Microsoft Dynamics 365 Finance Functional Consultant practice questions

1. Question 1 of 25

   You need to recommend a solution to prevent User3's issue from recurring. What should you recommend?

   • AConfigure automatic charge codes.
   • BCreate a service item.
   • CConfigure a sales order template.
   • DCreate a procurement category.

   Show answer

   Correct answer: A

   How others answered

   • A100%

2. Question 2 of 25

   Which configuration makes it possible for User4 to make a purchase?

   • ABudget model configuration is configured to allow certain purchases to exceed budget.
   • BBudget is posted at the dimension level. Budget control is managed at main account level.
   • CBudget funds available are configured to allow dimension budget overrides.
   • DBudget is posted at the main account level. Budget control is managed at the department level.

   Show answer

   Correct answer: B

   How others answered

   • B67%
   • C33%

   Only 67% agreed on this answer — treat it as contested rather than settled.

3. Question 3 of 25

   Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution. After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen. You are configuring the year-end setup in Dynamics 365 Finance. You need to configure the year-end setup to meet the following requirements: ✑ The accounting adjustments that are received in the first quarter must be able to be posted into the previous year's Period 13. ✑ The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions. ✑ All dimensions from profit and loss must carry over into the retained earnings. ✑ All future and previous periods must have an On Hold status. Solution: ✑ Configure General ledger parameters. - Set the Delete close of year transactions option to Yes. - Set the Create closing transactions during transfer option to Yes. - Set the Fiscal year status to permanently closed option to No. ✑ Define the Year-end close template. - Designate a retained earnings main account for each legal entity. - Set the Financial dimensions will be used on the Opening transactions option to No. - Set the Transfer profit and loss dimensions option to Close All. ✑ Set all prior and future Ledger periods to a status of On Hold. Does the solution meet the goal?

   • AYes
   • BNo

   Show answer

   Correct answer: A

   How others answered

   • A71%
   • B29%

   Only 71% agreed on this answer — treat it as contested rather than settled.

4. Question 4 of 25

   You need to configure the system to meet the fiscal year requirements. What should you do?

   • AAdd an additional fiscal year.
   • BDivide the twelfth period.
   • CAdd an additional period to ledger calendars.
   • DCreate a closing period.
   • ECreate a new fiscal calendar.

   Show answer

   Correct answer: E

   How others answered

   • D100%

   Most people chose D, not E. Verify this one against the vendor documentation.

5. Question 5 of 25

   Select 3

   You need to ensure that User9's purchase is appropriately recorded. Which three steps should you perform? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point.

   • ASelect a fixed asset group at the line level.
   • BSet the new fixed asset toggle to yes at the line level.
   • CEnter three purchase order lines, enter quantity of 1.
   • DEnter one purchase order line, enter quantity of 3.
   • ESelect a financial dimension at the line level.

   Show answer

   Correct answer: A, B, C

   How others answered

   • ABC100%

6. Question 6 of 25

   You need to acquire the fixed assets that are associated with the purchase orders. What should you do?

   • ASelect the fixed asset checkbox on the invoice.
   • BCreate the fixed assets in the fixed asset module and then acquire the asset.
   • CCreate the fixed assets in the fixed asset module and then select the fixed asset checkbox on the product receipt.
   • DReverse the product receipt and then repost it.

   Show answer

   Correct answer: A

   How others answered

   • C100%

   Most people chose C, not A. Verify this one against the vendor documentation.

7. Question 7 of 25

   You need to identify the root cause for the error that User5 is experiencing. What should you check?

   • AFixed asset rules
   • BFixed asset determination rules
   • CFixed asset posting profiles
   • DFixed asset books
   • EFixed asset depreciation profiles

   Show answer

   Correct answer: B

   How others answered

   • B100%

8. Question 8 of 25

   You need to ensure that captured employee mobile receipts automatically match the transactions to resolve the User1 issue. Which feature should you enable?

   • ADefine expense policy for receipts
   • BExpense reports re-imagined
   • CExpense management workspace
   • DShow receipts during itemization

   Show answer

   Correct answer: B

   How others answered

   • B100%

9. Question 9 of 25

   Select 2

   You need to determine why CustomerX is unable to confirm another sales order. What are two possible reasons? Each answer is a complete solution. NOTE: Each correct selection is worth one point.

