Dynamics 310 Year-End Close Configuration Error

MB-310 By islever Editorial Last updated

Design and configure the chart of accounts and financial dimensions Perform periodic processes

Short answer

B The solution does not meet the goal because setting 'Financial dimensions will be used on the Opening transactions' to No prevents dimensions from carrying over, violating the requirement that all dimensions from profit and loss must carry over into retained earnings.

Question

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You are configuring the year-end setup in Dynamics 365 Finance.
You need to configure the year-end setup to meet the following requirements:
✑ The accounting adjustments that are received in the first quarter must be able to be posted into the previous year's Period 13.
✑ The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions.
✑ All dimensions from profit and loss must carry over into the retained earnings.
✑ All future and previous periods must have an On Hold status.
Solution:
✑ Configure General ledger parameters.
  • Set the Delete close of year transactions option to Yes.
  • Set the Create closing transactions during transfer option to Yes.
  • Set the Fiscal year status to permanently closed option to No.
✑ Define the Year-end close template.
  • Designate a retained earnings main account for each legal entity.
  • Set the Financial dimensions will be used on the Opening transactions option to No.
  • Set the Transfer profit and loss dimensions option to Close All.
✑ Set all prior and future Ledger periods to a status of On Hold.
Does the solution meet the goal?
  1. Yes
  2. No Correct Answer

Key Takeaways

The main trap is ignoring the negative impact of setting 'Financial dimensions will be used on the Opening transactions' to No when the requirement explicitly demands dimension carryover.

This question tests Dynamics 365 Finance year-end close configuration. The correct answer is B because the proposed setup incorrectly disables financial dimension carryover to opening transactions.

Common mistake: Candidates often select A (Yes) because they focus only on the 'Delete close of year transactions' or 'Fiscal year status' settings, overlooking the subtle but critical dimension handling requirement in the template.

Expert Analysis

The solution fails to meet the specific requirement that 'All dimensions from profit and loss must carry over into the retained earnings.' In the provided Year-end close template configuration, the setting Financial dimensions will be used on the Opening transactions is set to No. This setting controls whether financial dimensions are preserved when creating opening balance transactions for the new fiscal year based on the prior year's closing. Setting it to 'No' means dimensions are stripped or not carried over in the opening transaction context, directly contradicting the goal.

Additionally, while the commenters debate the 'Delete close of year transactions' setting, the primary failure is the dimension handling. The requirement states 'only the most recent closing entry will remain,' which implies previous entries should be deleted. Therefore, Delete close of year transactions = Yes is actually correct for that specific bullet point. However, the dimension requirement is unambiguous: to carry over dimensions, you typically need to ensure they are active. The key trap here is confusing the 'Transfer profit and loss dimensions' setting (which determines if P&L accounts get closed out with their dimensions) with the 'Financial dimensions will be used on the Opening transactions' setting (which affects the new year's opening balances). If the goal is for dimensions to carry over into Retained Earnings (the result of the close), ensuring they are used on opening transactions or properly transferred is critical. Microsoft documentation indicates that to maintain dimensions when moving P&L to Retained Earnings, you must configure the template appropriately. Specifically, the option 'Financial dimensions will be used on the Opening transactions' being set to 'No' prevents the carrying over of dimensions in the subsequent period's opening state, which is often interpreted as part of the 'carry over' lifecycle in these exam scenarios. More critically, simply setting 'Create closing transactions during transfer' to Yes handles the posting, but the dimension preservation relies on the template settings. The explicit instruction 'All dimensions... must carry over' makes 'No' an incorrect value for the relevant dimension setting.

Therefore, because one of the four requirements is explicitly violated by a configuration choice (Dimensions carry over vs No), the answer is No.

Official Reference

https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/tasks/close-fiscal-year

This link opens the official vendor documentation in a new tab.

Exam Strategy

When evaluating year-end close solutions, map every single requirement line-by-line against the configuration steps. Do not assume that correcting one aspect (like deleting old transactions) validates the entire solution. If any requirement is contradicted by a setting (e.g., 'carry over dimensions' vs 'No'), the answer is immediately No.

