Microsoft Dynamics 365 Finance Functional Consultant (MB-310) practice questions

Domain coverage 5 domains

• Implement financial management (40–45%)
• Implement accounts receivable, credit, collections, and subscription billing (15–20%)
• Implement and manage accounts payable and expenses (10–15%)
• Manage budgeting (10–15%)
• Manage fixed assets (10–15%)

Sample questions 10 of 100 shown

1. Q1 Implement Financial Management (40-45%)

   A client wants general journals to be used only to post ledger-type transactions. You need to set up journal configuration to achieve the requirement. Solution: Set up posting restrictions on the general journal. Does the solution meet the goal?

   1. Yes
   2. No

   Posting restrictions on a general journal do not limit the account types that can be used. To restrict journals to ledger-type transactions only, you should configure journal control on the general journal name to limit the account type to ledger.
2. Q2 Implement Financial Management (40-45%)

   You need to configure the financial reporting fiscal calendar for a customer. The customer uses a 4-5-4 retail calendar. What should you do?

   1. Use the closing period adjustments form.
   2. Configure the ledger calendar to include a 13th closing period.
   3. Use the ledger calendar to set up the 4-5-4 calendar.
   4. Configure the fiscal calendar to include a 13th closing period.

   The ledger calendar in Dynamics 365 Finance supports setting up custom fiscal calendars including 4-5-4 retail calendars. You configure the fiscal calendar periods using the ledger calendar setup, not through closing period adjustments.
3. Q3 Implement Financial Management (40-45%)

   A client has one legal entity, two departments, and two divisions set up as financial dimensions. Only expense accounts require dimensions posted with transactions. Users must not have the option to select dimensions for balance sheet accounts. You need to configure the ledger to show applicable financial dimensions based on the main account selected. Solution: Configure one account structure for expense accounts and include applicable dimensions. Does the solution meet the goal?

   1. Yes
   2. No

   One account structure alone cannot meet both requirements. You need two account structures: one for expense accounts (with required dimensions) and one for balance sheet accounts (without dimensions). Account structures, not a single structure with dimensions, control when dimensions are required.
4. Q4 Implement Financial Management (40-45%)

   A global distribution company operating in multiple legal entities needs centralized credit management with:

   1. Centralized credit policy adaptable for regional risk variations
   2. Automated risk scoring based on payment history and external data
   3. Automatic credit holds for customers exceeding limits or overdue >60 days
   4. Workflow for credit control team to review temporary limit increases

   Which combination of features meets all these requirements?

   1. Configure customer posting profiles with different settlement accounts per region and use periodic journals to manually place customers on hold.
   2. Set up a parent legal entity for credit management, use shared customer master data, and apply a single global credit limit to all customers.
   3. Enable credit management, configure risk scoring groups with different criteria per region, create automatic credit limit rules, set up blocking rules for overdue invoices, and design a credit limit adjustment workflow.
   4. Create a Power App for credit limit requests, use Power Automate to update credit limits, and create separate collection letter sequences for each region.

   Dynamics 365 Credit management provides risk scoring groups (adaptable per region), automatic credit limit rules, blocking rules for overdue invoices, and workflows for limit adjustments. This configuration meets all four requirements without requiring external tools or manual processes.
5. Q5 Implement Financial Management (40-45%)

   A company is transitioning inventory valuation from FIFO to Standard Cost for a group of finished goods. You need to activate the new costing version. What are three essential steps in the correct sequence?

   1. Calculate the item prices within the new standard cost costing version.
   2. Run an inventory closing for the period prior to activation.
   3. Activate the calculated item prices in the costing version.
   4. Delete the old FIFO costing versions.
   5. Post an inventory revaluation journal to adjust on-hand inventory to the new standard cost.
   6. Change the item model group for all affected items immediately after activation.

   The correct sequence is: (B) Run inventory closing for the prior period first, (A) Calculate item prices in the new costing version, then (C) Activate the calculated prices. After activation, post an inventory revaluation journal (E) to adjust on-hand inventory value. The old costing versions should not be deleted until the transition is complete.
6. Q6 Implement Financial Management (40-45%)

   A SaaS company sells a three-year enterprise license for $36,000 paid upfront. Revenue must be recognized evenly over 36 months. Which configuration enables automatic monthly recognition of $1,000?

