A non-profit organization purchases office supplies from a vendor. The organization is exempt from sales tax, but the vendor needs to verify the exemption and keep a record. The vendor wants to ensure that the exemption is applied automatically for this customer. What should you configure?

Manually override the tax on each sales order for this customer.

Create a special item sales tax group for the non-profit and assign it to all products they purchase.

Set the 'Tax exempt' option on the customer record and assign a sales tax group that has no tax codes.

Create a tax code with a rate of 0% and assign it to the customer's sales tax group.

What is the primary purpose of a tax ledger posting group in Dynamics 365 Finance?

To determine the frequency of tax settlements

To define the tax rate for a tax code

To define the ledger accounts for tax postings

To group tax codes for a specific customer

A nonprofit organization purchases office supplies from your company and provides a tax exemption certificate. You need to ensure that sales to this customer are not charged sales tax, while other customers continue to be taxed. What should you configure?

Set up a tax exemption code and attach it to the customer's tax exempt number.

Create an item sales tax group with a 0% tax code and assign it to the products the nonprofit purchases.

Create a sales tax group with a tax code that has a rate of 0% and assign it to the nonprofit customer.

Manually remove the tax from each invoice for the nonprofit customer.

Contoso Ltd. sells office furniture from a single warehouse in Texas. They sell to retail customers in Texas and to business customers in Oklahoma. Texas has a state sales tax of 6.25% and no local taxes. Oklahoma has a state rate of 4.5% plus a county rate of 1%. Contoso needs to calculate the correct tax for each customer based on the ship-to address. What should you configure?

Create a single sales tax group named 'US Sales' and include both the Texas and Oklahoma tax codes in it.

Create one item sales tax group for Texas and one for Oklahoma, and assign these groups to the products sold.

Create one sales tax group for Texas and one for Oklahoma, assign the appropriate tax codes to each, and assign the sales tax group to customers based on their ship-to state.

Create two tax codes, one for Texas and one for Oklahoma, and assign them directly to the customer records.

Microsoft Certified:Dynamics 365 Finance Functional Consultant Associate

Domain 1Objective 6

Configure, Collect, and Report Taxes MB-310 Practice Questions (Page 2)

Part of the Implement financial management domain, which accounts for 35–40% of the MB-310 exam. Microsoft does not publish an official question count, but from its 100-minute exam (~40–65 total, ~14–26 in this domain), expect 2–4 from this objective — we provide 37 practice questions to prepare you well beyond it. (estimate)

37questions here

8free pages

12concepts

35–40%of the exam

12 Concepts in This Objective

Sales Tax Groups Configuration
Item Sales Tax Groups Configuration
Tax Codes Configuration
Settlement Periods Configuration
Tax Authorities Configuration
Tax Exemptions Configuration
Tax Ledger Posting Groups Configuration
Sales Tax Settlement and Posting
Withholding Tax Groups Configuration
Withholding Tax Codes Configuration
Withholding Tax Authorities Configuration
Sales Tax Calculation and Adjustment

Questions 6–10

6foundation · easy
In Dynamics 365 Finance, which configuration is used to define how often sales tax is reported and paid?
Select an answer first
7application · medium
A non-profit organization purchases office supplies from a vendor. The organization is exempt from sales tax, but the vendor needs to verify the exemption and keep a record. The vendor wants to ensure that the exemption is applied automatically for this customer. What should you configure?
Select an answer first
8foundation · easy
What is the primary purpose of a tax ledger posting group in Dynamics 365 Finance?
Select an answer first
9application · medium
A nonprofit organization purchases office supplies from your company and provides a tax exemption certificate. You need to ensure that sales to this customer are not charged sales tax, while other customers continue to be taxed. What should you configure?
Select an answer first
10application · medium
Contoso Ltd. sells office furniture from a single warehouse in Texas. They sell to retail customers in Texas and to business customers in Oklahoma. Texas has a state sales tax of 6.25% and no local taxes. Oklahoma has a state rate of 4.5% plus a county rate of 1%. Contoso needs to calculate the correct tax for each customer based on the ship-to address. What should you configure?
Select an answer first

Finished these 5 questions?

Review the revealed explanations, or continue through the curriculum.

Next 5 questions →Back to MB-310

Free Basic Practice is a study aid with revealable answers — not a scored exam. Examers.io is independent and not affiliated with or endorsed by Microsoft. “MB-310” is a trademark of its owner, used for identification only.

Configure, Collect, and Report Taxes MB-310 Practice Questions (Page 2)

Questions 6–10

In Dynamics 365 Finance, which configuration is used to define how often sales tax is reported and paid?

A non-profit organization purchases office supplies from a vendor. The organization is exempt from sales tax, but the vendor needs to verify the exemption and keep a record. The vendor wants to ensure that the exemption is applied automatically for this customer. What should you configure?

What is the primary purpose of a tax ledger posting group in Dynamics 365 Finance?

A nonprofit organization purchases office supplies from your company and provides a tax exemption certificate. You need to ensure that sales to this customer are not charged sales tax, while other customers continue to be taxed. What should you configure?

Keep studying — Implement financial management