Microsoft Dynamics 365: Core Finance and Operations Test

Harvey Pekar works at Tintin Corp who are implementing inventory management in Dynamics 365 SCM. Tintin Corp needs to block inventory and ensure that physical inventory will not be reserved by other outbound transactions. Harvey need to select the appropriate option to block the inventory in the system. Which of the following solutions should Harvey use?

A: Select the full blocking option in the item sampling page
B: Manually create a transaction on the inventory blocking page
C: Create a quality order on the quality orders page for the quantity to be blocked

Case Study:

*EuraCraft Ltd.*, a luxury furniture maker, uses Dynamics 365 SCM for its operations. They've recently expanded their market reach and have started exporting their products to multiple countries. Each of these countries has specific trade agreements, customs duties, and taxations that *EuraCraft* needs to comply with.

They are keen on setting up Dynamics 365 SCM in a manner that automatically adjusts pricing, applies correct customs duties, and ensures compliance for each international order based on the destination country.

Question:

How should *EuraCraft Ltd.* tailor their Dynamics 365 SCM setup to seamlessly manage varying cross-border trade regulations and ensure proper pricing and compliance for each international transaction?

A: Implement country-specific Item Pricing and tie them to customer profiles based on their location.
B: Set up Trade Agreements in SCM, specifying conditions, pricing, duties, and taxes for each country they export to.
C: Use the International Module to auto-convert currency rates and apply flat international fees for simplicity.
D: Activate the Global Address Book, ensuring customer data from different countries is segregated and priced differently.
E: Rely on third-party integrations for tax calculations, leaving pricing and duties to be handled manually.

*TechMotive Corp.*, an electric vehicle manufacturer, relies heavily on Dynamics 365 SCM. With the upcoming launch of their new *E-Volve* car model, they anticipate a surge in production demand. The production line for the *E-Volve* shares certain critical resources (machines and technicians) with two other car models. To ensure efficient resource allocation without disrupting existing production schedules, they need to optimize their Dynamics 365 SCM configurations.

Given the following insights, which Dynamics 365 SCM strategy should *TechMotive Corp.* prioritize?

1. Demand forecasts for the *E-Volve* model are updated weekly, but resource scheduling in the system is done on a monthly basis.
2. Currently, resource allocation is done based on first-come, first-serve (FCFS), without considering the strategic importance of a particular model.
3. Technicians' schedules are often adjusted manually due to last-minute changes, but these adjustments are not always reflected promptly in Dynamics 365 SCM.
4. Their Dynamics 365 SCM does not have real-time machine telemetry integration, so unplanned downtimes are not immediately reflected in the schedule.

A: Implement real-time telemetry integration for machinery to get instant updates on their status and potential downtimes.
B: Adjust Dynamics 365 SCM to align demand forecasting updates with resource scheduling frequency.
C: Transition from an FCFS resource allocation to a priority-based allocation considering the strategic importance of each model.
D: Automate the adjustment of technician schedules in Dynamics 365 SCM to reduce manual entries and improve real-time accuracy.
E: Combine telemetry integration and adjust resource scheduling to weekly intervals while implementing priority-based allocation.

*TechElectro Corp.*, a distributor of high-end electronics, uses Dynamics 365 SCM. Over the past quarter, they've experienced variability in the procurement prices for their bestselling item - the *PixelWave Monitor*. Given this variability, they want to ascertain the best method to evaluate their warehouse's inventory value.

Here's the procurement data for the *PixelWave Monitor* for the quarter:

- April Purchase: 80 units @ $250 each
- May Purchase: 120 units @ $275 each
- June Purchase: 100 units @ $260 each

By the end of June, they've sold 180 units.

Based on this data and using FIFO, LIFO, and Weighted Average methods, which valuation method provides the lowest remaining inventory value by the end of June?

A: 
B: 
C: 
D: 
E:

A renowned toy manufacturer uses Microsoft Dynamics 365 for Supply Chain Management for its warehousing and inventory operations. The company is calculating the cost of storing and handling its two top-selling toys in its warehouse for one month.

Given the following data:

1. Toy Alpha:
    - Cost per unit: $12.
    - Monthly storage fee per unit: $0.5.
    - Units moved in and out of storage during the month: 1500.
2. Toy Beta:
    - Cost per unit: $8.
    - Monthly storage fee per unit: $0.3.
    - Units moved in and out of storage during the month: 2500.
3. Handling fee (applies to both toys): $0.2 per unit for every move in or out of storage.
4. Bulk storage discount: A $450 discount is applied when calculating the total monthly storage costs due to a promotional offer.

Considering the above, how much did it cost the company in terms of storage and handling fees for these toys in the given month?

Your organization, headquartered in the US, frequently engages in intercompany transactions with a subsidiary in Europe. At the beginning of the month, a purchase order of €500,000 was made from the subsidiary. The initial exchange rate was 1 EUR = 1.20 USD. However, by the time of invoice payment, the exchange rate had changed to 1 EUR = 1.15 USD.

Considering your organization's payment term is Net 30 days with a 2% early payment discount if paid within 15 days and the payment was made on the 12th day, calculate the USD amount saved due to both early payment and the change in exchange rate.

You are a Dynamics 365 Finance consultant at a large multinational corporation. The company is implementing a new subsidiary and has the following requirements:

1. They need to import legacy data from the subsidiary's previous ERP system.
2. The CFO of the new subsidiary needs to have access to high-level financial reports but should not have access to employee-specific salary details.
3. The subsidiary operates in a country with a specific requirement to maintain dual ledgers: one standard and one adjusted, with periodic reconciliations.

