Microsoft

EXAM MB3-862
Microsoft Dynamics GP 2010 Inventory & Order
Processing

Total Questions:

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Question: 1.
In addition to transferring current-year quantities to history, what does the Inventory Year-End
Closing process allow you to do? Choose the 2 that apply.
A. Remove purchase receipts for items that have been completely sold.
B. Remove any discontinued items that have been completely sold.
C. Update item history for items that have not been sold.
D. Update lot and serial numbers for new items that have not been sold.
Answer: AB

Question: 2.
The Landed Cost Apportionment window allows you to distribute landed costs based on weight and
what other methods? Choose the 2 that apply.
A. Percentage
B. Quantity
C. Site ID
D. Value
Answer: BD

Question: 3.
What allows documents to be tracked back to their original source in Sales Order Processing?
A. Batch ID
B. Document Number
C. Master Number
D. Transfer Number
Answer: C

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Question: 4.
What is the effect of selecting the checkboxes in Inventory Setup to Allow Overrides for adjustment,
variance, or transfer transactions?
A. The quantity entered on the transaction can be changed after posting.
B. Quantities that are greater than the quantity available can be entered.
C. Item quantity shortages can be substituted.
D. The item number can be changed on a transaction.
Answer: B

Question: 5.
You have decided to implement cycle counting for certain inventory items and want to perform the
counts every three weeks. What feature in Inventory allows you to set working or nonworking days
for counting purposes?
A. Item Resource Planning
B. Cycle Count Assignment
C. Stock Calendar
D. Stock Schedule
Answer: C

Question: 6.
Which item type tracks quantity, but not current cost?
A. Kit
B. Miscellaneous Charges
C. Sales Inventory
D. Services
Answer: D

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Question: 7.
When selecting the Quantity Decimals for an inventory item what requirement must be met to save
the selection?
A. The Quantity Decimals must equal the number of decimals set for the Price Level assigned to the
item.
B. The Quantity Decimals must equal the number of decimals set for the Unit of Measure schedule
assigned to the item.
C. The Quantity Decimals must equal the number of Currency Decimals set for the item.
D. The Quantity Decimals must equal the number of decimals set for the Price Group.
Answer: B

Question: 8.
You have created a SmartList that displays On Hand, Available, and Allocated quantities for your
inventory items. What does the Allocated quantity represent?
A. The quantity available to sell.
B. The quantity reserved for sale or assembly.
C. The quantity On Hand less the quantity reserved for sale or assembly.
D. The quantity Available less the quantity reserved for sale or assembly.
Answer: B

Question: 9.
When an item is entered on a sales transaction, in what order does the system search for a default
price level?
A. Item's default price level, customer card, Receivables Management Setup
B. Receivables Management Setup, item's default price level, customer card
C. Customer card, Receivables Management Setup, item's default price level
D. Item's default price level, Receivables Management Setup, customer card
Answer: C

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Question: 10.
In addition to Price Levels what other fields can be defined when creating a price list in Item Price
List Maintenance? Choose the 2 that apply.
A. Expiration Date
B. Quantity
C. Sales Tax Option
D. Unit of Measure
Answer: BD

Question: 11.
A manual count of various inventory items has revealed discrepancies in quantities at several of your
sites. What inventory transaction type should you create to record these differences?
A. Adjustment
B. InTransit
Transfer
C. Transfer
D. Variance
Answer: D

Question: 12.
What does an Inventory Transfer transaction record for inventory items? Choose the 2 that apply.
A. A transfer from one price group to another.
B. A transfer from one Item type to another.
C. A transfer from one Quantity type to another.
D. A transfer from one site to another.
Answer: CD

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Question: 13.
What field is updated in the Stock Count Entry window if a transaction is posted after the stock
count has been started?
A. Allocated quantity
B. Captured quantity
C. Counted quantity
D. On Hand quantity
Answer: D

Question: 14.
When a stock count is successfully processed what type of transaction will be created in Inventory?
A. Adjustment
B. InTransit
Transfer
C. Transfer
D. Variance
Answer: D

Question: 15.
Which Valuation Methods use actual cost when valuing inventory? Choose the 2 that apply.
A. FIFO Periodic
B. FIFO Perpetual
C. LIFO Periodic
D. LIFO Perpetual
Answer: BD

