MB-310: Microsoft Dynamics 365 Finance Functional Consultant

Question #: 101
Topic #: 3
Case study –
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study –
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background –
First Up Consultants is a global engineering and consulting organization based in Atlanta. The organization assists customers with various implementation projects. The organization provides both consulting services and custom software development.
First Up Consultants was recently acquired by a Canadian engineering firm that uses Dynamics 365 Finance. The firm requires First Up Consultants to transition to the solution by 2022.
First Up Consultants employs consultants that travel globally, which requires extensive expense management capabilities. First Up Consultants offers software as a service (SaaS) products to customers by using monthly and quarterly subscriptions.
Current environment. Travel and expense
The company is currently in Phase 2 of their Dynamics 365 Finance implementation.
• Consultants submit all travel receipts by using inter-office mail to the team admin for processing, but First Up Consultants wants to modernize this experience.
• Expense reports are manually approved and signed by the employee’s manager.
Current environment. Finance –
• First Up Consultants operates on a 4-5-4 calendar.
• Accounting for revenue has been difficult with the SaaS offerings. This has led to implementing Dynamics 365 Finance Revenue recognition.
• Revenue recognition has been live for 3 months.
• Adatum Corporation pays quarterly for use of the First Up Consultants web design application, starting from the day of use.
• Fourth Coffee pays monthly for use of the First Up Consultants photograph editing application with a contract starting August 1 and payment starting September 1.
• Adventure Works Cycles pays per use of the First Up Consultant video platform.
• A blocking rule is set up to prevent a sales order from processing if a customer exceeds a credit limit.
• Customer credit is set up at the account level for VanArsdel, Ltd.
• Tailspin Toys is owned by Wingtip Toys. The companies have a credit limit of $60.000 and $100,000, respectively.
Current environment. Revenue allocation
The company reports the following revenue allocation percentages:

Current environment. Tax –
VAT tax recovery is required for eligible international business trip expenses. Bank reconciliation is manual and performed by using monthly mailed account statements.
The company collects sales taxes from the following states:

Requirements –
Travel and expense –
• First Up Consultants requires that employees start using corporate cards for all travel expenses.
• All expenses over $50 require a receipt.
• Beer cannot be expensed.
• Employees may use the corporate card for personal expenses during work travel, but expenses must be categorized correctly.
• Client entertainment expenses totaling more than $250 must be audited.
• Employees require a mobile expense experience.
• Expense report entries must be validated when a transaction line is entered.
• Employees require the ability to capture receipts by using a mobile device.
• First Up Consultants requires the ability to reimburse employees in their paychecks for expenses incurred on personal cards.
Financials –
• A virtual thirteenth month is required for year-end transactions.
• Each day, a validation file must go to First Up Consultants bank detailing all vendor checks paid.
• Except fees, all matched transactions must clear automatically during bank reconciliation.
• The accounts payable team must verify expense reports prior to posting.
• Only payables are allowed to be posted to a prior period up to seven days into the new period.
Issues –
• User1 installed the Expense Management Service add-in and implemented the auto-match and create expense from receipt features, but the receipt images do not match the corporate card transactions.
• Employee1 submits an expense report for a business trip to Europe, but the report is not visible on the expense tax recovery page.
• Employees provided feedback that the system lets them know of an expense report policy violation only after the entire expense report is submitted.
• Members of the finance department observe sales orders that posted into a closed period.
• The finance team observed that for sales order invoice 1234, the price incorrectly posts to a revenue account when it should be deferring.
• Employee2 purchased supplies for a holiday party and needs to be reimbursed.
• A customer orders software licenses for the offices in Tennessee and Alabama.
• Expense reports for unapproved items are posting.
• VanArsdel, Ltd. exceeded its credit limit but the sales order was processed.
• Tailspin Toys purchases $70,000 in custom software development.
You need to address the employees issue regarding expense report policy violations.
Which parameter should you use?

A. Validate expense purpose
B. Evaluate expense management policies
C. Policy rule type
D. Pre-authorization of travel is mandatory

Selected Answer: B
———————————————————————-

Question #: 102
Topic #: 1
You are a Dynamics 365 Finance consultant.
You are currently unable to collaborate or track progress toward month-end close across legal entities in the current system.
You need to resolve the issue.
What should you configure?

A. Financial reporting
B. Financial insights workspace
C. Electronic reporting
D. Financial period close workspace

Selected Answer: D
———————————————————————-

Question #: 103
Topic #: 2
A company uses Microsoft Dynamics 365 Finance to manage customer support contracts.
You need to validate a revenue recognition schedule for a customer.
In which two pages can you view the revenue recognition schedule? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point

A. the revenue schedules details
B. an invoiced sales order
C. the revenue schedules
D. an invoiced purchase order
E. the revenue recognition schedule

Selected Answer: BE
———————————————————————-

Question #: 104
Topic #: 5
HOTSPOT
–
A company uses basic budgeting functionality in Dynamics 365 Finance.
The company requires an approval process for budget register entries. The company wants to add fixed asset depreciation expenses to its budget register entry. The depreciation expense must be automatically calculated.
You need to configure the necessary components in the system.
Which components should you configure?
To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

No answers

Selected Answer: A
———————————————————————-

Question #: 105
Topic #: 4
You configure the basic budgeting functionality of Dynamics 365 Finance. You add budget values and actuals in the system.
You need to compare the budget values with the actual values.
Which three actions should you perform?
Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Compare customer and vendor balances and budget register entries that are posted in the system.
B. Review budget and actual amounts that are spread across fiscal periods.
C. Generate a report on the differences between the actual fixed assets amounts and the preliminary budgeted amounts in the system.
D. Review general ledger transactions that are included in the calculated actuals amounts.
E. Drill through the details of the budget amount in budget register entries posted in the system.