Given these requirements:

Which of the following steps and configurations in Dynamics 365 Finance would BEST meet the company's needs?

A: Use Data Management workspace for data import, assign the CFO the "Chief Financial Officer" security role, and set up an additional ledger with Ledger Setup.
B: Import data using Excel Add-in, assign the CFO a custom role with restricted HR access, and utilize dual-currency features in Ledger Setup.
C: Use the Data Management workspace with relevant data entities for import, provide the CFO with the "Financial Reporter" role and limit HR data access, and set up a secondary ledger in Ledger Setup for the adjusted ledger.
D: Use RapidStart services for data import, provide the CFO with only "General Ledger Manager" access, and set up the subsidiary as a separate legal entity.
E: Directly use SQL Server Integration Services for data import, assign all financial roles to the CFO, and maintain dual ledgers manually through journal entries.

You are a Dynamics 365 Finance Functional Consultant tasked with integrating an external system's financial data into Dynamics 365 Finance. The external system provides data in a comma-separated values (CSV) format. You need to ensure that the data from the external system can be integrated into the General Ledger in Dynamics 365 Finance, and then used for financial reporting. Which sequence of actions should you perform to accomplish this task?

A: Create a new data entity for the CSV format, import the data into the General Ledger, then generate financial reports.

B: Directly import the CSV into the General Ledger, then generate financial reports.

C: Convert the CSV format into a data package, import the data into the General Ledger through the Data Management framework, then generate financial reports.

D: Import the CSV into the General Ledger, map the data fields using the Data Management framework, then generate financial reports.

E: Use the Financial Reporting framework to import the CSV, then generate financial reports directly.

A: Create a new data entity for the CSV format, import the data into the General Ledger, then generate financial reports.
B: undefined
C: Directly import the CSV into the General Ledger, then generate financial reports.
D: undefined
E: Convert the CSV format into a data package, import the data into the General Ledger through the Data Management framework, then generate financial reports.
F: undefined
G: Import the CSV into the General Ledger, map the data fields using the Data Management framework, then generate financial reports.
H: undefined
I: Use the Financial Reporting framework to import the CSV, then generate financial reports directly.

You are a Dynamics 365 Finance Functional Consultant working with a conglomerate that has multiple subsidiary companies. These companies frequently engage in intercompany transactions, purchasing goods and services from each other. The CFO has expressed concerns over the current manual process of recording these transactions and has approached you for a solution.

The conglomerate has the following requirements:

1. When Company A sells a product to Company B, the transaction should automatically generate a sales invoice in Company A and a purchase order in Company B.
2. For taxation purposes, each subsidiary company must maintain its ledger. However, the parent company should be able to view consolidated financial statements.
3. Data related to product details, customer, and vendor information should be shared across all companies to avoid redundancy and ensure consistency.

Given these requirements, how should you configure Dynamics 365 Finance to meet the conglomerate's needs?

A: Enable intercompany accounting and manually create corresponding purchase orders and invoices for intercompany transactions. Set up individual ledgers for each company and use the financial consolidation tool for consolidated reports. Use data entities to export and import shared data across companies.
B: Set up intercompany trading relationships to automate the creation of corresponding transactions. Assign individual ledger accounts to each subsidiary while maintaining a master ledger at the parent company. Use cross-company data sharing for shared information.
C: Use a single ledger for all companies to simplify the consolidation process. Manually adjust the ledger for intercompany transactions. Rely on data duplication across companies for shared information to ensure data integrity.
D: Implement third-party software specifically designed for intercompany transactions. Integrate this software with Dynamics 365 Finance. Use separate databases for each company and develop custom scripts for data synchronization.
E: Activate intercompany process automation in Dynamics 365 Finance. Create separate legal entities for each company, defining their individual ledgers. Use the Common Data Service (CDS) platform to ensure consistent data across all entities.

As a senior Dynamics 365 Finance consultant, you're tasked with leveraging the capabilities of the Microsoft Power Platform to enhance data analysis, streamline operations, and improve user experience for a leading retail client. The client's specific requirements are:

1. Real-time sales analytics from Dynamics 365 Finance embedded directly into their team's daily operations dashboard.
2. An automated workflow to alert the procurement team whenever inventory levels for high-demand products drop below a certain threshold.
3. A customized Power App that allows sales representatives to access and update customer information on-the-go, integrated with Dynamics 365 Finance.

Considering these demands, which combination of solutions would be BEST suited to meet the client's expectations?

A: Implement Power BI Embedded for real-time analytics, use Data Entities for inventory monitoring, and build a Canvas app with Dynamics 365 Finance data connectors.
B: Directly integrate Dynamics 365 Finance with Power BI service for analytics, utilize Power Automate for inventory alerts, and develop a Model-driven Power App connected to Dynamics 365 Finance.
C: Embed Power BI reports using iframe into the dashboard, set up Azure Logic Apps for inventory alerts, and customize a Portal app for sales representatives.
D: Use Power BI paginated reports for embedding analytics, deploy Power Virtual Agents to notify procurement, and leverage Common Data Service to build the Power App for sales.
E: Utilize Dynamics 365 Finance's native reporting for analytics, set up standard Dynamics 365 notifications for inventory, and integrate a third-party mobile app solution for sales representatives.