10 questions covering this official MB-310 domain.
Q01 - Question
A vendor contract states that each invoice over 50,000 must be settled in four equal installments, with one installment due every 30 days after the invoice date. The accounts payable manager wants Dynamics 365 Finance to calculate the installment amounts and due dates when the invoice is posted, without manual splitting of invoice lines. Which configuration should you use?
Domain: Implement and manage accounts payable and expenses Type: Single choice
- A. Create a cash discount code and assign it to the vendor account.
- B. Create a payment schedule that specifies the number of installments and the interval between them, then attach it to the terms of payment used by the vendor.
- C. Create a payment fee that is charged for each partial payment made to the vendor.
- D. Create separate vendor invoice journals for each installment amount.
B is correct.
Explanation: A payment schedule defines how an invoice amount is divided into installments and how the due dates are spaced. You attach the payment schedule to the terms of payment that the vendor uses, so the installments and due dates are generated from the posted invoice instead of being entered by hand.
A is incorrect: A cash discount code reduces the amount due when payment is made within a defined discount period. It does not divide an invoice into installments.
C is incorrect: A payment fee adds a charge related to the payment method or payment process. It does not create installment due dates.
D is incorrect: Creating one journal per installment is manual work that the payment schedule is designed to replace, and it also records more invoices than the vendor issued.
Q02 - Question
A company runs its vendor payment process only on Fridays. Invoice due dates that are calculated as net 30 often fall on other weekdays, which forces the accounts payable clerk to adjust dates manually. You must make Dynamics 365 Finance move each calculated due date to the next payment run day. What should you configure?
Domain: Implement and manage accounts payable and expenses Type: Single choice
- A. A payment schedule with weekly installments assigned to each vendor.
- B. A separate method of payment for each day of the week.
- C. Payment days for the required weekday, and reference them from the terms of payment used on the vendor invoices.
- D. A cash discount code with a discount period of seven days.
C is correct.
Explanation: Payment days define the specific days on which payments are made. When payment days are referenced by the terms of payment, the calculated due date is aligned to the defined day, so the clerk does not have to change dates manually.
A is incorrect: A payment schedule splits an invoice into installments. It controls how many payments occur and their interval, not the weekday that a single due date lands on.
B is incorrect: Methods of payment define how the payment is made, such as check or electronic payment, and do not shift invoice due dates.
D is incorrect: A cash discount code controls the discount amount and discount period for early payment. It does not align due dates to a payment run day.
Q03 - Question
A key supplier offers 2 percent off the invoice amount if payment is made within 10 days, with the full amount due in 30 days. Finance wants the discount amount and discount date calculated automatically on every invoice for this supplier, and the discount taken during settlement to post to a dedicated main account. What should you do first?
Domain: Implement and manage accounts payable and expenses Type: Single choice
- A. Create a cash discount code that defines the discount percentage and the discount period, specify the main accounts for the discount, and assign the code to the vendor.
- B. Create a payment fee of 2 percent and attach it to the method of payment used for the supplier.
- C. Create a payment schedule that pays 98 percent of the invoice in the first installment.
- D. Create a vendor posting profile that posts the discount to the vendor summary account.
A is correct.
Explanation: A cash discount code holds the discount percentage, the period in which the discount is available, and the main accounts used when the discount is taken. Assigning the code to the vendor makes the discount date and amount calculate on the vendor's invoices.
B is incorrect: Payment fees add costs to the payment process. They do not reduce the invoice amount for early settlement.
C is incorrect: A payment schedule divides the invoice into installments. It does not evaluate whether payment occurred inside a discount period.
D is incorrect: A vendor posting profile determines the summary account and related accounts for vendor transactions. It does not define the discount percentage or the discount period.
Q04 - Question
A company buys from a set of intercompany suppliers. All new vendors for these suppliers must default to the same terms of payment, and their invoice balances must post to a vendor summary account that is separate from the account used by trade vendors. Which two configurations should you complete? Each correct answer presents part of the solution.
Domain: Implement and manage accounts payable and expenses Type: Multiple choice
- A. Set up a payment fee that applies only to the intercompany suppliers.
- B. Create a vendor group for the intercompany suppliers and assign the required terms of payment to the group.
- C. Set up default descriptions for vendor invoice posting.
- D. Create a vendor posting profile entry for that vendor group and assign the separate summary account.
B and D are correct.
Explanation: A vendor group carries defaults such as terms of payment for the vendors assigned to it, so new vendors inherit the required terms. A vendor posting profile can be defined for a vendor group, which lets the invoice balances of that group post to a summary account that differs from the account used by other vendors.
A is incorrect: Payment fees add a charge tied to the payment process and do not control default terms of payment or the summary account used for posting.
C is incorrect: Default descriptions control the text that appears on automatically generated transactions. They do not change the ledger accounts or the vendor defaults.
Q05 - Question
A controller wants the company's bank to verify each issued check against a list of checks that the company actually printed, so that checks not on the list are questioned before they clear. Which accounts payable configuration and task supports this requirement?
Domain: Implement and manage accounts payable and expenses Type: Single choice
- A. Configure an electronic payment format and export vendor payments as an electronic file.
- B. Configure payment fees so that a bank charge is recorded for every check payment.
- C. Enable bank account approval so that vendor bank accounts must be approved before payment.
- D. Configure positive pay for the bank account, then generate the positive pay file for the issued checks and send it to the bank.
D is correct.
Explanation: Positive pay produces a file that lists the checks the company issued for a bank account. The bank compares presented checks with that file, so checks that are not listed can be flagged before they are honored.
