-off transactions.
You need to replace the write-off reason used by the system for USMF to use a reason of "Bad debts.
To complete this task, sign in to the Dynamics 365 portal.
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You need to add a write-off reason for USMF and set it as the default.
1. Go to Navigation pane > Modules > Credit and collections > Setup > Accounts receivable parameters. 2. Click the Collections tab. 3. Click the Edit icon in the Write-Off section. 4. Add a new Write-Off reason if it doesn't exist. 5. Tick the "Default" checkbox next to the new Write-Off reason. 6. Click the Save button to save the changes.
Question 37
Single choice
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?
A
Set up the length of the period to 1 year and divide the period according to the quarterly configuration.
B
Configure the period length to 12 months and adjust the ending date of each period.
C
Configure the period length to 1 year and adjust the ending date of each period.
D
Set up the length of the period to 13 months.
Reveal answer detailsClose answer details
Correct answerA
Explanation
1 - Create a new fiscal calendar;
Calendar 445 Fiscal year name 2022 Length of period 1 Unit years
2 - Create a new fiscal year 3 - Set up the first period as opening and the third as closing 4 - Divide de Period 1 - repeat it until you have all 12 periods
Update the Month and Quarter column during the dividing.
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
bank account
B
bank reasons
C
bank reconciliation
D
bank group
Reveal answer detailsClose answer details
Correct answersA, D
Explanation
To create bank account, you must create main account and bank group (mandatory data).
Cash and bank management setup and maintenance forms The following table lists the forms that support setting up and maintaining Cash and bank management.
* Setting up cash and bank management information
Form: Bank groups Usage: Set up general information about the bank groups in which you have bank accounts.
* Setting up bank account information Form: Bank accounts Usage: Set up information for bank accounts.
You are a Dynamics 365 Finance expert for an organization.
You need to configure the Financial period close workspace.
Which three configuration processes should you useEach correct answer presents a part of the solution.
NOTE: Each correct selection is worth one point,
A
Create templates that contain the required tasks within the closing process and assign to closing role.
B
Create a separate closing schedule for every legal entity.
C
Assign a ledger calendar to the closing process.
D
Create task areas and descriptions.
E
Designate resources and their scope based on closing roles.
Reveal answer detailsClose answer details
Correct answersA, D, E
Explanation
See menu: General ledger > Period close > Financial period close configuration This page has the following tabs: - Closing schedule - Templates (the template defines the tasks to be done during the closing process) - Calendars (these are not the ledger calendars! - defines only start and enddate together with specifications which weekdays) are valid - Task areas (containing task id(s) and description) - Resources (Employees linked to closing roles) - Closing roles
What misleads is the fact the ledger calendars are found in the menu 'General Ledger > Period close'
Fourth Coffee is a coffee and supplies manufacturer based in Seattle. The company recently purchased CompanyA, based in the United States, and CompanyB, based in Canada, in order to increase production of their award-winning espresso machine and distribution of their dark roast coffee beans, respectively.
Fourth Coffee has set up CompanyA and CompanyB in their Dynamics 365 Finance environment to gain better visibility into the companies' profitability. CompanyA and CompanyB will continue to operate as subsidiaries of Fourth Coffee, but all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.
The current organizational chart is shown below:
Current environment
Systemwide setup
1. Dynamics 365 Finance in Microsoft Azure is used to manage the supply chain, retail, and financials. 2. All companies share a Chart of Accounts. 3. Two dimensions are used: Department and Division. 4. Budgeting is controlled at the department level. 5. Customers and vendors are defined as two groups: Domestic and International. 6. Mandatory credit check is set to No.
7. Consolidate online is used for the consolidation of all companies. 8. International main accounts are subject to foreign currency revaluation. 9. The purchasing budget is used to enforce purchasing limits.
General ledger accounts
Fourth Coffee
1. The base currency is USD. 2. Three item groups are used: coffee, supplies, and nonstock. 3. The standard sales tax method is used. 4. Acquiring fixed assets requires a purchase order. 5. All customer payment journals require a deposit slip. 6. CustomerX is a taxable company. 7. CustomerY is a tax-exempt company. 8. CustomerZ is a taxable company. 9. VendorA is a Colombian supplier of coffee beans and belongs to the international vendor group. 10. VendorB is a Peruvian supplier of coffee machine filters and belongs to the international vendor group. 11. VendorC is a Texas supplier of espresso valves and belongs to the domestic vendor group.
CompanyA
1. The base currency is USD. 2. It consists of a marketing department and a digital division. 3. A 4-5-4 calendar structure is used. 4. The standard sales tax method is used.
CompanyB
1. The base currency is CAD. 2. The conditional sales tax method is used.
Requirements
Reporting
1. A consolidated Fourth Coffee financial report is required in USD currency. 2. Fourth Coffee and its subsidiaries need to be able to report sales by item type. 3. Year-end adjustments need to be reported separately in a different period to view financial reporting inclusive and exclusive of year-end adjustments.
Issues
1. User1 observes that a General journal was used in error to post to the Domestic Accounts Receivable trade account. 2. User2 has to repeatedly reclassify vendor invoice journals in Fourth Coffee Company that are posted to the marketing department and digital division. 3. When User3 posts an Accounts receivable payment journal, a deposit slip is not generated. 4. User4 observes an increase in procurement department expenses for supplies. 5. User5 observes that sales tax is not calculating on a sales order for CustomerZ. 6. User6 observes that sales tax is calculating for CustomerY. 7. User7 observes that the sales tax payment report is excluding posted invoice transactions. 8. User8 in CompanyA attempts to set up the sales tax receivable account on the sales tax posting form. 9. User9 in CompanyA needs to purchase three tablets by using a purchase order and record the devices as fixed assets. 10. CustomerX requires a credit check when making a purchase and is currently at their credit limit.
Question 42
Testlet 1Hotspot
HOTSPOT
The posting configuration for a purchase order is shown as follows:
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.
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Question 43
Drag & drop
DRAG DROP
A company makes frequent payments to its vendors by using various due dates and discounts.
You need to set up and create a vendor payment by using a payment proposal.
In which order should you perform the actionsTo answer, move all actions from the list of actions to the answer area and arrange them in the correct order.
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 for their accounts payable processing.
The company requires additional approvals for any new vendor invoice within the first 12 months.
You need to set up the system to add additional approvals to the new vendor invoice.
Solution: Enable invoice matching validation should be set to yes. Post invoices with discrepancies should be set to require approval. Add a vendor invoice policy for the new vendor invoice to be reviewed.
Does the solution meet the goal?
A
Yes
B
No
Reveal answer detailsClose answer details
Correct answerA
Question 45
Single choice
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: Exclude the blocking rules by using the Release sales order parameter.
Does the solution meet the goal?
A
Yes
B
No
Reveal answer detailsClose answer details
Correct answerA
Explanation
Correct: * Exclude the blocking rules by using the Release sales order parameter.
Incorrect: * Change the sales order amount. * Change the terms of payment. * Change the value of the account status.
Note: Automatically releasing credit management holds Sales orders are placed in the hold list based on the blocking rules. Some reasons for the holds may changes over time if the sales order remains in the hold list for a period of time. For example, a customer may pay their bill, freeing up their credit limit.
You can use the Evaluate for release menu to review the sales orders in the hold list and automatically release them if the reason for the hold has been mitigated.
1. Select the Evaluate for release menu. 2. Select Process blocking rules to review all of the sales orders. Select Process blocking rules for selected lines to review only the lines that you have selected. 3. A slider will appear so that you can select a single customer. Leave the customer drop down blank for all customers. 4. When you click Ok, the process is run in the background, and you can continue working on other tasks. If you select batch processing before you click on Ok, the process will run in batch when you click Ok. It may take some time to process the orders on hold in the list. Click Refresh to update the status of the orders. 5. If a blocking reason is no longer applicable for an order, the blocking reason is no longer valid, and you won't see a check mark next to the reason when you view the blocking reasons. 6. If all of the blocking reasons are cleared, then Ready to release is added to the list of blocking reasons. The sales order can be automatically released. 7. If the Automatically release parameter in Credit and collections > Setup > Credit and collections parameters > Credit > Auto release tab is set to With posting, you'll be prompted to post using the posting page for the document that was blocked. 8. If the Automatically release parameter in Credit and collections > Setup > Credit and collections parameters > Credit > Auto release tab is set to Without posting, then post the order manually.
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:
1. The accounting adjustments that are received in the first quarter must be able to be posted into the previous year's Period 13. 2. The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions. 3. All dimensions from profit and loss must carry over into the retained earnings. 4. All future and previous periods must have an On Hold status.
Solution:
Configure General ledger parameters. 1. Set the Delete close of year transactions option to Yes. 2. Set the Create closing transactions during transfer option to Yes. 3. Set the Fiscal year status to permanently closed option to No.
Define the Year-end close template. 1. Designate a retained earnings main account for each legal entity. 2. Set the Financial dimensions will be used on the Opening transactions option to No. 3. Set the Transfer profit and loss dimensions' option to Close All. 4. Set future Ledger periods to a status of On Hold.
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 has multiple legal entities set up in Dynamics 365 Finance. All companies and data reside in Dynamics 365 Finance.
The client currently uses a separate reporting tool to perform their financial consolidation and eliminations. They want to use Dynamics 365 Finance instead.
You need to configure the system and correctly perform eliminations.
Solution: Create a separate company in which you manually create the eliminations. Then, use that company in financial reporting or in the consolidation process.
Does the solution meet the goal?
A
Yes
B
No
Reveal answer detailsClose answer details
Correct answerA
Explanation
A separate company can be created and used to manually determine and post elimination transactions. This company can be used in the consolidation process or in financial reporting.
You work as the Accounts Manager for a company. The company uses Microsoft Dynamics 365 Finance for its accounting system.
The company has sold a number of fixed assets.
You plan to enter the Fixed assets transactions in the Free text invoice page in Accounts Receivable.
For free text invoices, the fixed asset transaction type will be which of the following?
A
Disposal
B
Depreciation
C
Acquisition
D
Acquisition adjustment
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Correct answerA
Question 49
Hotspot
HOTSPOT
A client is implementing the Budgeting module in Dynamics 365 Finance.
You need to configure the correct budget control area to meet the client's requirements.
1. Track budgeting control on purchase requisitions. 2. Include unposted actual transactions in the calculation of the remaining budget for the period. 3. Allow specific individuals to post transactions that exceed the budget. 4. Specify main accounts that are subject to budget control, instead of selecting Main account as a dimension for budgeting.
What should you configureTo answer, select the appropriate configuration in the answer area.
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?
A
Yes
B
No
Reveal answer detailsClose answer details
Correct answerB
Question 51
Single choice
A client has one legal entity and the following four dimensions configured: Business Unit, Cost Center, Department, and Division.
You need to configure the client's system to run the trial balance inquiry in the General ledger module so that it displays the trial balance two ways:
1. Include the main account and all four dimensions. 2. Include the main account and only the business unit and cost center dimensions.
What should you configure?
A
two account structures
B
two derived financial dimension hierarchies
C
all financial dimensions by using the group dimension functionality
D
two financial dimension sets
Reveal answer detailsClose answer details
Correct answerD
Question 52
Single choice
A multicompany enterprise has recently deployed Microsoft Dynamics 365 Finance. You have been hired as a Functional Consultant. Your role will include the management of the Dynamics 365 Finance system.
You need to configure intercompany accounting.
You begin by configuring the intercompany main accounts to use for the Due to and Due from accounting entries.
Which of the following should you select in the Main account type field on the Main accounts page?
A
Total
B
Balance sheet
C
Equity
D
Profit and loss
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Correct answerB
Question 53
Drag & drop
DRAG DROP
You are processing checks in Dynamics 365 Finance for a client.
You need to identify the outcome of the processed checks.
What is the check status for each scenario? To answer, drag the appropriate check statuses to the scenarios. Each check status may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
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Question 54
Single choice
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 customer uses Dynamics 365 Finance. The customer creates a purchase order for purchase $20,000 of office furniture.
You need to configure the system to ensure that the funds are reserved when the purchase order is confirmed.
Solution: Configure item posting groups for purchase requisitions.
Does the solution meet the goal?
A
Yes
B
No
Reveal answer detailsClose answer details
Correct answerB
Explanation
This is about a purchase order already made. A purchase requisition is the process to have approval before a purchase order is made https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/about-purchase-order-posting-types
Question 55
Single choice
Your role of Systems Administrator includes the management of your company's Microsoft Dynamics 365 Finance system.
You are configuring the methods of payment in the Accounts Receivable module.
You need to configure the system to perform validation of journal entries when electronic payments are received. The validation must ensure that the type of bank operation that was used is selected by the user.
Which of the following validation options should you select?
A
Payment specification is mandatory
B
Payment ID is mandatory
C
Bank transaction type is mandatory
D
Payment reference is mandatory
Reveal answer detailsClose answer details
Correct answerC
Question 56
Hotspot
HOTSPOT
A company manufactures air filtering units for industrial manufacturing plants.
The company offers specific incentives if customers pay within a certain number of days to include:
1. 10 percent off if paid in full within 5 days 2. 5 percent off if paid in full within 10 days
Customers who pay by electronic funds transfer (EFT) will be charged $15 per transfer.
You need to configure the system.
Which option should you use? To answer, select the appropriate configuration in the answer area.
NOTE: Each correct selection is worth one point.
Reveal answer detailsClose answer details
Explanation
Box 1: Cash discount Cash discounts are setup and shared for Accounts payable and Accounts receivable. The cash discount available can be defined on the customer invoice or vendor invoice, and will be taken if the invoice is paid within the cash discount date.
