MB-310 Practice Questions
Prepare for MB-310 with more than an answer.
- Exam fee
- $165 USD
- Passing score
- 700 out of 1000
- Level
- Associate
- Valid for
- 1 year
Domains covered on the exam 5
- Implement financial management45%
- Implement accounts receivable, credit, collections, and subscription billing20%
- Implement and manage accounts payable and expenses15%
- Manage budgeting10%
- Manage fixed assets10%
- 1
A manufacturing company uses budget control for its procurement department. A budget manager has configured budget control rules to check for budget availability at the financial dimension level for 'Department' and 'Cost Center'. A purchase order is submitted that is within the total departmental budget but exceeds the specific budget allocated to the 'Maintenance' cost center.
The budget control configuration for the 'Procurement' user group allows for budget overruns but requires justification. What is the expected system behavior when the purchase order is submitted for approval?
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Correct answer: B
When budget control is configured to allow overruns with justification for a specific user group, the system will not perform a hard block. Instead, it will present a warning and require the user to enter a reason for the budget overrun. This allows for flexibility while maintaining control and auditability. The purchase order is not automatically rejected, nor does it require a budget transfer as the immediate next step.
- 2
A university is acquiring a new fleet of campus security vehicles. The university's policy requires that these vehicles be depreciated using a straight-line method over 5 years for financial reporting (GAAP book) but using an accelerated method (200% declining balance) for tax purposes (TAX book). The TAX book should automatically calculate its acquisition cost and depreciation based on the GAAP book transactions.
How should a consultant configure the fixed asset books to meet these requirements?
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Correct answer: B
The most efficient way to manage multiple valuation methods for the same asset is by using derived books. By setting up the TAX book as derived from the GAAP book for Acquisition and Depreciation transactions, any posting to the GAAP book will automatically generate the corresponding transaction in the TAX book. This ensures consistency in the acquisition cost while allowing for a different depreciation profile to be applied, meeting both financial and tax reporting requirements without manual dual entry.
- 3
A retail company is processing a high volume of vendor invoices. To improve efficiency, the company implements three-way matching policies. An accounts payable clerk is trying to post a vendor invoice for a purchase order where the invoiced quantity of an item is greater than the quantity received on the corresponding product receipt, and the discrepancy exceeds the defined quantity tolerance.
What is the system outcome when the clerk attempts to post the invoice?
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Correct answer: B
Three-way matching validates the vendor invoice against the purchase order and the product receipt. If the invoiced quantity exceeds the received quantity by more than the allowed tolerance, the system will prevent the invoice from posting. A matching discrepancy is logged, requiring manual intervention, such as approving the discrepancy (if permissions allow) or correcting the underlying transaction (e.g., updating the product receipt if more goods were received).
- 4
A professional services firm wants to bill clients for a year-long support contract valued at $60,000. The contract specifies that revenue should be recognized equally each month, but the client is billed quarterly. The first quarterly invoice of $15,000 is issued at the start of the contract.
Which configuration in Dynamics 365 Finance is required to handle this scenario correctly according to accrual accounting principles?
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Correct answer: B
This scenario requires separating the billing and revenue recognition schedules. A billing schedule on the sales order correctly handles the quarterly invoicing of $15,000. A separate revenue recognition schedule, based on a deferral template, is needed to recognize the earned revenue of $5,000 each month over the 12-month contract period. This correctly posts the initial invoice to a deferred revenue account and then recognizes revenue monthly as it is earned.
- 5
A holding company, ConsolCo, is preparing its first consolidated financial statement. It owns 100% of two subsidiaries, SubA and SubB. SubA sells inventory to SubB, resulting in an intercompany receivable in SubA's books and an intercompany payable in SubB's books. The main accounts for these transactions are correctly identified in their respective charts of accounts.
During the 'Consolidation online' process, the finance manager notices that the intercompany balances have not been eliminated. What is the most likely cause of this issue?
