Implement and Manage Accounts Payable MB-310 Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   Which of the following is an example of a vendor payment method?

   • APayment schedule
   • BVendor group
   • CCheck
   • DCash discount
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   Two legal entities in your organization, Contoso US and Contoso Canada, frequently sell goods to each other. The US entity issues an intercompany vendor invoice to the Canadian entity. What is required to ensure that the invoice is posted correctly in both entities?

   • AEnable the 'Allow intercompany' option on the vendor record in the US entity.
   • BCreate a vendor record in each legal entity for the other entity and manually enter the invoice in both.
   • CUse the Vendor invoice journal to enter the invoice in the US entity and then copy it to the Canadian entity.
   • DSet up intercompany parameters and define the intercompany vendor relationship between the two legal entities.
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   You need to pay a vendor for an invoice that is due today. The vendor's default payment method is check, but the vendor has requested an electronic payment for this specific invoice. What should you do?

   • AChange the vendor's default payment method to electronic payment.
   • BCreate a new vendor with electronic payment as the default and reassign the invoice.
   • COverride the payment method on the specific invoice to electronic payment.
   • DProcess the payment as a check and then issue a manual electronic payment.
   Reveal Solution Discussion Select an answer first
5. 19application · medium

   A vendor invoice includes a freight charge that should be posted to a specific freight expense account, separate from the main expense account. The charge is not part of the purchase order. How should you handle this?

   • AUse the Charges feature to add a charge of type 'Freight' and assign the appropriate charge code and expense account.
   • BInclude the freight charge in the invoice total and allocate it to the main expense account.
   • CAdd the freight charge as a line item on the invoice and assign the freight expense account.
   • DCreate a separate vendor invoice for the freight charge and post it to the freight expense account.
   Reveal Solution Discussion Select an answer first
6. 20expert · hard

   Your organization has multiple legal entities. You want to process vendor payments for all legal entities from a single legal entity (centralized payments). However, some vendors have bank accounts that are only valid in their local legal entity. What should you consider?

   • ACentralized payments can be used, but the vendor bank account must be available in the paying legal entity.
   • BYou need to use intercompany accounting to transfer funds before making payments.
   • CCentralized payments cannot be used if vendors have local bank accounts.
   • DYou must create a separate payment run for each legal entity to handle local bank accounts.
   Reveal Solution Discussion Select an answer first