Box 2: Payment fee You can create payment fees for customer payments.
Munson's Pickles and Preserves Farm grows and distributes produce, jellies, and jams. The company's corporate headquarters is located in Dallas, TX. Munson's has one operations center and seven regional distribution centers in the United States.
The company has two wholly owned subsidiaries that operate in Canada. The Canadian entity owns an entity in France.
Munson's plans to expand into Latin America by purchasing the last 25 percent of a subsidiary that they own in Costa Rica. This process is expected to complete within the next two years.
The company plans to implement Dynamics 365 Finance and Dynamics 365 Supply Chain to meet their growing business needs.
Current environment. General
Munson's uses a mix of internally-developed legacy systems that handle their finance and distribution activities. The company has an isolated CRM system.
1. Both Canadian subsidiaries have two departments: marketing and operations. 2. Financial reporting is difficult due to data residing in disparate systems. 3. Financial reporting is currently performed by using Microsoft Excel. 4. Pre-orders in the current system are difficult to track because the order management system is not integrated with the finance system. 5. Pickle sales post to one revenue account, but this does not allow for targeted reporting by pickle cut and type.
Current environment. Organization
The following chart shows Accounting/Reporting Currencies and Tax ID, if applicable.
1. Typically, vendor invoices are received prior to receipt of product.
2. The following fixed assets are sold for a loss: 2.1. BUILD-100 2.2. CAR-1233 3. At the regional distribution centers, the value for physical inventory does not match the inventory in the financial system. 4. Munson's rents their corporate office. Rent is not paid by purchase order. Rent is due once a quarter. 5. Allocations are performed manually. 6. Barrels are inventoried by site and warehouse. 7. Munson's has multiple depreciation and tax books for all of their fixed asset equipment. 8. Budgets are posted at the department level for each legal entity.
Requirements. Sales
1. Customers should be able to pre-order for fall release of pickles. 2. Three-way matching must be enforced for all purchases. 3. Fixed asset sale transactions require a ledger account entered at the time of transaction. 4. Fixed assets purchased must be automatically created in fixed asset module. This includes inventory items and write in purchase orders/non-inventoried items. 5. One dollar from every sale needs must be tracked and donated at the end of each month to a charitable organization. 6. Purchasing budgets must be enforced at the main account level.
Requirements. Finance
1. Accounts payable must be able to enter vendor invoices on the day they were received to be settled against when product is received. 2. Accounts payable must be able to enter vendor invoices to accrue expense without specifying a purchase order at the time of entry. 3. Postage expenses must be split evenly across the regional distribution centers automatically. 4. Administrative expenses must be distributed across the regional distribution centers by percentage of fulfillment orders monthly. 5. Pickling machines depreciation must be uniquely recorded for visibility but not post to the ledger.
Issues
1. During implementation testing, User1 indicates that after packing slips are generated for purchase orders, there are no ledger postings. 2. User2 indicates that fixed assets purchased on a purchase order do not show up in the Fixed Assets module. 3. User3 reports that they are seeing inconsistent application of the one-dollar donation from all sales orders. 4. User4 in the Canadian subsidiary is able to purchase supplies for marketing despite exceeding the marketing department budget. 5. User5 reports that when purchasing a non-inventoried computer, the system is automatically assigning it to the buildings fixed asset group.
Question 57
Testlet 2Single choice
You need to configure Accounts Receivable to take pre-orders.
Current environment. Revenue allocation The company reports the following revenue allocation percentages:
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 vales taxes from the
following states:
Requirements
Travel and expense 1. First Up Consultants requires that employees start using corporate cards for all travel expenses. 2. All expenses over the require a receipt. 3. Beer cannot be expensed 4. Employees may use the corporate card for personal expenses during work travel, but expenses must be categories correctly. 5. Client entertainment expenses totaling more than $250 must be audited. 6. Employees require a mobile expense experience 7. Expense report entries must be validated when a transaction Iine is entered. 8. Employees require the ability to capture receipt* by using a mobile device. 9. First Up Consultants requires the ability to reimburse employees in their paychecks for expenses incurred on personal cards.
Financial 1. A virtual thirteenth month is required for year-end transactions. 2. Each day. a validation file must go to First Up Consultants" bank detailing all vendor checks paid. 3. Except fees, all matched transactions must clear automatically during bank reconciliation. 4. The accounts payable team must verify expense reports prior to posting. 5. Only payables are allowed to be posted to a poor period up to seven days into the new period
Issues 1. User1 Installed the expense Management Service add-in and implemented the automatch and create expense from receipt features, but the receipt images do not match the corporate card transactions 2. Employee 1 submits an expense report for a business trip to Europe, but the report is not visible on the expense tax recovery page. 3. Employees prowled feedback that the system lets them know of an expense report policy violation only after the entire expense report is submitted. 4. Members of the finance department observe sales orders that posted into a closed period. 5. The finance team observed that for sales order invoice 1234. the price incorrectly posts to a revenue account when it should be deferring. 6. Fmployee2 purchased supplies for a holiday patty and needs to be reimbursed 7. A customer orders software licenses for the offices in Tennessee and Alabama 8. Expense reports for unapproved items are posting. 9. VanArsdel. Ltd. exceeded its credit limit but the sales order was processed. 10. Tailspin Toys purchase $70,000 in custom software development
Question 58
Testlet 4Hotspot
HOTSPOT
You need to configure the expense module for reimbursement.
How should you configure the expense module? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Reveal answer detailsClose answer details
Explanation
Box 1: Configure the personal card expense category Employee2 purchased supplies for a holiday party and needs to be reimbursed. First Up Consultants requires the ability to reimburse employees in their paychecks for expenses incurred on personal cards. Expense categories and shared categories. When employees create an expense report, each expense that they record must be associated with an expense category. Expense categories are derived from shared categories that can be shared across the legal entities in your organization. These categories can also be shared in Project management and accounting, depending on the way that your organization is defined. Based on the definition of your organization and guidance from the implementation team, determine whether the categories that are used in Expense management will be used only in Expense management, or whether they should be shared between Project management and accounting and Expense management.
Box 2: Reconcile the expense through a credit card transaction import Import and maintain credit card transactions Expense-related credit card transactions can be set up so that they are automatically imported on a recurring schedule. Alternatively, the transactions can be manually imported as they are required. The credit card transactions are imported through the Credit card transactions data entity. Incorrect: * Configure the employee as a vendor * Reimburse the employee through the expense management workspace
A cable and interne t company implements Dynamics 365 Finance
The primary line of business for the company is internet services. The company also sells routers and modems to customers for an additional one-time cost.
You need to configure revenue recognition.
What should you configure?
A
Create the router and modem sates to post to deferred revenue.
B
Configure the internet service as essential
C
Configure the internet service router, and modem as essential.
D
Create a revenue schedule for the internet service, router, and modem
Reveal answer detailsClose answer details
Correct answerB
Explanation
Essential The item is a primary source of an organization's revenue. This value is the default setting. Nonessential The item isn't a primary source of an organization's revenue. When the median price settings are used, the price is carved out' to the median price and then allocated.
Fourth Coffee is a coffee and supplies manufacturer based in Seattle. The company recently purchased CompanyA, based in the United States, and CompanyB, based in Canada, in order to increase production of their award-winning espresso machine and distribution of their dark roast coffee beans, respectively.
Fourth Coffee has set up CompanyA and CompanyB in their Dynamics 365 Finance environment to gain better visibility into the companies' profitability. CompanyA and CompanyB will continue to operate as subsidiaries of Fourth Coffee, but all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.
The current organizational chart is shown below:
Current environment
Systemwide setup
1. Dynamics 365 Finance in Microsoft Azure is used to manage the supply chain, retail, and financials. 2. All companies share a Chart of Accounts. 3. Two dimensions are used: Department and Division. 4. Budgeting is controlled at the department level. 5. Customers and vendors are defined as two groups: Domestic and International. 6. Mandatory credit check is set to No.
7. Consolidate online is used for the consolidation of all companies. 8. International main accounts are subject to foreign currency revaluation. 9. The purchasing budget is used to enforce purchasing limits.
General ledger accounts
Fourth Coffee
1. The base currency is USD. 2. Three item groups are used: coffee, supplies, and nonstock. 3. The standard sales tax method is used. 4. Acquiring fixed assets requires a purchase order. 5. All customer payment journals require a deposit slip. 6. CustomerX is a taxable company. 7. CustomerY is a tax-exempt company. 8. CustomerZ is a taxable company. 9. VendorA is a Colombian supplier of coffee beans and belongs to the international vendor group. 10. VendorB is a Peruvian supplier of coffee machine filters and belongs to the international vendor group. 11. VendorC is a Texas supplier of espresso valves and belongs to the domestic vendor group.
CompanyA
1. The base currency is USD. 2. It consists of a marketing department and a digital division. 3. A 4-5-4 calendar structure is used. 4. The standard sales tax method is used.
CompanyB
1. The base currency is CAD. 2. The conditional sales tax method is used.
Requirements
Reporting
1. A consolidated Fourth Coffee financial report is required in USD currency. 2. Fourth Coffee and its subsidiaries need to be able to report sales by item type. 3. Year-end adjustments need to be reported separately in a different period to view financial reporting inclusive and exclusive of year-end adjustments.
Issues
1. User1 observes that a General journal was used in error to post to the Domestic Accounts Receivable trade account. 2. User2 has to repeatedly reclassify vendor invoice journals in Fourth Coffee Company that are posted to the marketing department and digital division. 3. When User3 posts an Accounts receivable payment journal, a deposit slip is not generated. 4. User4 observes an increase in procurement department expenses for supplies. 5. User5 observes that sales tax is not calculating on a sales order for CustomerZ. 6. User6 observes that sales tax is calculating for CustomerY. 7. User7 observes that the sales tax payment report is excluding posted invoice transactions. 8. User8 in CompanyA attempts to set up the sales tax receivable account on the sales tax posting form. 9. User9 in CompanyA needs to purchase three tablets by using a purchase order and record the devices as fixed assets. 10. CustomerX requires a credit check when making a purchase and is currently at their credit limit.
Question 60
Testlet 1Single choice
You need to configure settings to resolve User8's issue.
What should you select?
A
a main account in the sales tax payable field
B
a main account in the settlement account field
C
the Conditional sales tax checkbox
D
the Standard sales tax checkbox
Reveal answer detailsClose answer details
Correct answerB
Explanation
"In the Settlement account field, select the main account that the net balance of the ledger accounts specified in the Use tax payable and Sales tax receivable fields will be posted." This means to set up only Sales tax receivable account is part of configuring, the whole resolve is to set the Settlement account field too.
You are configuring account structures and advanced rules in Dynamics 365 Finance.
All balance sheet accounts require Business Unit and Department dimensions.
The Shareholder distribution account requires an additional dimension for Principal.
You need to set up the account structures.
What are two possible ways to achieve the goalEach correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A
Create a new main account for each of the company's principals. Then, create an account structure for all balance sheet accounts that includes the required dimension.
B
Create a new main account for Shareholder distribution. Add an advanced rule for the Principal dimension.
C
Create an account structure for all the balance sheet accounts. Set up an advanced rule for the Shareholder distribution account for the Principal dimension.
D
Create an account structure for balance sheet accounts without Shareholder distribution. Then, create a second account structure for Shareholder distribution that includes all required dimensions.
A company uses Dynamics 365 Finance for budget control.
The company completes the budget control setup and activates the feature.
The budget register entries that were posted before turning on budget control are not included in the list of
entries.
You need to include the entries posted before budget control was activated.
What should you do?
A
Deactivate budget control and set it up again
B
Manually trigger a budget control check
C
Update the balances for budget raiser entries that were excited.
D
Use budget control data maintenance to reprocess the entries.
Reveal answer detailsClose answer details
Correct answerD
Question 63
Drag & drop
DRAG DROP
A company is implementing Dynamics 365 Finance.
The company maintains two different bank accounts from the same bank.
You need to set up and generate positive pay for the bank accounts.
Which four actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Reveal answer detailsClose answer details
Explanation
Step 1: Set up a transformation input format file for the bank. Set up a positive pay format Positive pay files are created by using data entities. Before you can generate a positive pay file, you must set up a transformation input format that will be used to translate the check information into a format that can communicate with the bank. On the Positive pay format page, you can create a file format identifier and a description. The transformation input format must be of the XML type.
Incorrect: * Set up a transformation input format file for each bank account.
Step 2: Set up the numbering sequence on the Cash and Bank management parameters page. Assign the positive pay format to a bank account For each bank account that you want to generate positive pay information for, you must assign the positive pay format that you specified in the previous section. On the Bank accounts page, select the positive pay format that corresponds to the bank account. In the Positive pay start date field, enter the first date to generate positive pay files. It's important that you enter a date in this field. Otherwise, the first positive pay file that you generate will include all checks that have ever been created for this bank account.
Step 3: Generate the positive pay file for the bank accounts. Generate a positive pay file for multiple bank accounts To generate a positive pay file for multiple bank accounts, use the Generate a positive pay file periodic task. Select the positive pay format for the file, and specify whether to generate the file for all legal entities or for a selected legal entity. You can also generate the positive pay file for all bank accounts that use the specified positive pay format or for a selected bank account.
Incorrect: * Generate the positive pay file for each bank account.
Step 4: Confirm a positive pay file Confirm a positive pay file After the checks that are listed in a positive pay file have been paid, you receive a confirmation number from your bank. You can then confirm the positive pay file. On the Positive pay file summary page, select a positive pay file that has a status of Created, and then select the Enter confirmation action. When you confirm a positive pay file, the confirmation number that you received from the bank is recorded.