Selected Answer: BDE
———————————————————————-

Question #: 106
Topic #: 3
Case study –
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study –
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background –
First Up Consultants is a global engineering and consulting organization based in Atlanta. The organization assists customers with various implementation projects. The organization provides both consulting services and custom software development.
First Up Consultants was recently acquired by a Canadian engineering firm that uses Dynamics 365 Finance. The firm requires First Up Consultants to transition to the solution by 2022.
First Up Consultants employs consultants that travel globally, which requires extensive expense management capabilities. First Up Consultants offers software as a service (SaaS) products to customers by using monthly and quarterly subscriptions.
Current environment. Travel and expense
The company is currently in Phase 2 of their Dynamics 365 Finance implementation.
• Consultants submit all travel receipts by using inter-office mail to the team admin for processing, but First Up Consultants wants to modernize this experience.
• Expense reports are manually approved and signed by the employee’s manager.
Current environment. Finance –
• First Up Consultants operates on a 4-5-4 calendar.
• Accounting for revenue has been difficult with the SaaS offerings. This has led to implementing Dynamics 365 Finance Revenue recognition.
• Revenue recognition has been live for 3 months.
• Adatum Corporation pays quarterly for use of the First Up Consultants web design application, starting from the day of use.
• Fourth Coffee pays monthly for use of the First Up Consultants photograph editing application with a contract starting August 1 and payment starting September 1.
• Adventure Works Cycles pays per use of the First Up Consultant video platform.
• A blocking rule is set up to prevent a sales order from processing if a customer exceeds a credit limit.
• Customer credit is set up at the account level for VanArsdel, Ltd.
• Tailspin Toys is owned by Wingtip Toys. The companies have a credit limit of $60.000 and $100,000, respectively.
Current environment. Revenue allocation
The company reports the following revenue allocation percentages:

Current environment. Tax –
VAT tax recovery is required for eligible international business trip expenses. Bank reconciliation is manual and performed by using monthly mailed account statements.
The company collects sales taxes from the following states:

Requirements –
Travel and expense –
• First Up Consultants requires that employees start using corporate cards for all travel expenses.
• All expenses over $50 require a receipt.
• Beer cannot be expensed.
• Employees may use the corporate card for personal expenses during work travel, but expenses must be categorized correctly.
• Client entertainment expenses totaling more than $250 must be audited.
• Employees require a mobile expense experience.
• Expense report entries must be validated when a transaction line is entered.
• Employees require the ability to capture receipts by using a mobile device.
• First Up Consultants requires the ability to reimburse employees in their paychecks for expenses incurred on personal cards.
Financials –
• A virtual thirteenth month is required for year-end transactions.
• Each day, a validation file must go to First Up Consultants bank detailing all vendor checks paid.
• Except fees, all matched transactions must clear automatically during bank reconciliation.
• The accounts payable team must verify expense reports prior to posting.
• Only payables are allowed to be posted to a prior period up to seven days into the new period.
Issues –
• User1 installed the Expense Management Service add-in and implemented the auto-match and create expense from receipt features, but the receipt images do not match the corporate card transactions.
• Employee1 submits an expense report for a business trip to Europe, but the report is not visible on the expense tax recovery page.
• Employees provided feedback that the system lets them know of an expense report policy violation only after the entire expense report is submitted.
• Members of the finance department observe sales orders that posted into a closed period.
• The finance team observed that for sales order invoice 1234, the price incorrectly posts to a revenue account when it should be deferring.
• Employee2 purchased supplies for a holiday party and needs to be reimbursed.
• A customer orders software licenses for the offices in Tennessee and Alabama.
• Expense reports for unapproved items are posting.
• VanArsdel, Ltd. exceeded its credit limit but the sales order was processed.
• Tailspin Toys purchases $70,000 in custom software development.
You need to address the employees issue regarding expense report policy violations.
Which parameter should you use?

A. Validate expense purpose
B. Evaluate expense management policies
C. Policy rule type
D. Pre-authorization of travel is mandatory

Selected Answer: B
———————————————————————-

Question #: 107
Topic #: 1
You are a Dynamics 365 Finance consultant.
You are currently unable to collaborate or track progress toward month-end close across legal entities in the current system.
You need to resolve the issue.
What should you configure?

A. Financial reporting
B. Financial insights workspace
C. Electronic reporting
D. Financial period close workspace

Selected Answer: D
———————————————————————-

Question #: 108
Topic #: 2
A company uses Microsoft Dynamics 365 Finance to manage customer support contracts.
You need to validate a revenue recognition schedule for a customer.
In which two pages can you view the revenue recognition schedule? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point

A. the revenue schedules details
B. an invoiced sales order
C. the revenue schedules
D. an invoiced purchase order
E. the revenue recognition schedule

Selected Answer: BE
———————————————————————-

Question #: 109
Topic #: 4
DRAG DROP
–
A company uses basic budgeting functionality in Dynamics 365 Finance.
A budget manager plans to review and approve budget register entries in the system.
You need to set up approval workflows.
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.

No answers

Selected Answer: B
———————————————————————-

Question #: 110
Topic #: 5
Case study –
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study –
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background –
Tailspin Toys is a toy manufacturing company that sells to distributors and customers through a business-to-consumer website. Tailspin Toys has been using custom-developed software for their accounting and supply chain management needs.
Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States. Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization.
Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes.
Current environment –
Vendors –
• Tailspin Toys works with local and foreign vendors.
• The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys.
• The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts.
• For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week.
• Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year.
• Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses.
• The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account.
• The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors.
Reporting –
• Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements.
Budget planning –
• The finance department oversees all budget planning.
• The finance department estimates the baseline for all budgets and distributes them to the respective departments.
• Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly.
Expenses –
Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown.

Asset leasing –
Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments.
Requirements –
Consolidation –
• Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys’ leadership.
• Consolidated results are needed in multiple reporting currencies.
Expenses –
• Utility bills must be allocated to allow each department to expense the correct amount.
Reports –
• Leadership requires financial reports to come to their inbox automatically as one at the end of every month.
Vendors –
• The system must show accounts payable liability by type of vendor similar to how it works in the current system.
• The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments.
• The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined.
Budgets –
• A new organizational hierarchy is required for budget planning purposes.
• Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget.
Asset leasing –
• The CFO must automatically process payments and journal entries for the leased properties.
• Management must view payment forecasts based on leased assets.
Issues –
Accounts payable issues –
• Vendor liability information for local and foreign vendors is not separated in the system.
• The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program.
• The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing.
• The accounts payable manager must automate the current process of vendor payment proposals.
Other issues –
• The differences resulting from consolidating subsidiaries with foreign currencies are not considered.
• User A confirmed they did not receive an alert before running out of their budget.
• Expense reports for the manufacturing and sales departments do not contain utility bill expenses.
• The accounting manager reported that there is no batch journal created for the monthly lease expenses.
You need to report on forecasted lease payments.
Which asset leasing report should you use?

