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Exam Code: MB6-703
Exam Name: Microsoft Dynamics AX 2012 R3 Trade and Logistics
Certification Provider: Microsoft
Corresponding Certification: MSS: Dynamics AX 2012

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QUESTION 1
You plan to create a product template.
Which three settings will be copied when you create a new product that is based on the product template? Each correct answer presents part of the solution.

A.    Item price
B.    Item group
C.    Tracking dimension group
D.    Item model group
E.    Units of measure

Answer: BDE
Explanation:
Once you have selected a product template, you can click Show more fields in order to view the important field content that has been provided by the template.
You can overwrite template values which are displayed on the form.
 

QUESTION 2
Warehouse is specified as the primary stocking dimension in the storage dimension group for an item.
You create a sales orders for the item and you specify a warehouse.
The sales order is configured for automatic reservation.
You need to identify which process Dynamics AX uses to reserve the item.
What should you identify?

A.    A reservation is made according to the first in, first out (FIFO) principle.
B.    A reservation is made against the item only at the warehouse specified.
C.    A reservation is made against the dimension that has the lowest alphanumeric name.
D.    A reservation is made according to the last in, first out (UFO) principle.

Answer: B
Explanation:
You can reserve inventory quantities for sales orders when you create or change sales order lines. If available inventory quantities are reserved automatically, reserved inventory cannot be withdrawn from the warehouse for any other orders.
Inventory is reserved according to the setup of:
Manual or automatic reservation.
Reserved ordered items or only items on-hand.
Warehouse proposal.
Date reservation.

QUESTION 3
You need to establish picking routes.
Which two types of information do you need? Each correct answer presents part of the solution.

A.    The height of the locations
B.    The proximity of the outbound dock
C.    The direction in which to travel through the warehouse
D.    The number of aisles

Answer: BC
Explanation:
The picking route takes into account the different parameters that are set up for the warehouse, such as:
– Height of locations.
– The direction in which to drive the truck in the warehouse.
– Zones.
– The sorting code that is used to indicate the best route through inventory.

QUESTION 4
You are creating a new item model group.
Which three of the following can you configure by using the Item model group form? Each correct answer presents a complete solution.

A.    Whether quality testing is mandatory before accepting Items into Inventory
B.    The ability to sell an item at a discount
C.    The ability to accrue liability on a product receipt
D.    Inventory that can have negative quantities on hand
E.    How transactions will post to the ledger during a financial update

Answer: CDE
Explanation:
C:Accrue liability on product receipt Select this check box to accrue the estimated expense for packing slip updates to the general ledger.
D:Physical negative inventory
Select this check box to enable negative physical inventory for the item model group.
E:Post financial inventory
Select this check box to post the updated financial value of items in the ledger. When a purchase order is invoice-updated, the value of the items is posted to the inventory receipt account. When a sales order is invoice-updated, the value of the items is posted to the inventory issue and the consumption accounts. The inventory value that is posted can then be reconciled with the related status accounts in General ledger.

QUESTION 5
You need to ensure that a shipment from a vendor can be accepted into inventory, even if the quantity of the product received is greater than the amount ordered.
What should you configure?

A.    The inventory and warehouse management parameters
B.    The procurement and sourcing parameters
C.    The product Information management parameters
D.    The accounts payable parameters

Answer: A
Explanation:
Inventory and warehouse management parameters (form) [AX 2012] Click Inventory management > Setup > Inventory and warehouse management parameters. Use this form to set up inventory and warehouse management parameters. The parameters are organized according to their overall use.
You can use inventory and warehouse management parameters to help with the following tasks:
Choose between different types of functionality.
Enter default information that is used if the information has not been specified at a lower level.
Select number sequences for a section.

QUESTION 6
You plan to set up a commission structure in Dynamics AX.
You need to configure the groups for commission calculations.
Which three types of groups should you configure? Each correct answer presents part of the solution.