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: 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 customer payment journal must only be available for selection by the accounts receivable user group.
You need to configure the accounts receivable journal name to meet the requirement.
Solution: Configure the journal control.
Does the solution meet the goal?
A
Yes
B
No
Reveal answer detailsClose answer details
Correct answerB
Explanation
Approve a journal A member of the user group that was designated in the Journal names form can approve the journal.
Note: Approve a journal If journals are approved by a user other than the one who enters the journal lines, an approval system can be set up. The posting function will be unavailable until the approver has approved the journal. If the journal is rejected instead of approved, it cannot be posted.
A company uses Microsoft Dynamics 365 Finance. The company purchases, creates, and acquires fixed assets by using purchase orders.
The system must acquire the fixed asset when a vendor invoice is posted.
You need to process the transaction.
What should you do?
A
Select a procurement category in a purchase order line and leave the fixed asset group blank.
B
Manually create a fixed asset before the fixed asset number is added to the purchase order.
C
Leave the fixed asset number blank on the purchase order.
D
Run a fixed asset acquisition proposal before a fixed asset number can be added to a purchase order.
Reveal answer detailsClose answer details
Correct answerB
Explanation
The following methods are available for integrating Fixed assets and Accounts payable, and you must use the same method for all fixed assets: * You manually create a fixed asset before you add the fixed asset number to the line on the purchase order or vendor invoice. No acquisition transaction is posted for the asset when you post the vendor invoice.
Note: Also - * You manually create a fixed asset before you add the fixed asset number to the line on the purchase order or vendor invoice. An acquisition transaction automatically is posted for the asset when you post the vendor invoice. This is the default method. * A fixed asset automatically is created when you post a product receipt or vendor invoice that has the Create a new fixed asset check box selected. An acquisition transaction automatically is posted for the asset when you post the vendor invoice. * A fixed asset automatically is created when you post a product receipt or vendor invoice that has the Create a new fixed asset check box selected. No acquisition transaction is posted for the asset when you post the vendor invoice. References: https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/acquire-assets-procurement
Question 67
Drag & drop
DRAG DROP
You are creating a budget for an organization.
The organization requires that allocations be performed automatically as part of budget planning.
You need to invoke allocations at a specific budget planning stage.
Which three actions should you perform in sequenceTo answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
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 for their accounts payable processing.
The company requires additional approvals for any new vendor invoice within the first 12 months.
You need to set up the system to add additional approvals to the new vendor invoice.
Solution: Enable invoice matching validation should be set to yes. Post invoices with discrepancies should be set to allow with warning. Add a vendor invoice policy for the new vendor invoice to be reviewed.
Does the solution meet the goal?
A
Yes
B
No
Reveal answer detailsClose answer details
Correct answerB
Case study
Case Study 6
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
1. Adventure Works Cycles tracks its international vendors in a separate payable account from its domestic vendors. 2. Only bicycle frame inventory is configured with a separate item model group that requires registration. 3. A thirteenth month is required for year-end transactions. 4. Only members from the accounts payable team are able to post transactions to a prior period after the period is closed to the company. 5. 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. 6. Adventure Works Cycles frequently receives invoices in foreign currencies.
Requirements
1. Three-way matching is required only on competition bicycles priced over USD3,000 that are purchased from Fabrikam, Inc., in Europe. 2. Domestic customers and international customers must be managed in the following ways:
- Domestic customer receivables must post to account 1200. - International customer receivables must post to account 1201. - Domestic customers must have a payment term of net 30. - International customers must have a payment term of net 15. - Domestic customer revenue must post to account 4000. - International customer revenue must post to account 4001. 3. Adventure Works Cycles must be able to use the cash flow forecasting capability in Finance. 4. The system must enable tracking and charging interest for customer accounts that are not current. 5. Automatic charges must be configured on vendor invoices for bicycle tires. The cost must be added to each item on the vendor invoice. 6. Adventure Works Cycles must be able to terminate leases for bicycles at any time. 7. Adventure Works Cycles must be able to closely track its budget by enforcing the budget at the cost center level. 8. 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
1. 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. 2. 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. 3. The accounts payable manager observes that a sales order is posted to the prior period that is closed. 4. During foreign currency revaluation of the Accounts payable subledger, posting occurred only if the result was a loss. 5. On a vendor invoice for bicycle tires, the automatic charge is charged as an expense. 6. 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. 7. The accounts payable clerk is unable to review payments that have not been settled on the Vendor aging report.
Question 69
Testlet 6Hotspot
HOTSPOT
You need to recommend which default behavior the clerk should use to resolve the line quantity issue.
Which invoicing default behavior should you recommend?
To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Reveal answer detailsClose answer details
Explanation
Box 1: Ordered quantity Bicycle frame
Scenario: 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
Box 2: Registered quantity and services Helmet
Note: Ordered quantity: The value of the purchase quantity specified in the purchase order line.
Registered quantity: The value of the quantity the you physically registered through registration or item arrival.
Receive now quantity : the value is from the Receive now field on the purchase order.
Registered quantity and services : The value of the quantity the you physically registered through registration or item arrival. + The value of the lines related categories
Product receipt quantity: Used while invoicing only to retrieve the quantity specified in the product receipt.
Note 2: Product receipt Most often, the Product receipt action on the Purchase orders page is used to mark products as Received on the PO. The Posting product receipt page has various options for the quantity that is accounted as received. For example, you can set the Quantity field to Ordered quantity or Receive now quantity. Alternatively, if a warehouse arrival process has been used, you'll often set this field to Registered quantity. You can modify the quantities on each order line that will be marked as Received, to account for any discrepancies, such as under-delivery and over-delivery. During product receipt, you must specify a product receipt identifier, which is typically a reference to the packing slip from the supplier. This identifier is required for accounting, because it enables checks or audits of supplier packing slips against what has been received, and the accounted inventory or expense
You must track freight charges. Freight amounts must be included in the vendor invoice amount and the expense recorded in a ledger account defined for Freight.
You need to configure the Accounts payable charges.
How should you set up the chargesTo answer, drag the appropriate posting type to the correct account type. Each posting type may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Reveal answer detailsClose answer details
Explanation
Box 1: Item Two configurations for Accounts payable charges codes on the Charges code page (Accounts payable > Charges setup > Charges code) can cause a purchase order to affect the valuation of inventory assets: For charges codes where the Debit type field is set to Item and the Credit type field is set to Ledger account, the ledger account that is selected as the absorption account acts as a stock variation account. For charges codes where the Debit type field is set to Item and the Credit type field is set to Customer/ Vendor, the charge will be accounted as material cost, and the stock variation account of the item will be used. European special accounting rule
Alpine Ski House has three partially owned franchises and 10 fully owned resorts throughout the United States and Canada. Alpine Ski House's percentage ownership of the franchises is between two and 10 percent.
Alpine Ski House is undergoing an implementation of Dynamics 365 Finance and Dynamics 365 Supply Chain Management to transform their financial management and logistics capabilities across the franchises. Implementation is complete for Alpine Ski House's corporate offices, two US franchises, and one Canadian franchise. The remaining franchises are in varying stages of the implementation. Two new resort projects are in the budget planning stages and will open in the next fiscal year.
Current environment
Organization and general ledger
1. Each franchise is set up as a legal entity in Dynamics 365 Finance. 2. Alpine Ski House Corporate uses financial dimensions for their fully owned resorts. 3. Each resort is a financial dimension named resort. 4. Each fully owned resort has two divisions: marketing and operations. 5. Only Profit and Loss account postings require the division dimension. 6. Corporate handles the advertising and administration of the fully owned resorts. 7. Corporate uses Dynamics 365 Project Management and Accounting to manage construction of new resorts.
Budgeting
1. Organizational budgeting is decentralized but rolls up to one organizational corporate budget. 2. Each resort manager performs budgeting in Dynamics 365 Finance. 3. Budget preparation begins this month. All operational resorts will submit their budgets in two weeks.
Sales and tax
1. Sales tax is configured and used by all resorts that operate in the United States. 2. You configure one US sales tax vendor account and assign the vendor account to the settlement periods for reporting. 3. You use accounts receivable charges to track donations.
Existing purchasing contracts
1. Each franchise resort has an individual contract with a local supplier of their choosing to purchase at least $10,000 worth of suppliers during the calendar year. 2. The franchise resorts in one US state receive a two percent discount on meat and vegetable purchases in excess of $8,000 per year. 3. A franchise resort in Utah has agreed to purchase 1,000 units of beef at market price from a local supplier. 4. Alpine Ski House uses a vendor collaboration portal to track purchase orders and requests for quotes. 5. Vendors request access to the vendor collaboration portal by using a workflow which runs on a nightly schedule.
Intercompany setup
Vendor123 resides in US franchise Company1 and is set up for intercompany transactions. Customer345 resides in Canada franchise Company1 and is set up for intercompany transactions.
Requirements
Franchises
1. Each franchise must pay two percent of monthly sales to Alpine Ski House Corporate. 2. Each franchise must report their own financials to Alpine Ski House Corporate monthly. 3. US franchises require a three-way-match on all purchases, with a 1-percent price tolerance. 4. Canadian franchises require a three-way-match on all purchases except paper products, which have a 10-percent price tolerance.
Corporate
1. Advertising costs must be balanced across the 10 resorts monthly. These costs must be split across the 12 resorts once construction of the final two resorts is completed. 2. Administration costs must be split across the 10 resorts proportional to the amount of sales generated. 3. One percent of all pack and individual ski pass sales must be donated quarterly to an environmental protection organization. 4. The finance department must be able to see purchasing contracts and discounts for vendors based on volume spend.
Employees
All employee expense reports that contain the word entertainment must be reviewed for the audit purposes. If a journal is posted incorrectly, the entire journal and not just the incorrect line must be fully reversed for audit purposes.
Resorts
All resorts must use Dynamics 365 Finance for budgeting and must first be approved by the regional manager. Purchased fixed assets must automatically be acquired at product receipt.
Issues
1. User1 reports that irrelevant dimensions display in the drop down when entering a General journal. 2. User2 reports that dimension 00 is being used for all balance sheet accounts. 3. User3 tries to generate the quarterly sales tax liability payment for a specific state but does not see any payables available for that state's vendor. 4. User4 receives a call from a vendor who cannot access the vendor collaboration portal but needs immediate access. 5. User5 notices a large amount of entertainment expenses being posted without an audit review. 6. User6 needs to have visibility into the increase in budget that is necessary to staff the two new resorts opening next year.
7. User7 needs to use Dynamics 365 Finance for situational budgeting planning with the ability to increase and decrease the existing plans by certain percentages. 8. User8 made a mistake while posting a 1,000-line journal and reverses the entire journal but cannot find the lines that included errors during the reversal. 9. User9 made a mistake while posting a 55-line journal and reverses the entire journal. 10. User10 realizes that the purchase of five new computers did not acquire five new fixed assets upon receipt.
Question 71
Testlet 3Single choice
You need to adjust the sales tax configuration to resolve the issue for User3.
What should you do?
A
Create multiple settlement periods and assign them to the US tax vendor.
B
Create multiple sales tax remittance vendors and assign them to the settlement period.
C
Run the payment proposal to generate the sales tax liability payments.
D
Create a state-specific settlement period and assign the US tax vendor to the settlement period.
Background First Up Consultants is a global finance and accounting company. Financial needs at organizations ate constantly changing. When global companies become too large, it becomes too difficult for them to scale to meet then 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 then 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.
Ledger Humongous Insurance is a US-based company and operates its fiscal year from January 1 to December M. Humongous insurance reports across an 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 1. One of Humongous Insurance's companies provides insurance to government clients and must separate that particular company into its owm subsidiary. 2. The Humongous subsidiary will operate in China, which requires a fiscal year from February 1 to January 31. - Transitions must be posted in the business of record. 3. Humongous insurance s subsidiary requires accounting entries to be posted from the subledger to the general ledger by 5:00 PM each day. 4. Trey Research requires accounting entries to be posted from the subledger to the ledger immediately.
Taxes 1. As part of the spinoff to a subsidiary, Humongous Insurance s subsidiaries taxes must be changed from US government rates to Chinese government rates. 2. Humongous Insurance's subsidiary must track use taxes that are not claimed or reported to the Chinese tax agency.
Fiscal calendars You must create three new fiscal calendars 1. A fiscal calendar named FebJan that runs from Feb 1 to Jan 31. 2. A fiscal calendar named AprMar that runs from April 1 to March 31. 3. A fiscal calendar named JanDec that runs from January 1 to December 31.
Accounts 1. Trey Research most track bank account balances and transactions for each province in which it operates. 2. The bank statement must be sent to the physical address of the home office.
Promotion 1. Humongous insurance s subsidiary plans to celebrate its new subsidiary status by sending out free gifts to existing policy based on the Tier of their policy. 2. Promotional Items are ordered for distribution and once received must be Tracked within Dynamics 365 Finance.
Reporting 1. 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. 2. 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 pain using the following requirements:
Credit card processing 1. Humongous Insurance requires all credit card transactions to include line-item details. 2. Humongous Insurance's subsidiary requires the shipping address merchant address, and lax information but cannot include any order line details. 3. Trey Research requires all credit card transactions include transaction date, transaction amount, description, and line-item details.
Compliance and compensation 1. Trey Research must be able to audit any modifications to its budget 2. Humongow Insurance employees must receive raises tour times pet budget cycle.
QUESTION 1
HOTSPOT
You need to ensure accounting entries are transferred from subledgers to general ledgers.
