MB-310 Microsoft Exam Dumps & Practice Test Questions
Question No 1:
As a Microsoft Dynamics 365 Finance consultant for a global organization with multiple legal entities, you’ve identified challenges in managing the month-end close process. The finance team is struggling with delays and inefficiencies due to the lack of a centralized system to track and collaborate on closing activities.
Which feature in Dynamics 365 Finance should you configure to improve task management, workflow tracking, and visibility into the period-end closing process across these entities?
A. Financial reporting
B. Financial insights workspace
C. Electronic reporting
D. Financial period close workspace
Correct Answer: D. Financial period close workspace
Explanation:
The most effective solution to address the issue of coordinating the month-end close activities across multiple legal entities is the Financial period close workspace in Dynamics 365 Finance. This feature is designed to streamline the closing process by providing a centralized platform where finance teams can create and manage tasks, assign responsibilities, track task statuses, and monitor progress in real time.
The Financial period close workspace is particularly beneficial for global organizations that need to synchronize period-end closing activities across multiple entities. It allows you to define closing tasks, set deadlines, and track the status of each task, providing full visibility into the entire closing process. With this workspace, managers can oversee the workflow from a single interface, which enhances communication, reduces errors, and eliminates manual tracking.
In contrast, Financial reporting (A) focuses on delivering insights and analytics based on financial data but does not offer operational tracking for the closing process. Financial insights workspace (B) also provides analytical insights, but it doesn’t support the detailed, task-oriented workflow required during the close. Electronic reporting (C) serves the purpose of formatting reports for regulatory compliance and does not address workflow management or task tracking during the period close process.
By using the Financial period close workspace, you improve transparency, enhance collaboration across entities, and optimize the efficiency of the period-end closing activities. This solution ensures that all necessary tasks are completed on time, providing the finance team with the tools they need to manage the close process efficiently.
Question No 2:
As a Microsoft Dynamics 365 Finance consultant working with a manufacturing company, you are tasked with configuring the Cost Accounting module to track and allocate costs across various departments and cost objects, such as products or cost centers.
What three results can be achieved by configuring allocation bases, cost behavior, and cost distribution in Dynamics 365 Finance to meet the client's needs?
A. Allocate costs from one cost object to others by applying a relevant allocation base.
B. Measure and quantify resource usage, such as machine hours or kilowatt hours consumed.
C. Transfer the remaining balance of costs from one cost object to another by applying an allocation base.
D. Define which journals can be used in the costing process.
E. Classify costs according to their behavior based on changes in business activity levels.
Correct Answers:
A. Allocate costs from one cost object to others by applying a relevant allocation base.
B. Measure and quantify resource usage, such as machine hours or kilowatt hours consumed.
E. Classify costs according to their behavior based on changes in business activity levels.
Explanation:
Configuring allocation bases, cost behavior, and cost distribution within Dynamics 365 Finance’s Cost Accounting module is a critical part of ensuring accurate tracking and analysis of costs across different departments or cost objects. These configurations allow for better decision-making, clearer visibility into resource usage, and more efficient cost management.
Allocation Bases (Answer A): This setting enables the allocation of costs from one cost object (such as a product or cost center) to others based on measurable metrics like labor hours, machine usage, or square footage. By defining appropriate allocation bases, organizations can ensure that costs are accurately distributed across the appropriate entities, ensuring fair and precise cost attribution.
Measuring Resource Usage (Answer B): The allocation base configuration also allows the company to measure the consumption of resources such as machine hours, kilowatt hours, or square footage. This information is essential for calculating activity-based costs and managing resources efficiently. This approach enables the business to track how different departments or products use resources, helping to identify inefficiencies and optimize resource utilization.
Cost Behavior (Answer E): Configuring the classification of costs according to their behavior (whether fixed, variable, or semi-variable) provides the company with insights into how costs fluctuate in response to changes in business activity levels. This classification is important for forecasting, budgeting, and understanding how production volumes or other operational factors impact costs. It allows the business to make data-driven decisions about pricing, cost-cutting, and production efficiency.
