I85PREP
⌘ K
MB-310 study materials
MB-310 study resources

MB-310 practice questions

One question at a time. Build your MB-310 understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Implement financial management

A company has three legal entities and wants all of them to use the same list of main accounts. Which object should be shared across the legal entities?

  1. Chart of accounts Correct answer.
  2. Financial dimension
  3. Account structure
  4. Ledger

Explanation

Main accounts are stored in a chart of accounts, and a single chart of accounts can be selected by the ledger of more than one legal entity. Account structures then control which main accounts and dimension combinations are valid for entry, but they do not hold the account list itself.

Question 2Implement financial management

Which configuration defines the accounting periods into which ledger transactions are posted and later closed?

  1. Period allocation key
  2. Fiscal calendar Correct answer.
  3. Budget cycle
  4. Ledger posting setup

Explanation

The fiscal calendar defines the fiscal year, its periods, and the period status that controls whether postings are allowed. Journals and subledger documents are all dated into these periods.

Question 3Implement financial management

A main account exists in the chart of accounts, but users cannot select it on a journal line. What is the most likely cause?

  1. The chart of accounts is not activated
  2. The main account is not in an account structure assigned to the ledger Correct answer.
  3. The journal name has no voucher number sequence
  4. The main account has no default dimension values

Explanation

For a main account to be usable, it must be included in at least one account structure that is linked to the legal entity's ledger. Account structures therefore act as the gatekeeper for valid account and dimension combinations.

Question 4Implement financial management

A dimension value must be filled in automatically on every journal line posted to a specific main account. Where is this configured?

  1. The dimension hierarchy
  2. The account structure
  3. Default dimensions on the main account Correct answer.
  4. The journal name

Explanation

Default dimensions can be assigned to a main account so that the dimension value is proposed whenever that account is used. The value can still be overridden unless the structure or dimension settings prevent editing.

Question 5Implement financial management

Which journal type is designed for posting fixed asset transactions such as acquisitions and depreciation adjustments?

  1. Inventory journal
  2. Periodic journal
  3. Vendor disbursement journal
  4. Fixed asset journal Correct answer.

Explanation

Fixed asset transactions are recorded through a fixed asset journal, which posts to the fixed asset subledger as well as to the ledger. Other journal types do not update fixed asset balances correctly.

Question 6Implement financial management

Which setup determines the summary ledger account used for a vendor's balance when an invoice is posted?

  1. The method of payment
  2. The vendor group
  3. The payment schedule
  4. The vendor posting profile Correct answer.

Explanation

The posting profile links the vendor (or vendor group) to the summary accounts used for the vendor balance, prepayments, and related posting types. Different profiles can be assigned to different vendors to post to different accounts.

Question 7Implement financial management

Which module contains bank account maintenance and bank statement reconciliation?

  1. General ledger
  2. Fixed assets
  3. Cash and bank management Correct answer.
  4. Accounts receivable

Explanation

Cash and bank management holds bank accounts, bank transaction types, and the reconciliation features that match imported bank statement lines to ledger bank transactions.

Question 8Implement financial management

Which sales tax setup determines the main accounts that sales tax amounts post to?

  1. Item sales tax group
  2. Ledger posting group Correct answer.
  3. Sales tax group
  4. Sales tax authority

Explanation

Sales tax groups and item sales tax groups determine which taxes apply to a transaction. The ledger posting group then maps the calculated tax to specific main accounts.

Question 9Implement financial management

A vendor invoice must be verified against the purchase order and the product receipt, and posting must be blocked when quantities fall outside tolerance. Which feature provides this?

  1. Invoice matching with tolerances Correct answer.
  2. Budget control
  3. Vendor invoice workflow
  4. Payment schedule

Explanation

Invoice matching compares invoice, purchase order, and product receipt values and blocks or warns when differences exceed the configured price and quantity tolerances. The matching policy determines whether two-way or three-way matching is applied.

Question 10Implement financial management

A company must stop users from confirming purchase orders that exceed the remaining budget. What should be configured?

  1. A ledger allocation rule for the budget
  2. A posting definition for purchase orders
  3. Budget control with the over-budget action set to Prevent Correct answer.
  4. Budget register entries submitted to workflow

Explanation

Budget control checks source documents such as purchase orders against available budget amounts and applies the configured over-budget action. Setting that action to Prevent blocks confirmation and posting.

Question 11Implement financial management

How are periodic depreciation amounts recorded in the general ledger?