How should you configure the batch transfer ruleTo answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Correct Answer:
Explanation
Explanation/Reference:
Box 1: Configure subledger transfer as a scheduled batch Humongous Insurance's subsidiary requires accounting entries to be posted from the subledger to the general ledger by 5:00 PM each day.
Box 2: Configure subledger transfer as Synchronous Trey Research requires accounting entries to be posted from the subledger to the ledger immediately. The following options are available for transferring subledger batches: Asynchronous ג€" Transfer of the subledger accounting entries to the general ledger is scheduled immediately. The General ledger voucher will be recorded as soon as resources are available to process the request on the server. Scheduled batch ג€" The subledger accounting entries that must be transferred are added to the processing queue in General ledger. The entries in the queue will be processed in the order that they are received in. Each General ledger voucher will update accounts at the scheduled time if resources are available to process the batch job on the server.
Incorrect: * synchrounous In version 8.1, changes were made to allow the transfer of rules, which deprecated the Synchronous option.
A company has recently deployed Microsoft Dynamics 365 Finance. You have been hired as a Systems Administrator. Your role will include the management of the Dynamics 365 system.
You need to configure the account structure.
For the Business Unit dimension, you need to ensure that all values and blank values are allowed.
Which of the following values should you include for the business unit dimension?
A.
* (asterisk)
B.
ALL
C.
*; " " (asterisk and quotation marks separated by a comma)
D.
*; " " (asterisk and quotation marks separated by a semicolon)
Correct Answer: D
QUESTION 3
HOTSPOT
You are the purchase manager of an organization. You purchase a laptop for your office for $2,000. You plan to create a purchase order and acquire the new fixed asset through the purchase order at time of invoicing.
You set up the system as follows: Fixed assets are automatically created during product receipt or vendor invoice posting and the capitalization threshold for the computers group (COMP) is set to $1,600.
You need to automatically create a fixed asset record when you post an acquisition transaction for the asset after you post the invoice.
How should you configure the fixed asset parameters to meet the criteriaTo answer, select the appropriate option in the answer area.
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You are managing credit and collections.
You need to set up mandatory credit limits for all customer documents.
Solution: Select None as the credit type in the Accounts receivable parameters form. Select the Mandatory credit limit check box in the Customers form.
Does the solution meet the goal?
A.
Yes
B.
No
Correct Answer: B
Explanation
Explanation/Reference:
Instead: Solution: Select the Balance + All credit type in the Accounts receivable parameters form. Select the Mandatory credit limit check box in the Customers form.
Note: Select from the following options:
None - Do not check credit limits. You can override this option for a specific customer by selecting the Mandatory credit limit check box in the Customers form. If you do this, the credit limit is checked against the customer balance.
Balance - The credit limit is checked against the customer balance.
Balance + packing slip or product receipt - The credit limit is checked against the customer balance and deliveries.
Balance + All - The credit limit is checked against the customer balance, deliveries, and open orders.
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?
A.
Set up a new chart of accounts specifically for foreign currency transactions.
B.
Disable the Awareness between ledger settlement and year-end close feature.
C.
Ensure all transactions are posted within the same fiscal year before settling them.
D.
Enable the Post foreign currency realized gains/losses for ledger settlements feature.
Correct Answer: D
QUESTION 6
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?
A.
Associate the vendor record to the tax authority.
B.
Set up a customer record for the tax authority.
C.
Associate the vendor record to the settlement period.
D.
Set up the jurisdiction and associate the jurisdiction to the tax authority.
Correct Answer: A
Explanation
Explanation/Reference:
Sales tax authorities are entities to which collected sales tax needs to be reported and paid. You can pay sales taxes to the authority directly or through a vendor account that you create for the sales tax authority. If you do this, the company can use its usual payment routines to pay the sales tax authority on time. If you do not set up the tax authority as a vendor, someone must prepare a manual payment to the tax authority on the appropriate due date. This task uses the USMF demo company.
Go to Tax > Indirect taxes > Sales tax > Sales tax authorities. Click New. In the Authority field, type a value. In the Name field, type a value. In the Vendor account field, click the drop-down button to open the lookup. In the list, find and select the desired record. In the list, click the link in the selected row. Select the report layout for your country/region, if one is available. If the report layouts do not correspond to the requirements of the sales tax authority, use default layout. Enter values in the Rounding form and the Round-off fields to specify how the tax total amount to be paid should be rounded. Any rounding differences will be posted to Accounts for automatic transactions set up in General ledger. In the Round-off field, enter a number. Click Save.
Fourth Coffee is a coffee and supplies manufacturer based in Seattle. The company recently purchased CompanyA, based in the United States, and CompanyB, based in Canada, in order to increase production of their award-winning espresso machine and distribution of their dark roast coffee beans, respectively.
Fourth Coffee has set up CompanyA and CompanyB in their Dynamics 365 Finance environment to gain better visibility into the companies' profitability. CompanyA and CompanyB will continue to operate as subsidiaries of Fourth Coffee, but all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.
The current organizational chart is shown below:
Current environment
Systemwide setup
1. Dynamics 365 Finance in Microsoft Azure is used to manage the supply chain, retail, and financials. 2. All companies share a Chart of Accounts. 3. Two dimensions are used: Department and Division. 4. Budgeting is controlled at the department level. 5. Customers and vendors are defined as two groups: Domestic and International. 6. Mandatory credit check is set to No.
7. Consolidate online is used for the consolidation of all companies. 8. International main accounts are subject to foreign currency revaluation. 9. The purchasing budget is used to enforce purchasing limits.
General ledger accounts
Fourth Coffee
1. The base currency is USD. 2. Three item groups are used: coffee, supplies, and nonstock. 3. The standard sales tax method is used. 4. Acquiring fixed assets requires a purchase order. 5. All customer payment journals require a deposit slip. 6. CustomerX is a taxable company. 7. CustomerY is a tax-exempt company. 8. CustomerZ is a taxable company. 9. VendorA is a Colombian supplier of coffee beans and belongs to the international vendor group. 10. VendorB is a Peruvian supplier of coffee machine filters and belongs to the international vendor group. 11. VendorC is a Texas supplier of espresso valves and belongs to the domestic vendor group.
CompanyA
1. The base currency is USD. 2. It consists of a marketing department and a digital division. 3. A 4-5-4 calendar structure is used. 4. The standard sales tax method is used.
CompanyB
1. The base currency is CAD. 2. The conditional sales tax method is used.
Requirements
Reporting
1. A consolidated Fourth Coffee financial report is required in USD currency. 2. Fourth Coffee and its subsidiaries need to be able to report sales by item type. 3. Year-end adjustments need to be reported separately in a different period to view financial reporting inclusive and exclusive of year-end adjustments.
Issues
1. User1 observes that a General journal was used in error to post to the Domestic Accounts Receivable trade account. 2. User2 has to repeatedly reclassify vendor invoice journals in Fourth Coffee Company that are posted to the marketing department and digital division. 3. When User3 posts an Accounts receivable payment journal, a deposit slip is not generated. 4. User4 observes an increase in procurement department expenses for supplies. 5. User5 observes that sales tax is not calculating on a sales order for CustomerZ. 6. User6 observes that sales tax is calculating for CustomerY. 7. User7 observes that the sales tax payment report is excluding posted invoice transactions. 8. User8 in CompanyA attempts to set up the sales tax receivable account on the sales tax posting form. 9. User9 in CompanyA needs to purchase three tablets by using a purchase order and record the devices as fixed assets. 10. CustomerX requires a credit check when making a purchase and is currently at their credit limit.
QUESTION 7
You need to view the results of Fourth Coffee Holding Company's consolidation.
Which three places show the results of financial consolidation? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A.
a financial report run against the company Fourth Coffee
B.
a trial balance in the Fourth Coffee Holding Company
C.
a trial balance in the company Fourth Coffee
D.
a financial report run against the Fourth Coffee Holding Company
E.
the consolidations form in Fourth Coffee Holding Company
Correct Answer: BDE
Explanation
Explanation/Reference:
all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.
QUESTION 8
You are configuring Dynamics 365 Finance.
You need to implement posting definitions for all available transaction types.
For which type of transactions can you implement posting definitions?
A.
Accounts payable, Accounts receivable, Bank, Budget, Payroll, and Purchasing
B.
Accounts payable, Bank, Budget, Fixed assets, and Payroll
C.
Accounts payable, Accounts receivable, Fixed assets, Payroll, and Purchasing
D.
Accounts payable, Accounts receivable, Budget, and Fixed assets
Correct Answer: A
Explanation
Explanation/Reference:
A is correct. Navigate to Posting Definitions page, click new and select the Module field to open the available list. You will note that there is no option to select "Fixed Assets". This rules out B, C and D.
QUESTION 9
A client is using the budget planning process in Dynamics 365 Finance.
Your client requires the ability to plan for a one-year, three-year, and five year-budget.
You need to configure the various year length options to be used in the budgeting module.
You are a Dynamics 365 Finance consultant. You plan to configure the allocation base, cost behavior, and cost distribution.
Which three actions do these configurations accomplishEach correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A.
Spread costs from one cost object to one or more other cost objects by applying a relevant allocation base.
B.
Measure and quantify activities, such as machine hours that are used, kilowatt hours that are consumed, or square footage that is occupied.
C.
Spread the balance of the cost from one cost object to one or more other cost objects by applying a relevant allocation base.
D.
Control which journals can be used in the costing process.
E.
Classify costs according to their behavior in relation to changes in key business activities.
Correct Answer: ABE
Explanation
Explanation/Reference:
Cost distribution: used to distribute cost from one cost object to one or more other cost objects by applying a relevant allocation base Allocation base: used to measure and quantify activities, such as machine hours that are used, kilowatt hours that are consumed, or square footage that is occupied. It's used as basis for allocating costs to one or more cost objects Cost behavior: classifies costs according to their behavior in relation to changes in key business activities
Your role of Systems Administrator includes the management of your company's Microsoft Dynamics 365 Finance system.
You need to configure posting definitions. You need to determine which transaction types you can configure posting definitions for.
For which of the following can you NOT configure posting definitions
A.
Fixed assets
B.
Accounts payable
C.
Payroll
D.
Accounts receivable
E.
Budget
Correct Answer: A
QUESTION 12
A company implements basic budgeting functionality in Dynamics 36S Finance.
The company wants to allocate budget register entries for payroll expense amounts to each department based on a predetermined percentage.
You need to configure the allocation.
Which functionality should you use?
A.
Budget transfer rule
B.
Budget control
C.
Allocation term
D.
Period allocation key
Correct Answer: C
QUESTION 13
You work as the Finance Manager for a company. The company uses Microsoft Dynamics 365 Finance for its accounting system.
The company has a main office and eight branch offices. Three more branch offices are currently under construction.
You need to ensure that advertising expenses are balanced across the eight branch offices. The advertising costs will be balanced across all eleven branch offices when the three new offices are complete.
Which option should you select in the ledger allocation configuration?
A.
Fixed percentage
B.
Basis
C.
Fixed weight
D.
Equally
Correct Answer: D
QUESTION 14
Your role of Systems Administrator includes the management of your company's Microsoft Dynamics 365 Finance system.
You have assigned the Vendor (external) security role to a vendor that will work with purchase orders.
Which two of the following actions can the vendor perform (Choose two)
A.
Respond to and view information about purchase orders.
B.
Request a new user account for a contact person by using the Provision user action.
C.
Add a new or existing contact person to the vendor accounts that they are a contact for.
D.
Request that a contact person's user account be inactivated.
E.
Maintain vendor collaboration invoices.
Correct Answer: AE
QUESTION 15
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.
Correct Answer:
Explanation
Explanation/Reference:
Components of ledger allocation rules Each allocation rule has four components: general, source, destination, and offset. An additional component, ledger allocation bases rules, is required if Basis is used as the allocation method. Each component provides a critical piece of the information that is required in order to process allocations.
Box 1: Sales revenue account Source
The company must allocate the advertising expense based on a department's sales in proportion to the total sales.
Note: Source - This component is where the user specifies the source data for the allocation. Allocation can be based on ledger balances (Data source = Ledger) or fixed amounts (Data source = Fixed value). When Data source is set to Ledger, source filter criteria must be defined for the ledger allocation rule (for example, for the advertising expenses).
Box 2: Sales revenue account Offset
Note: Offset - This component defines how main accounts and dimensions should be determined for the offset entries that balance the destination entries. User-defined options are typically used instead of accounts and dimensions that are based on the source. When Data source is set to Fixed value, Source can't be used as an option.
Box 3: Advertising expense account with the department financial dimension Destination
The company must allocate the advertising expense based on a department's sales in proportion to the total sales.
Note: Destination - This component defines how the result of the allocation calculation should be distributed and accounted for. For example, there can be one destination line for each department.
Box 4: Basis Ledger Allocation method
The company must allocate the advertising expense based on a department's sales in proportion to the total sales.
Note: Dynamics 365 Finance, Ledger allocation rules Ledger allocation rules are used to automatically calculate and generate allocation journals and account entries for the allocation of ledger balances or fixed amounts. Allocation methods can be variable or fixed.
*-> Basis - This variable method is used when the allocation depends on the actual ledger balance, based on filter criteria. For example, advertising expenses can be allocated based on each department's sales in proportion to the total departmental sales.
Fixed percentage and Fixed weight - For these methods, the allocation percentage or weight is defined directly for the rule. For example, advertising expenses can be allocated so that Department A receives 70 percent of the advertising expense and Department B receives 30 percent.
Equally - This method distributes the amount equally to each defined destination. For example, if destinations are defined for Department A and Department B, advertising expenses can be allocated so that both Department A and Department B receive 50 percent of the advertising expense.
