M3-123 Sample Questions & Answers
Configuring the general ledger and posting journal vouchers carries the most weight, alongside paying suppliers, invoicing and collecting cash from customers, fixed asset handling, budgeting and financial statements, and running multiple companies across currencies.
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Real questions from the Infor Certified M3 Finance Consultant practice test — answers and explanations included. Showing 10 of 20 free samples.
- Question 1Intermediate
Accounts Payable · Invoice Matching and Blocking
A user is attempting to post a supplier invoice in 'Supplier Invoice. Record' (APS100) that is matched to a purchase order. However, the goods receipt has not yet been processed in M3. The company policy requires that such invoices are blocked from payment but must be recorded in the ledger to reflect the liability. Which status should the invoice be given in APS100 to meet this requirement?
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Correct answer: D
The status 'Approved but blocked for payment' is used for this exact scenario. It allows the invoice to be posted to the General Ledger, recognizing the liability, but prevents it from being included in a payment proposal until the block (in this case, for 'Goods not received') is manually or automatically removed after the goods receipt is processed.
- Question 2Advanced
General Ledger Management · Balance Key Configuration
A finance manager needs to create a new balance key in 'Balance Key. Open' (CRS630) to track sales data for a new product line. This balance key must be updated in real-time as sales invoices are posted. Where must this new balance key be connected to ensure it is updated by transactions from customer invoicing?
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Correct answer: A
Balance keys are updated through FAM (Financial Application Management) functions. To link a balance key to a specific business transaction like customer invoicing, you must go into the details of the relevant FAM function (e.g., OI20) in CRS406 and specify the balance key to be updated. This creates the link between the operational transaction and the GL balance file.
- Question 3Beginner
Financial Reporting · Budget Management
A company is setting up its budgeting process in M3 for the first time. They need to create multiple budget versions to perform what-if analysis (e.g., 'Optimistic', 'Pessimistic', 'Most Likely'). In which program are these distinct budget versions defined and managed?
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Correct answer: A
'Budget. Open' (BUS100) is the central program for creating and managing budgets in M3. It allows users to define different budget numbers and versions, which can then be used to enter or import budget values for comparison against actuals in financial reports.
- Question 4Intermediate
Accounts Receivable · Cash Application
A company wants to automatically apply cash receipts from a bank statement file to open customer invoices. The process must match payments based on the invoice number included in the payment reference field of the bank file. Which M3 program is used to configure the rules for this automatic matching process?
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Correct answer: C
'External Cash Receipt Method. Open' (ARS025) is where you define the information types and search sequences for processing electronic bank statements. You would configure it to look for an invoice number (information type) in the payment reference field and use that to automatically match and apply the payment to the correct open item in AR.
- Question 5Advanced
Multi-Company and Currency Management · Inter-division Transfers
Case Study
Company Background: Global Foods Inc. is a food and beverage distributor operating with a central headquarters (Division 100) and three regional distribution centers (Divisions 200, 300, 400) within a single M3 company. The headquarters handles all centralized procurement and supplier payments, while the regional centers manage their own sales and customer collections.
Current Situation: All divisions use the same chart of accounts. When the headquarters purchases inventory, it is initially received into Division 100. The inventory is then transferred to the regional centers. The current process for accounting for these transfers is manual, involving complex journal entries that are prone to error and difficult to reconcile at month-end.
Requirements: Global Foods wants to automate the financial postings associated with inventory transfers. When Division 100 ships goods to Division 200, the system must automatically:
- Credit the inventory account in Division 100.
- Debit the inventory account in Division 200.
- Create an intercompany receivable in Division 100 from Division 200.
- Create an intercompany payable in Division 200 to Division 100.
Question: Based on the requirements, which M3 configuration provides the most integrated and automated solution for handling the financial consequences of these inventory transfers?
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Correct answer: B
This is the standard, fully integrated M3 solution. By using Distribution Orders (DOs) to manage the physical transfer, you can leverage the underlying FAM functions (e.g., DL30) linked to the DO type. These functions can be configured with accounting rules to automatically generate the required intercompany AR (in the sending division) and AP (in the receiving division) invoices, creating a clean, auditable trail and eliminating manual journals.
- Question 6Beginner
Accounts Receivable · Number Series Configuration
A company has a legal requirement to use a specific, sequential, and gapless document numbering series for all official customer invoices. In which M3 program would a consultant define and assign this numbering rule?
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Correct answer: B
'Number Series. Open' (CRS165) is the central M3 program for defining all system number series. Here, you would create a new series for invoice numbers, specify its range, and then assign this series to the appropriate invoice type or function, ensuring all invoices follow the legally required sequence.
- Question 7Intermediate
Fixed Asset Management · Depreciation Rules
When defining a new depreciation type in 'Depreciation Type. Open' (FAS005), an accountant needs to ensure that the asset's depreciation starts in the month following its acquisition. Which field within FAS005 controls this specific depreciation start rule?
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Correct answer: C
The 'Period control method' field determines the convention for when depreciation starts and stops in relation to the asset's acquisition, disposal, or transfer date. A common setting is 'Pro-rata at period start/end', and a specific option like '03 - Following month' would be selected to meet the requirement of starting depreciation in the month after acquisition.
- Question 8Intermediate
Accounts Payable · Supplier Blocking
A company wants to prevent payments to a supplier who is currently under a quality review. The block should stop any existing, approved invoices from being paid and prevent new invoices from being entered for this supplier. Which is the most effective way to implement this temporary block in M3?
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Correct answer: B
Setting the supplier's master record status to '90' in CRS620 is the most comprehensive solution. This status not only blocks the supplier for payment in payment proposals (APS130) but also prevents the creation of new purchase orders and the entry of new invoices for this supplier, meeting all aspects of the requirement with a single change.
- Question 9IntermediateSelect 2
General Ledger Management · GL Reconciliation
The General Ledger is out of balance with the Accounts Receivable sub-ledger. A financial analyst needs to identify the specific transactions causing the discrepancy. Which TWO reports or programs are most essential for this reconciliation process? (Select TWO)
graph TD A[General Ledger] -- Mismatches --> B(Reconciliation Needed) C[AR Sub-ledger] -- Mismatches --> B B --> D{Identify Discrepancies} D --> E[GLS210] D --> F[ARS225]Show answer & explanation
Correct answers: A, C
This program allows viewing all detailed postings to the AR control account in the GL. This is the GL side of the reconciliation.
This report (often referred to as the AR sub-ledger detail report) lists all open items and transactions within the Accounts Receivable module. Comparing its total to the GL control account balance is the core of the reconciliation process.
- Question 10Advanced
Financial Reporting · Report Generator Configuration
A financial report is being designed in M3's Report Generator. The requirement is to display a calculated field that shows 'Gross Profit Percentage', which is not a standard account in the GL. The calculation is (Revenue - Cost of Goods Sold) / Revenue. Where is this type of complex calculation defined for use in the report?
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Correct answer: C
The Report Generator uses line/row templates (RGS610) to define the structure and content of the report's rows. Within a line template, you can define lines of type 'C' (Calculation). These lines allow you to perform arithmetic operations (+, -, *, /) on other lines (e.g., Line 10 - Line 20) to create calculated values like Gross Profit or financial ratios directly within the report's logic.
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