Free M3-123 sample questions

Correct answer: Using the 'Intercompany Transactions. Open' (MNS210) framework to define relationships and trigger automated postings.

'Intercompany Transactions. Open' (MNS210) is the core M3 program for managing automated financial transactions between divisions. It allows defining the relationship, the triggering events (like a customer invoice in one division), and the resulting transactions (like a supplier invoice in the partner division), including handling currency differences. The other options are manual, intended for cost accounting, or focused only on the sales side, not the complete AP/AR automation.

Correct answer: Roll back the depreciation proposal in 'FA Depreciation. Propose' (FAS110), correct the asset parameters, and re-run the proposal.

The correct M3 procedure is to use the rollback functionality. If the depreciation run from FAS100 has been transferred to GL but not finalized, you can roll it back. This reverses the generated transactions from the FA module. After correcting the underlying issue with the asset or its depreciation method, you can re-run the calculation and transfer the correct values to the GL. Manual journals break the audit trail between the sub-ledger (FAM) and the GL.

Correct answer: 'Aged Receivables Report. Print' (ARS525)

'Aged Receivables Report. Print' (ARS525) is the standard M3 function for generating customer aging reports. It is designed to group open invoices into customizable aging buckets and provides summary information per customer, which is exactly what the controller requires. ARS200 is for viewing individual invoices, GLS210 is for GL transactions, and APS530 is for Accounts Payable, not Receivable.

Correct answers: Create an object control table in 'Generic Object Ctrl Table. Open' (CMS016).; Link the object control table to the accounting rule line in CRS395.

An object control table is used to retrieve a specific value (like a GL account) based on input control objects (like the customer's region). This is the mechanism for conditional logic.

After creating the control table, it must be referenced within the specific accounting rule line in CRS395 to make the conditional logic active for that posting.

Correct answer: True

This is true. The payment proposal function allows users to filter for invoices by payment method, but if left blank, it will process all eligible invoices and group them by the payment method assigned to the respective supplier in CRS624. This allows for creating a single payment run for multiple payment types (e.g., checks, ACH, wire).

Correct answer: Approved but blocked for payment

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.

Correct answer: In 'FAM Function. Open Detail' (CRS406), by linking it to the relevant FAM entry for customer invoicing.

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.

Correct answer: 'Budget. Open' (BUS100)

'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.

Correct answer: 'External Cash Receipt Method. Open' (ARS025)

'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.

Correct answer: Configure Distribution Orders with a specific order type that uses accounting rules to create intercompany AR/AP invoices upon shipment and receipt.

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.