You must be able to configure and run the full AR cycle: set up customers, posting profiles, payment terms, credit limits, collections, and subscription billing, then post invoices and payments correctly. The most important thing is linking each setup to the right ledger posting so transactions hit the correct accounts.
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Implement Accounts Receivable, Credit, Collections, and Subscription Billing — choose a session length
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Domain overview
This domain covers the order-to-cash cycle in Dynamics 365 Finance: customer setup, free text and sales order invoicing, payment terms, credit limits, collections, and subscription billing. Questions present business scenarios and ask you to choose the correct configuration, posting profile, or process sequence, including how AR transactions post to the general ledger.
Exam objectives
Configuring customer posting profiles, payment terms, methods of payment, and cash discounts
Creating free text invoices, sales order invoices, and credit notes with correct ledger postings
Setting up credit limits, credit management rules, and collections processes including interest codes
Managing subscription billing, billing schedules, and revenue deferral for recurring customer invoices
Confusing customer posting profiles with vendor posting profiles, which changes which ledger accounts receive the AR transaction.
Assuming credit limit checks block order entry automatically; they require credit management parameters and rules to enforce holds.
Mixing up payment terms, cash discounts, and methods of payment when a scenario asks which controls due date versus discount date.
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A Dynamics 365 Finance consultant is configuring the Accounts receivable module for a company that sells to other businesses. The company wants to automatically place a customer on credit hold when their overdue balance exceeds a specific threshold. The consultant needs to set up the credit management functionality. Which configuration should the consultant perform first?
2A company uses subscription billing and needs to group multiple subscription charges into a single invoice for each customer. They want to ensure that all charges for a customer are billed together on the same invoice, regardless of the subscription start dates. Which subscription billing parameter should they configure?
3A company uses Dynamics 365 Finance to bill customers for recurring maintenance services. The billing schedule must generate invoices monthly, but the amount must be prorated for the first and last periods based on the number of days. The consultant sets up a billing schedule with a monthly frequency. Which configuration should the consultant use to ensure proration occurs correctly?
4A company uses Dynamics 365 Finance. Customers are grouped into customer pools, and the collections team wants to generate a list of customers with overdue balances that can be worked through in a single page. The collections supervisor needs to create a collection letter sequence that applies a different letter text for each aging period and posts a fee to the customer account. Which configuration should you use?
5A credit manager needs to review a customer's credit history, including credit limits, current balance, and any credit holds, directly from the customer record. They also want to see a graphical representation of the customer's credit utilization. Which workspace should they use?
6A subscription billing company sells a monthly service. A customer is billed on the first day of each month and pays on the fifteenth. The company wants to recognize revenue evenly across the month and automatically create the billing schedule for the next twelve months when a sales order is confirmed. Which feature should the functional consultant configure?
7A subscription billing company needs to recognize revenue for a subscription that spans multiple periods. The subscription starts on January 1 and ends on December 31, with a total contract value of $12,000. Revenue should be recognized evenly over the subscription period. Which revenue recognition method should the functional consultant configure?
8A company uses Dynamics 365 Finance. You need to set up a customer payment proposal that includes only invoices with a due date on or before a specified date, and you want to automatically write off any cash discount that is not taken. Which configuration should you use?
9A company uses Dynamics 365 Finance to manage customer payments. The accounts receivable manager wants to automatically apply customer payments to open invoices based on a predefined priority, such as invoices with the earliest due date first. Which feature should the consultant configure to achieve this?
10A consultant is implementing subscription billing for a company that offers software as a service (SaaS). The company wants to bill customers in advance for a 12-month subscription, but wants to recognize revenue monthly over the subscription period. The consultant sets up a billing schedule with a yearly frequency and a 12-month duration. Which additional configuration is required to defer revenue and recognize it monthly?
11A US-based legal services firm posts a free-text invoice for $12,000 with payment terms of 2/10, Net 30. The customer emails on day 8 asking to take the discount, but the payment will not arrive until day 15. A collections clerk wants to grant the discount anyway to preserve the relationship. Which Accounts receivable setup should the clerk use to allow the discount after the discount date without editing the original invoice?
12A subscription billing company sells a 12-month support plan billed monthly in advance. The customer cancels after month 4 and is entitled to a prorated credit for the unused months. The billing specialist must generate the credit without leaving the recurring billing schedule open and must ensure revenue is not recognized for the cancelled period. Which action should the specialist take?
13A company wants to offer a discount to customers who pay their invoices within 10 days. The invoice total is $1,000, and the discount is 2% if paid within 10 days, otherwise the net amount is due within 30 days. Which configuration should you use in Dynamics 365 Finance?
14A wholesale distributor wants to automatically place a customer on credit hold when an invoice becomes 60 days past due. The credit manager needs the hold to prevent new sales orders from being confirmed but still allow payments to be posted. Which configuration should the credit manager set up?
15A subscription billing company needs to recognize revenue for a monthly subscription evenly over the service period. The subscription is billed annually in advance. Which revenue recognition setup should the functional consultant configure to ensure revenue is deferred and recognized monthly?
16A company uses Dynamics 365 Finance. They need to automatically create collection activities when customer invoices become overdue. Collection activities should be generated based on aging periods, and the system must prevent duplicate activities for the same invoice. Which configuration should you use?
You must be able to configure and run the full AR cycle: set up customers, posting profiles, payment terms, credit limits, collections, and subscription billing, then post invoices and payments correctly. The most important thing is linking each setup to the right ledger posting so transactions hit the correct accounts.
The Courseiva MB-310 question bank contains 16 questions in the Implement Accounts Receivable, Credit, Collections, and Subscription Billing domain. Click any question to see the full explanation and answer breakdown.
Start with a 10-question focused session to identify your baseline accuracy in this domain. Read every explanation — even for questions you answer correctly — to understand the reasoning. Once you score consistently above 80%, move to a 20–30 question session to confirm depth before moving to the next domain.
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