Frequently Asked Questions

What does 'Financial dimensions will be used on the Opening transactions' control?

It controls whether financial dimensions are included in the opening balance transactions created for the new fiscal year after the year-end close.

How do I ensure dimensions carry over to Retained Earnings?

You must configure the Year-end close template to preserve dimensions, often by ensuring relevant dimension settings like 'Transfer profit and loss dimensions' are set correctly and opening transaction dimensions are enabled.

More MB-310 FAQ →

Community Votes

A
75%
B
25%

75% of anonymous learners picked answer A. Votes are pick records left by other test-takers — they are not the verified answer.

Discussion 14 contributions

Compiled from public community threads and reader submissions, lightly edited for clarity. Handles and vote tallies are shown as recorded, and comments reflect the views of individual contributors.

From public community threads 14

  1. TheInfinity 👍 10
    Correction. "For profit and loss accounts, you can select to maintain the financial dimensions (Close all) when the balances are moved to Retained earnings" Answer A. Yes is good https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/tasks/close-fiscal-year
  2. TheInfinity 👍 8
    I think that "Set the Financial dimensions will be used on the Opening transactions option to No" does not match to "All dimensions from profit and loss must carry over into the retained earnings" requirement. Making the proper answer -> B. No
  3. sadiq_d365 👍 3
    correct
  4. angie97 👍 2
    Wrong. Answer is B. If they do not want to delete previous year closing transaction then they need to set it to NO.
  5. globeearth 👍 1 Answered A
    ==> Setting the Fiscal year status to permanently closed option to No in the General ledger parameters allows the previous fiscal year to remain open, enabling adjustments to be posted into Period 13. ==> Setting the Delete close of year transactions option to Yes ensures that when the year-end close is rerun, previous closing transactions are deleted, and only the most recent closing entry is retained. ==> Setting the Transfer profit and loss dimensions option to Close All in the Year-end close template ensures that all financial dimensions from profit and loss accounts are transferred to the retained earnings account. ==> Explicitly setting all prior and future Ledger periods to a status of On Hold meets this requirement, restricting transactions in those periods.
Show 9 more comments
  1. Albbia 👍 1 Answered A
    Here’s why: Accounting adjustments in Period 13: By setting the “Create closing transactions during transfer” option to Yes, you allow adjustments to be posted into the previous year’s Period 13. Most recent closing entry: Setting the “Delete close of year transactions” option to Yes ensures that only the most recent closing entry remains. Carry over dimensions: The “Transfer profit and loss dimensions” option set to “Close All” ensures that all dimensions from profit and loss carry over into retained earnings. On Hold status: Setting all prior and future Ledger periods to On Hold meets the requirement for periods to have an On Hold status.
  2. elberkaoui 👍 1 Answered A
    The configuration aligns with Microsoft’s current guidance: Delete close of year transactions = Yes → ensures only the latest closing entry remains. Create closing transactions during transfer = Yes → properly posts P&L to retained earnings. Fiscal year status permanently closed = No → allows re-running the close. Year-end close template with “Transfer profit and loss dimensions = Close all” → carries all P&L dimensions into retained earnings. Ledger periods set to On Hold → secures prior/future periods.
  3. ec599a1 👍 1 Answered A
    - Set the Fiscal year status to permanently closed option to No.====V - Set the Financial dimensions will be used on the Opening transactions option to No. ===V A
  4. kripe86 👍 1
    How this could be the right answer, if the settings " Set the Financial dimensions will be used on the Opening transactions option" are not on the templates?
  5. jannicke_henriks 👍 1 Answered B
    Answer is B. If they do not want to delete previous year closing transaction then they need to set it to NO. This example has it set to Yes
  6. SRodich 👍 1 Answered B
    "B" is the correct answer
  7. yuri_rusanov 👍 1 Answered A
    A is the correct answer.
  8. Ellis08_ 👍 1 Answered A
    Yes it meets the goals
  9. Aysenuremre 👍 1
    A is correct

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