A client uses Dynamics 365 Finance for accounts receivable.
You need to configure the method of payment to enforce the accounts receivable clerk to enter the wire number for the received electronic payment.
Which item should you set up as mandatory?

A. Select bank transaction type

B. Select payment reference

C. Select Payment ID

D. Select Deposit slip

HOTSPOT -
You need to configure an Accounts payable charge for freight for a company. The company requires that the system include the freight amount in the invoice to be paid to the vendor and record the expense in main account 600120 `" Freight In.
 
Use the drop-down menus to select the answer choice that answers each question based on the information presented in the graphic.
NOTE: Each correct selection is worth one point.
Hot Area:
 

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.

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. View consignment inventory.

B. Add a new or existing contact person to the vendor accounts that they are a contact for.

C. Deny or allow a contact person’s access to documents on the vendor collaboration interface that are specific to the vendor account.

D. View and modify contact person information, such as the person’s title, email address, and telephone number.

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

A. Add an additional fiscal year.

B. Divide the twelfth period.

C. Add an additional period to ledger calendars.

D. Create a closing period.

E. Create a new fiscal calendar.

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 posting of sales orders to a closed period.
What should you do?

A. Permanently close the period for all modules.

B. Use a ledger calendar to update period status.

C. Permanently close the fiscal year.

D. Use a ledger calendar to update module access.

E. Divide the period.

Users are posting project transactions and bank transactions incorrectly in the General journal. The client wants to prevent this from happening in the future.
You need to configure Dynamics 365 Finance to limit the account type transactions to only ledger.
What should you do?

A. Use journal control to specify which account types are valid for the General ledger journal.

B. Use advanced ledger entries to define the account types that can be used in the General ledger journal.

C. Configure the voucher series associated with this journal to allow only ledger account types.

D. Create a journal template that has ledger as the account type and offset account type.

A company implements basic budgeting functionality in Dynamics 365 Finance in multiple departments that belong to the same legal entity.
Managers must be able to identify and track budgets by department.
You need to configure the system.
What should you configure?

A. Budget model with sub-models

B. Budget transfer rules

C. Budget codes and budget types

D. Budget entries workflows

A company plans to create a new allocation rule for electric utilities expenses.
The allocation rule must meet the following requirements:
✑ Distribute overhead utility expense to each department.
✑ Define how and in what proportion the source amounts must be distributed on various destination lines.
You need to configure the allocation rule.
Which allocation method should you use?

A. Distribute the source document amount equally

B. Fixed weight

C. Equally

D. Basis

SIMULATION -
You are a functional consultant for Contoso Entertainment System USA (USMF).
You plan to settle accounts by receiving cash payments in US currency.
You need to create a cash receipts journal that uses the US dollar currency.
To complete this task, sign in to the Dynamics 365 portal.

HOTSPOT -
A client plans to use Dynamics 365 Finance for year-end 1099 reporting in the United States.
You are viewing a vendor master data record on the 1099 FastTab.
 
Use the drop-down menus to select the answer choice that answers each question based on the information presented in the graphic.
NOTE: Each correct selection is worth one point.
Hot Area:
 

A company implements basic budgeting functionality in Dynamics 365 Finance.
Budget managers must be notified of a budget register posting task after a finance director approves an entry.
You need to configure the system.
Which workflow element should you use?

A. Commitment approval

B. Update budget balances budget register

C. Budget planning stage allocation

D. Approve budget account entry

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A company uses Dynamics 365 Finance.
The customer payment journal must only be available for selection by the accounts receivable user group.
You need to configure the accounts receivable journal name to meet the requirement.
Solution: Configure the journal approval.
Does the solution meet the goal?

A. Yes

B. No

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.

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.

An organization is upgrading to Dynamics 365 Finance.
One of the organization's legal entities needs to have different main accounts for a period of six months.
You need to configure the legal entity override dates.
Which two actions can you perform? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. Set the value of the override date field at the legal entity level to be more restrictive.

B. Set the value of the override date field at the shared level to be more restrictive.

C. Set the value of the override date field at the legal level to be less restrictive.

D. Set the value of the override date field at the shared level to be less restrictive.

A company uses Microsoft Dynamics 365 Finance and Dynamics 365 Project Operations.
The company must be able to estimate the costs of a project and create a fixed asset by using the project cost estimate.
You need to ensure that the company can create a fixed asset from a project.
Which project type should you use?

A. Time and material

B. Cost

C. Internal

D. Investment

E. Fixed price

A company plans to allocate revenue across occurrences by using recognition basis.
Which recognition basis can you use?

