Microsoft Certified: Dynamics 365 Finance Functional Consultant Associate practice questions

Question 1

A finance functional consultant is tasked with explaining open-transaction settlement in Dynamics 365 Finance to an accounts receivable team. The team must understand the balance outcomes when a payment is matched to an invoice. Which TWO outcomes correctly describe Dynamics 365 Finance settlement behavior?

Accepted Answer

If the payment exceeds the invoice, the invoice closes at 0.00 and the payment stays open for the difference.

Accepted Answer

If the payment is less than the invoice, the payment closes at 0.00 and the invoice stays open for the difference.

Answer

If the payment exceeds the invoice, both the payment and invoice close and the surplus is written off automatically.

Answer

If the payment is less than the invoice, the invoice closes at 0.00 and a credit note is created automatically.

Question 2

An AR manager at a Eurozone retail group is rolling out SEPA direct debit in Dynamics 365 Finance and the finance functional consultant must explain what SEPA is intended to achieve. Per the Microsoft Learn documentation, which option matches?

Accepted Answer

The Single Euro Payments Area (SEPA) is set up by the European Commission, and dictates that all electronic payments are considered domestic, regardless of the country/region where the individual, business, or organization, and the bank are located.

Answer

SEPA in Dynamics 365 Finance is a Microsoft-owned payment network that processes US dollar wires and reclassifies every electronic payment as a cross-border transaction inside the AR subledger.

Answer

SEPA in Dynamics 365 Finance is a US Federal Reserve initiative that classifies cross-border euro payments as domestic only when the AR manager is physically located inside the United States.

Answer

SEPA in Dynamics 365 Finance is a Microsoft AppSource billing framework that converts customer credit card charges into bank transfers and has no relationship to electronic payments at all.

Question 3

An organization is configuring budget control for a banking back-office in Dynamics 365 Finance and the finance functional consultant must explain what budget control supports. Per the Microsoft Learn documentation, which option matches?

Accepted Answer

Budget control in Dynamics 365 Finance supports the management of an organization's financial resources through the chart of accounts, workflows, user groups, source documents, and journals.

Answer

Budget control in Dynamics 365 Finance manages only Microsoft Entra ID role assignments for budget analysts and has no role in the chart of accounts, workflows, user groups, or source documents.

Answer

Budget control in Dynamics 365 Finance manages exclusively fixed-asset depreciation books and never touches the chart of accounts, workflows, user groups, source documents, or journals at all.

Answer

Budget control in Dynamics 365 Finance is a Microsoft AppSource add-on that mirrors the budget plan to a Microsoft Excel workbook and never interacts with the chart of accounts or any journal.

Question 4

An AP manager at a manufacturing finance organization is being onboarded to Dynamics 365 Finance and the finance functional consultant must explain what accounts payable invoice matching is. Per the Microsoft Learn documentation, which option matches?

Accepted Answer

Accounts payable invoice matching in Dynamics 365 Finance is the process of matching vendor invoice, purchase order, and product receipt information so that variances against tolerance are flagged.

Answer

Accounts payable invoice matching in Dynamics 365 Finance is the process of matching customer-master records with bank statements and never compares vendor invoices, purchase orders, or receipts.

Answer

Accounts payable invoice matching in Dynamics 365 Finance is the monthly Microsoft Power BI export of vendor balances to a finance consolidation tool and has no role in real-time invoice processing.

Answer

Accounts payable invoice matching in Dynamics 365 Finance is the Microsoft Entra ID role check that authorizes the AP manager to approve a vendor invoice and never matches receipts or POs at all.

Question 5

An organization is rolling out the Full month depreciation convention in Dynamics 365 Finance and the controller must decide how the system treats an asset's retirement timing under that convention. Which statement is correct?

Accepted Answer

Assets are considered retired on the last day of the previous month for asset depreciation purposes.

Answer

Assets are considered retired on the Placed in service date recorded for the asset in the fixed asset book.

