10 questions covering this official MB-310 domain.
Q01 - Question
A company that invoices in euros collects amounts directly from its customers' bank accounts. Before collections can begin, the company must record each customer's authorization to debit the account. Which setup should you complete in Dynamics 365 Finance?
Domain: Implement accounts receivable, credit, collections, and subscription billing Type: Single choice
- A. Create a Single Euro Payments Area (SEPA) direct debit mandate for the customer.
- B. Create a bank transaction group for direct debit collections.
- C. Configure a check layout for the bank account used for collections.
- D. Create a deposit slip payment journal for each collection run.
A is correct.
Explanation: The SEPA direct debit mandate records the customer's authorization for the company to debit the customer bank account, so the mandate must exist before direct debit collections are processed.
B is incorrect: Bank transaction groups classify bank activity for reporting and do not capture a customer authorization.
C is incorrect: A check layout applies to printing checks from a bank account, not to collecting funds from a customer account by direct debit.
D is incorrect: A deposit slip records payments that are deposited to the bank and does not provide the required customer authorization.
Q02 - Question
An accounts receivable clerk takes several customer checks to the bank in one deposit. Separately, one customer has a remaining credit balance that must be returned to the customer. Which two actions in Dynamics 365 Finance address these requirements? Each correct answer presents part of the solution.
Domain: Implement accounts receivable, credit, collections, and subscription billing Type: Multiple choice
- A. Generate a deposit slip from the customer payment journal for the checks that are deposited together.
- B. Set up an International Bank Account Number (IBAN) structure for the company bank account.
- C. Process a refund check for the customer credit balance.
- D. Create a bank transaction group and post the customer credit balance to it.
A and C are correct.
Explanation: A deposit slip records the customer payments that are deposited to the bank as one deposit, and a refund check returns the remaining credit balance to the customer.
B is incorrect: IBAN structures validate the format of entered account numbers and do not record a deposit or return funds to a customer.
D is incorrect: Bank transaction groups classify bank activity for reporting, so they cannot be used to pay a credit balance back to a customer.
Q03 - Question
A controller must formally define which customer accounts can be offset against which vendor accounts before the accounting team starts netting. Which configuration in Dynamics 365 Finance meets this requirement?
Domain: Implement accounts receivable, credit, collections, and subscription billing Type: Single choice
- A. A customer payment journal for each partner that has both roles.
- B. A collection letter sequence for the affected customer accounts.
- C. A netting agreement that identifies the customer and vendor accounts to be netted.
- D. A vendor invoice register entry for each open vendor invoice.
C is correct.
Explanation: A netting agreement is the record that pairs the customer and vendor accounts involved, so it is where you define which accounts can be offset before netting is processed.
A is incorrect: A customer payment journal records payments and settlements against customer transactions and does not define the customer-to-vendor relationship used for netting.
B is incorrect: Collection letter sequences support the collections process for overdue customer balances and have no role in defining netting participants.
D is incorrect: A vendor invoice register entry captures an incoming invoice for later processing and does not establish which accounts are eligible for netting.
Q04 - Question
After netting is posted, a reviewer finds that the wrong transactions were offset for a partner. The customer invoice and the vendor invoice must both return to their open state so that the correct transactions can be netted. What should the reviewer do in Dynamics 365 Finance?
Domain: Implement accounts receivable, credit, collections, and subscription billing Type: Single choice
- A. Delete the netting agreement for the partner.
- B. Reverse the posted netting transaction.
- C. Edit the posted netting transaction amounts.
- D. Run the automatic netting process again for the partner.
B is correct.
Explanation: Reversing the posted netting transaction is the supported way to undo the offset so that the affected customer and vendor transactions can be netted correctly.
A is incorrect: Removing the netting agreement changes which accounts are eligible for future netting and does not undo a netting transaction that is already posted.
C is incorrect: Posted transactions are corrected through reversal rather than by changing the posted amounts.
D is incorrect: Running netting again processes eligible transactions; it does not remove the incorrect offset that was already posted.
Q05 - Question
A consulting company bills customers for advisory hours that are never tracked as products and never originate from a sales order. The accountant plans to use free text invoices in Dynamics 365 Finance for this billing. Which two statements describe how free text invoices work? Each correct answer presents a complete solution.
Domain: Implement accounts receivable, credit, collections, and subscription billing Type: Multiple choice
- A. A free text invoice is created directly for a customer without a related sales order.
- B. Each free text invoice line requires an item number from the released products list.
- C. Each free text invoice line is posted to a main account that you specify on the line.
- D. Posting a free text invoice reduces on-hand inventory for the billed quantity.
A and C are correct.
Explanation: Use a free text invoice when you bill a customer for something that is not sourced from a sales order, such as services. You enter the revenue main account on each invoice line, so the posting reaches the correct ledger account without any item setup.
B is incorrect: Free text invoice lines do not use item numbers. If you must bill a released product and track its quantity, create a sales order invoice instead.