  1. By running year-end close for the fixed asset module
  2. The depreciation profile posts directly to the ledger when it is saved
  3. By importing them with a fixed asset balances data entity
  4. By creating a depreciation proposal in a fixed asset journal and posting it Correct answer.

Explanation

Depreciation is proposed into a fixed asset journal, where the entries can be reviewed and adjusted before posting. Posting the journal creates both the fixed asset subledger entries and the corresponding ledger entries.

Question 12Implement financial management

Which periodic process adjusts open customer and vendor transactions in foreign currencies to the current exchange rate?

  1. Cash flow forecasting
  2. Ledger settlement
  3. Consolidation
  4. Foreign currency revaluation Correct answer.

Explanation

Foreign currency revaluation revalues open foreign currency balances in the subledgers and the ledger and posts unrealized gain or loss entries. It is run periodically so that reported balances reflect the current rate.

Question 13Implement financial management

A customer payment covers three open invoices. Which function links the payment to those invoices so that they are no longer open?

  1. Collection letter
  2. Payment proposal
  3. Write-off
  4. Settle open transactions Correct answer.

Explanation

The Settle open transactions form is used to mark invoices as settled against a payment, producing any cash discount, penny difference, or exchange difference entries. Settling closes the invoice balances and updates the customer balance.

Question 14Implement financial management

Legal entity A posts an expense that belongs to legal entity B, and both entities must record due-to and due-from entries automatically. Which feature should be configured?

  1. Financial dimension balancing
  2. Ledger allocation rules
  3. Intercompany accounting Correct answer.
  4. Consolidation

Explanation

Intercompany accounting posts the balancing entries in the offsetting legal entities using the due-to and due-from accounts defined in the intercompany setup. This keeps each entity's books complete without manual duplicate entries.

Question 15Implement financial management

A ledger balance must be distributed across departments using fixed percentages. Which feature should be used?

  1. Distribution on the journal line
  2. Accrual scheme
  3. Posting definition
  4. Ledger allocation rule Correct answer.

Explanation

Ledger allocation rules generate allocation journals that spread a source balance across a destination based on a fixed percentage, a fixed weight, or a basis. They are used for recurring distributions without re-entering the amounts manually.

Question 16Implement financial management

A company prepays twelve months of insurance and wants the expense recognized each month automatically. Which feature should be used?

  1. Payment schedule
  2. Ledger allocation rule
  3. Budget control
  4. Accrual scheme Correct answer.

Explanation

An accrual scheme defers the expense at posting and releases a portion to the expense account in each subsequent period based on the configured frequency and interval. The deferral and recognition accounts are defined in the scheme setup.

Question 17Implement financial management

Which fiscal period status prevents new postings but can be reopened simply by changing the status back to Open?

  1. Permanently closed
  2. On hold Correct answer.
  3. Closed
  4. Open

Explanation

The On hold status blocks posting to a period while leaving it possible to set the period back to Open. Closed periods require a reopen process, and permanently closed periods cannot be reopened.

Question 18Implement financial management

Which process transfers profit and loss balances to the retained earnings account at the end of a fiscal year?

  1. Year-end close Correct answer.
  2. Period close
  3. Ledger settlement
  4. Consolidation

Explanation

Year-end close generates closing entries that move revenue and expense balances into retained earnings and brings forward balance sheet balances as opening balances. The accounts used are controlled by the year-end close setup and the retained earnings main account.

Question 19Implement financial management

Which setup on a method of payment determines the ledger account used to offset the customer balance when a payment journal is posted?

  1. The cash discount code
  2. The payment account on the method of payment Correct answer.
  3. The payment schedule
  4. The customer posting profile

Explanation

Each method of payment carries a payment account that is used as the offset when the payment journal is posted, typically a bank or cash main account. The customer balance itself is posted through the posting profile.

Question 20Implement financial management

Where are the main accounts for automatic postings such as exchange rate differences, penny differences, and rounding defined?

  1. In the accounts for automatic transactions Correct answer.
  2. On the account structure
  3. In the vendor and customer posting profiles
  4. In the fiscal calendar

Explanation

The accounts for automatic transactions page maps posting types such as exchange rate difference, penny difference, and rounding to specific main accounts. These accounts are used whenever a posting generates such an amount automatically.

Question 21Implement financial management

Before a balance sheet main account can be revalued for foreign currency, which posting type must be allowed in its main account setup?

  1. Exchange rate difference
  2. Foreign currency revaluation Correct answer.
  3. Rounding
  4. Profit and loss

Explanation

A main account is eligible for revaluation only when the Foreign currency revaluation posting type is enabled in its validation settings. This restriction keeps revaluation from being posted to accounts that should not carry unrealized currency effects.