Munson's Pickles and Preserves Farm grows and distributes produce, jellies, and jams. The company's corporate headquarters is located in Dallas, TX. Munson's has one operations center and seven regional distribution centers in the United States.
The company has two wholly owned subsidiaries that operate in Canada. The Canadian entity owns an entity in France.
Munson's plans to expand into Latin America by purchasing the last 25 percent of a subsidiary that they own in Costa Rica. This process is expected to complete within the next two years.
The company plans to implement Dynamics 365 Finance and Dynamics 365 Supply Chain to meet their growing business needs.
Current environment. General
Munson's uses a mix of internally-developed legacy systems that handle their finance and distribution activities. The company has an isolated CRM system.
1. Both Canadian subsidiaries have two departments: marketing and operations. 2. Financial reporting is difficult due to data residing in disparate systems. 3. Financial reporting is currently performed by using Microsoft Excel. 4. Pre-orders in the current system are difficult to track because the order management system is not integrated with the finance system. 5. Pickle sales post to one revenue account, but this does not allow for targeted reporting by pickle cut and type.
Current environment. Organization
The following chart shows Accounting/Reporting Currencies and Tax ID, if applicable.
1. Typically, vendor invoices are received prior to receipt of product.
2. The following fixed assets are sold for a loss: 2.1. BUILD-100 2.2. CAR-1233 3. At the regional distribution centers, the value for physical inventory does not match the inventory in the financial system. 4. Munson's rents their corporate office. Rent is not paid by purchase order. Rent is due once a quarter. 5. Allocations are performed manually. 6. Barrels are inventoried by site and warehouse. 7. Munson's has multiple depreciation and tax books for all of their fixed asset equipment. 8. Budgets are posted at the department level for each legal entity.
Requirements. Sales
1. Customers should be able to pre-order for fall release of pickles. 2. Three-way matching must be enforced for all purchases. 3. Fixed asset sale transactions require a ledger account entered at the time of transaction. 4. Fixed assets purchased must be automatically created in fixed asset module. This includes inventory items and write in purchase orders/non-inventoried items. 5. One dollar from every sale needs must be tracked and donated at the end of each month to a charitable organization. 6. Purchasing budgets must be enforced at the main account level.
Requirements. Finance
1. Accounts payable must be able to enter vendor invoices on the day they were received to be settled against when product is received. 2. Accounts payable must be able to enter vendor invoices to accrue expense without specifying a purchase order at the time of entry. 3. Postage expenses must be split evenly across the regional distribution centers automatically. 4. Administrative expenses must be distributed across the regional distribution centers by percentage of fulfillment orders monthly. 5. Pickling machines depreciation must be uniquely recorded for visibility but not post to the ledger.
Issues
1. During implementation testing, User1 indicates that after packing slips are generated for purchase orders, there are no ledger postings. 2. User2 indicates that fixed assets purchased on a purchase order do not show up in the Fixed Assets module. 3. User3 reports that they are seeing inconsistent application of the one-dollar donation from all sales orders. 4. User4 in the Canadian subsidiary is able to purchase supplies for marketing despite exceeding the marketing department budget. 5. User5 reports that when purchasing a non-inventoried computer, the system is automatically assigning it to the buildings fixed asset group.
QUESTION 17
You need to recommend a solution to prevent User3's issue from recurring.
What should you recommend?
A.
Configure automatic charge codes.
B.
Create a service item.
C.
Configure a sales order template.
D.
Create a procurement category.
Correct Answer: A
QUESTION 18
You plan to manage delinquent customers by monitoring the collection process in Dynamics 365 Finance.
You need to use the Collections list page to monitor the collection process.
What must you do first?
A.
Set up customer groups.
B.
Set up customer pools.
C.
Update financials.
D.
Age customer balances.
Correct Answer: B
Explanation
Explanation/Reference:
You can use customer pools, but you don't have to. But without aging the customers, you won't see the real results. References: https://docs.microsoft.com/en-us/dynamics365/finance/accounts-receivable/cm-collections-concepts
QUESTION 19
A company uses Microsoft Dynamics 365 Finance to manage fixed assets.
The company uses laptops for three years and then sells the laptops externally.
You need to process laptop sales.
What should you do?
A.
Create a fixed asset disposal journal.
B.
Use a free text invoice to record the sale.
C.
Create a sales order for the sale of the asset.
D.
Use an inventory movement journal to record the disposal.
Correct Answer: B
QUESTION 20
A company has recently deployed Microsoft Dynamics 365 Finance. You have been hired as a Systems Administrator. Your role will include the management of the Dynamics 365 system.
The company has several departments. You need to configure allocations for the departments. The company has the following requirements for the allocations:
1. The allocations should be fixed or variable. 2. Allocation journal entries must be automatically created for review before posting.
You need to configure the system to meet the requirements.
What should you configure?
A.
Transfer balance
B.
Allocation terms
C.
Ledger settlements
D.
Ledger allocation rules
Correct Answer: D
QUESTION 21
You use Dynamics 365 Finance for daily bank reconciliation.
You must use the BAI2 bank statement format.
You need to configure the import bank statement format for the bank reconciliation process.
What should you do?
A.
Import the bank statement as a template for the bank statement format.
B.
Set up a batch job to import the bank statement.
C.
Set up an import project for the bank statement in a Data management workspace using files provided by Microsoft.
D.
Set up a journal name to import a bank statement transaction.
Correct Answer: C
Explanation
Explanation/Reference:
Set up advanced bank reconciliation import by using Electronic reporting
Set up the Electronic reporting configuration Go to Workspaces > Electronic reporting. On the tile for the Microsoft configuration provider, select Repositories. Select Global, and then select Open. If a connection to the repository must be established, select the blue link in the dialog box. In the configuration list, find Bank statement model > Bank statement model of BAI2. Select the BAI2 format. On the Versions FastTab, select the latest version, and then select Import.
Set up the bank statement format Go to Cash and bank management > Setup > Advanced bank reconciliation setup > Bank statement format. Select New. Set the Statement format and Name fields. Select the Generic electronic import format checkbox. Set the Import format configuration field to the BAI2 format.
Set up the bank account Go to Cash and bank management > Bank accounts > Bank accounts. Open the bank account. On the Reconciliation FastTab, set the Advanced bank reconciliation option to Yes. Set the Statement format field to the BAI2 format that was created earlier.
Import the bank statement Go to Cash and bank management > Bank statement reconciliation > Bank statements. At the top of the Bank statements page, select Import statement. Set the Bank account field to the bank account in the statement. Set the Statement format field to the BAI2 format that was created earlier. Select Browse, and select the BAI file. Select Upload. Select OK to import the selected file.
You work as the Finance Manager for a company. The company uses Microsoft Dynamics 365 Finance for its accounting system.
You need to configure a budget in Dynamics 365 Finance. The budget must include details about planned hours, expenses, fees, and items.
Which of the following budget options should you configure?
A.
Workforce budget
B.
Fixed asset budget
C.
Project budget
D.
Demand forecasting
Correct Answer: C
QUESTION 23
Simulation
You are a functional consultant for Contoso Entertainment System USA (USMF).
You need to implement a quarterly accruals scheme for USMF. The accrual scheme settings must match the settings of the monthly and annual accrual schemes.
To complete this task, sign in to the Dynamics 365 portal.
Correct Answer:
Look at the monthly and annual accrual scheme settings. Create a quarterly accrual scheme with the same settings by using the following instructions:
1. Go to Navigation pane > Modules > General ledger > Journal setup > Accrual schemes. 2. Select New. 3. In the Accrual identification field, type a value. 4. In the Description of accrual scheme field, type a value. 5. In the Debit field, specify the desired values. The main account defined will replace the debit main account on the journal voucher line and it will also be used for the reversal of the deferral based on the ledger accrual transactions. 6. In the Credit field, specify the desired values. The main account defined will replace the credit main account on the journal voucher line and it will also be used for the reversal of the deferral based on the ledger accrual transactions. 7. In the Voucher field, select how you want the voucher determined when the transactions are posted. 8. In the Description field, type a value to describe the transactions that will be posted. 9. In the Period frequency field, select how often the transactions should occur. 10. In the Number of occurrences by period field, enter a number. 11. In the Post transactions field, select when the transactions should be posted, such as Monthly.
A company uses Dynamics 365 Finance for expense management.
The company has multiple legal entities and multiple departments. Each department may have a different expense policy that may conflict with the legal entity expense policy.
You need to configure prioritization of department expense policy over legal entity expense policy.
Which three actions should you perform in sequence?
To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Correct Answer:
Explanation
Explanation/Reference:
Step 1: Create an organization hierarchy for the departments.
Internal organizations in your business, such as regional offices, can be represented as additional legal entities, or as operating units of the main legal entity. An operating unit is not required to be a legally defined organization. Operating units are used to control economic resources and operational processes in the business. For example, departments and cost centers are operating units.
Step 2: Add a department organization hierarchy into the Expenditure internal control organization hierarchy purpose
When you create an organization hierarchy in Microsoft Dynamics AX, you must assign a purpose to the hierarchy. The purpose that you assign to a hierarchy determines the types of organizations that can be included in the hierarchy. The purpose also defines the application scenarios that the hierarchy can be used in.
The following table lists the processes that you can control by using policies. It also includes the hierarchy purpose that corresponds to each process.
* Process: Expenses Description: Controls the process for expense reports. Hierarchy purpose: Expenditure internal control
* Etc.
Step 3: Set the order of precedence parameter. After the organizations are defined, you can set up the order of precedence for the policies.
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?
A.
a Ledger daily journal workflow that uses the organizational hierarchy for journal posting, associated with the General ledger journal name
B.
a saved query in the Voucher inquiries form for the controller to view all general journals posted to the ledger
C.
a manual journal approval with the journal assigned to the user group that the employees are assigned to
D.
the controller's security rote so that he has approval privileges for General ledger journals
Correct Answer: A
Explanation
Explanation/Reference:
Some organizations require that journals be approved by a user other than the person who entered the journal. To set up an approval process, you can create a workflow. A workflow represents a business process. It defines how a document flows through the system and indicates who must complete a task or approve a document. References: https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/set-up-general-ledger-workflows
QUESTION 29
HOTSPOT
A company uses Dynamics 365 Finance.
The company requires two-way, net unit price matching for all vendors. The company also requires three-way matching for new vendors during observation periods.
You need to configure invoice matching and validation.
How should you complete the configuration?
To answer, select the appropriate options in the answer area.
NOTE: Each correct selection s worth one point.
Correct Answer:
QUESTION 30
HOTSPOT
A rental service company with complex accrual requirements has accrual schemes set up in its implementation. They want to use defined accrual schemes to perform transactions.
You need to use an accrual scheme to create transactions for this company.
Which actions should you performTo answer, select the appropriate configuration in the answer area.
NOTE: Each correct selection is worth one point.
Correct Answer:
QUESTION 31
Simulation
You are a functional consultant for Contoso Entertainment System USA (USMF).
You need to create a report that contains the sales tax settlements for the state of California during the quarter that began on January 1, 2017. To validate you results, save the file in Microsoft Excel format to the Downloads\Report folder.
To complete this task, sign in to the Dynamics 365 portal.
Correct Answer:
1. Navigate to Tax > Declarations > Report sales tax for settlement period. 2. Enter the `From' date. 3. Select the settlement period (Quarter). 4. Click `OK'. 5. Select Yes in the Create electronic tax document field. 6. Select the Downloads\Report folder and file format. 7. Click `OK'.
Case Study 5
Case Study Questions
Background First Up Consultants is a global finance and accounting company. Financial needs at organizations ate constantly changing. When global companies become too large, it becomes too difficult for them to scale to meet then 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 then 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.
Ledger Humongous Insurance is a US-based company and operates its fiscal year from January 1 to December M. Humongous insurance reports across an 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 1. One of Humongous Insurance's companies provides insurance to government clients and must separate that particular company into its owm subsidiary. 2. The Humongous subsidiary will operate in China, which requires a fiscal year from February 1 to January 31. - Transitions must be posted in the business of record. 3. Humongous insurance s subsidiary requires accounting entries to be posted from the subledger to the general ledger by 5:00 PM each day. 4. Trey Research requires accounting entries to be posted from the subledger to the ledger immediately.
Taxes 1. As part of the spinoff to a subsidiary, Humongous Insurance s subsidiaries taxes must be changed from US government rates to Chinese government rates. 2. Humongous Insurance's subsidiary must track use taxes that are not claimed or reported to the Chinese tax agency.
Fiscal calendars You must create three new fiscal calendars 1. A fiscal calendar named FebJan that runs from Feb 1 to Jan 31. 2. A fiscal calendar named AprMar that runs from April 1 to March 31. 3. A fiscal calendar named JanDec that runs from January 1 to December 31.
Accounts 1. Trey Research most track bank account balances and transactions for each province in which it operates. 2. The bank statement must be sent to the physical address of the home office.
Promotion 1. Humongous insurance s subsidiary plans to celebrate its new subsidiary status by sending out free gifts to existing policy based on the Tier of their policy. 2. Promotional Items are ordered for distribution and once received must be Tracked within Dynamics 365 Finance.
Reporting 1. 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. 2. 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 pain using the following requirements:
Credit card processing 1. Humongous Insurance requires all credit card transactions to include line-item details. 2. Humongous Insurance's subsidiary requires the shipping address merchant address, and lax information but cannot include any order line details. 3. Trey Research requires all credit card transactions include transaction date, transaction amount, description, and line-item details.
Compliance and compensation 1. Trey Research must be able to audit any modifications to its budget 2. Humongow Insurance employees must receive raises tour times pet budget cycle.