D is incorrect: Because no item is involved, posting a free text invoice creates only customer and ledger entries and does not update inventory quantities.
Q06 - Question
A company bills 200 customers the same monthly maintenance fee. The billing clerk currently keys one free text invoice per customer each month. The controller wants to reduce this manual effort while keeping free text invoices as the billing document. What should you implement?
Domain: Implement accounts receivable, credit, collections, and subscription billing Type: Single choice
- A. Create one sales order per customer and invoice it monthly.
- B. Set up recurring free text invoice templates and assign them to the customers.
- C. Post a customer payment journal each month for the fee amount.
- D. Create a customer credit note each month and settle it against the fee.
B is correct.
Explanation: Recurring free text invoices let you define the invoice content once as a template, assign it to the customers who receive the same charge, and then generate the invoices for a period instead of entering each invoice manually.
A is incorrect: Sales orders are used when you bill items and quantities, and creating one order per customer each month keeps the same manual workload.
C is incorrect: A customer payment journal records money received from customers. It does not raise the charge that the customer must pay.
D is incorrect: A credit note reduces what the customer owes, which is the opposite of billing a monthly fee.
Q07 - Question
A distributor ships products against a confirmed sales order and now must bill the customer and later record the money received. Which sequence should the accounts receivable clerk follow in Dynamics 365 Finance?
Domain: Implement accounts receivable, credit, collections, and subscription billing Type: Single choice
- A. Post a free text invoice for the shipped products, then post a customer payment journal.
- B. Post a customer payment journal first, then post the sales order invoice to clear it.
- C. Post the sales order invoice, then post a second sales order invoice for the payment.
- D. Post the sales order invoice, then record the receipt in a customer payment journal.
D is correct.
Explanation: When the billing originates from a sales order, you post the invoice from the sales order so the invoice reflects the ordered items and quantities. You then enter the customer receipt in a customer payment journal so the payment can be applied to that invoice.
A is incorrect: Free text invoices are for charges that have no sales order and no item numbers, so they do not bill the shipped products from this order.
B is incorrect: Recording a payment before the invoice exists leaves the receipt unapplied and does not create the customer charge.
C is incorrect: An invoice increases the customer balance. Posting a second invoice for the receipt would overstate what the customer owes instead of recording cash.
Q08 - Question
A clerk settled a customer payment against the wrong open invoice. Both transactions are posted and must remain in the ledger, but the payment has to be applied to the correct invoice. What should the clerk do first?
Domain: Implement accounts receivable, credit, collections, and subscription billing Type: Single choice
- A. Reverse the posted payment journal and re-enter the receipt.
- B. Post a credit note for the incorrectly settled invoice.
- C. Undo the settlement between the payment and the invoice.
- D. Create a free text invoice to offset the incorrect application.
C is correct.
Explanation: Undoing the settlement removes the link between the payment and the invoice and returns both transactions to an open state, so the payment can then be settled against the correct invoice.
A is incorrect: Reversing the payment removes a valid receipt from the customer account, and the requirement is to keep both posted transactions.
B is incorrect: A credit note reduces the customer balance for that invoice, which changes the amount receivable instead of correcting how the payment was applied.
D is incorrect: A free text invoice adds a new charge to the customer and does not release the existing settlement.
Q09 - Question
A customer overpaid an invoice and now has a credit balance. The customer has closed the account and will not be billed again, so the company must return the money. What should the accounts receivable clerk do?
Domain: Implement accounts receivable, credit, collections, and subscription billing Type: Single choice
- A. Run the reimbursement process for the customer credit balance.
- B. Undo the settlement on the original invoice and payment.
- C. Post a recurring free text invoice to consume the credit balance.
- D. Delete the customer record so the balance is removed.
A is correct.
Explanation: Reimbursement is the process used to return a credit balance to a customer when the credit will not be applied to future invoices.
B is incorrect: Undoing the settlement only reopens the invoice and the payment. It does not pay the money back to the customer.
C is incorrect: Raising an invoice creates a new charge for the customer, and the customer will not be billed again.
D is incorrect: Removing the customer record is not a way to clear a posted balance, and the money still has to be returned.
Q10 - Question
A controller reports that several customers exceed their agreed limits and that overdue balances are not followed up consistently. The controller wants a single area in Dynamics 365 Finance to manage customer credit limits and to drive follow-up on past due customer balances. Which functional area should you configure?
Domain: Implement accounts receivable, credit, collections, and subscription billing Type: Single choice
- A. Cash and bank management
- B. Tax
- C. Cost accounting
- D. Credit and collections
D is correct.
Explanation: Credit and collections is the area used to manage customer credit and to follow up on overdue customer balances.
A is incorrect: Cash and bank management handles bank accounts and cash transactions, so it does not track customer credit limits or collections activity.
B is incorrect: Tax supports the calculation and reporting of taxes on transactions and has no role in customer credit follow-up.
C is incorrect: Cost accounting provides internal cost analysis, not customer credit management or collections processing.