A. Median price

B. Revenue schedule

C. First of next month

D. Monthly

DRAG DROP -
A public sector organization wants to set up the derived financial hierarchy to analyze posted transaction data.
You need to set up the derived financial hierarchy to generate an outgoing electronic document.
In which order should you perform the actions? To answer, move all actions from the list of actions to the answer area and arrange them in the correct order.
Select and Place:
 

HOTSPOT -
You are implementing Dynamics 365 Finance.
You must manage aging customer balances by sending communications to the customers detailing their past due invoices and automatically including a late charge.
You need to configure Dynamics 365 Finance functionality.
How should you configure the functionality? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

HOTSPOT -
You need to ensure Trey Research meets the compliance requirement.
Which budget technology should you implement? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. the Excel budget template

B. budget codes

C. budgeting workflows

D. set-based budget processing

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

A. item model groups

B. item groups

C. procurement category hierarchies

D. financial dimensions

E. procurement categories

You manage fixed assets using Microsoft Dynamics 365 Finance.
You need to define capitalization thresholds.
Which page should you use?

A. Main account

B. Released item

C. Fixed asset posting profile

D. Fixed asset group

HOTSPOT -
You need to ensure accounting entries are transferred from subledgers to general ledgers.
How should you configure the batch transfer rule? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A company is preparing to complete yearly budgets.
The company plans to use the Budget module in Dynamics 365 Finance for budget management.
You need to create the new budgets.
Solution: Create budget plans to define the revenues for a budget.
Does the solution meet the goal?

A. Yes

B. No

DRAG DROP -
You have implemented Dynamics 365 Finance.
You must configure revenue recognition to handle deferring revenue and revenue reallocation.
You need to configure the posting profile.
What should you do? To answer, drag the appropriate posting profiles to the correct scenario. Each posting profile may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Select and Place:
 

DRAG DROP -
You are a Dynamics 365 Finance functional consultant. A legal entity processes and settles vendor payments on behalf of other legal entities in an organization.
You need to configure the centralized payment flow for the legal entity.
In which order should you perform the actions? To answer, move all actions from the list of actions to the answer area and arrange them in the correct order.
NOTE: More than one order of answer choices is correct. You will receive credit for any of the correct orders you select.
Select and Place:
 

HOTSPOT -
You need to prevent a reoccurrence of User2's issue.
How should you configure the system? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

A company has many customers who are not paying invoices on time.
You need to use the collection letter functionality to manage customer delinquencies.
What are two possible ways to achieve the goal? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Cancel the collection letters after they are created and posted.

B. Print all of the collection letters.

C. Delete the collection letters after posting when an error occurs.

D. Post the collection letters.

DRAG DROP
-
A company uses Microsoft Dynamics 365 Finance.
You receive a new purchase invoice. You must process the invoice as a fixed asset that complies with applicable tax regulations. Double entry is not permitted for asset acquisitions.
You need to configure the asset and books.
In which order should you perform the actions? To answer, move all actions from the list of actions to the answer area and arrange them in the correct order.
 

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

HOTSPOT -
You need to configure invoice validation for vendors in Dynamics 365 Finance.
You are viewing the Accounts payable parameter for Invoice validation.
 
Use the drop-down menus to select the answer choice that answers each question based on the information presented in the graphic.
NOTE: Each correct selection is worth one point.
Hot Area:
 

QUESTION NO: 86 -
You are setting up the Accounts payable module and vendor invoice policies for an organization.
You need to set up vendor invoice policies that run when vendor invoices are posted in the system.
In which two ways can you set up the policies? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. Set up invoice matching validation for vendor invoice policy.

B. Configure the vendor invoice workflow to run the policies.

C. Run the policies when you post a vendor invoice by using the Vendor invoice page and when you open the Vendor invoice policy violations page.

D. Apply the policies to invoices that were created in the invoice register or invoice journal.

HOTSPOT -
A client plans to use the cost accounting module in Dynamics 365 Finance.
You need to associate the correct definitions to the correct cost accounting concepts.
Which terms match the definitions? To answer, select the appropriate configuration in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

DRAG DROP -
A company is implementing Dynamics 365 Finance.
The company needs the ability to handle deferring revenue, reallocations, revenue schedules, and milestone-based recognition.
You need to configure the functionality.
What should you do? To answer, drag the appropriate functionality to the correct requirement. Each functionality may be used once, more than once, or not at all.
You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Select and Place:
 

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A client has one legal entity, two departments, and two divisions. The client is implementing Dynamics 365 Finance. The departments and divisions are set up as financial dimensions.
The client has the following requirements:
✑ Only expense accounts require dimensions posted with the transactions.
✑ Users must not have the option to select dimensions for a balance sheet account.
You need to configure the ledger to show applicable financial dimensions based on the main account selected in journal entry.
Solution: Configure two account structures: one for expense accounts and include applicable dimensions, and one for balance sheet and exclude financial dimensions.
Does the solution meet the goal?