On the other hand, Answer C is essentially a rewording of Answer A, as both describe how costs are allocated, and Answer D is incorrect since it pertains to the general ledger setup rather than cost allocation or distribution.
By correctly configuring these features, the manufacturing company can achieve a more structured and insightful approach to cost management, allowing them to track, allocate, and analyze costs with greater accuracy and efficiency.
Question No 3:
As a financial consultant working with a client who wants to improve cash flow forecasting in Microsoft Dynamics 365 Finance, the client seeks to have specific percentages of certain main accounts automatically allocated to other related accounts. The goal is to improve the accuracy of anticipated inflows and outflows based on predefined relationships between accounts.
What is the correct configuration to achieve this requirement?
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. Set up the cash flow forecasting for Accounts Payable before configuring vendor posting profiles.
D. On the Cash flow forecasting setup form, use the Dependent Accounts setup to specify which account and percentage is associated with the main account.
Correct Answer: D
Explanation:
In Microsoft Dynamics 365 Finance, the cash flow forecasting module enables organizations to predict their future cash position by evaluating anticipated income and expenses. When working with more intricate organizational structures, it's often necessary to configure dependent accounts, where the balances or transactions from one account impact the forecast of others.
To achieve the client’s goal of allocating a percentage of one main account's forecast to another related account, the Dependent Accounts setup is the most appropriate configuration. This feature allows you to link a main account with one or more other accounts and define the percentage split. For example, if a client expects that 20% of their sales revenue (from Account A) will result in future tax liabilities (Account B), they can use the Dependent Accounts setup to link Account B to Account A and allocate 20% of the forecasted amount to it. This creates a more realistic, dynamic, and automated cash flow forecast.
The other options are not suitable:
Option A does not reference the specific Dependent Accounts feature needed to allocate percentages between accounts.
Option B refers to parent-child relationships in account hierarchies, which are more focused on reporting structures rather than cash flow forecasting.
Option C addresses Accounts Payable setup, which is unrelated to the configuration of account relationships for forecasting purposes.
Thus, Option D is the correct approach for this scenario.
Question No 4:
A company is in the process of implementing Microsoft Dynamics 365 Finance to manage its financial operations, including automating the calculation of sales tax on sales orders. The objective is to ensure that the system automatically calculates the correct sales tax whenever a new sales order is created, based on both the customer's and the item’s tax configurations.
What are the necessary configuration steps to enable this functionality?
A. Assign values to the sales tax codes and assign the sales tax codes to the sales tax group associated with the customer.
B. Assign all sales tax codes to the item sales tax group associated with 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 in the sales order.
D. Associate the sales tax jurisdictions to the item sales tax group associated with the item being sold.
E. Set up a default sales tax code on the customer used in the sales order and set up a default item sales tax group on the item being sold.
Correct Answers: A, B, C
Explanation:
To ensure automated and accurate sales tax calculation in Microsoft Dynamics 365 Finance, the system needs to understand how both customer and item tax configurations interact. This involves establishing a relationship between sales tax codes, sales tax groups, and the relevant item sales tax groups.
Sales Tax Codes and Groups (Option A):
Sales tax codes determine the applicable tax rate for a specific jurisdiction, and these codes are organized into sales tax groups. Each customer is assigned a sales tax group, which links them to the appropriate sales tax codes. This configuration ensures that the system knows which tax rates should apply to the customer based on their location or tax obligations.Item Sales Tax Groups (Option B):
Each item being sold might be subject to different tax rules. Item sales tax groups categorize items according to their taxable status, such as taxable goods or exempt items. This ensures that the correct tax is calculated based on the item being sold.Default Assignments (Option C):
To automate the tax calculation process, the system needs default settings for both the customer's sales tax group and the item’s sales tax group. By setting these defaults on the respective records (customer and item), Dynamics 365 can automatically apply the correct sales tax when the sales order is created.
Incorrect Options:
Option D is incorrect because sales tax jurisdictions are associated with sales tax codes, not item sales tax groups.