   • AThe credit limit parameter is set to Balance + All.
   • BThe credit limit is set to 0.
   • CAn inventory item is out of stock.
   • DThe inventory safety stock is set to 0.

   Show answer

   Correct answer: A, B

   How others answered

   • AB50%
   • AC50%

   Only 50% agreed on this answer — treat it as contested rather than settled.

10. Question 10 of 25

    Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution. After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen. You are configuring the year-end setup in Dynamics 365 Finance. You need to configure the year-end setup to meet the following requirements: ✑ The accounting adjustments that are received in the first quarter must be able to be posted into the previous year's Period 13. ✑ The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions. ✑ All dimensions from profit and loss must carry over into the retained earnings. ✑ All future and previous periods must have an On Hold status. Solution: ✑ Configure General ledger parameters. - Set the Delete close of year transactions option to Yes. - Set the Create closing transactions during transfer option to Yes. - Set the Fiscal year status to permanently closed option to Yes. ✑ Define the Year-end close template. - Designate a retained earnings main account for each legal entity. - Set the Financial dimensions will be used on the Opening transactions option to Yes. - Set the Transfer profit and loss dimensions to Close All. ✑ Set all prior and future Ledger periods to a status of On Hold. Does the solution meet the goal?

    • AYes
    • BNo

    Show answer

    Correct answer: B

    How others answered

    • B80%
    • A20%

11. Question 11 of 25

    You need to identify the posting issue with sales order 1234. What should you do?

    • ACorrect the recognition basis.
    • BCorrect the recognition convention.
    • CValidate that the revenue recognition schedule is populated on the sales order line.
    • DValidate that the revenue recognition schedule is populated on the sales order header.
    • EUpdate the revenue price allocation.

    Show answer

    Correct answer: C

    How others answered

    • C100%

12. Question 12 of 25

    You need to ensure the promotional gifts are posted to the correct account. What should you use?

    • AField groups
    • BClassification groups
    • CCustomer credit groups
    • DItem groups
    • EBank groups

    Show answer

    Correct answer: B

    How others answered

    • D100%

    Most people chose D, not B. Verify this one against the vendor documentation.

13. Question 13 of 25

    You need to adjust the sales tax configuration to resolve the issue for User3. What should you do?

    • ACreate multiple settlement periods and assign them to the US tax vendor.
    • BCreate multiple sales tax remittance vendors and assign them to the settlement period.
    • CRun the payment proposal to generate the sales tax liability payments.
    • DCreate a state-specific settlement period and assign the US tax vendor to the settlement period.

    Show answer

    Correct answer: D

    How others answered

    • D100%

14. Question 14 of 25

    Select 2

    You need to configure budget planning for Alpine Ski House Corporate. Which two components should you configure? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point.

    • Abudget control workflow
    • Bbudget planning hierarchy
    • Corganizational hierarchy
    • Doperational budget register entry
    • Ebudget planning workflow

    Show answer

    Correct answer: B, E

    How others answered

    • BE100%

15. Question 15 of 25

    Select 3

    You need to correct the sales tax setup to resolve User5's issue. Which three actions should you perform? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point.

    • APopulate the sales tax code on the sales order line.
    • BAssign the sales tax group to CustomerY.
    • CAssign the relevant sales tax code to both the sales tax and item sales tax groups.
    • DPopulate the item sales tax group field on the sales order line.
    • EPopulate the sales tax group field on the sales order line.

    Show answer

    Correct answer: C, D, E

    How others answered

    • CDE100%

16. Question 16 of 25

    Select 3

    You are configuring budgeting components in Dynamics 365 Finance. You need to configure multiple budgets. What are three budgeting options you can use? Each correct answer presents a complete solution. NOTE: Each correct selection is worth one point.

    • ACost management budget, including Production and Resource groups
    • BSales budget, including Campaigns and Events
    • CWorkforce budget, including Compensation groups and Positions
    • DProject budget, including Items and Fees
    • ELedger budget, including Revenue and Expense types

    Show answer

    Correct answer: C, D, E

    How others answered

    • CDE100%

17. Question 17 of 25

    You need to prevent the issue from reoccurring for User5. What should you do?

    • AUse the audit list search query type.
    • BSet up the aggregate query type for entertainment expenses.
    • CSet up the sampling query type for entertainment expenses.
    • DAdd more keywords to the audit policy.