A. Five-years undiscounted payment forecast
B. GAAP cash flows
C. Asset movement
D. Lease balances forecast

Selected Answer: A
———————————————————————-

Question #: 111
Topic #: 3
HOTSPOT
–
Case study
–
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study
–
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background
–
First Up Consultants is a global engineering and consulting organization based in Atlanta. The organization assists customers with various implementation projects. The organization provides both consulting services and custom software development.
First Up Consultants was recently acquired by a Canadian engineering firm that uses Dynamics 365 Finance. The firm requires First Up Consultants to transition to the solution by 2022.
First Up Consultants employs consultants that travel globally, which requires extensive expense management capabilities. First Up Consultants offers software as a service (SaaS) products to customers by using monthly and quarterly subscriptions.
Current environment. Travel and expense
The company is currently in Phase 2 of their Dynamics 365 Finance implementation.
• Consultants submit all travel receipts by using inter-office mail to the team admin for processing, but First Up Consultants wants to modernize this experience.
• Expense reports are manually approved and signed by the employee’s manager.
Current environment. Finance
–
• First Up Consultants operates on a 4-5-4 calendar.
• Accounting for revenue has been difficult with the SaaS offerings. This has led to implementing Dynamics 365 Finance Revenue recognition.
• Revenue recognition has been live for 3 months.
• Adatum Corporation pays quarterly for use of the First Up Consultants web design application, starting from the day of use.
• Fourth Coffee pays monthly for use of the First Up Consultants photograph editing application with a contract starting August 1 and payment starting September 1.
• Adventure Works Cycles pays per use of the First Up Consultant video platform.
• A blocking rule is set up to prevent a sales order from processing if a customer exceeds a credit limit.
• Customer credit is set up at the account level for VanArsdel, Ltd.
• Tailspin Toys is owned by Wingtip Toys. The companies have a credit limit of $60.000 and $100,000, respectively.
Current environment. Revenue allocation
The company reports the following revenue allocation percentages:

Current environment. Tax
–
VAT tax recovery is required for eligible international business trip expenses. Bank reconciliation is manual and performed by using monthly mailed account statements.
The company collects sales taxes from the following states:

Requirements
–
Travel and expense
–
• First Up Consultants requires that employees start using corporate cards for all travel expenses.
• All expenses over $50 require a receipt.
• Beer cannot be expensed.
• Employees may use the corporate card for personal expenses during work travel, but expenses must be categorized correctly.
• Client entertainment expenses totaling more than $250 must be audited.
• Employees require a mobile expense experience.
• Expense report entries must be validated when a transaction line is entered.
• Employees require the ability to capture receipts by using a mobile device.
• First Up Consultants requires the ability to reimburse employees in their paychecks for expenses incurred on personal cards.
Financials
–
• A virtual thirteenth month is required for year-end transactions.
• Each day, a validation file must go to First Up Consultants bank detailing all vendor checks paid.
• Except fees, all matched transactions must clear automatically during bank reconciliation.
• The accounts payable team must verify expense reports prior to posting.
• Only payables are allowed to be posted to a prior period up to seven days into the new period.
Issues
–
• User1 installed the Expense Management Service add-in and implemented the auto-match and create expense from receipt features, but the receipt images do not match the corporate card transactions.
• Employee1 submits an expense report for a business trip to Europe, but the report is not visible on the expense tax recovery page.
• Employees provided feedback that the system lets them know of an expense report policy violation only after the entire expense report is submitted.
• Members of the finance department observe sales orders that posted into a closed period.
• The finance team observed that for sales order invoice 1234, the price incorrectly posts to a revenue account when it should be deferring.
• Employee2 purchased supplies for a holiday party and needs to be reimbursed.
• A customer orders software licenses for the offices in Tennessee and Alabama.
• Expense reports for unapproved items are posting.
• VanArsdel, Ltd. exceeded its credit limit but the sales order was processed.
• Tailspin Toys purchases $70,000 in custom software development.
You need to prevent prohibited expenses from posting.
Which configurations should you use? To answer, select the appropriate options in the answer area
NOTE: Each correct selection is worth one point.

No answers

Selected Answer: B
———————————————————————-

Question #: 112
Topic #: 2
A company manufactures and installs air filtering units for industrial manufacturing plants.
The air filtering units are manufactured to order. The company realized the value of the sales in the following manner:
• 25 percent at the time of the sale
• 50 percent when the unit is shipped
• 25 percent when the unit is installed
Additionally, a three-year warranty is sold with each unit. Revenue for the warranty is recognized equally in each year the warranty covers.
You need to configure revenue recognition.
What should you do?

A. Create one revenue schedule with milestones.
B. Create a new revenue schedule for each unit.
C. Create a reallocation posting for the warranty revenue.
D. Create the revenue schedule so that it uses the contract terms.

Selected Answer: C
———————————————————————-

Question #: 113
Topic #: 1
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 accomplish? Each 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.

Selected Answer: ABE
———————————————————————-

Question #: 114
Topic #: 4
DRAG DROP
–
A company uses basic budgeting functionality in Dynamics 365 Finance.
A budget manager plans to review and approve budget register entries in the system.
You need to set up approval workflows.
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.

No answers

Selected Answer: D
———————————————————————-

Question #: 115
Topic #: 5
Case study –
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study –
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background –
Tailspin Toys is a toy manufacturing company that sells to distributors and customers through a business-to-consumer website. Tailspin Toys has been using custom-developed software for their accounting and supply chain management needs.
Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States. Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization.
Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes.
Current environment –
Vendors –
• Tailspin Toys works with local and foreign vendors.
• The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys.
• The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts.
• For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week.
• Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year.
• Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses.
• The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account.
• The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors.
Reporting –
• Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements.
Budget planning –
• The finance department oversees all budget planning.
• The finance department estimates the baseline for all budgets and distributes them to the respective departments.
• Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly.
Expenses –
Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown.