Answer

Assets are considered retired on the first day of the month in which the disposal transaction is posted.

Answer

Assets are considered retired on the last day of the quarter in which the disposal is recorded in the ledger.

Question 6

A company is rolling out cash flow forecasting in Dynamics 365 Finance for a treasury team and the consultant must list the prerequisite tasks required before a cash flow forecast can be calculated. Which TWO tasks must be completed to obtain a forecast of the cash flow?

Accepted Answer

Identify and list all of the company's liquidity accounts for cash or cash equivalents.

Accepted Answer

Configure the forecast behavior for transactions that affect the liquidity accounts.

Answer

Post a closing sheet and generate opening transactions for the new fiscal year.

Answer

Import OANDA exchange rates so currency requirements convert to the accounting currency.

Question 7

A collections department is rolling out the Credit and collections workspace in Dynamics 365 Finance, and the finance functional consultant is tasked with explaining why the Aged balances list page is empty for newly added customers. Per the Microsoft Learn documentation, which statement is correct?

Accepted Answer

An aging snapshot must be created first, and the list page shows only customers that a snapshot has been created for.

Answer

The Aged balances list page shows every active customer automatically once a customer pool is defined for the legal entity.

Answer

The Aged balances list page is populated only after the customer statement batch job posts the open transactions.

Answer

The Aged balances list page reflects customers only after a collection letter code is assigned to each transaction.

Question 8

A finance team is designing a budget plan allocation in Dynamics 365 Finance and must decide how the destination scenario and existing lines are handled when an allocation method runs. Given the constraints, which statement is correct for all six allocation methods?

Accepted Answer

You specify the destination scenario, which can match or differ from the source, and append or replace lines.

Answer

The destination scenario must always differ from the source scenario, and new lines always replace the existing lines.

Answer

The destination scenario is fixed to the source scenario, and lines are always appended to the plan automatically.

Answer

The destination scenario is set per period allocation key, and lines are merged using budget allocation terms.

Question 9

A company is rolling out vendor invoice processing in Dynamics 365 Finance and wants invoices that meet defined criteria to be approved automatically while the exceptions are routed to a person for review. Which combination of capabilities supports this automated review?

Accepted Answer

Invoice matching, vendor invoice policies, and workflow, which automate the review so qualifying invoices are approved and the rest flagged.

Answer

Invoice register, invoice pool, and approval journal, which together stage invoices but cannot auto-approve any of them by criteria.

Answer

Vendor collaboration, electronic reporting, and data entities, which import invoices electronically but leave all of the approvals manual.

Answer

Budget control, encumbrance, and commitment accounting, which validate funds availability rather than automate invoice review or approval.

Question 10

A US company is using a fixed asset mass update in Dynamics 365 Finance to switch a group of assets to the mid-quarter convention, and the controller is evaluating the side effect on existing transactions. What happens when the convention is updated?

Accepted Answer

All existing depreciation transactions for those assets are deleted when the depreciation convention is updated.

Answer

Existing depreciation transactions are recalculated in their place using the new mid-quarter convention going forward.

Answer

Only future depreciation periods adopt the new convention while posted periods stay locked and left unchanged.

Answer

The assets move to a new book so the prior convention's transactions are preserved for tax reporting needs.

Question 11

A finance functional consultant is rolling out advanced bank reconciliation for a banking back-office in Dynamics 365 Finance and the GL accountant is being asked which bank statement formats are built in. Per the Microsoft Learn documentation, which TWO options are listed as built-in formats?

Accepted Answer

ISO20022 is built in as one of the three typical bank statement formats supported by the advanced bank reconciliation feature in Dynamics 365 Finance for import through the data entity framework.

Accepted Answer

MT940 is built in as one of the three typical bank statement formats supported by the advanced bank reconciliation feature in Dynamics 365 Finance for import through the data entity framework.