Question 22Implement financial management

Which feature lets a company record encumbrance entries in the general ledger for purchase orders and purchase requisitions?

  1. Ledger allocation rules
  2. Posting definitions together with the encumbrance process Correct answer.
  3. Accrual schemes
  4. Account structures

Explanation

Encumbrance accounting uses posting definitions to generate the encumbrance and liquidation entries, together with the encumbrance process enabled in general ledger parameters. This produces ledger entries for commitments before the expense is actually recognized.

Question 23Implement financial management

Where is the exchange rate type used for currency conversion in a legal entity's ledger specified?

  1. On the ledger setup for the legal entity Correct answer.
  2. On the method of payment
  3. On the customer and vendor groups
  4. On the account structure

Explanation

The ledger setup holds the accounting currency and the exchange rate type that the legal entity uses when converting foreign currency amounts. Transactions use rates maintained against that exchange rate type.

Question 24Implement financial management

A debit and a corresponding credit have been posted to the same main account, and only the remaining balance should be treated as outstanding. Which feature is used?

  1. Foreign currency revaluation
  2. Consolidation
  3. Year-end close
  4. Ledger settlement Correct answer.

Explanation

Ledger settlement is used to match debit and credit transactions posted to the same main account so that only unsettled amounts remain available for further matching or reporting. It is commonly used to track the liquidation of balance sheet postings.

Question 25Implement financial management

Which tool is used to design financial statements from row definitions, column definitions, and reporting trees?

  1. Electronic reporting
  2. Financial reporting Correct answer.
  3. Trial balance inquiry
  4. Ledger allocation rules

Explanation

Financial reporting combines a row definition (which accounts), a column definition (which periods and attributes), and a reporting tree (which units) to produce statements such as a balance sheet or income statement. The resulting report designs can be generated and shared.

Question 26Implement financial management

Which configuration defines the main account and financial dimension combinations that users can select when they post a journal entry?

  1. Financial dimension sets
  2. Ledger posting setup
  3. Posting profiles
  4. Account structures Correct answer.

Explanation

Account structures are assigned to the ledger and specify the main accounts and dimension values that are valid together at posting time. Without a matching account structure, a journal line cannot be posted.

Question 27Implement financial management

Budget register entries must be stored in the ledger without affecting actual balances. Which posting layer do these entries use?

  1. Budget Correct answer.
  2. Tax
  3. Operations
  4. Current

Explanation

Budget register entries post to the Budget posting layer, so budget amounts are held separately from actual balances. Actual transactions are recorded on the Current, Operations, and Tax posting layers.

Question 28Implement financial management

Users must post a new class of adjustment entries under their own voucher numbering so the entries are easy to identify. What should you configure?

  1. A new ledger calendar for the adjustment period
  2. A posting definition for the adjustment entry type
  3. A new journal name with a dedicated voucher series Correct answer.
  4. A new number sequence for the adjustment main account

Explanation

Voucher numbering is taken from the voucher series assigned to the journal name, so a separate journal name with its own voucher series isolates the numbering. Every journal created from that name then uses the new series.

Question 29Implement financial management

The Department dimension must be mandatory for expense main accounts but must remain optional for every other main account. What should you configure?

  1. A financial dimension set that includes Department
  2. An advanced rule on the account structure Correct answer.
  3. A budget control rule for expense accounts
  4. A separate account structure for each department

Explanation

Advanced rules attach criteria to an account structure so that a dimension is required or allowed only for selected main accounts or account ranges. The base structure otherwise applies the same rules to all accounts.

Question 30Implement financial management

A customer receives a 2 percent discount when an invoice is paid within 10 days. What should you set up?

  1. A payment schedule with a 10 day interval
  2. A payment day of 10 combined with a 2 percent interest code
  3. A collection letter sequence with a 2 percent fee
  4. A cash discount of 2 percent for 10 days, linked to the payment terms Correct answer.

Explanation

The cash discount record holds the discount percentage and the number of days within which payment must be made. Linking that discount to the payment terms assigned to the customer lets the system calculate it when a payment is entered.

Question 31Implement financial management

Miscellaneous charges added to a vendor invoice must post to specific ledger accounts. Which setup stores those accounts?

  1. The vendor posting profile
  2. The method of payment
  3. The procurement category
  4. The charges code Correct answer.

Explanation

A charges code stores the debit and credit posting types together with the accounts used when the charge is posted. Selecting that code on an invoice line determines where the charge amount goes.

