MB-310 Exam Questions & Answers

Correct Answer: A

Explanation:

Sales tax authorities are entities to which collected sales tax needs to be reported and paid. You can pay sales taxes to the authority directly or through a vendor account that you create for the sales tax authority. If you do this, the company

can use its usual payment routines to pay the sales tax authority on time. If you do not set up the tax authority as a vendor, someone must prepare a manual payment to the tax authority on the appropriate due date.

This task uses the USMF demo company.

Go to Tax > Indirect taxes > Sales tax > Sales tax authorities.

Click New.

In the Authority field, type a value.

In the Name field, type a value.

In the Vendor account field, click the drop-down button to open the lookup.

In the list, find and select the desired record.

In the list, click the link in the selected row.

Select the report layout for your country/region, if one is available. If the report layouts do not correspond to the requirements of the sales tax authority, use default layout.

Enter values in the Rounding form and the Round-off fields to specify how the tax total amount to be paid should be rounded. Any rounding differences will be posted to Accounts for automatic transactions set up in General ledger.

In the Round-off field, enter a number.

Click Save.

Reference:

https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/tasks/set-up-sales-tax-authorities

Correct Answer: explanation

You need to add a write-off reason for USMF and set it as the default.

1.

Go to Navigation pane > Modules > Credit and collections > Setup > Accounts receivable parameters.

2.

Click the Collections tab.

3.

Click the Edit icon in the Write-Off section.

4.

Add a new Write-Off reason if it doesn't exist.

5.

Tick the "Default" checkbox next to the new Write-Off reason.

6.

Click the Save button to save the changes.

Correct Answer:

Box 1: Humongous Insurance

Taxes

1.

As part of the spinoff to a subsidiary, Humongous Insurance's subsidiaries taxes must be changed from US government rates to Chinese government rates.

2.

Humongous Insurance's subsidiary must track use taxes that are not claimed or reported to the Chinese tax agency.

In the Legal entity for intercompany tax posting field, select whether to post intercompany tax amounts to the legal entity where the transaction originates or to the legal entity where the intercompany transactions are posted to. Use the

information in the following table to decide which legal entity to select.

Destination - Select this option if your organization uses U.S. sales and use tax. (This is your only option if the Apply U.S. taxation rules option is selected in the

General ledger parameters form.)

Sales tax amounts for intercompany transactions are posted to the legal entity that the expense or revenue is being distributed to.

Source - Sales tax amounts for intercompany transactions are posted to the legal entity where the payable to the vendor, the receivable to the customer, or a bank account is recorded.

Note:

Intercompany transaction - A transaction between legal entities that are part of the same organization that consolidates the accounts of the legal entities.

Destination legal entity - The legal entity that the expense or revenue is being distributed to, or a bank account.

Source legal entity - The legal entity where the payable to the vendor or the receivable to the customer is recorded.

Box 2: Humongous Insurance

Box 3: Humongous Insurance subsidiary

Box 4: Humongous Insurance

Reference:

https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/posting-sales-tax-amounts-for-intercompany-transactions