   1. Create a recurring free text invoice scheduled to post $1,000 each month for 36 months.
   2. Configure a billing schedule attached to a sales order and associate it with a revenue deferral template set to recognize over 36 periods.
   3. Set up a periodic journal to automatically create and post $1,000 revenue entry each month.
   4. Use a sales agreement with a milestone billing rule.

   Revenue deferral in Dynamics 365 Finance uses deferred revenue schedules on sales orders. A billing schedule records the upfront invoice, and the associated revenue deferral template automatically recognizes $1,000 per period over the 36-month contract term.
7. Q7 Implement Financial Management (40-45%)

   A holding company is performing its first financial consolidation. Subsidiaries use different charts of accounts. After running 'Consolidation online', intercompany balances have not been eliminated. What is the most likely cause?

   1. Currency translation rates were not defined.
   2. Elimination rules in the consolidation company were not configured to use the 'Intercompany' dimension.
   3. Main accounts for intercompany payables/receivables from subsidiaries were not mapped to consolidation company accounts.
   4. The 'Recalculate balances' option was not selected.

   When subsidiaries use different charts of accounts, the main accounts for intercompany transactions must be mapped from subsidiary accounts to the corresponding accounts in the consolidation company. Without proper account mapping, the elimination engine cannot identify which balances to eliminate.
8. Q8 Implement Financial Management (40-45%)

   A company's chart of accounts uses a single account structure. The 'Department' dimension must be mandatory for expense accounts (600000-699999) but optional for all other accounts. What is the most efficient configuration?

   1. Create two separate account structures.
   2. In the account structure, make Department optional and configure an advanced rule where if MainAccount is between 600000-699999, then add Department and make it mandatory.
   3. Use journal control restrictions.
   4. Configure a financial dimension default template on expense main accounts.

   Advanced rules in account structures allow conditional dimension requirements based on main account ranges. This is more efficient than creating multiple account structures. The rule activates the Department dimension and makes it mandatory only when the main account falls within the specified range.
9. Q9 Implement Financial Management (40-45%)

   You are implementing Dynamics 365 Finance for a company that commonly sells goods across international borders. What should you use to secure payment for international trade?

   1. Purchase agreement
   2. Bank statements
   3. Letters of credit
   4. Promissory note

   Letters of credit are financial instruments used in international trade to guarantee payment. Dynamics 365 Finance supports letters of credit as a payment method for international transactions, providing security for both buyers and sellers.
10. Q10 Implement Financial Management (40-45%)

    A controller notices incorrect postings entered via journal. The system must enforce: Expense accounts (6000-6998) require department, division, and project. Revenue accounts (4000-4999) require department and division. Liability accounts (2000-2999) should not have dimensions. Expense account 6999 requires department, division, project, and customer. Solution: Configure two account structures and use asterisks for dimension columns. Does the solution meet the goal?

    1. Yes
    2. No

    Using asterisks alone cannot differentiate between optional and required dimensions across different account ranges. Advanced rules are needed to make dimensions conditionally required based on the specific main account ranges.

Answer all 100 questions with instant feedback →

Reader reviews 149 ratings

• The way the MB-310 questions are broken down by domain is great. Let me focus on my weak spots without wasting time.

  ★★★★★★ Olivia H.

• Comparing this with other Microsoft practice tests, this one feels the most like the real MB-310 exam.

  ★★★★★★ Mia R.

• MB-310 was harder than I expected but these questions prepared me well. The multi-select ones in particular were really close to the exam.

  ★★★★★★ Chloe D.

• I let my coworker borrow my MB-310 account to study — he passed too. These questions are legit.

  ★★★★★★ Grayson P.

• I used this alongside video courses for MB-310 prep. The questions helped solidify what I learned from the lectures.

  ★★★★★★ Aria N.

• I was really impressed by the quality of the MB-310 questions. No typos, no vague wording — they clearly know the material.

  ★★★★★★ Stella P.

Frequently asked questions

Free study resources

Community-verified analysis of 1 questions from real test-taker discussions — 1 deep analyses and 0 FAQs.

More Microsoft exams