Asset leasing –
Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments.
Requirements –
Consolidation –
• Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys’ leadership.
• Consolidated results are needed in multiple reporting currencies.
Expenses –
• Utility bills must be allocated to allow each department to expense the correct amount.
Reports –
• Leadership requires financial reports to come to their inbox automatically as one at the end of every month.
Vendors –
• The system must show accounts payable liability by type of vendor similar to how it works in the current system.
• The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments.
• The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined.
Budgets –
• A new organizational hierarchy is required for budget planning purposes.
• Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget.
Asset leasing –
• The CFO must automatically process payments and journal entries for the leased properties.
• Management must view payment forecasts based on leased assets.
Issues –
Accounts payable issues –
• Vendor liability information for local and foreign vendors is not separated in the system.
• The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program.
• The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing.
• The accounts payable manager must automate the current process of vendor payment proposals.
Other issues –
• The differences resulting from consolidating subsidiaries with foreign currencies are not considered.
• User A confirmed they did not receive an alert before running out of their budget.
• Expense reports for the manufacturing and sales departments do not contain utility bill expenses.
• The accounting manager reported that there is no batch journal created for the monthly lease expenses.
You need to report on forecasted lease payments.
Which asset leasing report should you use?

A. Five-years undiscounted payment forecast
B. GAAP cash flows
C. Asset movement
D. Lease balances forecast

Selected Answer: A
———————————————————————-

Question #: 116
Topic #: 3
HOTSPOT
–
Case study
–
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study
–
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background
–
First Up Consultants is a global engineering and consulting organization based in Atlanta. The organization assists customers with various implementation projects. The organization provides both consulting services and custom software development.
First Up Consultants was recently acquired by a Canadian engineering firm that uses Dynamics 365 Finance. The firm requires First Up Consultants to transition to the solution by 2022.
First Up Consultants employs consultants that travel globally, which requires extensive expense management capabilities. First Up Consultants offers software as a service (SaaS) products to customers by using monthly and quarterly subscriptions.
Current environment. Travel and expense
The company is currently in Phase 2 of their Dynamics 365 Finance implementation.
• Consultants submit all travel receipts by using inter-office mail to the team admin for processing, but First Up Consultants wants to modernize this experience.
• Expense reports are manually approved and signed by the employee’s manager.
Current environment. Finance
–
• First Up Consultants operates on a 4-5-4 calendar.
• Accounting for revenue has been difficult with the SaaS offerings. This has led to implementing Dynamics 365 Finance Revenue recognition.
• Revenue recognition has been live for 3 months.
• Adatum Corporation pays quarterly for use of the First Up Consultants web design application, starting from the day of use.
• Fourth Coffee pays monthly for use of the First Up Consultants photograph editing application with a contract starting August 1 and payment starting September 1.
• Adventure Works Cycles pays per use of the First Up Consultant video platform.
• A blocking rule is set up to prevent a sales order from processing if a customer exceeds a credit limit.
• Customer credit is set up at the account level for VanArsdel, Ltd.
• Tailspin Toys is owned by Wingtip Toys. The companies have a credit limit of $60.000 and $100,000, respectively.
Current environment. Revenue allocation
The company reports the following revenue allocation percentages:

Current environment. Tax
–
VAT tax recovery is required for eligible international business trip expenses. Bank reconciliation is manual and performed by using monthly mailed account statements.
The company collects sales taxes from the following states:

Requirements
–
Travel and expense
–
• First Up Consultants requires that employees start using corporate cards for all travel expenses.
• All expenses over $50 require a receipt.
• Beer cannot be expensed.
• Employees may use the corporate card for personal expenses during work travel, but expenses must be categorized correctly.
• Client entertainment expenses totaling more than $250 must be audited.
• Employees require a mobile expense experience.
• Expense report entries must be validated when a transaction line is entered.
• Employees require the ability to capture receipts by using a mobile device.
• First Up Consultants requires the ability to reimburse employees in their paychecks for expenses incurred on personal cards.
Financials
–
• A virtual thirteenth month is required for year-end transactions.
• Each day, a validation file must go to First Up Consultants bank detailing all vendor checks paid.
• Except fees, all matched transactions must clear automatically during bank reconciliation.
• The accounts payable team must verify expense reports prior to posting.
• Only payables are allowed to be posted to a prior period up to seven days into the new period.
Issues
–
• User1 installed the Expense Management Service add-in and implemented the auto-match and create expense from receipt features, but the receipt images do not match the corporate card transactions.
• Employee1 submits an expense report for a business trip to Europe, but the report is not visible on the expense tax recovery page.
• Employees provided feedback that the system lets them know of an expense report policy violation only after the entire expense report is submitted.
• Members of the finance department observe sales orders that posted into a closed period.
• The finance team observed that for sales order invoice 1234, the price incorrectly posts to a revenue account when it should be deferring.
• Employee2 purchased supplies for a holiday party and needs to be reimbursed.
• A customer orders software licenses for the offices in Tennessee and Alabama.
• Expense reports for unapproved items are posting.
• VanArsdel, Ltd. exceeded its credit limit but the sales order was processed.
• Tailspin Toys purchases $70,000 in custom software development.
You need to prevent prohibited expenses from posting.
Which configurations should you use? To answer, select the appropriate options in the answer area
NOTE: Each correct selection is worth one point.

No answers

Selected Answer: A
———————————————————————-

Question #: 117
Topic #: 2
A company manufactures and installs air filtering units for industrial manufacturing plants.
The air filtering units are manufactured to order. The company realized the value of the sales in the following manner:
• 25 percent at the time of the sale
• 50 percent when the unit is shipped
• 25 percent when the unit is installed
Additionally, a three-year warranty is sold with each unit. Revenue for the warranty is recognized equally in each year the warranty covers.
You need to configure revenue recognition.
What should you do?

A. Create one revenue schedule with milestones.
B. Create a new revenue schedule for each unit.
C. Create a reallocation posting for the warranty revenue.
D. Create the revenue schedule so that it uses the contract terms.

