Question 1

Which one of the following describes a payment type when there is no invoice to match against the payment?

Accepted Answer

C

Explanation: An "on-account" payment refers to a payment received from a customer that is not applied to a specific invoice at the time of entry. This payment is recorded as a credit on the customer's account, reducing their overall balance. It remains unallocated until it is later manually matched against one or more invoices or used to offset future charges. This directly fits the description of a payment made when there is no invoice to match against.

Question 2

You need to retrieve the purchase price for purchase costing. Which two of the following programs should you use? (Choose two.)

Accepted Answer

D, E

Explanation: Infor M3's purchase price retrieval logic for costing follows a defined hierarchy to find the most specific price. The system first searches for a valid price in a purchase agreement, which is managed in 'Purchase Agreement.Open' (PPS100). If no valid agreement price is found, the system then searches for a price defined for the specific supplier and item combination in 'Supplier.Connect Item' (PPS040). These two programs represent the primary sources for supplier-specific purchase prices used in purchase costing calculations.

Question 3

Which one of the following items describes what happens first when the account allocation proposal is approved in A/C Allocation. Update (GLS130)?

Accepted Answer

A

Explanation: The primary function of 'A/C Allocation. Update' (GLS130) is to execute a previously generated allocation proposal. Upon approval and execution of the proposal in GLS130, the system's first and foremost action is to create the actual general ledger transactions, known as account entries. These entries are grouped into a journal voucher, which formally records the movement of funds from the source account(s) to the target account(s) as defined by the allocation rules.

Question 4

Which two of the following situations create account entries for accounting rule PP10? (Choose two.)

Accepted Answer

B, D

Question 5

You are creating a supplier bank account. Which one of the following types of bank account do you need to create that?

Accepted Answer

B

Explanation: In Infor M3, bank accounts are categorized using a specific type code to ensure proper financial transaction processing. When creating a bank account for a supplier, the designated 'Bank account type' is '3'. This classification is crucial for the Accounts Payable (AP) module to correctly identify and use this account for processing supplier payments. Using the correct type ensures that payment proposals and electronic fund transfers (EFTs) are routed to the supplier's bank details as defined in the system. This setup is managed within the 'Bank Account. Open' (CRS070) program.

Question 6

You have an invoice where the invoiced quantity is not equal to the received quantity. You do not
expect to receive any more goods for the purchase order.
Which one of the following options is a way you can handle this invoice using Supplier Invoice.Match
GR Line (APS360)?

Accepted Answer

D

Explanation: When an invoice quantity is greater than the received quantity and no further goods are expected, a variance exists that must be resolved. Within 'Supplier Invoice.Match GR Line' (APS360), the correct procedure is to create a debit note. This action formally communicates the discrepancy to the supplier and reduces the company's financial liability (accounts payable) to reflect only the goods that were actually received. This ensures that payment is made for the correct quantity, resolving the over-invoicing issue.

Question 7

The manufacturing order processing flow includes the following four tasks:
1. Production receipt
2. Issue material to manufacturing order
3. Create manufacturing order
4. Report operations
Which one of the following is the correct order in which those tasks should be performed?

Accepted Answer

D

Explanation: The standard manufacturing order (MO) processing flow in Infor M3 follows a logical production sequence. The process must begin with the creation of a manufacturing order (3), which serves as the authorization to produce a specific item. Once the order exists, the required materials are issued (2) from inventory to the shop floor. As work is performed, operations are reported (4) to track progress, labor, and machine time. The final step is the production receipt (1), where the finished goods are formally received into inventory, making them available for sale or further use.

Question 8

Which two of the following accounting rule components are predefined in the M3 Business Engine? (Choose two.)

Accepted Answer

C, D

Explanation: In the Infor M3 Business Engine's automatic accounting framework, Accounting Events and Accounting Types are fundamental, predefined components. Accounting Events are hard-coded triggers within M3 programs that correspond to specific business transactions (e.g., customer order invoicing, purchase order goods receipt). Accounting Types are standard, predefined codes that classify the specific kind of posting generated by an event (e.g., revenue, cost of goods sold, inventory). Users cannot create new events, and while new types can be added, a comprehensive standard set is delivered with the system. These two components provide the static framework upon which user-defined accounting rules are built.

