HOTSPOT

You need to configure the pricing for the white-labeled products.

Which system object should you configure? To answer, select the appropriate options in the answer area. NOTE: Each correct selection is worth one point.

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Correct Answer:

Explanation:

Box 1: Price Group

Note: Requirements. White labeling

• Trey Research will provide and maintain a ‘Compare to’ price for customers to use to compare the white-labeled products. This Compare to price will also be the default item price for the customer if the customer accidentally lets a contract price expire.

Price Group

In Microsoft Dynamics AX, price groups can be used to specify a set of prices that you want apply to a group of customers, vendors, or items.

* For item transactions, prices are derived from price groups that are referenced in trade agreements in the Sales and marketing module.

Box 2: Trade allowance

Note: Customers are categorized into four pricing tiers (A, B, C, and D) based on sales volume over the past 12 months.

Promotional fund and Trade allowance agreement

A trade allowance agreement is an incentive program where pay-for-performance monetary rewards are offered to customers that achieve specific volume targets and/or behavioral goals. Promotional funds are budgeted expenditures. In that way, the promotional campaigns can be captured.

Box 3: Price Group

Reference:

https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/about-creating-and-using-price-groups

https://docs.microsoft.com/en-us/dynamics365/supply-chain/sales-marketing/trade-allowance#promotional-fund-and-trade-allowance-agreement

You need to configure automated testing for the following tasks:

• inbound processes from manufacturing

• outbound processed from the warehouse picking process

How many processes should you configure?

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Topic 6, School of Fine Arts

Case study

Overview

This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.

To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.

At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.

To start the case study

To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. When you are ready to answer a question, click the Question button to return to the question.

Background

School of Fine Art is a distribution company that sells school supply items to primary and secondary schools. These include items such as pens, pencils, paper, notebooks, chalk, desks, acrylic paints, blackboards, dry erase markers, and whiteboard paint. Due to increased demand for colored pencils, lead times are longer for these pencils. School of Fine Art plans to expand sales into this market.

School of Fine Art plans to implement Dynamics 365 Supply Chain Management to manage the business.

Current environment. Company structure

School of Fine Art consists of two legal entities.

Primary company

• Located in Dublin, Ireland.

• Has a single named warehouse.

• Is the primary distribution center for both companies.

Second company

• Is located in Glasgow, Scotland.

• Includes the following warehouses:

Glasgow1, Glasgow2. Glasgow1 is used primarily to supply items regionally.

Glasgow2 serves as local storage for vendor-owned inventory and bulk storage for School of Fine Art’s inventory.

Current environment. General processes

School of Fine Art uses a combination of spreadsheets and paper forms to manage the business.

• All sales, purchases, and inventory are tracked in spreadsheets that are password protected by managers.

• Managers frequently share spreadsheet passwords so that other users can make edits on their behalf. Inventory quantities and values are unreliable.

• The spreadsheets are often incorrectly updated, have entry errors, and broken formulas for calculations.

• Purchase order receipts, picking lists, packing slips, and invoices are all handwritten on pre-printed, three-part forms.

• Late summer is the company’s busiest time. During this time, workers are typically on the warehouse floor or making rush deliveries to schools to meet last-minute needs.

Current environment. Inventory and warehousing

• School of Fine Art values inventory by using FIFO costing methods.

• Inventory in the warehouses cannot be distinguished as available inventory or inventory that is sold to a customer and waiting to be picked. This creates inventory inflation during cycle counts and later shortages because warehouse workers count items that are already promised to customers and waiting to be shipped.

• Glasgow2 space is fully allocated to vendors.

• Due to space constraints, school orders for photocopiers are shipped from the vendor to the school.

• Crayons are stored as separate item numbers depending on whether they are in a box or a case. This creates issues when counting inventory to determine the total number of crayons in stock.

• Lack of inventory controls has led to shortages on sales orders, creating backorders and unhappy schools.

• Inventory is ordered quarterly due to the seasonality of the business.

• Items can change annually based on popular sizes, colors, and styles for each new school season. The creation of the different configurations is a manual process, which creates so much overhead that temporary workers are brought in to do the data entry.

Current environment. Purchasing

• Reordering is manually managed by the buyers looking at the seasonal spikes for the start of the school year, slowing around the end-of-year holidays until the following school year.

• Pens are readily available products that are rarely discounted for sale.

• Photocopiers are only available for sale on the Glasgow region.

• Photocopy paper and construction paper are ordered by the pallet into Dublin1 and must be broken down into smaller sizes. The pallets are typically broken down and then split between what stays in Dublin1 and what is shipped to Glasgow1.

• Chalk and blackboards are slower sellers, so many vendors do not carry these items. School of Fine Art purchases these products from a single vendor. There are no alternative vendors available.

• School of Fine Art agrees to purchase a new line of smartboards from a vendor. The agreed-upon smartboard purchase prices will have a cost price per 55-inch, 75-inch, or 85-inch smartboard.

• The company purchases pencils for the following warehouses:

Glasgow1:

• standard pencils from Vendor A

• colored pencils from Vendor B

Dublin1:

• standard pencils from Vendor A

• colored pencils from Vendor A

• As whiteboard paint grows in popularity, so does the demand. This causes supply shortages. Whiteboard paint is ordered six months in advance.

Current environment. Customer sales

• The company contractually agrees to prices for some items with schools prior to the start of each school year.

• Schools may order bulk cases of products and choose to distribute further breakdowns, such as a case of crayons, which are then distributed to classrooms by the box.

• Pens do not require contracts with schools because they are low margin and do not have supply chain shortages.

• Painting supplies such as acrylic paint, canvases, and easels do not require a special contract and are sold at regular list price to all schools.