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Correct answer: C
The 'Consolidation online' process does not automatically eliminate intercompany balances. It requires explicit elimination rules to be defined within the consolidation legal entity. These rules specify the source main accounts for intercompany transactions (e.g., intercompany AP/AR) and the destination (elimination) accounts. Without these rules, the system cannot identify which balances to offset, and they will be carried over into the consolidated statement.
- 6
A global distribution company, operating in multiple legal entities across North America and EMEA, is implementing Dynamics 365 Finance. They are facing challenges with inconsistent credit management. The finance director has outlined the following requirements:
- A centralized credit policy that can be adapted for regional risk variations.
- Automated risk scoring based on customer payment history and external credit agency data.
- Automatic credit holds for customers who exceed their limit or have invoices overdue by more than 60 days.
- A workflow for the credit control team to review and approve temporary credit limit increases for key accounts.
You are the functional consultant responsible for designing the solution. Which combination of features and configurations in Dynamics 365 Finance will most effectively meet all these requirements?
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Correct answer: C
This is the most comprehensive solution. Enabling credit management provides the core framework. Configuring risk scoring and automatic credit limits addresses the need for automated, data-driven credit policies. Blocking rules directly satisfy the requirement for automatic holds based on overdue invoices. Finally, the credit limit adjustment workflow provides the necessary control and approval process for exceptions.
- 7
A manufacturing company is implementing vendor invoice automation. The system successfully processes most invoices via OCR, but consistently fails to match invoices from a key logistics provider. The provider's invoices list freight as a separate line item, which does not correspond to a line on the purchase order. The company policy is to accept these freight charges if they are within a predefined contract rate. What configuration is required to allow these invoices to be matched and processed automatically?
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Correct answer: B
This is the correct approach. By defining an automatic charge code for freight and linking it via a policy, the system can identify the freight amount on the OCR'd invoice and apply it as a valid charge, allowing the rest of the invoice to proceed with matching. This directly addresses the issue of a non-PO line item.
- 8
A company is transitioning its inventory valuation method for a specific group of finished goods from FIFO to Standard Cost. As the functional consultant, you must guide the finance team through the process of activating the new costing version. What are three essential steps that must be performed in the correct sequence to ensure a successful transition? (Select THREE)
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Correct answer: A, C, E
- 9
A software-as-a-service (SaaS) company sells a three-year enterprise license for $36,000, paid in full upfront. According to accounting standards, the company must recognize this revenue evenly over the 36-month contract term. Which configuration in Dynamics 365 Finance enables the automatic monthly recognition of $1,000 of revenue for the duration of the contract after posting the initial invoice?
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Correct answer: B
This is the correct method. The billing schedule handles the invoicing (in this case, a single upfront invoice), while the revenue deferral template is specifically designed to take the total amount, post it to a deferred revenue account, and then automatically generate the monthly journal entries to recognize the revenue over the specified term.
- 10
A holding company is performing its first financial consolidation using the 'Consolidation online' feature. The subsidiaries use different charts of accounts from the parent company. After running the process, the controller reports that significant intercompany receivables and payables balances have not been eliminated. What is the most likely cause for the failure of the elimination proposal to generate the correct entries?
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Correct answer: C
When subsidiaries use different charts of accounts, a critical prerequisite for both consolidation and elimination is mapping their main accounts to the consolidation company's chart of accounts. Without this mapping, the system cannot identify the corresponding intercompany balances to eliminate. This is the most fundamental reason for failure in this specific scenario.
graph TD subgraph Subsidiary_A A_AP[AP Account: 2100-INT] A_AR[AR Account: 1200-INT] end subgraph Subsidiary_B B_AP[AP Account: 2550-IC] B_AR[AR Account: 1150-IC] end subgraph Consolidation_Company C_AP[Consol AP: 20010] C_AR[Consol AR: 10020] end A_AP -->|Map| C_AP A_AR -->|Map| C_AR B_AP -->|Map| C_AP B_AR -->|Map| C_AR C_AP -- Elimination --> C_AR