Question 32Implement financial management

Which setup on the vendor record determines the withholding tax codes calculated for that vendor's invoices?

  1. Withholding tax group Correct answer.
  2. Item sales tax group
  3. Vendor posting profile
  4. Sales tax group

Explanation

The withholding tax group assigned to a vendor lists the withholding tax codes that apply, and each code carries its rate and accounts. Sales tax groups, by contrast, drive sales tax calculation.

Question 33Implement financial management

Which fixed asset transaction type records the purchase cost of a new machine?

  1. Acquisition Correct answer.
  2. Disposal
  3. Depreciation adjustment
  4. Write-down adjustment

Explanation

An acquisition transaction capitalizes the cost of an asset, whether it comes from a purchase order, a vendor invoice, or an acquisition journal. Other transaction types change the net book value without recording the initial cost.

Question 34Implement financial management

Assets are organized in three fixed asset groups, and depreciation must post to a different expense account for each group. What should you configure?

  1. An account structure that restricts postings by fixed asset group
  2. A separate chart of accounts for each fixed asset group
  3. A ledger allocation rule that splits depreciation by group
  4. A fixed asset posting profile assigned to the asset books Correct answer.

Explanation

A fixed asset posting profile holds the accounts used per transaction type, including depreciation, and is selected on the asset book. Defining one profile per group and assigning the right profile to each book sends depreciation to the intended expense account.

Question 35Implement financial management

Budget funds must be moved from one department's travel account to its training account within the same budget model. Which budget type should the budget register entry use?

  1. Revision
  2. Transfer Correct answer.
  3. Original budget
  4. Carry-forward

Explanation

A transfer entry moves budget amounts between accounts or dimension values without changing the total budget. Original budget and revision entries establish or change the overall budget level.

Question 36Implement financial management

An accrual journal posted on 31 March must be reversed automatically on 1 April. What should you do when you create the journal?

  1. Enter 1 April in the reversal date field on the journal line Correct answer.
  2. Create a second journal dated 1 April and post it manually after March closes
  3. Set up an accrual scheme with 12 monthly periods
  4. Set the journal name's voucher series to restart each month

Explanation

Journal lines support a reversal date, and the reversing entry is generated automatically with that date when the journal is posted. The reversal remains linked to the original voucher, so no manual journal is needed.

Question 37Implement financial management

A parent legal entity must combine the balances of two subsidiaries in a separate consolidation legal entity. Which process should be used?

  1. Financial reporting with a reporting tree
  2. Consolidate online in the consolidation legal entity Correct answer.
  3. Year-end close in each subsidiary
  4. Ledger settlement across the three legal entities

Explanation

The Consolidate online process reads balances from the selected subsidiary legal entities and creates the consolidation transactions, converting currencies and applying the chosen eliminations. The result is a single set of consolidated balances.

Question 38Implement financial management

Vendor invoice postings currently produce ledger entries with no description text. Which setup controls the default text written to ledger entries for each transaction type?

  1. Journal names
  2. Default descriptions Correct answer.
  3. Financial dimension descriptions
  4. Posting definitions

Explanation

Default descriptions define the text template used when ledger entries are generated from other modules, configured per transaction type and language. The template can include values such as the vendor account or invoice number.

Question 39Implement financial management

Users must be able to type a short nickname on a journal line instead of the full main account and dimension combination. Which feature should you use?

  1. Ledger account aliases Correct answer.
  2. Posting definitions
  3. Account structures
  4. Financial dimension sets

Explanation

A ledger account alias maps a short name to a complete main account and dimension combination, and entering the alias on a journal line fills in the account. It is a data entry shortcut, not a validation rule.

Question 40Implement financial management

Which journal type is used to record a payment to a vendor?

  1. Vendor invoice register
  2. Vendor invoice
  3. Vendor disbursement Correct answer.
  4. Daily

Explanation

Payments to vendors are entered in journals whose type is Vendor disbursement, where each line carries a vendor account and an offset account and can settle open invoices. Invoice journal types record liabilities rather than payments.

Question 41Implement accounts receivable, credit, collections, and subscription billing

Which configuration groups customer balances into intervals such as current, 30 days, and 60 days for aging reports and the Collections page?

  1. Aging period definitions Correct answer.
  2. Interest codes
  3. Collection letter sequences
  4. Customer posting profiles

Explanation

Aging period definitions describe the interval buckets, for example current, 1-30, and 31-60 days, that aging snapshots and aging reports use to present customer balances. The other setups serve different collections and posting purposes.