    Show answer

    Correct answer: D

    How others answered

    • D100%

18. Question 18 of 25

    You need to configure Accounts Receivable to take pre-orders. Which feature should you use?

    • ASettle cloud transactions
    • BAccounting source explorer
    • CSettle open transactions
    • DCustomer aging report
    • EVoucher transactions

    Show answer

    Correct answer: C

    How others answered

    • C100%

19. Question 19 of 25

    Select 2

    You need to determine the cause of the issue that User1 reports. What are two possible causes for the issue? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point.

    • AThe account structure is in draft status.
    • BThe financial dimensions were created in the incorrect legal entity.
    • CUser1's security is incorrectly set up.
    • DThe account structure has an asterisk for all dimensions.
    • EThe account structure has quotations for all dimensions.

    Show answer

    Correct answer: B, D

    How others answered

    • BD57%
    • CD14%
    • DE14%
    • AD14%

    Only 57% agreed on this answer — treat it as contested rather than settled.

20. Question 20 of 25

    Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution. After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen. You are configuring the year-end setup in Dynamics 365 Finance. You need to configure the year-end setup to meet the following requirements: ✑ The accounting adjustments that are received in the first quarter must be able to be posted into the previous year's Period 13. ✑ The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions. ✑ All dimensions from profit and loss must carry over into the retained earnings. ✑ All future and previous periods must have an On Hold status. Solution: ✑ Configure General ledger parameters. - Set the Delete close of year transactions option to No. - Set the Create closing transactions during transfer option to No. - Set the Fiscal year status to permanently closed option to No. ✑ Define the Year-end close template. - Designate a retained earnings main account for each legal entity. - Set the Financial dimensions will be used on the Opening transactions option to No. - Set the Transfer profit and loss dimensions to Close All. ✑ Set all prior and future Ledger periods to a status of On Hold. Does the solution meet the goal?

    • AYes
    • BNo

    Show answer

    Correct answer: B

    How others answered

    • B100%

21. Question 21 of 25

    You need to reconfigure the taxing jurisdiction for Humongous Insurance's subsidiary. What should you do?

    • AConfigure sales tax groups for transactions that occur in China.
    • BChange the reporting currency.
    • CConfigure dual currency support for sales tax.
    • DChange the sales tax settlement period authority.

    Show answer

    Correct answer: D

    How others answered

    • A100%

    Most people chose A, not D. Verify this one against the vendor documentation.

22. Question 22 of 25

    You need to configure system functionality for pickle type reporting. What should you use?

    • Aitem model groups
    • Bitem groups
    • Cprocurement category hierarchies
    • Dfinancial dimensions
    • Eprocurement categories

    Show answer

    Correct answer: D

    How others answered

    • D100%

23. Question 23 of 25

    The Canadian franchise purchases excess ski equipment from the US franchise. Two sets of skis are purchased totaling USD1,000. When the purchase invoice is prepared, USD10,000 is keyed in by mistake. Which configuration determines the result for this intercompany trade scenario?

    • APost invoices with discrepancies is set to require approval.
    • BMatch invoice totals is set to yes.
    • CThree-way match policy is configured.
    • DTwo-way match policy is configured.
    • EPost invoices with discrepancies is set to allow with warning.

    Show answer

    Correct answer: C

    How others answered

    • A100%

    Most people chose A, not C. Verify this one against the vendor documentation.

24. Question 24 of 25

    You need to troubleshoot the reporting issue for User7. Why are some transactions being excluded?

    • AUser7 is running the report in CompanyB.
    • BUser7 is running the report in CompanyA.
    • CThe report is correctly excluding CustomerY transactions.
    • DThe report is correctly excluding CustomerZ transactions.

    Show answer

    Correct answer: A

    How others answered

    • A80%
    • C20%

25. Question 25 of 25

    Select 3

    An organization acquires a building. You need to register and record the building as an asset building in Dynamics 365 Finance. What are three possible ways to achieve the goal? Each correct answer presents a complete solution. NOTE: Each correct selection is worth one point.

    • ASelect an account type of Fixed Asset and a transaction type of Acquisition with a General Journal
    • BEliminate the project to a fixed asset
    • CCreate a sales invoice to record and register the fixed asset
    • DSelect an acquisition transaction type within a fixed asset journal
    • EUse the sales order process to acquire the asset

    Show answer

    Correct answer: A, B, D

    How others answered

    • ABD100%

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MB-310 practice, question 1 of 25