Selected Answer: C
———————————————————————-

Question #: 118
Topic #: 1
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 accomplish? Each 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.

Selected Answer: ABE
———————————————————————-

Question #: 119
Topic #: 5
DRAG DROP
–
A company uses Dynamics 365 Finance. The company adheres to United States Generally Accepted Accounting Principles (US GAAP).
You need to create a lease liability amortization transaction for an operating lease.
How should you complete the transaction?
To answer, move the appropriate main accounts to the correct accounting transaction types. You may use each main account once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.

No answers

Selected Answer: C
———————————————————————-

Question #: 120
Topic #: 3
You are configuring vendor collaboration security roles for external vendors. You manually set up a vendor contact.
You need to assign the Vendor (external) role to this vendor.
Which task can this vendor perform?

A. Delete any contact person that they have created.
B. Activate or inactivate the association between a contact person and a vendor account.
C. Add a new or existing contact person to the vendor accounts that they are a contact for.
D. View consignment inventory.

Selected Answer: D
———————————————————————-

Question #: 121
Topic #: 4
A company uses Dynamics 365 Finance.
The company has decided to implement basic budgeting to track budgeted versus actual amounts.
You need to configure the system to track and identify budget transactions and set up controls on budget balance updates.
What should you define?

A. Budget cycle time span
B. Budget threshold
C. Budget transfer rules
D. Budget plan

Selected Answer: A
———————————————————————-

Question #: 122
Topic #: 1
You are a finance consultant. Your client needs you to configure cash flow forecasting.
The client wants specific percentages of main accounts to contribute to different cash flow forecasts for other main accounts.
You need to configure Dynamics 365 for Finance to meet the needs of the client.
What should you do?

A. On the Cash flow forecasting setup form, configure the primary main account to assign a percentage to the dependent account.
B. Configure the parent/child relationship for the main account and subaccounts by using appropriate percentages.
C. Configure the cash flow forecasting setup for Accounts Payable before you configure vendor posting profiles.
D. On the Cash flow forecasting setup form, use the Dependent Accounts setup to specify which account and percentage is associated to the main account.

Selected Answer: B
———————————————————————-

Question #: 123
Topic #: 2
You are configuring revenue recognition reallocation processing in Microsoft Dynamics 365 Finance.
You must recalculate revenue prices when the contract terms for a sale change.
What are three characteristics of the revenue recognition reallocation process? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point

A. The revenue recognition reallocation process cannot be run on project sales orders.
B. The revenue recognition reallocation process can be reversed after it is run.
C. You can run the revenue recognition reallocation process multiple times.
D. It multiple sales orders are involved, all sales orders must be for the same customer account.
E. The revenue recognition reallocation process can be run for sales orders with different transaction currencies.
F. The revenue recognition reallocation process can only be run one time. All changes must be finalized.

Selected Answer: A
———————————————————————-

Question #: 124
Topic #: 5
DRAG DROP
–
A company uses Dynamics 365 Finance. The company adheres to United States Generally Accepted Accounting Principles (US GAAP).
You need to create a lease liability amortization transaction for an operating lease.
How should you complete the transaction?
To answer, move the appropriate main accounts to the correct accounting transaction types. You may use each main account once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.

No answers

Selected Answer: D
———————————————————————-

Question #: 125
Topic #: 3
You are configuring vendor collaboration security roles for external vendors. You manually set up a vendor contact.
You need to assign the Vendor (external) role to this vendor.
Which task can this vendor perform?

A. Delete any contact person that they have created.
B. Activate or inactivate the association between a contact person and a vendor account.
C. Add a new or existing contact person to the vendor accounts that they are a contact for.
D. View consignment inventory.

Selected Answer: D
———————————————————————-

Question #: 126
Topic #: 4
A company uses Dynamics 365 Finance.
The company has decided to implement basic budgeting to track budgeted versus actual amounts.
You need to configure the system to track and identify budget transactions and set up controls on budget balance updates.
What should you define?

A. Budget cycle time span
B. Budget threshold
C. Budget transfer rules
D. Budget plan

Selected Answer: A
———————————————————————-

Question #: 127
Topic #: 1
You are a finance consultant. Your client needs you to configure cash flow forecasting.
The client wants specific percentages of main accounts to contribute to different cash flow forecasts for other main accounts.
You need to configure Dynamics 365 for Finance to meet the needs of the client.
What should you do?

A. On the Cash flow forecasting setup form, configure the primary main account to assign a percentage to the dependent account.
B. Configure the parent/child relationship for the main account and subaccounts by using appropriate percentages.
C. Configure the cash flow forecasting setup for Accounts Payable before you configure vendor posting profiles.
D. On the Cash flow forecasting setup form, use the Dependent Accounts setup to specify which account and percentage is associated to the main account.

Selected Answer: D
———————————————————————-

Question #: 128
Topic #: 2
You are configuring revenue recognition reallocation processing in Microsoft Dynamics 365 Finance.
You must recalculate revenue prices when the contract terms for a sale change.
What are three characteristics of the revenue recognition reallocation process? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point

A. The revenue recognition reallocation process cannot be run on project sales orders.
B. The revenue recognition reallocation process can be reversed after it is run.
C. You can run the revenue recognition reallocation process multiple times.
D. It multiple sales orders are involved, all sales orders must be for the same customer account.
E. The revenue recognition reallocation process can be run for sales orders with different transaction currencies.
F. The revenue recognition reallocation process can only be run one time. All changes must be finalized.