Question 42Implement accounts receivable, credit, collections, and subscription billing

Which setup record determines the instrument used when a customer payment is recorded, such as a check or an electronic transfer?

  1. Cash discount
  2. Payment term
  3. Payment schedule
  4. Method of payment Correct answer.

Explanation

A method of payment identifies the payment instrument and carries the related posting, file format, and bank settings. Payment terms govern due dates and discount periods, while payment schedules split an invoice into installments.

Question 43Implement accounts receivable, credit, collections, and subscription billing

Which setup determines the summary ledger account used when customer transactions are posted for a specific customer group?

  1. Accounts receivable parameters
  2. Inventory posting profile
  3. Vendor posting profile
  4. Customer posting profile Correct answer.

Explanation

A customer posting profile maps a customer or customer group to the summary accounts used when accounts receivable transactions post. Inventory and vendor posting profiles apply to other modules.

Question 44Implement accounts receivable, credit, collections, and subscription billing

Where do you specify the maximum amount of credit that a single customer is allowed?

  1. In the credit limit field of the customer Correct answer.
  2. In the aging period definition
  3. In the customer posting profile
  4. In Credit management parameters

Explanation

The credit limit is an attribute of the customer record, where credit management compares it with the customer's total exposure. Parameters, aging definitions, and posting profiles hold defaults or account mappings rather than per-customer limits.

Question 45Implement accounts receivable, credit, collections, and subscription billing

A company must collect a 12,000 invoice in three equal installments due on the invoice date, 30 days later, and 60 days later. What should you configure?

  1. Three separate cash discount codes
  2. A collection letter sequence with three steps
  3. A payment schedule with three lines attached to the payment terms Correct answer.
  4. An interest code with three rate ranges

Explanation

A payment schedule defines how many installments an invoice is split into, the share of the total for each, and the interval between them, and it is applied through the payment terms. Discounts, letters, and interest do not divide an invoice into due amounts.

Question 46Implement accounts receivable, credit, collections, and subscription billing

Which document lets a user invoice a customer for miscellaneous charges without creating a sales order?

  1. Credit note journal
  2. Free text invoice Correct answer.
  3. Sales quotation
  4. Payment proposal

Explanation

A free text invoice posts directly to the customer balance and the ledger, and its lines can reference ledger accounts or items without any sales order. Quotations, credit notes, and payment proposals serve other purposes.

Question 47Implement accounts receivable, credit, collections, and subscription billing

A customer pays an invoice during the discount period defined on the payment terms. What does settling the invoice with the payment do?

  1. Reopens the closed invoice so the discount can be approved
  2. Leaves the invoice open and removes the discount from the terms
  3. Posts the discount to the cash discount accounts and closes it Correct answer.
  4. Creates a credit note for the discount amount

Explanation

When the payment date falls inside the discount period, settlement posts the discount amount to the cash discount and discount offset accounts defined on the customer posting profile and closes the invoice. No separate credit note is needed.

Question 48Implement accounts receivable, credit, collections, and subscription billing

Which configuration calculates interest on overdue customer balances and produces interest notes?

  1. Cash discount codes
  2. Aging period definitions
  3. Interest codes Correct answer.
  4. Collection letter sequences

Explanation

Interest codes define the rate or rate ranges, the calculation basis, and the accounts used, and they drive the creation of interest notes for overdue transactions. Collection letters send reminders but do not charge interest.

Question 49Implement accounts receivable, credit, collections, and subscription billing

You create an aging snapshot for a customer. What is the effect of the snapshot?

  1. It writes off balances that are older than the largest aging bucket
  2. It stores the aged balances for the Collections page and aging reports Correct answer.
  3. It places the customer on credit hold
  4. It posts interest notes for every overdue invoice

Explanation

An aging snapshot captures and stores aged balances at a point in time, and the Collections page and aging reports then read that stored data instead of recalculating each time. Writing off, interest, and credit holds are separate processes.

Question 50Implement accounts receivable, credit, collections, and subscription billing

In subscription billing, how do the billing schedule and the invoice schedule differ?

  1. The billing schedule sets revenue recognition dates, and the invoice schedule sets invoice dates.
  2. They are interchangeable names for the same setup. Correct answer.
  3. The billing schedule determines when invoices are generated, and the invoice schedule determines when revenue is recognized.
  4. The billing schedule sets price escalation, and the invoice schedule sets usage rates.

Explanation

The billing schedule defines the billing periods and therefore when invoices are generated, while the invoice schedule controls the dates on which revenue and expense are recognized or deferred. Separating them allows billing in advance while recognizing revenue over time.