Option E is also incorrect because sales tax codes are assigned through sales tax groups, not directly to customers.
By ensuring the proper configuration of sales tax codes, item sales tax groups, and default settings, the system can automatically calculate the correct sales tax for every sales order in Dynamics 365 Finance.
Question No 5:
A business is setting up Microsoft Dynamics 365 Finance and needs the system to automatically calculate sales tax on each sales order line immediately after an item is added. The Sales Tax Group, which defines applicable tax rules based on the customer's jurisdiction, has already been correctly assigned on the sales order.
To ensure the tax is properly calculated when an item is added to the sales line, which other field must be populated?
A. Sales tax code
B. Item group
C. Customer address
D. Item sales tax group
Correct Answer: D. Item sales tax group
Explanation:
In Microsoft Dynamics 365 Finance, the automated sales tax calculation process depends on two primary components: the Sales Tax Group and the Item Sales Tax Group. The Sales Tax Group is typically assigned to the customer and outlines which tax codes are applicable based on the customer's location or tax jurisdiction. However, this alone isn’t enough to trigger a tax calculation.
The Item Sales Tax Group plays an equally critical role. This field is assigned to the item and indicates which types of taxes apply to it—such as whether the item is taxable, exempt, or subject to a reduced tax rate. For the system to successfully calculate tax, there must be a common sales tax code shared between the customer’s Sales Tax Group and the item’s Item Sales Tax Group. The intersection of these two groups allows Dynamics 365 to determine which tax rate to apply to the order line.
If the Item Sales Tax Group is missing or incorrect, the system will be unable to identify applicable tax codes—even if the Sales Tax Group is configured correctly. This results in no tax being applied to the sales order line.
Option A is incorrect because sales tax codes are not manually assigned on sales order lines—they are indirectly applied through group configurations.
Option B, Item group, relates to inventory categorization, not tax.
Option C, Customer address, may inform tax jurisdiction, but if the Sales Tax Group is already set, the address is not required for calculation.
Thus, assigning the correct Item Sales Tax Group is essential for enabling tax calculations on sales orders.
Question No 6:
A company is using Microsoft Dynamics 365 Finance to handle tax on its transactions. The finance team notices that sales tax is not being applied to a sales order line, even though the order was created successfully. You are tasked with investigating the root cause based on how tax groups and codes are used in the system.
Which two of the following are most likely to explain why sales tax is not being calculated on the sales order line?
A. The sales tax group is present on the sales order line, but the item sales tax group is missing.
B. The sales tax settlement account has not been set up correctly.
C. The tax authority for the jurisdiction hasn’t been configured.
D. Both tax groups are present, but the tax code is not assigned to both groups.
E. Sales tax code and item sales tax code exist, but the sales tax group isn't linked to both.
Correct Answers: A. and D.
Explanation:
Sales tax in Microsoft Dynamics 365 Finance is determined through the coordination of Sales Tax Groups and Item Sales Tax Groups. The Sales Tax Group is typically tied to the customer or transaction and includes applicable tax codes for specific regions or rules. The Item Sales Tax Group defines which types of taxes apply to an individual item. When a transaction line is created, the system looks for overlapping sales tax codes between these two groups. Only those codes that appear in both will trigger tax calculation.
Option A is correct because if the Item Sales Tax Group is not present, the system cannot identify which taxes apply to the item—even if the Sales Tax Group is correctly assigned. Without both groups, no tax codes can intersect, and no tax will be calculated.
Option D is also valid. Even if both groups are assigned to the transaction line, there must be at least one sales tax code that is common to both. If the Sales Tax Group and Item Sales Tax Group do not share any tax codes, the system finds no applicable tax and skips the calculation.
Option B and C refer to backend configurations that affect tax processing and reporting, not real-time tax calculation on a sales order line. These issues wouldn’t prevent tax from being calculated—they would surface during settlement or submission stages.
Option E is flawed because sales tax codes are never assigned directly to transaction lines or items. Instead, they are assigned through their respective tax groups, making group association essential.