QUESTION 32
HOTSPOT
You need to configure credit card processing for all three companies
Which option should you useTo answer, select the appropriate options m the answer area
NOTE: Each correct selection is worth one point.
Correct Answer:
QUESTION 33
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 manage a Dynamics 365 Finance implementation.
You must provide the budget versus actual reporting in near real time.
You need to configure the ledger budgets and forecasts workspace to track expenses over budget and revenue under budget.
Solution: Configure an expense dimension set, expense budget threshold, revenue dimension set, and revenue budget threshold percent field values on the Configure my workspace form.
Does the solution meet the goal?
A.
Yes
B.
No
Correct Answer: B
QUESTION 34
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:
1. The accounting adjustments that are received in the first quarter must be able to be posted into the previous year's Period 13. 2. The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions. 3. All dimensions from profit and loss must carry over into the retained earnings. 4. All future and previous periods must have an On Hold status.
Solution:
Configure General ledger parameters. 1. Set the Delete close of year transactions option to No. 2. Set the Create closing transactions during transfer option to No. 3. Set the Fiscal year status to permanently closed option to No.
Define the Year-end close template. 1. Designate a retained earnings main account for each legal entity. 2. Set the Financial dimensions will be used on the Opening transactions option to No. 3. Set the Transfer profit and loss dimensions to Close All. 4. Set all prior and future Ledger periods to a status of On Hold.
Does the solution meet the goal?
A.
Yes
B.
No
Correct Answer: B
Explanation
Explanation/Reference:
The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions.
You are a functional consultant for Contoso Entertainment System USA (USMF).
You need to automate the allocation of a prepaid expense of 2 percent of all product sales. The allocation must be posted to account number 222222.
To complete this task, sign in to the Dynamics 365 portal.
Correct Answer:
You need to configure a prepayment percentage for all items. The instructions below are for a single item. For this question, you need to select 'All' for all items, enter 2 in the percentage field and select account number 222222 in the account field.
To set up prepayment percentages for items, customers, and vendors For an item, you can set up a default prepayment percentage for all customers, a specific customer, or a customer price group.
1. Choose the icon, enter Items, and then choose the related link. 2. Select an item, and then choose the Prepayment Percentages action. 3. On the Sales Prepayment Percentages page, fill in the fields as necessary. Hover over a field to read a short description.
You are a functional consultant for Contoso Entertainment System USA (USMF).
You plan to run several reports in USMF that list all the write-off transactions.
You need to replace the write-off reason used by the system for USMF to use a reason of "Bad debts.
To complete this task, sign in to the Dynamics 365 portal.
Correct Answer:
You need to add a write-off reason for USMF and set it as the default.
1. Go to Navigation pane > Modules > Credit and collections > Setup > Accounts receivable parameters. 2. Click the Collections tab. 3. Click the Edit icon in the Write-Off section. 4. Add a new Write-Off reason if it doesn't exist. 5. Tick the "Default" checkbox next to the new Write-Off reason. 6. Click the Save button to save the changes.
QUESTION 37
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?
A.
Set up the length of the period to 1 year and divide the period according to the quarterly configuration.
B.
Configure the period length to 12 months and adjust the ending date of each period.
C.
Configure the period length to 1 year and adjust the ending date of each period.
D.
Set up the length of the period to 13 months.
Correct Answer: A
Explanation
Explanation/Reference:
1 - Create a new fiscal calendar;
Calendar 445 Fiscal year name 2022 Length of period 1 Unit years
2 - Create a new fiscal year 3 - Set up the first period as opening and the third as closing 4 - Divide de Period 1 - repeat it until you have all 12 periods
Update the Month and Quarter column during the dividing.
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.
bank account
B.
bank reasons
C.
bank reconciliation
D.
bank group
Correct Answer: AD
Explanation
Explanation/Reference:
To create bank account, you must create main account and bank group (mandatory data).
Cash and bank management setup and maintenance forms The following table lists the forms that support setting up and maintaining Cash and bank management.
* Setting up cash and bank management information
Form: Bank groups Usage: Set up general information about the bank groups in which you have bank accounts.
* Setting up bank account information Form: Bank accounts Usage: Set up information for bank accounts.
You are a Dynamics 365 Finance expert for an organization.
You need to configure the Financial period close workspace.
Which three configuration processes should you useEach correct answer presents a part of the solution.
NOTE: Each correct selection is worth one point,
A.
Create templates that contain the required tasks within the closing process and assign to closing role.
B.
Create a separate closing schedule for every legal entity.
C.
Assign a ledger calendar to the closing process.
D.
Create task areas and descriptions.
E.
Designate resources and their scope based on closing roles.
Correct Answer: ADE
Explanation
Explanation/Reference:
See menu: General ledger > Period close > Financial period close configuration This page has the following tabs: - Closing schedule - Templates (the template defines the tasks to be done during the closing process) - Calendars (these are not the ledger calendars! - defines only start and enddate together with specifications which weekdays) are valid - Task areas (containing task id(s) and description) - Resources (Employees linked to closing roles) - Closing roles
What misleads is the fact the ledger calendars are found in the menu 'General Ledger > Period close'
Fourth Coffee is a coffee and supplies manufacturer based in Seattle. The company recently purchased CompanyA, based in the United States, and CompanyB, based in Canada, in order to increase production of their award-winning espresso machine and distribution of their dark roast coffee beans, respectively.
Fourth Coffee has set up CompanyA and CompanyB in their Dynamics 365 Finance environment to gain better visibility into the companies' profitability. CompanyA and CompanyB will continue to operate as subsidiaries of Fourth Coffee, but all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.
The current organizational chart is shown below:
Current environment
Systemwide setup
1. Dynamics 365 Finance in Microsoft Azure is used to manage the supply chain, retail, and financials. 2. All companies share a Chart of Accounts. 3. Two dimensions are used: Department and Division. 4. Budgeting is controlled at the department level. 5. Customers and vendors are defined as two groups: Domestic and International. 6. Mandatory credit check is set to No.
7. Consolidate online is used for the consolidation of all companies. 8. International main accounts are subject to foreign currency revaluation. 9. The purchasing budget is used to enforce purchasing limits.
General ledger accounts
Fourth Coffee
1. The base currency is USD. 2. Three item groups are used: coffee, supplies, and nonstock. 3. The standard sales tax method is used. 4. Acquiring fixed assets requires a purchase order. 5. All customer payment journals require a deposit slip. 6. CustomerX is a taxable company. 7. CustomerY is a tax-exempt company. 8. CustomerZ is a taxable company. 9. VendorA is a Colombian supplier of coffee beans and belongs to the international vendor group. 10. VendorB is a Peruvian supplier of coffee machine filters and belongs to the international vendor group. 11. VendorC is a Texas supplier of espresso valves and belongs to the domestic vendor group.
CompanyA
1. The base currency is USD. 2. It consists of a marketing department and a digital division. 3. A 4-5-4 calendar structure is used. 4. The standard sales tax method is used.
CompanyB
1. The base currency is CAD. 2. The conditional sales tax method is used.
Requirements
Reporting
1. A consolidated Fourth Coffee financial report is required in USD currency. 2. Fourth Coffee and its subsidiaries need to be able to report sales by item type. 3. Year-end adjustments need to be reported separately in a different period to view financial reporting inclusive and exclusive of year-end adjustments.
Issues
1. User1 observes that a General journal was used in error to post to the Domestic Accounts Receivable trade account. 2. User2 has to repeatedly reclassify vendor invoice journals in Fourth Coffee Company that are posted to the marketing department and digital division. 3. When User3 posts an Accounts receivable payment journal, a deposit slip is not generated. 4. User4 observes an increase in procurement department expenses for supplies. 5. User5 observes that sales tax is not calculating on a sales order for CustomerZ. 6. User6 observes that sales tax is calculating for CustomerY. 7. User7 observes that the sales tax payment report is excluding posted invoice transactions. 8. User8 in CompanyA attempts to set up the sales tax receivable account on the sales tax posting form. 9. User9 in CompanyA needs to purchase three tablets by using a purchase order and record the devices as fixed assets. 10. CustomerX requires a credit check when making a purchase and is currently at their credit limit.
QUESTION 42
HOTSPOT
The posting configuration for a purchase order is shown as follows:
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.
Correct Answer:
QUESTION 43
DRAG DROP
A company makes frequent payments to its vendors by using various due dates and discounts.
You need to set up and create a vendor payment by using a payment proposal.
In which order should you perform the actionsTo answer, move all actions from the list of actions to the answer area and arrange them in the correct order.
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 for their accounts payable processing.
The company requires additional approvals for any new vendor invoice within the first 12 months.
You need to set up the system to add additional approvals to the new vendor invoice.
Solution: Enable invoice matching validation should be set to yes. Post invoices with discrepancies should be set to require approval. Add a vendor invoice policy for the new vendor invoice to be reviewed.
Does the solution meet the goal?
A.
Yes
B.
No
Correct Answer: A
QUESTION 45
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: Exclude the blocking rules by using the Release sales order parameter.
Does the solution meet the goal?
A.
Yes
B.
No
Correct Answer: A
Explanation
Explanation/Reference:
Correct: * Exclude the blocking rules by using the Release sales order parameter.
Incorrect: * Change the sales order amount. * Change the terms of payment. * Change the value of the account status.
Note: Automatically releasing credit management holds Sales orders are placed in the hold list based on the blocking rules. Some reasons for the holds may changes over time if the sales order remains in the hold list for a period of time. For example, a customer may pay their bill, freeing up their credit limit.
You can use the Evaluate for release menu to review the sales orders in the hold list and automatically release them if the reason for the hold has been mitigated.
1. Select the Evaluate for release menu. 2. Select Process blocking rules to review all of the sales orders. Select Process blocking rules for selected lines to review only the lines that you have selected. 3. A slider will appear so that you can select a single customer. Leave the customer drop down blank for all customers. 4. When you click Ok, the process is run in the background, and you can continue working on other tasks. If you select batch processing before you click on Ok, the process will run in batch when you click Ok. It may take some time to process the orders on hold in the list. Click Refresh to update the status of the orders. 5. If a blocking reason is no longer applicable for an order, the blocking reason is no longer valid, and you won't see a check mark next to the reason when you view the blocking reasons. 6. If all of the blocking reasons are cleared, then Ready to release is added to the list of blocking reasons. The sales order can be automatically released. 7. If the Automatically release parameter in Credit and collections > Setup > Credit and collections parameters > Credit > Auto release tab is set to With posting, you'll be prompted to post using the posting page for the document that was blocked. 8. If the Automatically release parameter in Credit and collections > Setup > Credit and collections parameters > Credit > Auto release tab is set to Without posting, then post the order manually.
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:
1. The accounting adjustments that are received in the first quarter must be able to be posted into the previous year's Period 13. 2. The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions. 3. All dimensions from profit and loss must carry over into the retained earnings. 4. All future and previous periods must have an On Hold status.
Solution:
Configure General ledger parameters. 1. Set the Delete close of year transactions option to Yes. 2. Set the Create closing transactions during transfer option to Yes. 3. Set the Fiscal year status to permanently closed option to No.
Define the Year-end close template. 1. Designate a retained earnings main account for each legal entity. 2. Set the Financial dimensions will be used on the Opening transactions option to No. 3. Set the Transfer profit and loss dimensions' option to Close All. 4. Set future Ledger periods to a status of On Hold.
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 has multiple legal entities set up in Dynamics 365 Finance. All companies and data reside in Dynamics 365 Finance.
The client currently uses a separate reporting tool to perform their financial consolidation and eliminations. They want to use Dynamics 365 Finance instead.
You need to configure the system and correctly perform eliminations.
Solution: Create a separate company in which you manually create the eliminations. Then, use that company in financial reporting or in the consolidation process.
Does the solution meet the goal?
A.
Yes
B.
No
Correct Answer: A
Explanation
Explanation/Reference:
A separate company can be created and used to manually determine and post elimination transactions. This company can be used in the consolidation process or in financial reporting.
You work as the Accounts Manager for a company. The company uses Microsoft Dynamics 365 Finance for its accounting system.
The company has sold a number of fixed assets.
You plan to enter the Fixed assets transactions in the Free text invoice page in Accounts Receivable.
For free text invoices, the fixed asset transaction type will be which of the following?
A.
Disposal
B.
Depreciation
C.
Acquisition
D.
Acquisition adjustment
Correct Answer: A
QUESTION 49
HOTSPOT
A client is implementing the Budgeting module in Dynamics 365 Finance.
You need to configure the correct budget control area to meet the client's requirements.
1. Track budgeting control on purchase requisitions. 2. Include unposted actual transactions in the calculation of the remaining budget for the period. 3. Allow specific individuals to post transactions that exceed the budget. 4. Specify main accounts that are subject to budget control, instead of selecting Main account as a dimension for budgeting.
What should you configureTo answer, select the appropriate configuration in the answer area.
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?
A.
Yes
B.
No
Correct Answer: B
QUESTION 51
A client has one legal entity and the following four dimensions configured: Business Unit, Cost Center, Department, and Division.
You need to configure the client's system to run the trial balance inquiry in the General ledger module so that it displays the trial balance two ways:
1. Include the main account and all four dimensions. 2. Include the main account and only the business unit and cost center dimensions.
What should you configure?
A.
two account structures
B.
two derived financial dimension hierarchies
C.
all financial dimensions by using the group dimension functionality
D.
two financial dimension sets
Correct Answer: D
QUESTION 52
A multicompany enterprise has recently deployed Microsoft Dynamics 365 Finance. You have been hired as a Functional Consultant. Your role will include the management of the Dynamics 365 Finance system.