• Schools that offer painting classes are part of a program that provides special pricing on the painting supplies.

• Chalk and blackboards are ordered less frequently than they were in past years. Schools are choosing to use whiteboard paint, which is a lower cost than ordering and installing the whiteboards.

Requirements. Customers and sales

• The system must have the ability to limit product purchase amounts by a single school to prevent stock shortages for other schools.

• Schools are obligated to purchase the agreed amount for specific items per the school year.

• Customer service must be able to easily enter items for sales orders and identify stock shortages.

• Sales of whiteboard paint must be limited so that one school does not buy all the inventory and force backorders for other schools.

• Schools must agree to the amount of whiteboard paint they will purchase for the whole school year.

Requirements. Inventory costing

• Inventory must have associated costs except for the vendor storage in Glasgow2.

• The vendor storage must still contain quantities but not include cost in inventory valuations.

• At the end of each month, the costing manager must be able to identify how many items will not be fully settled.

• Annual configuration changes to items must be automatically created where possible.

• The company must be able to track costs for colored pencils and standard pencils separately.

Requirements. Inventory

• Warehouse workers must be able to use their mobile phones and the mobile app to take calls and create transactions in the warehouse.

• The desks must use a single item number and barcode regardless of year manufactured and the vendor.

• Water-based paints from the vendor must be received in pails.

• Acrylic paint must be managed by batches and expiration dates.

• Pencils must be categorized as colored pencils or standard pencils. The individual colors of each colored pencil (such as red, green, and blue) will not be tracked.

• The creation of unique smartboard items must be kept to a minimum.

Issues

• WarehouseWorker1 works in Glasgow2. The worker receives a request to ship pallets of paper from the warehouse to Glasgow1 and Dublin1. WarehouseWorker1 must create the shipments in the system to transfer the pallets of paper from Glasgow1 to Dublin1.

• The number of backorders for desks has increased. Customer service representatives struggle to select a desk item number that has inventory on hand. The desks are the same item, but the manufacturer vendor and year differ.

• A school calls customer service to report that its photocopier is broken. The school needs expedited shipment of a replacement.

• A school that is part of the special paint program reports that a sale price on canvas last month was a better price than its paint program price. The school requests a price adjustment.

• A school reports that different shipments of acrylic paints are slightly different in color.

• The sales team decides to have a flash sale on pens for one month only. The person entering the Sales order line should be able to communicate the information to the customer on the Sales order line.

• Schools are reporting that chalk and blackboards are broken upon receipt. A worker in Dublin1 opens some cases of these products in the warehouse and finds that they are also broken. You must implement processes to enforce inventory inspection for a percentage of each purchase order line received. You must block all inventory for a purchase order line if the inspection fails.

DRAG DROP

You need to configure the conversions for the items.

Which measurement type should you use? To answer, drag the appropriate unit of measure types to the correct requirements. Each unit of measure type may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point.

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Correct Answer:

Explanation:

Box 1: Standard

Standard conversions C Set up standard conversion rules for all products.

Box 2: Intra-class

Crayons are stored as separate item numbers depending on whether they are in a box or a case. This creates issues when counting inventory to determine the total number of crayons in stock.

Intra-class conversions C Set up product-specific conversion rules for units in the same unit class. For example, you can set up a conversion rule for a product that converts a box to the number of pieces in a box. Pieces and boxes are both assigned to the Quantity unit class.

Incorrect:

Inter-class conversions C Set up product-specific conversion rules for units across unit classes. For example, you can set up a conversion rule for a product that converts kilograms to liters. Kilograms are assigned to the Mass unit class and liters are assigned to the Liquid volume unit class.

Reference:

https://learn.microsoft.com/en-us/dynamics365/supply-chain/pim/tasks/manage-unit-measure

https://learn.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/set-up-units-and-unit-conversions-retail-essentials

You need to configure the smartboards.

What should you create?

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You need to configure the whiteboard paint requirements for schools.

Which two settings should you configure? Each answer presents part of the solution. NOTE: Each correct selection is worth one point.

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You need to process the expedited photocopier replacement.

What should you do?

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HOTSPOT

You need to set up pricing to solve the paint program school complaint.

What should you configure? To answer, select the appropriate options in the answer area. NOTE: Each correct selection is worth one point.

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Correct Answer:

Explanation:

Box 1: Price group

A school that is part of the special paint program reports that a sale price on canvas last month was a better price than its paint program price. The school requests a price adjustment.

Trade Agreement Logic

Before we go and set up a trade agreement let’s first discuss how the system evaluates trade agreements. When Dynamics 365 Finance and Operations evaluates trade agreements it tries to find the most specific pricing that falls within the validity dates.

What I mean by “most specific” pricing is, the system checks the “Party type code” as well as the “Product code type” to see if there is a valid price specific to that customer or vendor for the specific product selected on the sales order or purchase order line respectively. Then if it cannot find that most specific combinations it looks for the next level up which are the price groups and then finally if it can’t find prices at the group level it looks for prices that may apply to all vendors or customers.

Box 2: Find next on trade agreement line for select customers only

The next trade agreement type is a line discount. As the name suggests a line discount will appear on the sales order line as a percentage discount or a per unit discount depending on how the trade agreement is set up.

Reference: https://dynamics-tips.com/trade-agreements/

DRAG DROP

You must meet the requirement for WarehouseWorker1.

Which process should you use? To answer, drag the appropriate processes to the correct locations. Each process may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point.

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Correct Answer:

You need to set up and year for the desks.

What should you configure first?

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HOTSPOT

You must configure pen flash sale prices.

What should you configure? To answer, select the appropriate option in the answer area. NOTE: Each correct selection is worth one point.

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Correct Answer: