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MB-310 Exam - Question 1

Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

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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?

Show Answer
Correct Answer: B

The solution provided does not meet all the stated requirements. Specifically, setting 'Set the Financial dimensions will be used on the Opening transactions option to No' contradicts the requirement that 'All dimensions from profit and loss must carry over into the retained earnings.' To meet this requirement, the option should be set to Yes to ensure that financial dimensions are used. Additionally, setting the 'Delete close of year transactions option to Yes' means previous year-closing transactions would be deleted, which does not align with the goal of only keeping the most recent closing entry.

Discussion

10 comments
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Bandit1290
Feb 4, 2021

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

TheInfinity
Jul 28, 2020

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

TheInfinity
Jul 30, 2020

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

sadiq_d365
Jan 27, 2021

correct

angie97
Dec 13, 2023

Wrong. Answer is B. If they do not want to delete previous year closing transaction then they need to set it to NO.

Aysenuremre
Sep 16, 2021

A is correct

kripe86
Sep 20, 2022

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?

yuri_rusanovOption: A
Jan 29, 2023

A is the correct answer.

jannicke_henriksOption: B
Aug 20, 2024

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

AlbbiaOption: A
Oct 4, 2024

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.

globeearthOption: A
Apr 19, 2025

==> 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.