A company operates in two states, each with different sales tax rates and different filing frequencies. State A requires monthly filing, and State B requires quarterly filing. The company also uses different ledger accounts for tax payable in each state. You need to configure the system so that the sales tax settlement process generates the correct report and posts to the correct ledger accounts for each state. What should you configure?

Create one settlement period with a monthly frequency and assign all tax codes to it, then manually adjust the report for State B.

Create two sales tax groups and assign them to customers based on the state, but use a single settlement period and posting group.

Create two tax authorities and two settlement periods, but use a single tax ledger posting group for both states.

Create two settlement periods (one monthly, one quarterly), two tax authorities, and two tax ledger posting groups. Assign the appropriate tax codes to each settlement period, authority, and posting group.

A company sells both taxable goods and tax-exempt goods. They have a single customer who purchases both types of items on the same sales order. The customer is located in a state where the sales tax rate is 7%, but the tax-exempt goods are not subject to tax. The company also has a temporary promotion where a specific product is tax-exempt for one month. You need to configure the system so that the correct tax is applied automatically, without manual intervention, and the temporary exemption does not affect other products. What should you configure?

Manually adjust the tax on each sales order line for the temporary product during the promotion.

Create two sales tax groups: one for taxable customers and one for tax-exempt customers, and assign the customer to the exempt group during the promotion.

Create two item sales tax groups: one for taxable goods with the 7% tax code and one for tax-exempt goods with a 0% tax code. Assign the temporary product to the exempt group only during the promotion month.

Create a single item sales tax group with both the 7% and 0% tax codes, and assign it to all products.

Microsoft Certified:Dynamics 365 Finance Functional Consultant Associate

Domain 1Objective 6

Configure, Collect, and Report Taxes MB-310 Practice Questions (Page 8)

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 36–37

36expert · hard
A company operates in two states, each with different sales tax rates and different filing frequencies. State A requires monthly filing, and State B requires quarterly filing. The company also uses different ledger accounts for tax payable in each state. You need to configure the system so that the sales tax settlement process generates the correct report and posts to the correct ledger accounts for each state. What should you configure?
Select an answer first
37expert · hard
A company sells both taxable goods and tax-exempt goods. They have a single customer who purchases both types of items on the same sales order. The customer is located in a state where the sales tax rate is 7%, but the tax-exempt goods are not subject to tax. The company also has a temporary promotion where a specific product is tax-exempt for one month. You need to configure the system so that the correct tax is applied automatically, without manual intervention, and the temporary exemption does not affect other products. What should you configure?
Select an answer first

Finished these 2 questions?

Review the revealed explanations, or continue through the curriculum.

No more pagesBack 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 8)

Questions 36–37

Keep studying — Implement financial management