A. Yes

B. No

SIMULATION -
You are a functional consultant for Contoso Entertainment System USA (USMF).
You need to apply a constant currency exchange rate to calculate the reporting currency value of fixed assets.
To complete this task, sign in to the Dynamics 365 portal.

A company uses Dynamics 365 Finance to manage budgets.
You need to reallocate funds during the year.
Which budget code should you use?

A. Carry-forward

B. Zero-based

C. Pre-encumbrance

D. Transfer

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A client has one legal entity, two departments, and two divisions. The client is implementing Dynamics 365 Finance. The departments and divisions are set up as financial dimensions.
The client has the following requirements:
✑ Only expense accounts require dimensions posted with the transactions.
✑ Users must not have the option to select dimensions for a balance sheet account.
You need to configure the ledger to show applicable financial dimensions based on the main account selected in journal entry.
Solution: Configure one account structure for expense accounts and include applicable dimensions.
Does the solution meet the goal?

A. Yes

B. No

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.

A. The credit limit parameter is set to Balance + All.

B. The credit limit is set to 0.

C. An inventory item is out of stock.

D. The inventory safety stock is set to 0.

Your company uses Dynamics 365 Finance.
All fixed assets are categorized by asset type. For example, office furniture is sequentially numbered, has the same service life, and uses the same depreciation deduction calculation.
You need to configure the system.
Which two parameters should you set up? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. depreciation convention

B. derived book

C. depreciation profile

D. fixed asset group

You are the accounts receivable manager of an organization. The organization recently sold machinery to a customer.
You need to register a transaction for the sale of the machinery by using a free text invoice for fixed assets.
Which transaction type should you use?

A. Acquisition

B. Value adjustments

C. Depreciation

D. Disposal

A company implements Microsoft Dynamics 365 Finance to manage fixed assets. The company adds a laptop as a fixed asset.
You run a depreciation proposal. You observe that laptops are not eligible for depreciation.
You need to determine why you cannot depreciate the laptops.
Which feature should you review?

A. Depreciation convention

B. Net book value

C. Capitalization threshold

D. Number sequence

E. Posting layer

HOTSPOT
-
A company implemented Dynamics 365 Finance less than a year ago. A departments have exceeded their fiscal year budgets.
The following business rules must be implemented to keep the company’s spending on budget.
•	Operations must be allowed to exceed budget.
•	Marketing must receive warnings when they are over budget.
•	Sales mast not exceed its budget.
•	All departments must have a calculation in place to determine what they can spend.
•	Budget funds do not need to be recorded in the general ledger.
You need to configure budget controls.
Which configuration option should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
 

DRAG DROP -
You are a controller in an organization. You are identifying cost drivers to see how changes in business activities affect the bottom line of your organization. You need to assess cost object performance to analyze actual versus budgeted cost and how resources are consumed.
You need to demonstrate your understanding of cost accounting terminology.
Which component maps to the cost accounting terminology?
To answer, drag the appropriate component to the correct cost accounting terminology. Each source may be used once. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Select and Place:
 

DRAG DROP -
th
An organization sells monthly service subscriptions. The organization sends invoices to customers on the 15 of every month in the amount of $450.00.
You need to set up, configure, and process recurring free text invoices for the customers.
In which order should you perform the actions? To answer, move all actions from the list of actions to the answer area and arrange them in the correct order.
Select and Place:
 

HOTSPOT
-
A company uses Dynamics 365 Finance.
The company has prepaid insurance expenses at the beginning of the calendar year that cover the entire year. The company must expense the prepaid insurance automatically and equally during a month-end process.
You need to configure the accrual scheme.
How should you configure the accrual scheme? To answer, select the appropriate options in the answer area.
NOTE: Each correct answer is worth one point.
 

HOTSPOT -
You are setting up a budget plan to accurately portray the projected budget for a company.
You need to select the appropriate allocation method for data distribution.
Which allocation methods should you use? To answer, select the appropriate configuration in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

HOTSPOT -
A company is implementing Microsoft Dynamics 365 Finance. The company plans to implement the Fixed asset module.
You have the following requirements:
✑ Post transactions to the tax depreciation book at the same interval as the primary book.
✑ Tax transactions must be journalized without being recorded in the general ledger.
You need to configure the fixed asset books.
Which configuration option should you use? To answer, drag the appropriate configurations to the correct requirements. Each configuration may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Select and Place:
 

A client has unique accounting needs that sometimes require posting definitions.
You need to implement posting definitions.
In which situation should you implement posting definitions?

A. when financial dimensions need to default from the vendor record onto an invoice

B. when only certain dimensions are allowed to post with certain main account combinations

C. when creating multiple balanced ledger entries based on transaction types or accounts

D. when the system needs to automatically post a transaction to the accounts receivable account on invoice posting