Question: 16.
You want to change prices for a range of items. What inventory feature can be used to make this
change?
A. Adjust Costs
B. Item Class
C. Item Price List Maintenance
D. Price List Utility
Answer: D

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Question: 17.
When rolling down changes to items using the item class, what field changes cannot be rolled down?
Choose the 2 that apply.
A. Price Group
B. Tax Option
C. U of M Schedule ID
D. Valuation Method
Answer: CD

Question: 18.
You have received a freight invoice for a shipment of inventory items. The shipment has already
been posted in inventory. How can you add this invoice amount to the cost of the item?
A. Use the Price List utility to add the cost to the item.
B. Enter an increase adjustment for the additional cost.
C. Use the Adjust Costs utility to add the cost to the item.
D. Void the original transaction and reenter with the new cost.
Answer: C

Question: 19.
It is period end and you are reviewing the activity in your general ledger inventory account. Which
Inventory report can help you review the transactions for inventory items?
A. Item Period History
B. Purchase Receipts
C. Stock Status
D. Turnover
Answer: B

Question: 20.
What is an option during the yearend close specific to the items using FIFO or LIFO periodic valuation
methods?
A. Change Valuation Method
B. Remove Sold Lot Attributes
C. Remove Discontinued Items
D. Update Standard Cost
Answer: D

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Question: 21.
In Item Transaction Entry, which document types can be entered? Choose the 2 that apply.
A. Adjustments
B. Allocations
C. Transfers
D. Variances
Answer: AD

Question: 22.
You have created a SmartList that shows quantity on hand, quantity available, and quantity
allocated. These quantities do not match what is in Item Inquiry. What utility will reset the inventory
quantities to match what has been posted?
A. Adjust Costs
B. Check Links
C. Reconcile
D. Remove History
Answer: C

Question: 23.
The controller of Adventure Works needs to evaluate the inventory usage for the last six months.
What inventory feature allows you to analyze your inventory based on usage quantity, value or cost?
A. ABC Analysis Wizard
B. Item Inquiry window
C. Item Turnover report
D. Stock Status report
Answer: A

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Question: 24.
You have additional information you want to track for your inventory items. There is no
corresponding field to track this information. What functionality will track up to six additional fields
of information for each item?
A. Default Item Site ID
B. Generic Description
C. Item Classes
D. User Categories
Answer: D

Question: 25.
What is Base Unit of Measure? Choose the 2 that apply.
A. The base quantity for ordering an item.
B. The smallest unit in which you buy or sell an item.
C. The unit for which you will track quantities of an item.
D. The unit that is used as a default for buying and selling an item.
Answer: BC

Question: 26.
The first segment of your account number tracks your company location. You have three different
locations each with their own warehouse and inventory. You have assigned segment 1 as the
Segment ID for Sites in Inventory Control Setup and have set up appropriate general ledger
accounts. What other step must be taken to ensure an override of segment 1 will contain the
appropriate location segment number during transaction entry?
A. Set up multiple Item Classes to track items at different sites.
B. Update the distributions for a transaction so that segment 1 contains the correct location number.
C. Assign the segment number for the site in the Site Maintenance window.
D. Assign segment 1 to each inventory item in the Item Accounts Maintenance window.
Answer: C

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Question: 27.
In addition to providing defaults for data entry, what other benefits do Item Classes provide? Choose
the 2 that apply.
A. Multiple records can be changed quickly.
B. Some Inventory reports can be grouped or sorted by Item Class.
C. Groups of items can be sold together if they are assigned to an Item Class.
D. Item numbers are automatically generated by Item Class.
Answer: AB

Question: 28.
You have received a freight bill for an inventory item and would like the cost of freight to be added
to the cost of the inventory item. What feature must be enabled to track additional costs for items
and still be able to enter an invoice from the freight vendor?
A. Allow Overrides
B. Landed Costs
C. Revalue for Cost Variance
D. Via Site ID
Answer: B

Question: 29.
Purchase orders can be created for which of the following inventory item types? Choose the 2 that
apply.
A. Discontinued
B. Kit
C. Miscellaneous Charges
D. Services
Answer: CD

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Question: 30.
Where does the Unit Cost on a line item of a purchase order default from?
A. It is the originating vendor cost from this vendor.
B. It is the lowest price you paid for the item from this vendor.
C. It is the negotiated price for the item from this vendor.
D. It is the Standard Cost of the item from Item Maintenance.
Answer: A