You need to configure intercompany accounting.
You begin by configuring the intercompany main accounts to use for the Due to and Due from accounting entries.
Which of the following should you select in the Main account type field on the Main accounts page?
A.
Total
B.
Balance sheet
C.
Equity
D.
Profit and loss
Correct Answer: B
QUESTION 53
DRAG DROP
You are processing checks in Dynamics 365 Finance for a client.
You need to identify the outcome of the processed checks.
What is the check status for each scenario? To answer, drag the appropriate check statuses to the scenarios. Each check status may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Correct Answer:
QUESTION 54
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 customer uses Dynamics 365 Finance. The customer creates a purchase order for purchase $20,000 of office furniture.
You need to configure the system to ensure that the funds are reserved when the purchase order is confirmed.
Solution: Configure item posting groups for purchase requisitions.
Does the solution meet the goal?
A.
Yes
B.
No
Correct Answer: B
Explanation
Explanation/Reference:
This is about a purchase order already made. A purchase requisition is the process to have approval before a purchase order is made https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/about-purchase-order-posting-types
QUESTION 55
Your role of Systems Administrator includes the management of your company's Microsoft Dynamics 365 Finance system.
You are configuring the methods of payment in the Accounts Receivable module.
You need to configure the system to perform validation of journal entries when electronic payments are received. The validation must ensure that the type of bank operation that was used is selected by the user.
Which of the following validation options should you select?
A.
Payment specification is mandatory
B.
Payment ID is mandatory
C.
Bank transaction type is mandatory
D.
Payment reference is mandatory
Correct Answer: C
QUESTION 56
HOTSPOT
A company manufactures air filtering units for industrial manufacturing plants.
The company offers specific incentives if customers pay within a certain number of days to include:
1. 10 percent off if paid in full within 5 days 2. 5 percent off if paid in full within 10 days
Customers who pay by electronic funds transfer (EFT) will be charged $15 per transfer.
You need to configure the system.
Which option should you use? To answer, select the appropriate configuration in the answer area.
NOTE: Each correct selection is worth one point.
Correct Answer:
Explanation
Explanation/Reference:
Box 1: Cash discount Cash discounts are setup and shared for Accounts payable and Accounts receivable. The cash discount available can be defined on the customer invoice or vendor invoice, and will be taken if the invoice is paid within the cash discount date.
Box 2: Payment fee You can create payment fees for customer payments.
Munson's Pickles and Preserves Farm grows and distributes produce, jellies, and jams. The company's corporate headquarters is located in Dallas, TX. Munson's has one operations center and seven regional distribution centers in the United States.
The company has two wholly owned subsidiaries that operate in Canada. The Canadian entity owns an entity in France.
Munson's plans to expand into Latin America by purchasing the last 25 percent of a subsidiary that they own in Costa Rica. This process is expected to complete within the next two years.
The company plans to implement Dynamics 365 Finance and Dynamics 365 Supply Chain to meet their growing business needs.
Current environment. General
Munson's uses a mix of internally-developed legacy systems that handle their finance and distribution activities. The company has an isolated CRM system.
1. Both Canadian subsidiaries have two departments: marketing and operations. 2. Financial reporting is difficult due to data residing in disparate systems. 3. Financial reporting is currently performed by using Microsoft Excel. 4. Pre-orders in the current system are difficult to track because the order management system is not integrated with the finance system. 5. Pickle sales post to one revenue account, but this does not allow for targeted reporting by pickle cut and type.
Current environment. Organization
The following chart shows Accounting/Reporting Currencies and Tax ID, if applicable.
1. Typically, vendor invoices are received prior to receipt of product.
2. The following fixed assets are sold for a loss: 2.1. BUILD-100 2.2. CAR-1233 3. At the regional distribution centers, the value for physical inventory does not match the inventory in the financial system. 4. Munson's rents their corporate office. Rent is not paid by purchase order. Rent is due once a quarter. 5. Allocations are performed manually. 6. Barrels are inventoried by site and warehouse. 7. Munson's has multiple depreciation and tax books for all of their fixed asset equipment. 8. Budgets are posted at the department level for each legal entity.
Requirements. Sales
1. Customers should be able to pre-order for fall release of pickles. 2. Three-way matching must be enforced for all purchases. 3. Fixed asset sale transactions require a ledger account entered at the time of transaction. 4. Fixed assets purchased must be automatically created in fixed asset module. This includes inventory items and write in purchase orders/non-inventoried items. 5. One dollar from every sale needs must be tracked and donated at the end of each month to a charitable organization. 6. Purchasing budgets must be enforced at the main account level.
Requirements. Finance
1. Accounts payable must be able to enter vendor invoices on the day they were received to be settled against when product is received. 2. Accounts payable must be able to enter vendor invoices to accrue expense without specifying a purchase order at the time of entry. 3. Postage expenses must be split evenly across the regional distribution centers automatically. 4. Administrative expenses must be distributed across the regional distribution centers by percentage of fulfillment orders monthly. 5. Pickling machines depreciation must be uniquely recorded for visibility but not post to the ledger.
Issues
1. During implementation testing, User1 indicates that after packing slips are generated for purchase orders, there are no ledger postings. 2. User2 indicates that fixed assets purchased on a purchase order do not show up in the Fixed Assets module. 3. User3 reports that they are seeing inconsistent application of the one-dollar donation from all sales orders. 4. User4 in the Canadian subsidiary is able to purchase supplies for marketing despite exceeding the marketing department budget. 5. User5 reports that when purchasing a non-inventoried computer, the system is automatically assigning it to the buildings fixed asset group.
QUESTION 57
You need to configure Accounts Receivable to take pre-orders.
Current environment. Revenue allocation The company reports the following revenue allocation percentages:
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 vales taxes from the
following states:
Requirements
Travel and expense 1. First Up Consultants requires that employees start using corporate cards for all travel expenses. 2. All expenses over the require a receipt. 3. Beer cannot be expensed 4. Employees may use the corporate card for personal expenses during work travel, but expenses must be categories correctly. 5. Client entertainment expenses totaling more than $250 must be audited. 6. Employees require a mobile expense experience 7. Expense report entries must be validated when a transaction Iine is entered. 8. Employees require the ability to capture receipt* by using a mobile device. 9. First Up Consultants requires the ability to reimburse employees in their paychecks for expenses incurred on personal cards.
Financial 1. A virtual thirteenth month is required for year-end transactions. 2. Each day. a validation file must go to First Up Consultants" bank detailing all vendor checks paid. 3. Except fees, all matched transactions must clear automatically during bank reconciliation. 4. The accounts payable team must verify expense reports prior to posting. 5. Only payables are allowed to be posted to a poor period up to seven days into the new period
Issues 1. User1 Installed the expense Management Service add-in and implemented the automatch and create expense from receipt features, but the receipt images do not match the corporate card transactions 2. Employee 1 submits an expense report for a business trip to Europe, but the report is not visible on the expense tax recovery page. 3. Employees prowled feedback that the system lets them know of an expense report policy violation only after the entire expense report is submitted. 4. Members of the finance department observe sales orders that posted into a closed period. 5. The finance team observed that for sales order invoice 1234. the price incorrectly posts to a revenue account when it should be deferring. 6. Fmployee2 purchased supplies for a holiday patty and needs to be reimbursed 7. A customer orders software licenses for the offices in Tennessee and Alabama 8. Expense reports for unapproved items are posting. 9. VanArsdel. Ltd. exceeded its credit limit but the sales order was processed. 10. Tailspin Toys purchase $70,000 in custom software development
QUESTION 58
HOTSPOT
You need to configure the expense module for reimbursement.
How should you configure the expense module? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Correct Answer:
Explanation
Explanation/Reference:
Box 1: Configure the personal card expense category Employee2 purchased supplies for a holiday party and needs to be reimbursed. First Up Consultants requires the ability to reimburse employees in their paychecks for expenses incurred on personal cards. Expense categories and shared categories. When employees create an expense report, each expense that they record must be associated with an expense category. Expense categories are derived from shared categories that can be shared across the legal entities in your organization. These categories can also be shared in Project management and accounting, depending on the way that your organization is defined. Based on the definition of your organization and guidance from the implementation team, determine whether the categories that are used in Expense management will be used only in Expense management, or whether they should be shared between Project management and accounting and Expense management.
Box 2: Reconcile the expense through a credit card transaction import Import and maintain credit card transactions Expense-related credit card transactions can be set up so that they are automatically imported on a recurring schedule. Alternatively, the transactions can be manually imported as they are required. The credit card transactions are imported through the Credit card transactions data entity. Incorrect: * Configure the employee as a vendor * Reimburse the employee through the expense management workspace
A cable and interne t company implements Dynamics 365 Finance
The primary line of business for the company is internet services. The company also sells routers and modems to customers for an additional one-time cost.
You need to configure revenue recognition.
What should you configure?
A.
Create the router and modem sates to post to deferred revenue.
B.
Configure the internet service as essential
C.
Configure the internet service router, and modem as essential.
D.
Create a revenue schedule for the internet service, router, and modem
Correct Answer: B
Explanation
Explanation/Reference:
Essential The item is a primary source of an organization's revenue. This value is the default setting. Nonessential The item isn't a primary source of an organization's revenue. When the median price settings are used, the price is carved out' to the median price and then allocated.
Fourth Coffee is a coffee and supplies manufacturer based in Seattle. The company recently purchased CompanyA, based in the United States, and CompanyB, based in Canada, in order to increase production of their award-winning espresso machine and distribution of their dark roast coffee beans, respectively.
Fourth Coffee has set up CompanyA and CompanyB in their Dynamics 365 Finance environment to gain better visibility into the companies' profitability. CompanyA and CompanyB will continue to operate as subsidiaries of Fourth Coffee, but all operational companies will be consolidated under Fourth Coffee Holding Company in US dollars (USD) for reporting purposes.
The current organizational chart is shown below:
Current environment
Systemwide setup
1. Dynamics 365 Finance in Microsoft Azure is used to manage the supply chain, retail, and financials. 2. All companies share a Chart of Accounts. 3. Two dimensions are used: Department and Division. 4. Budgeting is controlled at the department level. 5. Customers and vendors are defined as two groups: Domestic and International. 6. Mandatory credit check is set to No.
7. Consolidate online is used for the consolidation of all companies. 8. International main accounts are subject to foreign currency revaluation. 9. The purchasing budget is used to enforce purchasing limits.
General ledger accounts
Fourth Coffee
1. The base currency is USD. 2. Three item groups are used: coffee, supplies, and nonstock. 3. The standard sales tax method is used. 4. Acquiring fixed assets requires a purchase order. 5. All customer payment journals require a deposit slip. 6. CustomerX is a taxable company. 7. CustomerY is a tax-exempt company. 8. CustomerZ is a taxable company. 9. VendorA is a Colombian supplier of coffee beans and belongs to the international vendor group. 10. VendorB is a Peruvian supplier of coffee machine filters and belongs to the international vendor group. 11. VendorC is a Texas supplier of espresso valves and belongs to the domestic vendor group.
CompanyA
1. The base currency is USD. 2. It consists of a marketing department and a digital division. 3. A 4-5-4 calendar structure is used. 4. The standard sales tax method is used.
CompanyB
1. The base currency is CAD. 2. The conditional sales tax method is used.
Requirements
Reporting
1. A consolidated Fourth Coffee financial report is required in USD currency. 2. Fourth Coffee and its subsidiaries need to be able to report sales by item type. 3. Year-end adjustments need to be reported separately in a different period to view financial reporting inclusive and exclusive of year-end adjustments.
Issues
1. User1 observes that a General journal was used in error to post to the Domestic Accounts Receivable trade account. 2. User2 has to repeatedly reclassify vendor invoice journals in Fourth Coffee Company that are posted to the marketing department and digital division. 3. When User3 posts an Accounts receivable payment journal, a deposit slip is not generated. 4. User4 observes an increase in procurement department expenses for supplies. 5. User5 observes that sales tax is not calculating on a sales order for CustomerZ. 6. User6 observes that sales tax is calculating for CustomerY. 7. User7 observes that the sales tax payment report is excluding posted invoice transactions. 8. User8 in CompanyA attempts to set up the sales tax receivable account on the sales tax posting form. 9. User9 in CompanyA needs to purchase three tablets by using a purchase order and record the devices as fixed assets. 10. CustomerX requires a credit check when making a purchase and is currently at their credit limit.
QUESTION 60
You need to configure settings to resolve User8's issue.
What should you select?
A.
a main account in the sales tax payable field
B.
a main account in the settlement account field
C.
the Conditional sales tax checkbox
D.
the Standard sales tax checkbox
Correct Answer: B
Explanation
Explanation/Reference:
"In the Settlement account field, select the main account that the net balance of the ledger accounts specified in the Use tax payable and Sales tax receivable fields will be posted." This means to set up only Sales tax receivable account is part of configuring, the whole resolve is to set the Settlement account field too.
You are configuring account structures and advanced rules in Dynamics 365 Finance.
All balance sheet accounts require Business Unit and Department dimensions.
The Shareholder distribution account requires an additional dimension for Principal.
You need to set up the account structures.
What are two possible ways to achieve the goalEach correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A.
Create a new main account for each of the company's principals. Then, create an account structure for all balance sheet accounts that includes the required dimension.
B.
Create a new main account for Shareholder distribution. Add an advanced rule for the Principal dimension.
C.
Create an account structure for all the balance sheet accounts. Set up an advanced rule for the Shareholder distribution account for the Principal dimension.
D.