A is incorrect: An electronic payment format is used to generate payment files for electronic payment methods. It does not provide the bank with a list of issued checks for validation.
B is incorrect: Payment fees record costs associated with payments. They do not give the bank any information about which checks were printed.
C is incorrect: Bank account approval controls whether vendor bank account details can be used for payment. It validates vendor bank data rather than issued checks presented to your bank.
Q06 - Question
A company runs a vendor payment proposal that pays many vendor invoices with one electronic transfer. The bank statement shows a single amount for the transfer, but Dynamics 365 Finance records a separate bank transaction for each payment, which slows bank reconciliation. What should you do?
Domain: Implement and manage accounts payable and expenses Type: Single choice
- A. Create a separate bank account for each vendor payment run.
- B. Enable the option to summarize vendor payments so that one bank transaction is created for the payment run.
- C. Change the check layout for the bank account that is used for the payment run.
- D. Assign each vendor payment to a different bank transaction type.
B is correct.
Explanation: Summarizing vendor payments in bank transactions creates one bank transaction for the payment run instead of one transaction per payment, which matches the single amount that appears on the bank statement.
A is incorrect: Adding bank accounts per payment run does not combine the individual bank transactions and increases setup and reconciliation work.
C is incorrect: The check layout affects how checks are printed and has no effect on the number of bank transactions that are created.
D is incorrect: Bank transaction types classify activity for reporting, so assigning different types still leaves separate bank transactions to reconcile.
Q07 - Question
An accountant needs to offset a specific set of invoices for one partner this month and wants to select the transactions and review the amounts before posting. Which approach in Dynamics 365 Finance fits this requirement?
Domain: Implement and manage accounts payable and expenses Type: Single choice
- A. Run the automatic netting process for all netting agreements.
- B. Use the manual netting process for the partner's netting agreement.
- C. Reverse the partner's earlier netting transactions and post them again.
- D. Export the netting history report and adjust the balances in a general journal.
B is correct.
Explanation: The manual netting process is intended for cases where a user selects the transactions to net for a netting agreement and reviews them before posting.
A is incorrect: The automatic netting process is designed to process netting without transaction-by-transaction user selection, so it does not give the accountant the review step for a single partner's chosen invoices.
C is incorrect: Reversing prior netting transactions restores earlier offsets and does not net the current set of invoices.
D is incorrect: Netting history and reporting is used to review completed netting, and a manual journal adjustment bypasses the netting process and its history.
Q08 - Question
An organization wants to register vendor invoices, match them to purchase documents, and generate vendor payments in Dynamics 365 Finance. Which functional area supports these tasks?
Domain: Implement and manage accounts payable and expenses Type: Single choice
- A. Accounts payable
- B. General ledger
- C. Budgeting
- D. Fixed assets
A is correct.
Explanation: Accounts payable is the area used to enter vendor invoices, track amounts owed to vendors, and process vendor payments.
B is incorrect: General ledger receives the resulting postings, but it is not where vendor invoices and vendor payments are managed.
C is incorrect: Budgeting is used to plan and control expected revenue and expense amounts rather than to record and pay vendor invoices.
D is incorrect: Fixed assets tracks capitalized assets and their depreciation, so it does not manage the vendor payment process.
Q09 - Question
An employee is employed by the USMF legal entity but travels to work on a project that belongs to the DEMF legal entity. Finance wants the travel cost to end up as an expense in DEMF, while the employee is still reimbursed by USMF. What should you configure in Expense management?
Domain: Implement and manage accounts payable and expenses Type: Single choice
- A. A separate worker record for the employee in DEMF so the expense report is entered directly in DEMF
- B. A vendor account for DEMF in USMF and a manual accounts payable invoice for the travel cost
- C. Intercompany expense functionality, so the employee selects DEMF as the legal entity on the expense line
- D. A project transfer journal in DEMF that moves the posted cost after the expense report is paid
C is correct.
Explanation: Intercompany expenses let an employee record an expense line against a legal entity other than the employing legal entity. The employing legal entity handles the payment to the employee, and the cost is charged to the legal entity that receives the benefit.
A is incorrect: Creating a duplicate worker record in the second legal entity adds master data maintenance and does not produce the intercompany accounting relationship between the two legal entities.
B is incorrect: A manual accounts payable invoice bypasses the expense report workflow and the expense category and policy validation applied to employee expenses.
D is incorrect: A manual transfer after posting is a corrective action rather than the configured intercompany process, and it leaves the original cost in the wrong legal entity until it is moved.
Q10 - Question
A company pays travelers a fixed daily allowance instead of reimbursing individual meal receipts. The allowance amount differs by destination, and it must be reduced when the hotel already includes breakfast. What should you set up in Expense management?
Domain: Implement and manage accounts payable and expenses Type: Single choice
- A. Per diem rates for each location and per diem rules that reduce the allowance when meals are provided
- B. An expense policy with an error message that blocks meal lines over a fixed amount
- C. A separate expense category for each destination with a fixed unit price on the category
- D. A payment method that marks all meal expenses as company paid and non-reimbursable
A is correct.
Explanation: Per diem rates define the allowance by location and effective date, and per diem rules define the reduction percentages that apply when meals or lodging are already provided to the traveler.
B is incorrect: An expense policy validates amounts entered on expense lines, but it does not calculate a daily allowance or apply a reduction for a provided meal.
C is incorrect: Expense categories classify the expense and drive posting, so building one category per destination duplicates setup without producing per diem reductions.
D is incorrect: A payment method controls who paid the expense and whether the employee is reimbursed, not the daily allowance amount or its reduction.