Question: 31.
A purchase order can be committed to what type of sales documents? Choose the 2 that apply.
A. Back Orders
B. Invoices
C. Orders
D. Quotes
Answer: AC

Question: 32.
You have several line items on a purchase order that are for the same item number. Other than the
item number and cost, what must be common between these line items to combine them to print as
one on the purchase order?
A. Inventory account number
B. Quantity
C. Release date
D. Unit of Measure
Answer: D

Question: 33.
What other type of receiving transaction can be entered in addition to a shipment or a
shipment/invoice?
A. Blanket
B. Drop Ship
C. InTransit
Transfer
D. Invoice
Answer: C

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Question: 34.
You have rejected part of a shipment. After entering the quantity rejected on Receiving Item Detail
Entry, what other field is updated?
A. Quantity canceled
B. Quantity invoiced
C. Quantity ordered
D. Quantity previously shipped
Answer: D

Question: 35.
You have received a partial shipment for an item that has multiple sales order commitments. All of
the commitments cannot be filled with this shipment. You would like to fill the order for Coho
Vineyard first. What document type will allow you to change the order in which the commitments
are fulfilled?
A. Sales Order
B. Sales Invoice
C. Purchase Order
D. Receiving Shipment
Answer: C

Question: 36.
When receiving a shipment type transaction, what fields can be edited for a PO line item? Choose
the 2 that apply.
A. Quantity Invoiced
B. Quantity Ordered
C. Quantity Shipped
D. Unit Cost
Answer: CD

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Question: 37.
Posting a purchase order invoice without a cost variance will update what modules? Choose the 2
that apply.
A. Bill of Materials
B. Fixed Assets
C. General Ledger
D. Payables Management
Answer: CD

Question: 38.
Your customer has just requested expedited shipping of an item you do not have in stock. You would
like to order this item and ship it to your customer as quickly as possible. What type of purchase
order should you create?
A. Blanket
B. Drop Ship Blanket
C. Drop Ship
D. Standard
Answer: C

Question: 39.
You are entering a purchasing invoice for a posted shipment with no cost variance. The distribution
accounts will default to Accounts Payable and what other posting account?
A. Accrued Purchases
B. Cost of Goods Sold
C. Inventory
D. Purchase Price Variance
Answer: A

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Question: 40.
What type of return transaction is used when returning an item that did not originate on a purchase
order? Choose the 2 that apply.
A. Inventory
B. Inventory with Credit
C. Return
D. Return with Credit
Answer: AB

Question: 41.
You received a shipment for a quantity of 10 items and 2 were damaged. You will return the
damaged items. You expect to receive 2 new items to replace the damaged ones and an invoice for
the quantity of 10. What must you do in Returns Transaction Entry so you can receive these new
items against the original Purchase Order?
A. Select the Replace Returned Goods option.
B. Enter the quantity of 10 in the Returned Quantity field.
C. Select the Invoice Expected for Returned Goods option.
D. Enter the correct cost from the PO in the Unit Cost field.
Answer: A

Question: 42.
Purchase Order Return transactions can only be created for:
A. Canceled Purchase Orders.
B. Drop Ship Purchase Orders.
C. On Hold Purchase Orders.
D. Standard Purchase Orders.
Answer: D

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Question: 43.
To edit a purchase order in the Purchase Order Entry window, what must the status of the PO be
other than New or Released?
A. Canceled
B. Change Order
C. Received
D. Open
Answer: B

Question: 44.
You have a purchase order where the subtotal is not the sum of the line items. How can the subtotal
be corrected?
A. Edit Purchase Order Status
B. Edit the Subtotal field
C. Check Links on the Purchasing Series
D. Reconcile Purchasing Documents
Answer: D

Question: 45.
Which posting accounts will be updated when you post a shipment in Receivings Transaction Entry?
Choose the 2 that apply.
A. Accounts Payable
B. Accrued Purchases
C. Inventory
D. Inventory Offset
Answer: BC

Question: 46.
A vendor invoice has been received for a shipment that has been posted. Where is this invoice
entered to update the vendor account along with the purchase order?
A. Purchasing Invoice Entry
B. Payables Transaction Entry
C. Receivings Transaction Entry
D. Inventory Transaction Entry
Answer: A

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Question: 47.
What are the requirements for voiding a purchase order? Choose the 2 that apply.
A. The purchase order must have all its lines cancelled.
B. The purchase order must have a status of New.
C. The purchase order cannot have any Sales Document Commitments assigned.
D. The purchase order must be received.
Answer: BC

