Configure, Collect, and Report Taxes MB-310 Practice Questions (Page 7)

Questions 31–35

1. 31application · medium

   During a review, you discover that a sales order was posted with an incorrect sales tax amount because the wrong sales tax group was assigned to the customer at the time of posting. You need to correct the tax amount on the posted invoice without changing the underlying sales order. What should you do?

   • AEdit the sales order and change the sales tax group, then repost the invoice.
   • BRun the Sales tax settlement process to correct the tax amount.
   • CCreate a credit note for the full amount and then create a new invoice with the correct tax.
   • DUse the Sales tax adjustment process to correct the tax amount on the posted invoice.
   Reveal Solution Discussion Select an answer first
2. 32application · medium

   At the end of the quarter, the accounting team needs to transfer the sales tax collected from the tax payable account to the tax authority and clear the balance. What process should they run in Dynamics 365 Finance?

   • ARun the General journal to manually move the balance from the tax payable account to the tax authority.
   • BRun the Sales tax settlement process for the relevant settlement period.
   • CRun the Tax adjustment process to correct the tax amounts.
   • DRun the Withholding tax settlement process.
   Reveal Solution Discussion Select an answer first
4. 33foundation · easy

   In Dynamics 365 Finance, which entity is associated with a tax code to represent the government agency that receives tax payments?

   • ASettlement period
   • BTax authority
   • CSales tax group
   • DItem sales tax group
   Reveal Solution Discussion Select an answer first
5. 34foundation · easy

   What is the primary purpose of a withholding tax code in Dynamics 365 Finance?

   • ATo group withholding tax codes for a specific vendor
   • BTo specify the ledger accounts for withholding tax postings
   • CTo define the withholding tax rate and calculation rules
   • DTo determine the frequency of withholding tax settlements
   Reveal Solution Discussion Select an answer first
6. 35application · medium

   A company operates in two states, each with its own tax authority. The company needs to file and pay sales tax separately to each authority. You need to configure the system so that the sales tax settlement report shows the amount due to each authority. What should you do?

   • ACreate two tax authorities and assign each tax code to the appropriate authority, then create a separate settlement period for each authority.
   • BCreate two tax ledger posting groups and assign them to the tax codes for each state.
   • CCreate one tax authority for both states and use a single settlement period for all tax codes.
   • DCreate two sales tax groups, one for each state, and assign each group to a different customer set.
   Reveal Solution Discussion Select an answer first