A.    Item groups
B.    Commission customer groups
C.    Sales groups
D.    Item discount groups
E.    Campaign groups

Answer: ABC
Explanation:
– Microsoft Dynamics AX 2012 Sales Commission offers the following flexibility:
Customers – You can define a sales commission arrangement for a group of customers, for a specific customer, or for all customers.
Products – You can define a sales commission arrangement for a group of products, for a specific product, or for all products.
Salespersons – You can define a sales commission arrangement for a group of salespersons or all salespersons, and apply a commission split among the individual salespersons within the specific group of salespersons.

QUESTION 7
You need to derive the sales price of an item while calculating a bill of materials (BOM).
Which settings should you configure?

A.    Profit setting
B.    Calculation group
C.    Item purchase price
D.    Cost group

Answer: A
Explanation:
About BOM calculation of a suggested sales price [AX 2012] Bill of material (BOM) calculations can be used to calculate a manufactured item’s suggested sales price, based on a cost-plus markup approach. By using a cost-plus markup approach, the item’s calculated sales price reflects the set of profit-setting percentages that is specified for the BOM calculation and the costs that are associated with its component items, routing operations, and applicable manufacturing overheads. The markup reflects profit-setting percentages that are assigned to cost groups and the cost groups that are assigned to items, cost categories for routing operations, and the indirect cost calculation formulas for manufacturing overheads

QUESTION 8
You need to ensure that when users perform bill of materials (BOM) calculations, they receive a warning message if any manufactured components are missing an active BOM.
What should you configure?

A.    A costing sheet
B.    Calculation groups
C.    Configuration groups
D.    Cost groups

Answer: B
Explanation:
Override group setup
Select whether you want to override the warning conditions that are associated with the BOM calculation group that is assigned to each item. The BOM calculation generates an Infolog that contains warning messages that reflect applicable warning conditions.

QUESTION 9
You have a bill of materials (BOM) item.
Ten percent of one of the BOM components is wasted during the manufacturing process.
You need to ensure that the cost calculation for the BOM item is accurate.
What should you do?

A.    Set the Variable scrap field on the component BOM line to 10.
B.    Set the Constant scrap field on the component BOM line to 10.
C.    Set the Consumption is field on the component BOM line to variable.
D.    Set the Consumption is field on the component BOM line to constant.

Answer: B
Explanation:
Specify constant scrap when you know, or have calculated, that a quantity of bill of materials (BOM) items will be lost or rejected during production. For example, you can apply constant scrap to the setup of a machine if you know that material will be always be wasted before a usable product is produced.

QUESTION 10
You have an item that uses a storage dimension group.
Primary stocking is disabled for the group. Item reservations for sales orders are automatic.
You create a new sales order for the item.
You need to select a specific batch number for the item.
What should you do?

A.    Disable automatic reservation on the sales order, and then change the batch number in the
Reservation form
B.    Disable automatic reservation on the sales order, and then lock the batch number in the
Reservation form.
C.    Use the Reservation form to select the batch number, and then place the order on hold.
D.    Use the Reservation form to select the batch number, and then lock the reservation.

Answer: D
Explanation:
A customer calls with a request concerning a load of bricks that they have ordered from your company. The customer wants to make sure that the bricks are reserved from the same batch as the previous load that they received. When checking, you observe that the bricks are reserved automatically with no batch number specified on the sales order line so you need to make sure that the reserved quantity has the correct batch number and that the reservation is locked with this batch number.
1. Select the sales order of the ordered brick load in the Sales order form and open the Reservation form.
2. Apply one of the following methods depending on whether the bricks have been automatically reserved with the correct batch number or not. If the batch number is correct, you just need to lock the batch number reservation to ensure that the batch number is not changed by an automated process. To lock the batch number, do the following:
a. Select the reservation in the Reservation form.
b. Click Inventory > Dimensions display.
c. Select the Batch number check box, and click OK.
d. Select the Batch number check box under Lock reservations.
3. To change the batch number dimension of the reservation, do the following:
a. Click Inventory > Dimensions display, select the Batch number check box, and click OK.
b. Select the existing reservation in the Reservation form, and change the quantity in the Reservation field to zero to cancel this reservation line.
c. Select the line with the batch number dimension that the customer requested and enter the quantity in the Reservation field.

QUESTIONS 11
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