MB-310 · Question #249
MB-310 Question #249: Real Exam Question with Answer & Explanation
The correct answer is A. Sales tax payable. Set up Ledger posting groups for sales tax In the Sales tax payable field, select the main account for outgoing sales taxes that are payable to the tax authority. Sales taxes are collected on behalf of the tax authority when you sell taxable goods and services. In the Sales tax r
Question
Finance as a Service capabilities. Some large corporations complement their existing finance staff by engaging select services of First Up Consultants. Other large corporations outsource their entire finance operation to First Up Consultants. First Up Consultants has hundreds of customers at any time. One such customer, Humongous Insurance, is updating its Dynamics Finance 365 implementation. Another customer, Trey Research, is setting up its first Dynamics 365 Finance implementation. Current environment Ledger Humongous Insurance is a US-based company and operates its fiscal year from January 1 to December M. Humongous insurance reports across an its subsidiaries in consolidated financial reports. Trey Research is a Canadian-based company that operates its fiscal year from April 1 to March 31. Humongous Insurance employees receive an annual cost of living increase. Requirements Ledger - One of Humongous Insurance's companies provides insurance to government clients and must separate that particular company into its owm subsidiary. - The Humongous subsidiary will operate in China, which requires a fiscal year from February 1 to January 31. - Transitions must be posted in the business of record. - Humongous insurance s subsidiary requires accounting entries to be posted from the subledger to the general ledger by 5:00 PM each day. - Trey Research requires accounting entries to be posted from the subledger to the ledger immediately. Fiscal calendars You must create three new fiscal calendars: - A fiscal calendar named FebJan that runs from Feb 1 to Jan 31. - A fiscal calendar named AprMar that runs from April 1 to March 31. - A fiscal calendar named JanDec that runs from January 1 to December 31. Accounts - Trey Research must track bank account balances and transactions for each province in which it operates. - The bank statement must be sent to the physical address of the home office. Promotion - Humongous Insurance's subsidiary plans to celebrate its new subsidiary status by sending out free gifts to existing policyholders based on the tier of their policy. - Promotional items are ordered for distribution and once received must be tracked within Dynamics 365 Finance. Taxes - As part of the spinoff to a subsidiary, Humongous Insurance's subsidiaries taxes must be changed from US government rates to Chinese government rates. - Humongous Insurance's subsidiary must track use taxes that are not claimed or reported to the Chinese tax agency. Reporting - The CEO of Humongous Insurance needs to view the insurance products that customers plan to purchase. The report must show all transactions made over the last two years. - The corporate vice president of Humongous Insurance's subsidiary needs to view the forecasted cash impact of specific products purchased. The report must show only new transactions. Expenses Expenses must be pain using the following requirements: Credit card processing - Humongous Insurance requires all credit card transactions to include line-item details. - Humongous Insurance's subsidiary requires the shipping address merchant address, and lax information but cannot include any order line details. - Trey Research requires all credit card transactions include transaction date, transaction amount, description, and line-item details. Compliance and compensation - Trey Research must be able to audit any modifications to its budget - Humongow Insurance employees must receive raises tour times pet budget cycle. Question You need to configure the posting groups for Humongous Insurance s subsidiary. Which ledger posting group field should you use?Options
- ASales tax payable
- BSales tax receivable
- CCustomer case discount
- DUse tax payable
- EUse tax expense
Explanation
Set up Ledger posting groups for sales tax In the Sales tax payable field, select the main account for outgoing sales taxes that are payable to the tax authority. Sales taxes are collected on behalf of the tax authority when you sell taxable goods and services. * In the Sales tax receivable field, select the main account for incoming taxes that are received from the tax authority. Vendors collect taxes on behalf of the tax authority when you buy taxable goods and services. This field is not available if the Apply sales tax taxation rules option is selected in the General ledger parameters page. Instead, sales taxes that are paid to vendors are debited to the same account as the purchase. * In the Use tax expense field, select the main account for posting deductible Use taxes that are not claimed or reported to the tax authority by vendors as part of EU reverse charge GST/HST. The Use tax option must be selected for the Sales tax code in the Sales tax group that is used in the transaction. This field won't be available if the Apply sales tax taxation rules option is selected on the General ledger parameters page. * In the Use tax payable field, select the main account for posting incoming Use taxes that are payable to tax authorities. The Use tax option must be selected in the Sales tax code in the Sales tax group to post Use tax. If Apply sales tax taxation rules option is selected in General ledger parameters page, the offset is posted to the transaction's expense account. https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/tasks/set-up-ledger- posting-groups-sales-tax
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