Selected Answer: B
———————————————————————-

Question #: 129
Topic #: 5
HOTSPOT
–
Case study
–
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study
–
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background
–
Adventure Works Cycles is a North American-based company that sells and fixes bicycles. The company is modernizing its business processes by implementing Dynamics 365 Finance.
The company recently expanded its business into bicycle leasing. The leasing business is expanding into Canada due to high demand.
Adventure Works Cycles has one legal entity, two cost centers, and three divisions within each cost center. The company also has a centralized budgeting process to the lowest level.
The operating currency of the legal entity is the US dollar (USD).
Adventure Works Cycles operates on a 4-5-4 calendar, which is used to make sure that the sales are evenly distributed across all months, including weekends.
Current Environment
–
• Adventure Works Cycles tracks its international vendors in a separate payable account from its domestic vendors.
• Only bicycle frame inventory is configured with a separate item model group that requires registration.
• A thirteenth month is required for year-end transactions.
• Only members from the accounts payable team are able to post transactions to a prior period after the period is closed to the company.
• Fourth Coffee is a Canadian-based coffee chain whose operating currency is the Canadian dollar (CAD). Fourth Coffee entered into a lease agreement for 150 branded bicycles totaling CAD75,000.
• Adventure Works Cycles frequently receives invoices in foreign currencies.
Requirements
–
• Three-way matching is required only on competition bicycles priced over USD3,000 that are purchased from Fabrikam, Inc., in Europe.
• Domestic customers and international customers must be managed in the following ways:
o Domestic customer receivables must post to account 1200.
o International customer receivables must post to account 1201.
o Domestic customers must have a payment term of net 30.
o International customers must have a payment term of net 15.
o Domestic customer revenue must post to account 4000.
o International customer revenue must post to account 4001.
• Adventure Works Cycles must be able to use the cash flow forecasting capability in Finance.
• The system must enable tracking and charging interest for customer accounts that are not current.
• Automatic charges must be configured on vendor invoices for bicycle tires. The cost must be added to each item on the vendor invoice.
• Adventure Works Cycles must be able to terminate leases for bicycles at any time.
• Adventure Works Cycles must be able to closely track its budget by enforcing the budget at the cost center level.
• The system must run Vendor aging reports by listing the transactions that are included in the reports’ balance, unsettled payments, and aging period descriptions.
Issues
–
• The accounts payable clerk processes an invoice for bicycle frames and a partial invoice for helmets. The clerk observes that the quantities on the vendor invoices are incorrect. The invoices require the correct line quantity selections so that the invoices process accurately.
• The accounts payable clerk processes an invoice and observes that the product receipt quantity match for bicycle seat posts ordered from Fabrikam, Inc., is blank. However, the invoice passes validation.
• The accounts payable manager observes that a sales order is posted to the prior period that is closed.
• During foreign currency revaluation of the Accounts payable subledger, posting occurred only if the result was a loss.
• On a vendor invoice for bicycle tires, the automatic charge is charged as an expense.
• Due to a breach of contract, a member of the finance team needs to terminate a bicycle lease. However, the Termination proposal button is unavailable.
• The accounts payable clerk is unable to review payments that have not been settled on the Vendor aging report.
You need to set up the system to process the Fourth Coffee lease agreement.
How should you set up the system?
To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

No answers

Selected Answer: A
———————————————————————-

Question #: 130
Topic #: 4
Case study –
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study –
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background –
Tailspin Toys is a toy manufacturing company that sells to distributors and customers through a business-to-consumer website. Tailspin Toys has been using custom-developed software for their accounting and supply chain management needs.
Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States. Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization.
Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes.
Current environment –
Vendors –
• Tailspin Toys works with local and foreign vendors.
• The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys.
• The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts.
• For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week.
• Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year.
• Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses.
• The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account.
• The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors.
Reporting –
• Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements.
Budget planning –
• The finance department oversees all budget planning.
• The finance department estimates the baseline for all budgets and distributes them to the respective departments.
• Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly.
Expenses –
Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown.

Asset leasing –
Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments.
Requirements –
Consolidation –
• Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys’ leadership.
• Consolidated results are needed in multiple reporting currencies.
Expenses –
• Utility bills must be allocated to allow each department to expense the correct amount.
Reports –
• Leadership requires financial reports to come to their inbox automatically as one at the end of every month.
Vendors –
• The system must show accounts payable liability by type of vendor similar to how it works in the current system.
• The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments.
• The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined.
Budgets –
• A new organizational hierarchy is required for budget planning purposes.
• Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget.
Asset leasing –
• The CFO must automatically process payments and journal entries for the leased properties.
• Management must view payment forecasts based on leased assets.
Issues –
Accounts payable issues –
• Vendor liability information for local and foreign vendors is not separated in the system.
• The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program.
• The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing.
• The accounts payable manager must automate the current process of vendor payment proposals.
Other issues –
• The differences resulting from consolidating subsidiaries with foreign currencies are not considered.
• User A confirmed they did not receive an alert before running out of their budget.
• Expense reports for the manufacturing and sales departments do not contain utility bill expenses.
• The accounting manager reported that there is no batch journal created for the monthly lease expenses.
You need to enforce financial budgets for management and resolve User A’s issue.
What should you do?

A. Apply security rules to budget plans.
B. Configure budget control threshold.
C. Create a schema for formulating budget.
D. Create a new organizational hierarchy.

Selected Answer: B
———————————————————————-

Question #: 131
Topic #: 3
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: Select organization hierarchy from the Configure my workspace form. Set an expense budget threshold percent.
Does the solution meet the goal?

A. Yes
B. No

Selected Answer: B
———————————————————————-

Question #: 132
Topic #: 2
HOTSPOT
–
A company manufactures and installs units for industrial manufacturing plans.
Revenue for the units recognized based on a median price when the unit install. A three-year warranty is sold with each unit. Revenue for the warranty is recognized equally in each year the warranty covers.
You need to configure and process revenue recognition.
Which parameter should you configure? To answer select he appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

No answers

Selected Answer: B
———————————————————————-

Question #: 133
Topic #: 1
A company plans to use Dynamics 365 Finance to calculate sales tax on sales orders.
You need to automatically calculate sales tax when the sales order is created.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Assign values to the sales tax codes and assign the sales tax codes to the sales tax group associated to the customer.
B. Assign all sales tax codes to the item sales tax group associated to the item being sold.
C. Set up a default item sales tax group on the item being sold and set up a default sales tax group on the customer used on the sales order.
D. Associate the sales tax jurisdictions to the item sales tax group associated to the item being sold.
E. Set up a default sales tax code on the customer used on the sales order and set up a default item sales tax group on the item being sold.