Create an account structure for balance sheet accounts without Shareholder distribution. Then, create a second account structure for Shareholder distribution that includes all required dimensions.
A company uses Dynamics 365 Finance for budget control.
The company completes the budget control setup and activates the feature.
The budget register entries that were posted before turning on budget control are not included in the list of
entries.
You need to include the entries posted before budget control was activated.
What should you do?
A.
Deactivate budget control and set it up again
B.
Manually trigger a budget control check
C.
Update the balances for budget raiser entries that were excited.
D.
Use budget control data maintenance to reprocess the entries.
Correct Answer: D
QUESTION 63
DRAG DROP
A company is implementing Dynamics 365 Finance.
The company maintains two different bank accounts from the same bank.
You need to set up and generate positive pay for the bank accounts.
Which four actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Correct Answer:
Explanation
Explanation/Reference:
Step 1: Set up a transformation input format file for the bank. Set up a positive pay format Positive pay files are created by using data entities. Before you can generate a positive pay file, you must set up a transformation input format that will be used to translate the check information into a format that can communicate with the bank. On the Positive pay format page, you can create a file format identifier and a description. The transformation input format must be of the XML type.
Incorrect: * Set up a transformation input format file for each bank account.
Step 2: Set up the numbering sequence on the Cash and Bank management parameters page. Assign the positive pay format to a bank account For each bank account that you want to generate positive pay information for, you must assign the positive pay format that you specified in the previous section. On the Bank accounts page, select the positive pay format that corresponds to the bank account. In the Positive pay start date field, enter the first date to generate positive pay files. It's important that you enter a date in this field. Otherwise, the first positive pay file that you generate will include all checks that have ever been created for this bank account.
Step 3: Generate the positive pay file for the bank accounts. Generate a positive pay file for multiple bank accounts To generate a positive pay file for multiple bank accounts, use the Generate a positive pay file periodic task. Select the positive pay format for the file, and specify whether to generate the file for all legal entities or for a selected legal entity. You can also generate the positive pay file for all bank accounts that use the specified positive pay format or for a selected bank account.
Incorrect: * Generate the positive pay file for each bank account.
Step 4: Confirm a positive pay file Confirm a positive pay file After the checks that are listed in a positive pay file have been paid, you receive a confirmation number from your bank. You can then confirm the positive pay file. On the Positive pay file summary page, select a positive pay file that has a status of Created, and then select the Enter confirmation action. When you confirm a positive pay file, the confirmation number that you received from the bank is recorded.
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: 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 customer payment journal must only be available for selection by the accounts receivable user group.
You need to configure the accounts receivable journal name to meet the requirement.
Solution: Configure the journal control.
Does the solution meet the goal?
A.
Yes
B.
No
Correct Answer: B
Explanation
Explanation/Reference:
Approve a journal A member of the user group that was designated in the Journal names form can approve the journal.
Note: Approve a journal If journals are approved by a user other than the one who enters the journal lines, an approval system can be set up. The posting function will be unavailable until the approver has approved the journal. If the journal is rejected instead of approved, it cannot be posted.
A company uses Microsoft Dynamics 365 Finance. The company purchases, creates, and acquires fixed assets by using purchase orders.
The system must acquire the fixed asset when a vendor invoice is posted.
You need to process the transaction.
What should you do?
A.
Select a procurement category in a purchase order line and leave the fixed asset group blank.
B.
Manually create a fixed asset before the fixed asset number is added to the purchase order.
C.
Leave the fixed asset number blank on the purchase order.
D.
Run a fixed asset acquisition proposal before a fixed asset number can be added to a purchase order.
Correct Answer: B
Explanation
Explanation/Reference:
The following methods are available for integrating Fixed assets and Accounts payable, and you must use the same method for all fixed assets: * You manually create a fixed asset before you add the fixed asset number to the line on the purchase order or vendor invoice. No acquisition transaction is posted for the asset when you post the vendor invoice.
Note: Also - * You manually create a fixed asset before you add the fixed asset number to the line on the purchase order or vendor invoice. An acquisition transaction automatically is posted for the asset when you post the vendor invoice. This is the default method. * A fixed asset automatically is created when you post a product receipt or vendor invoice that has the Create a new fixed asset check box selected. An acquisition transaction automatically is posted for the asset when you post the vendor invoice. * A fixed asset automatically is created when you post a product receipt or vendor invoice that has the Create a new fixed asset check box selected. No acquisition transaction is posted for the asset when you post the vendor invoice. References: https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/acquire-assets-procurement
QUESTION 67
DRAG DROP
You are creating a budget for an organization.
The organization requires that allocations be performed automatically as part of budget planning.
You need to invoke allocations at a specific budget planning stage.
Which three actions should you perform in sequenceTo answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
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 for their accounts payable processing.
The company requires additional approvals for any new vendor invoice within the first 12 months.
You need to set up the system to add additional approvals to the new vendor invoice.
Solution: Enable invoice matching validation should be set to yes. Post invoices with discrepancies should be set to allow with warning. Add a vendor invoice policy for the new vendor invoice to be reviewed.
Does the solution meet the goal?
A.
Yes
B.
No
Correct Answer: B
Case Study 6
Case Study Questions
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
1. Adventure Works Cycles tracks its international vendors in a separate payable account from its domestic vendors. 2. Only bicycle frame inventory is configured with a separate item model group that requires registration. 3. A thirteenth month is required for year-end transactions. 4. Only members from the accounts payable team are able to post transactions to a prior period after the period is closed to the company. 5. 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. 6. Adventure Works Cycles frequently receives invoices in foreign currencies.
Requirements
1. Three-way matching is required only on competition bicycles priced over USD3,000 that are purchased from Fabrikam, Inc., in Europe. 2. Domestic customers and international customers must be managed in the following ways:
- Domestic customer receivables must post to account 1200. - International customer receivables must post to account 1201. - Domestic customers must have a payment term of net 30. - International customers must have a payment term of net 15. - Domestic customer revenue must post to account 4000. - International customer revenue must post to account 4001. 3. Adventure Works Cycles must be able to use the cash flow forecasting capability in Finance. 4. The system must enable tracking and charging interest for customer accounts that are not current. 5. Automatic charges must be configured on vendor invoices for bicycle tires. The cost must be added to each item on the vendor invoice. 6. Adventure Works Cycles must be able to terminate leases for bicycles at any time. 7. Adventure Works Cycles must be able to closely track its budget by enforcing the budget at the cost center level. 8. 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
1. 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. 2. 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. 3. The accounts payable manager observes that a sales order is posted to the prior period that is closed. 4. During foreign currency revaluation of the Accounts payable subledger, posting occurred only if the result was a loss. 5. On a vendor invoice for bicycle tires, the automatic charge is charged as an expense. 6. 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. 7. The accounts payable clerk is unable to review payments that have not been settled on the Vendor aging report.
QUESTION 69
HOTSPOT
You need to recommend which default behavior the clerk should use to resolve the line quantity issue.
Which invoicing default behavior should you recommend?
To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Correct Answer:
Explanation
Explanation/Reference:
Box 1: Ordered quantity Bicycle frame
Scenario: 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
Box 2: Registered quantity and services Helmet
Note: Ordered quantity: The value of the purchase quantity specified in the purchase order line.
Registered quantity: The value of the quantity the you physically registered through registration or item arrival.
Receive now quantity : the value is from the Receive now field on the purchase order.
Registered quantity and services : The value of the quantity the you physically registered through registration or item arrival. + The value of the lines related categories
Product receipt quantity: Used while invoicing only to retrieve the quantity specified in the product receipt.
Note 2: Product receipt Most often, the Product receipt action on the Purchase orders page is used to mark products as Received on the PO. The Posting product receipt page has various options for the quantity that is accounted as received. For example, you can set the Quantity field to Ordered quantity or Receive now quantity. Alternatively, if a warehouse arrival process has been used, you'll often set this field to Registered quantity. You can modify the quantities on each order line that will be marked as Received, to account for any discrepancies, such as under-delivery and over-delivery. During product receipt, you must specify a product receipt identifier, which is typically a reference to the packing slip from the supplier. This identifier is required for accounting, because it enables checks or audits of supplier packing slips against what has been received, and the accounted inventory or expense
You must track freight charges. Freight amounts must be included in the vendor invoice amount and the expense recorded in a ledger account defined for Freight.
You need to configure the Accounts payable charges.
How should you set up the chargesTo answer, drag the appropriate posting type to the correct account type. Each posting type may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Correct Answer:
Explanation
Explanation/Reference:
Box 1: Item Two configurations for Accounts payable charges codes on the Charges code page (Accounts payable > Charges setup > Charges code) can cause a purchase order to affect the valuation of inventory assets: For charges codes where the Debit type field is set to Item and the Credit type field is set to Ledger account, the ledger account that is selected as the absorption account acts as a stock variation account. For charges codes where the Debit type field is set to Item and the Credit type field is set to Customer/ Vendor, the charge will be accounted as material cost, and the stock variation account of the item will be used. European special accounting rule
Alpine Ski House has three partially owned franchises and 10 fully owned resorts throughout the United States and Canada. Alpine Ski House's percentage ownership of the franchises is between two and 10 percent.
Alpine Ski House is undergoing an implementation of Dynamics 365 Finance and Dynamics 365 Supply Chain Management to transform their financial management and logistics capabilities across the franchises. Implementation is complete for Alpine Ski House's corporate offices, two US franchises, and one Canadian franchise. The remaining franchises are in varying stages of the implementation. Two new resort projects are in the budget planning stages and will open in the next fiscal year.
Current environment
Organization and general ledger
1. Each franchise is set up as a legal entity in Dynamics 365 Finance. 2. Alpine Ski House Corporate uses financial dimensions for their fully owned resorts. 3. Each resort is a financial dimension named resort. 4. Each fully owned resort has two divisions: marketing and operations. 5. Only Profit and Loss account postings require the division dimension. 6. Corporate handles the advertising and administration of the fully owned resorts. 7. Corporate uses Dynamics 365 Project Management and Accounting to manage construction of new resorts.
Budgeting
1. Organizational budgeting is decentralized but rolls up to one organizational corporate budget. 2. Each resort manager performs budgeting in Dynamics 365 Finance. 3. Budget preparation begins this month. All operational resorts will submit their budgets in two weeks.
Sales and tax
1. Sales tax is configured and used by all resorts that operate in the United States. 2. You configure one US sales tax vendor account and assign the vendor account to the settlement periods for reporting. 3. You use accounts receivable charges to track donations.
Existing purchasing contracts
1. Each franchise resort has an individual contract with a local supplier of their choosing to purchase at least $10,000 worth of suppliers during the calendar year. 2. The franchise resorts in one US state receive a two percent discount on meat and vegetable purchases in excess of $8,000 per year. 3. A franchise resort in Utah has agreed to purchase 1,000 units of beef at market price from a local supplier. 4. Alpine Ski House uses a vendor collaboration portal to track purchase orders and requests for quotes. 5. Vendors request access to the vendor collaboration portal by using a workflow which runs on a nightly schedule.
Intercompany setup
Vendor123 resides in US franchise Company1 and is set up for intercompany transactions. Customer345 resides in Canada franchise Company1 and is set up for intercompany transactions.
Requirements
Franchises
1. Each franchise must pay two percent of monthly sales to Alpine Ski House Corporate. 2. Each franchise must report their own financials to Alpine Ski House Corporate monthly. 3. US franchises require a three-way-match on all purchases, with a 1-percent price tolerance. 4. Canadian franchises require a three-way-match on all purchases except paper products, which have a 10-percent price tolerance.
Corporate
1. Advertising costs must be balanced across the 10 resorts monthly. These costs must be split across the 12 resorts once construction of the final two resorts is completed. 2. Administration costs must be split across the 10 resorts proportional to the amount of sales generated. 3. One percent of all pack and individual ski pass sales must be donated quarterly to an environmental protection organization. 4. The finance department must be able to see purchasing contracts and discounts for vendors based on volume spend.
Employees
All employee expense reports that contain the word entertainment must be reviewed for the audit purposes. If a journal is posted incorrectly, the entire journal and not just the incorrect line must be fully reversed for audit purposes.
Resorts
All resorts must use Dynamics 365 Finance for budgeting and must first be approved by the regional manager. Purchased fixed assets must automatically be acquired at product receipt.
Issues
1. User1 reports that irrelevant dimensions display in the drop down when entering a General journal. 2. User2 reports that dimension 00 is being used for all balance sheet accounts. 3. User3 tries to generate the quarterly sales tax liability payment for a specific state but does not see any payables available for that state's vendor. 4. User4 receives a call from a vendor who cannot access the vendor collaboration portal but needs immediate access. 5. User5 notices a large amount of entertainment expenses being posted without an audit review. 6. User6 needs to have visibility into the increase in budget that is necessary to staff the two new resorts opening next year.
7. User7 needs to use Dynamics 365 Finance for situational budgeting planning with the ability to increase and decrease the existing plans by certain percentages. 8. User8 made a mistake while posting a 1,000-line journal and reverses the entire journal but cannot find the lines that included errors during the reversal. 9. User9 made a mistake while posting a 55-line journal and reverses the entire journal. 10. User10 realizes that the purchase of five new computers did not acquire five new fixed assets upon receipt.
QUESTION 71
You need to adjust the sales tax configuration to resolve the issue for User3.
What should you do?
A.
Create multiple settlement periods and assign them to the US tax vendor.
B.
Create multiple sales tax remittance vendors and assign them to the settlement period.
C.
Run the payment proposal to generate the sales tax liability payments.
D.
Create a state-specific settlement period and assign the US tax vendor to the settlement period.