Question 9

You have set up different accounts, from your normal accounts, so you can post to a different
receivable account when you sell to a particular customer.
Which one of the following rules do you need to define so that these customer’s transactions will
post to this different account?

Accepted Answer

A

Explanation: In Infor M3's Financial Accounting Management (FAM) module, standard transactions are posted to general ledger accounts based on a defined 'Accounting Rule' (configured in CRS395). To handle deviations from this standard for specific business cases, such as using a different accounts receivable account for a particular customer, an 'Exception' is created within that accounting rule. This exception rule overrides the standard accounting string when the transaction involves the specified criteria (e.g., a specific customer number), directing the posting to the alternative account as required.

Question 10

In some countries, the transactions from the cost accounting module are considered internal entries
as opposed to external entries, which are typically generated from an actual document such as an
invoice. Which one of the following options is what you need to do to the internal entries?

Accepted Answer

A

Explanation: In many jurisdictions, accounting principles and legal requirements mandate a clear distinction between internal and external transactions for auditing and financial reporting. Internal entries, such as cost allocations or internal invoicing from the cost accounting module, do not represent a transaction with an outside party. Infor M3 is designed to accommodate this by using specific accounting types and event codes. This allows these internal transactions to be posted to the general ledger with unique identifiers, ensuring they can be segregated, traced, and reported on separately from external transactions like supplier or customer invoices.

Question 11

Which one of the following Accounts Payable master files is common for all divisions related to a company and needs to be defined in Infor M3?

Accepted Answer

A

Explanation: The Supplier master file (program CRS620) in Infor M3 is a central repository defined at the company level. This means a single supplier record is created for the entire company and is then accessible and utilized by all divisions operating within that company. While some supplier-related data can be specified per division (in CRS624), the core master record is common, making it the fundamental Accounts Payable master file shared across all divisions as per standard M3 architecture.

Question 12

Which three of the following describe accounting structures? (Choose three.)

Accepted Answer

B, C, D

Explanation: In Infor M3, an accounting structure (function GLS091) is defined as a hierarchical object that can contain either individual accounting identities (accounts) or other accounting structures. Its chief purpose is to allow flexible grouping of those identities so that balances or transactions can be displayed or printed in meaningful, organization-specific ways (for example, management reports). Therefore: • B is true – grouping is specifically for display/print. • C is true – structures are hierarchical and normally reflect the enterprise’s organization. • D is true – a structure may consist of identities or nested structures.

Question 13

Which two of the following describe account groups in Infor M3? (Choose two.)

Accepted Answer

A, C

Explanation: In Infor M3, account groups are a fundamental component for structuring financial reports. The levels assigned to account groups (from 1 to 5) create a hierarchy that dictates the summarization and presentation order of accounts on financial statements like the income statement and balance sheet. This hierarchical structure is essential for creating readable and logically organized reports. Furthermore, each account group must be explicitly classified by a 'Report code' to indicate whether it belongs to the income statement or the balance sheet. This classification is mandatory for the system to correctly generate these two primary financial statements.

Question 14

When Infor M3 updates the cost accounting system with financial transactions, it adds information to
the database, which is moved to several user-defined accounting dimensions used for reporting and
analyses. Which one of the following options represents the number of user-defined accounting
dimensions that can be set in Infor M3?

Accepted Answer

B

Explanation: Infor M3's General Ledger (GL) is structured around an accounting string that includes several fixed, standard accounting dimensions. To provide flexibility for detailed reporting and analysis, M3 offers seven user-defined accounting dimensions. These are commonly referred to as Accounting Dimension 1 through Accounting Dimension 7 (ACD1-ACD7). Organizations can configure these dimensions to capture specific business data not covered by the standard dimensions, such as project codes, market segments, or product lines, directly within financial transactions. This structure is fundamental to the cost accounting and financial reporting capabilities of the system.

Question 15

Which one of the following options are invoice number series defined by?

Accepted Answer

B

Explanation: In Infor M3, number series for financial transactions, including customer invoices, are defined by fiscal year. This configuration is fundamental for financial control, auditing, and reporting. The system allows administrators to set up unique number ranges for each number series type (e.g., customer invoices, journal vouchers) for a specific fiscal year. This ensures that numbering is sequential within an accounting period and can be reset or changed for the next, aligning with standard accounting practices.

Free Infor M3-123 Actual Exam Questions