Selected Answer: ABC
———————————————————————-

Question #: 134
Topic #: 5
HOTSPOT
–
Case study
–
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study
–
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background
–
Adventure Works Cycles is a North American-based company that sells and fixes bicycles. The company is modernizing its business processes by implementing Dynamics 365 Finance.
The company recently expanded its business into bicycle leasing. The leasing business is expanding into Canada due to high demand.
Adventure Works Cycles has one legal entity, two cost centers, and three divisions within each cost center. The company also has a centralized budgeting process to the lowest level.
The operating currency of the legal entity is the US dollar (USD).
Adventure Works Cycles operates on a 4-5-4 calendar, which is used to make sure that the sales are evenly distributed across all months, including weekends.
Current Environment
–
• Adventure Works Cycles tracks its international vendors in a separate payable account from its domestic vendors.
• Only bicycle frame inventory is configured with a separate item model group that requires registration.
• A thirteenth month is required for year-end transactions.
• Only members from the accounts payable team are able to post transactions to a prior period after the period is closed to the company.
• Fourth Coffee is a Canadian-based coffee chain whose operating currency is the Canadian dollar (CAD). Fourth Coffee entered into a lease agreement for 150 branded bicycles totaling CAD75,000.
• Adventure Works Cycles frequently receives invoices in foreign currencies.
Requirements
–
• Three-way matching is required only on competition bicycles priced over USD3,000 that are purchased from Fabrikam, Inc., in Europe.
• Domestic customers and international customers must be managed in the following ways:
o Domestic customer receivables must post to account 1200.
o International customer receivables must post to account 1201.
o Domestic customers must have a payment term of net 30.
o International customers must have a payment term of net 15.
o Domestic customer revenue must post to account 4000.
o International customer revenue must post to account 4001.
• Adventure Works Cycles must be able to use the cash flow forecasting capability in Finance.
• The system must enable tracking and charging interest for customer accounts that are not current.
• Automatic charges must be configured on vendor invoices for bicycle tires. The cost must be added to each item on the vendor invoice.
• Adventure Works Cycles must be able to terminate leases for bicycles at any time.
• Adventure Works Cycles must be able to closely track its budget by enforcing the budget at the cost center level.
• The system must run Vendor aging reports by listing the transactions that are included in the reports’ balance, unsettled payments, and aging period descriptions.
Issues
–
• The accounts payable clerk processes an invoice for bicycle frames and a partial invoice for helmets. The clerk observes that the quantities on the vendor invoices are incorrect. The invoices require the correct line quantity selections so that the invoices process accurately.
• The accounts payable clerk processes an invoice and observes that the product receipt quantity match for bicycle seat posts ordered from Fabrikam, Inc., is blank. However, the invoice passes validation.
• The accounts payable manager observes that a sales order is posted to the prior period that is closed.
• During foreign currency revaluation of the Accounts payable subledger, posting occurred only if the result was a loss.
• On a vendor invoice for bicycle tires, the automatic charge is charged as an expense.
• Due to a breach of contract, a member of the finance team needs to terminate a bicycle lease. However, the Termination proposal button is unavailable.
• The accounts payable clerk is unable to review payments that have not been settled on the Vendor aging report.
You need to set up the system to process the Fourth Coffee lease agreement.
How should you set up the system?
To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

No answers

Selected Answer: A
———————————————————————-

Question #: 135
Topic #: 4
Case study –
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study –
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background –
Tailspin Toys is a toy manufacturing company that sells to distributors and customers through a business-to-consumer website. Tailspin Toys has been using custom-developed software for their accounting and supply chain management needs.
Tailspin Toys has toy factories in Mexico and Canada, with a head office based out of the United States. Tailspin Toys is currently operating with various financial departments including accounts payable, accounts receivable, fixed assets, and general accounting. The company has multiple legal entities to support their manufacturing units and selling organization.
Tailspin Toys wants to maintain consistent growth as a company and is now implementing Dynamics 365 Finance for all business processes.
Current environment –
Vendors –
• Tailspin Toys works with local and foreign vendors.
• The procurement process is designed for manufacturing raw materials, finished products, and packing materials for toys.
• The company monitors vendor balances by local and foreign vendors, both appearing in different general ledger accounts.
• For vendor payments, the accounts payable manager generates payment proposals every Wednesday, to have approvals and check printing done by Thursday in order to mail the checks by Friday of each week.
• Vendors can take part in the incentive program that offers travel vouchers and other gifts based on quantity and quality of supplies at the end of the year.
• Incentive program data is being monitored outside of the system and qualifying vendors are then provided to the financial department for expenses.
• The finance department accrues a small percentage of every vendor invoice during the year for this purpose, booking accounts payable liability account offsetting to the incentive expenses account.
• The finance department accrual then allows management to easily make decisions regarding types of gifts and vouchers to provide to the top-performing vendors.
Reporting –
• Management gets periodic reports from the finance department for all the legal entities. These reports provide all required finance data and are comprised of balance sheets, income statements, and cash flow statements.
Budget planning –
• The finance department oversees all budget planning.
• The finance department estimates the baseline for all budgets and distributes them to the respective departments.
• Each department estimates and forecasts their budget and sends it back to the finance department where the budget is updated accordingly.
Expenses –
Utility bills for the toy factories are currently getting expensed to the following departments as per the listed breakdown.

Asset leasing –
Tailspin Toys has leased assets in the form of factory buildings and warehouses. The company maintains asset books for the monthly leasing payments and pays compound interest on them. Tailspin Toys maintains future forecasts of their payment projections and budget requirements for leasing payments.
Requirements –
Consolidation –
• Automatic foreign currency consolidation at the corporate level is required by Tailspin Toys’ leadership.
• Consolidated results are needed in multiple reporting currencies.
Expenses –
• Utility bills must be allocated to allow each department to expense the correct amount.
Reports –
• Leadership requires financial reports to come to their inbox automatically as one at the end of every month.
Vendors –
• The system must show accounts payable liability by type of vendor similar to how it works in the current system.
• The chief financial officer (CFO) wants to configure the system to follow their business policies of paying vendors every Friday and as per credit issued by vendors and agreed method of payments.
• The accounts payable administrator must automate the vendor invoice process for imported invoices to bypass the review stage when no discrepancy is determined.
Budgets –
• A new organizational hierarchy is required for budget planning purposes.
• Leadership wants financial budgets enforced by alerting users upon reaching 90% of the total budget.
Asset leasing –
• The CFO must automatically process payments and journal entries for the leased properties.
• Management must view payment forecasts based on leased assets.
Issues –
Accounts payable issues –
• Vendor liability information for local and foreign vendors is not separated in the system.
• The accounts payable manager observed that a percentage of each invoice paid to vendors is not being posted for the yearly incentives program.
• The accounts payable clerk had to manually invoice a vendor receipt during user acceptance testing.
• The accounts payable manager must automate the current process of vendor payment proposals.
Other issues –
• The differences resulting from consolidating subsidiaries with foreign currencies are not considered.
• User A confirmed they did not receive an alert before running out of their budget.
• Expense reports for the manufacturing and sales departments do not contain utility bill expenses.
• The accounting manager reported that there is no batch journal created for the monthly lease expenses.
You need to enforce financial budgets for management and resolve User A’s issue.
What should you do?