Question: 48.
In addition to Inventory, General Ledger and Payables Management, what other modules integrate
with Purchase Order Processing? Choose the 2 that apply.
A. Bank Reconciliation
B. Bill of Materials
C. Fixed Assets
D. Sales Order Processing
Answer: CD

Question: 49.
if the Revalue for Cost Variance option is selected what is the outcome from posting a variance?
A. Cost variance from a purchase order invoice will update a purchase price variance account.
B. Cost variance from a purchase order invoice will update the inventory purchase receipts.
C. A purchase order shipment document will be revalued to match the purchase order invoice during
invoice entry.
D. A purchase order will be revalued to the correct invoice cost during Invoice Entry.
Answer: B

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Question: 50.
In addition to Purchase Order history, what other types of history can be maintained? Choose the 2
that apply.
A. Account Distribution
B. Journal
C. Receipt
D. Vendor
Answer: AC

Question: 51.
What are two characteristics of a purchase order that is on hold? Choose the 2 that apply.
A. The purchase order cannot be printed.
B. The hold must be removed before voiding or deleting a purchase order.
C. Shipments cannot be entered against a purchase order on hold.
D. An invoice for the purchase order can be entered and posted.
Answer: BC

Question: 52.
Which Sales Document Type allows a user to edit the cost for an inventory item?
A. Back Orders
B. Invoices
C. Orders
D. Returns
Answer: D

Question: 53.
When both the item and customer have different sales accounts assigned, which sales account will
display by default on the sales invoice?
A. The item sales account always defaults first.
B. The customer sales account always defaults first.
C. The default is based on the Posting Accounts From option in Sales Order Processing Setup.
D. If both item and customer have sales accounts, it will default the sales account from Posting
Account Setup.
Answer: C

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Question: 54.
Sales Order Processing integrates and affects a number of other Microsoft Dynamics GP modules.
What two modules are affected by posting a sales invoice? Choose the 2 that apply.
A. Item cost changes are updated in Inventory control.
B. Deposits received update Bank Reconciliation.
C. Customer balances are updated in Receivables Management.
D. Posted invoice sales commissions update employees in Payroll.
Answer: BC

Question: 55.
Tony's primary responsibility is to enter orders in Sales Transaction entry. Every time he opens the
Sales Transaction Entry window, the invoice document type defaults. Tony would like orders to
default. What window needs to be updated for the sales document type of rder?to default every
time Sales Transaction Entry is opened?
A. Sales Order Processing Setup
B. User Preferences
C. User Setup
D. User Security Setup
Answer: B

Question: 56.
Sales item allocation can be set to allocate by: Choose the 2 that apply.
A. Document/Batch.
B. Line Item.
C. Item Class.
D. Transaction posting.
Answer: AB

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Question: 57.
What account distributions will not appear for a sales invoice until the invoice is posted? Choose the
2 that apply.
A. Cost of Goods Sold
B. Cost Variance
C. Inventory
D. Trade Discount
Answer: AC

Question: 58.
Which sales document types can be posted? Choose the 2 that apply.
A. Back Orders
B. Invoices
C. Orders
D. Returns
Answer: BD

Question: 59.
Fourth Coffee does not use a separate fulfillment process in sales. When are their items fulfilled on
sales orders?
A. Fulfillment is completed when the order is transferred to an invoice.
B. Fulfillment is completed when the order is printed.
C. Fulfillment is done automatically before the item is allocated.
D. Fulfillment is completed at the time of allocation.
Answer: D

Question: 60.
When will a General Ledger entry be created for a deposit entered on a sales order?
A. At the same time the invoice is posted.
B. After the Sales Payment Entry window is closed.
C. When the order is transferred to an invoice.
D. When the order is saved and the Sales Transaction Entry window is closed.
Answer: B

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Question: 61.
When transferring a sales document from an order to an invoice, what must be done to ensure
miscellaneous, freight and deposit amounts are transferred to the invoice ?
A. Nothing. All information on an order is automatically transferred to the invoice.
B. In Sales Invoice Setup, select the option to Include Totals and Deposits from transfers.
C. Select the Include Totals and Deposits option each time documents are transferred in Sales
Transfer Documents.
D. Select the option to automatically Include Totals and Deposits in transfers in Sales Order
Processing Setup Options.
Answer: C