To resolve this issue, the configuration must be reviewed to ensure that both the Sales Tax Group and Item Sales Tax Group are present, and that they share at least one common tax code.
Question No 7:
In Microsoft Dynamics 365 Finance, which of the following modules is primarily responsible for managing and recording an organization’s fixed asset acquisitions, depreciations, and disposals?
A. General Ledger
B. Fixed Assets
C. Accounts Payable
D. Budgeting
Answer: B
Explanation:
In Microsoft Dynamics 365 Finance, the Fixed Assets module is specifically designed to manage the full lifecycle of an organization’s tangible and intangible fixed assets. This includes functions such as recording asset acquisitions, calculating and processing depreciation, transferring assets, and disposing of them when necessary.
The Fixed Assets module integrates seamlessly with other financial modules such as the General Ledger, Accounts Payable, and Procurement and Sourcing, allowing for consistent and accurate financial tracking. For example, when an asset is purchased through Accounts Payable, it can be easily recorded as a fixed asset using asset acquisition entries. Likewise, depreciation entries are automatically posted to the General Ledger based on predefined schedules and depreciation profiles.
Let’s look at why the other options are incorrect:
A. General Ledger: While the General Ledger records the financial impact of asset transactions, it is not responsible for managing the detailed information related to fixed assets such as asset types, locations, or depreciation schedules. These are maintained in the Fixed Assets module, and then the results are posted to the General Ledger.
C. Accounts Payable: This module is responsible for vendor invoices and outgoing payments. It can initiate a purchase that results in acquiring a fixed asset, but it does not manage the ongoing lifecycle of the asset, such as depreciation or retirement.
D. Budgeting: This module is used for planning and controlling financial resources. It might account for capital expenditures related to fixed assets, but it does not handle asset management activities like acquisition recording or depreciation.
Therefore, the Fixed Assets module is the most appropriate answer, as it is directly focused on managing an organization’s capital investments, ensuring regulatory compliance, and supporting accurate financial reporting through proper asset tracking and accounting.
Question No 8:
Which of the following best describes the purpose of a general ledger in Microsoft Dynamics 365 Finance and Operations?
A) It tracks inventory movements and provides real-time stock levels across locations.
B) It records all financial transactions and serves as the foundation for financial reporting.
C) It manages customer payments and processes invoices for sales orders.
D) It calculates payroll and employee benefits for the organization.
Correct Answer: B
Explanation:
In the context of Microsoft Dynamics 365 Finance and Operations, particularly for the MB-310 exam, understanding the role of the general ledger is a fundamental concept. The general ledger (GL) is the core component of any financial system and serves as the central repository for recording all financial transactions within an organization.
Option A is incorrect because tracking inventory movements is handled by modules such as Inventory Management and Warehouse Management, not the general ledger. The GL doesn't directly manage physical stock levels.
Option C is also incorrect. Customer payments and sales invoices are part of the Accounts Receivable module in Dynamics 365 Finance and Operations, which works in conjunction with the general ledger but is not its primary function.
Option D is incorrect because payroll processing is handled by the Human Resources module (or integration with payroll systems) and not by the general ledger. However, the GL would record the financial impact of payroll transactions once they are processed.
Option B is correct. The general ledger in Dynamics 365 Finance and Operations is responsible for recording all financial transactions across the organization. It consolidates data from various modules, such as Accounts Payable, Accounts Receivable, Inventory, and Fixed Assets, into one central location. This ensures consistency and accuracy in financial reporting. The general ledger acts as the foundation for financial statements such as the Balance Sheet, Income Statement, and Cash Flow Statement, enabling organizations to track their financial health.
The general ledger is essential for:
Financial reporting and analysis
Reconciliation of accounts
Regulatory compliance
Audit trails for financial transactions
In Dynamics 365, the general ledger integrates seamlessly with other modules, providing real-time insights into the company's financial performance and making it an indispensable tool for accounting and finance professionals.