A. Apply security rules to budget plans.
B. Configure budget control threshold.
C. Create a schema for formulating budget.
D. Create a new organizational hierarchy.

Selected Answer: B
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Question #: 136
Topic #: 3
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: Select organization hierarchy from the Configure my workspace form. Set an expense budget threshold percent.
Does the solution meet the goal?

A. Yes
B. No

Selected Answer: B
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Question #: 137
Topic #: 2
HOTSPOT
–
A company manufactures and installs units for industrial manufacturing plans.
Revenue for the units recognized based on a median price when the unit install. A three-year warranty is sold with each unit. Revenue for the warranty is recognized equally in each year the warranty covers.
You need to configure and process revenue recognition.
Which parameter should you configure? To answer select he appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

No answers

Selected Answer: C
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Question #: 138
Topic #: 1
A company plans to use Dynamics 365 Finance to calculate sales tax on sales orders.
You need to automatically calculate sales tax when the sales order is created.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Assign values to the sales tax codes and assign the sales tax codes to the sales tax group associated to the customer.
B. Assign all sales tax codes to the item sales tax group associated to the item being sold.
C. Set up a default item sales tax group on the item being sold and set up a default sales tax group on the customer used on the sales order.
D. Associate the sales tax jurisdictions to the item sales tax group associated to the item being sold.
E. Set up a default sales tax code on the customer used on the sales order and set up a default item sales tax group on the item being sold.

Selected Answer: ABC
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Question #: 139
Topic #: 5
A company is using Microsoft Dynamics 365 Finance. The company sells one of its assets.
You need to dispose of this asset in the system.
Which transaction type should you use?

A. Disposal – sale
B. Extraordinary depreciation
C. Disposal – scrap
D. Acquisition

Selected Answer: A
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Question #: 140
Topic #: 4
A company implements basic budgeting functionality in Dynamics 365 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 control
B. Allocation term
C. Budget transfer rule
D. Period allocation key

Selected Answer: B
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Question #: 141
Topic #: 2
A customer implements Dynamics 365 Finance and wants to use the recurring invoice feature for accounts receivable.
The recurring invoice template includes the start date and frequency. However, when the Generate recurring invoices job processes, invoices are not created despite the criteria being met.
You need to ensure that invoices are generated.
What should you do?

A. Assign an invoice template to a customer on the invoice tab of the customer record.
B. Set the maximum billing amount on the recurring invoke template.
C. Associate a customer to the invoice template on the invoice template form.
D. Assign an invoice template to the customer posting profile.

Selected Answer: A
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Question #: 142
Topic #: 3
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

Selected Answer: A
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Question #: 143
Topic #: 1
A client wants Dynamics 365 Finance to calculate sales tax on a sales order line once an item is added. The sales tax group is already populated with a value.
You need to ensure that the sales tax will calculate.
Which field should you populate?

A. sales tax code
B. item group
C. customer address
D. item sales tax group

Selected Answer: D
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Question #: 144
Topic #: 5
A company is using Microsoft Dynamics 365 Finance. The company sells one of its assets.
You need to dispose of this asset in the system.
Which transaction type should you use?

A. Disposal – sale
B. Extraordinary depreciation
C. Disposal – scrap
D. Acquisition

Selected Answer: A
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Question #: 145
Topic #: 4
A company implements basic budgeting functionality in Dynamics 365 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 control
B. Allocation term
C. Budget transfer rule
D. Period allocation key

Selected Answer: B
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Question #: 146
Topic #: 2
A customer implements Dynamics 365 Finance and wants to use the recurring invoice feature for accounts receivable.
The recurring invoice template includes the start date and frequency. However, when the Generate recurring invoices job processes, invoices are not created despite the criteria being met.
You need to ensure that invoices are generated.
What should you do?

A. Assign an invoice template to a customer on the invoice tab of the customer record.
B. Set the maximum billing amount on the recurring invoke template.
C. Associate a customer to the invoice template on the invoice template form.
D. Assign an invoice template to the customer posting profile.

Selected Answer: A
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Question #: 147
Topic #: 3
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

Selected Answer: A
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Question #: 148
Topic #: 1
A client wants Dynamics 365 Finance to calculate sales tax on a sales order line once an item is added. The sales tax group is already populated with a value.
You need to ensure that the sales tax will calculate.
Which field should you populate?

A. sales tax code
B. item group
C. customer address
D. item sales tax group

Selected Answer: D
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Question #: 149
Topic #: 3
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: Define a budget model. Set active forecasting process to the current year forecast.
Does the solution meet the goal?

A. Yes
B. No

Selected Answer: B
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Question #: 150
Topic #: 1
A customer uses the sales tax functionality in Dynamics 365 Finance.
The customer reports that when a sales order is created, sales tax does not calculate on the line.
You need to determine why sales tax is not calculated.
What are two possible reasons? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. The sales tax group is populated on the line, but the item sales tax group is missing.
B. The sales tax settlement account is not configured correctly.
C. The sales tax authority is not set up for the correct jurisdiction.
D. The sales tax code and item sales tax code are selected, but the sales tax group is not associated to both codes.
E. The sales tax group and item sales tax group are selected, but the sales tax code is not associated with both groups.

Selected Answer: AE