Question: 62.
What are characteristics of a Prospect Customer? Choose the 2 that apply.
A. Prospect records can be deleted at any time.
B. A customer record can automatically be created from a prospect record when transferring a quote
to a sales order or invoice.
C. The prospect record is automatically deleted if you transfer it to a customer record.
D. Prospects are potential customers that you maintain records for but are not added to your
customer base.
Answer: BD

Question: 63.
Where can users transfer sales documents? Choose the 2 that apply.
A. Sales Batch Entry
B. Sales Order Fulfillment
C. Sales Transaction Entry
D. Sales Transfer Entry
Answer: AC

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Question: 64.
A sales invoice was posted to the wrong customer. What must be done to clear the invoice from the
incorrect customer account and post it to the correct customer account?
A. Pull the invoice up in Sales Transaction Entry and void it.
B. Pull the invoice up in Sales Transaction Entry and delete it.
C. Remove history on the invoice and reenter it for the correct customer.
D. Enter a Sales Return for the incorrect invoice and then reenter the invoice.
Answer: D

Question: 65.
Graphic Design Institute discovers an invoice subtotal amount is incorrect and does not match the
sum of the extended prices. What utility needs to be completed to correct the subtotal amount?
A. Edit Sales Document
B. Price List Utility
C. Recalculate Sales Documents
D. Reconcile Sales Documents
Answer: D

Question: 66.
A sales invoice was posted for Northwind Traders and no payments or deposits have been made
toward the invoice. What table(s) is this invoice stored in if history is maintained? Choose the 2 that
apply.
A. Receivables Management history tables
B. Receivables Management open tables
C. Sales Order Processing history tables
D. Sales Order Processing open tables
Answer: BC

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Question: 67.
What are two requirements when deleting a sales document? Choose the 2 that apply.
A. Sales history is maintained.
B. No deposits are associated with the document being deleted.
C. The Delete Documents option must be selected in Sales Order Processing Setup Options.
D. The Delete Documents option must be selected in the associated document setup window.
Answer: BD

Question: 68.
Contoso Pharmaceuticals called and said they never received a sales invoice for the items purchased
last month and require an invoice before they will make a payment. The invoice has been posted.
Where can you reprint the invoice? Choose the 2 that apply.
A. Print Sales Documents
B. Sales Batch Entry
C. Sales Transaction Entry
D. Sales Transaction Inquiry Zoom
Answer: AD

Question: 69.
The controller of City Power & Light has noticed that item allocation quantities are greater than the
on hand quantities. The controller does not want users processing sales orders for items that do not
have any available quantity on hand. What step can the controller take to prevent this?
A. Clear the Adjustment Overrides option in Inventory Control Setup.
B. Set the Quantity Shortage default option to Sell Balance in Sales Order Processing setup.
C. Clear the Override Quantity Shortages option in Sales Order Processing Setup Options.
D. Have users check item on hand quantities from the Item Inquiry button on Sales Item Detail
before entering any order quantities.
Answer: C

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Question: 70.
Which sales document types must be created before they can be selected on sales transactions?
Choose the 2 that apply.
A. Packing slips
B. Picking tickets
C. Quotes
D. Returns
Answer: CD

Question: 71.
Sales process holds apply to which processes? Choose the 2 that apply.
A. Allocating documents
B. Applying credits
C. Printing documents
D. Transferring documents
Answer: CD

Question: 72.
Which sales document type(s) allow repeating documents to be created?
A. Quotes only
B. Quotes and Orders
C. Orders and Invoices
D. Quotes, Orders, and Invoices
Answer: B

Question: 73.
What sales document type(s) allow users to create a purchase order commitment from Sales
Transaction Entry?
A. Back Orders only
B. Back Orders and Orders
C. Orders and Invoices
D. Back Orders, Orders, and Invoices
Answer: B

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Question: 74.
In Sales Transaction Entry, which document types have distributions associated with them? Choose
the 2 that apply.
A. Back order
B. Invoice
C. Order
D. Return
Answer: BD

Question: 75.
What are the characteristics of a drop ship item in Sales Order Processing? Choose the 2 that apply.
A. Drop ship item must be setup in Item Maintenance.
B. The item has no affect on inventory quantities.
C. Item is sent directly to the customer from the supplier.
D. Only order and invoice document types can be used for drop ship items.
Answer: BC

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