For the MB-310 exam, understanding how the general ledger functions and integrates with other financial modules is key for successfully navigating topics like financial management, reporting, and configuration in Microsoft Dynamics 365 Finance and Operations.
In Dynamics 365 Finance, which journal type is typically used to record the periodic depreciation of fixed assets?
A. General journal
B. Fixed asset journal
C. Asset depreciation journal
D. Periodic journal
Answer: C. Asset depreciation journal
Explanation:
The Asset depreciation journal in Dynamics 365 Finance is specifically used to calculate and post depreciation for fixed assets. This type of journal is created through the Depreciation proposal process, which automatically calculates depreciation based on the asset’s profile, useful life, and depreciation convention. Once the proposal is created, the depreciation journal can be reviewed and posted to reflect the depreciation expense in the General Ledger.
Other options explained:
A. General journal: A flexible journal used for various entries, but not specifically optimized for automated asset depreciation.
B. Fixed asset journal: Used for other asset-related transactions like acquisitions, transfers, and disposals—not primarily for depreciation.
D. Periodic journal: Used for recurring transactions, but asset depreciation has a dedicated journal type for accuracy and compliance.
Question No 9:
What is the purpose of the vendor collaboration workspace in Dynamics 365 Finance?
A. To allow vendors to access and approve purchase orders only
B. To provide vendors with self-service access to view and manage their transactions
C. To restrict vendors from viewing invoice statuses
D. To allow vendors to modify internal financial records
Answer: B. To provide vendors with self-service access to view and manage their transactions
Explanation:
The vendor collaboration workspace in Dynamics 365 Finance is a secure, self-service portal that allows external vendors to interact with purchasing and payment processes. Through this workspace, vendors can:
View and respond to purchase orders
View the status of invoices and payments
Update contact and bank information
Acknowledge or reject orders
This reduces administrative overhead and improves communication between an organization and its suppliers.
Other options explained:
A is partially true but too limited in scope.
C is incorrect because vendors can view invoice statuses.
D is incorrect as vendors cannot modify internal financial records—only view or respond to documents relevant to them.
Question No 10:
Which workflow type would you use in Dynamics 365 Finance to require approval before posting a general journal?
A. Purchase order workflow
B. Journal approval workflow
C. Vendor invoice workflow
D. Budget approval workflow
Answer: B. Journal approval workflow
Explanation:
The Journal approval workflow allows organizations to set up approval processes for general journals before they are posted. This ensures financial control and compliance with internal policies.
A. Purchase order workflow applies to purchasing.
C. Vendor invoice workflow is for approving vendor invoices.
D. Budget approval workflow is used for managing and approving budgets.
In Microsoft Dynamics 365 Finance, two powerful features—consolidation accounting and journal approval workflows—play pivotal roles in ensuring financial accuracy, regulatory compliance, and streamlined operations across enterprise environments.
Consolidation accounting is essential for organizations that operate with multiple legal entities or subsidiaries. It allows businesses to merge financial data from various companies into a single set of consolidated financial statements. This is crucial for corporate reporting, especially for multinational organizations that require visibility across different geographies and currencies. Dynamics 365 Finance enables automated consolidation processes that account for intercompany eliminations, currency translation, and harmonized reporting structures. By configuring consolidation accounting, businesses reduce manual errors, streamline month-end closings, and provide stakeholders with a unified financial snapshot.
Unlike intercompany accounting—which facilitates transactions between entities—consolidation accounting focuses on aggregating financials for reporting purposes. It does not merely record transactions but presents an integrated view of the financial health of an entire corporate group. This feature is especially valuable for CFOs and corporate finance teams who need to meet international accounting standards such as IFRS or GAAP.
On the other hand, journal approval workflows are designed to control and validate general ledger entries before they impact the company’s books. Within Dynamics 365 Finance, journal workflows can be customized to route journal entries for review and approval based on amount thresholds, departments, or transaction types. This ensures that only authorized and accurate entries are posted, which safeguards the integrity of financial records. It helps maintain an audit trail and ensures compliance with internal policies and external regulations.