Answer

PDF408 is the only built-in advanced bank reconciliation format in Dynamics 365 Finance, and customers cannot extend the feature to support any other bank statement layout from their banking partner.

Answer

QuickBooks Online QBO is documented as the only built-in bank statement format in Dynamics 365 Finance, and customers must license an Intuit connector to enable advanced bank reconciliation at all.

Question 12

An AR manager at an e-commerce retailer is rolling out credit-card acceptance in Dynamics 365 Finance and the finance functional consultant must explain what a payment service does. Per the Microsoft Learn documentation, which option matches?

Accepted Answer

A payment service in Dynamics 365 Finance acts as a bridge between your legal entity and the bank that processes a customer's credit card charges, set up on the Payment services configuration page.

Answer

A payment service in Dynamics 365 Finance is the Microsoft Entra ID security role granted to the AR manager to view customer card data and has no role in processing any credit card charge at all.

Answer

A payment service in Dynamics 365 Finance is a Microsoft Power BI dashboard tile that displays aggregate credit-card chargebacks and never bridges the legal entity to a bank or card processor.

Answer

A payment service in Dynamics 365 Finance is the merchant-of-record license SKU on AppSource and is unrelated to bridging the legal entity with the bank that processes any customer credit-card charge.

Question 13

A finance functional consultant is enabling Microsoft Excel layouts for budget plan documents in Dynamics 365 Finance for a retail GL organization and the budget analyst is being asked what each layout can have associated with it. Per the Microsoft Learn documentation, which option matches?

Accepted Answer

Each layout can have an associated budget plan document template in Dynamics 365 Finance to view and edit the budget plan data in an Excel worksheet from the Budget plans list page in the application.

Answer

Each layout in Dynamics 365 Finance budget planning is limited to a single Microsoft Word template and cannot be paired with any Microsoft Excel worksheet to view or edit the budget plan data at all.

Answer

Each layout in Dynamics 365 Finance budget planning is restricted to a Microsoft Power BI report only and is never paired with a Microsoft Excel worksheet for editing the budget plan data.

Answer

Each layout in Dynamics 365 Finance budget planning can be associated only with a Common Data Service entity, and Microsoft Excel worksheet integration was removed in a recent service update.

Question 14

A finance functional consultant is configuring accounts payable invoice matching for a manufacturing legal entity in Dynamics 365 Finance and must decide where the default line-level matching policy (two-way or three-way) is set so it applies automatically to new vendor invoices. Where is that default specified?

Accepted Answer

On the Accounts payable parameters page for the legal entity, which sets the default line-level matching used across that entity's vendor invoices.

Answer

On each vendor record's invoice and delivery FastTab, so the matching policy is defined separately for every individual vendor account in the entity.

Answer

On the released product's purchasing policy, so the matching default is inherited from each purchased item rather than from the legal entity itself.

Answer

On the purchase order header at order entry time, so matching is chosen per order and no entity-wide default value is ever maintained or reused.

Question 15

A finance functional consultant is rolling out fixed-asset procurement in Dynamics 365 Finance for a public-sector accounting team and the GL accountant is being asked how a fixed asset can be created automatically from a vendor invoice. Per the Microsoft Learn documentation, which option matches?

Accepted Answer

A fixed asset automatically is created in Dynamics 365 Finance when you post a product receipt or vendor invoice that has the Create a new fixed asset check box selected at the time of posting the receipt.

Answer

A fixed asset can never be created automatically in Dynamics 365 Finance from a product receipt or vendor invoice, and every asset must be entered manually through the Fixed assets master page.

Answer

A fixed asset in Dynamics 365 Finance is created only when a Microsoft Power Automate flow is triggered overnight by the GL accountant, and the Create a new fixed asset check box does not exist.

Answer

A fixed asset in Dynamics 365 Finance is created only when the AppSource billing system records a Microsoft licensing invoice, and a vendor invoice never produces an asset record for the company.

Microsoft Certified: Dynamics 365 Finance Functional Consultant Associate

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