The answer is payment proposals and electronic payment formats. Payment proposals automate the selection of due invoices based on criteria like due date or discount terms, while electronic payment formats generate standardized files—such as SEPA or NACHA—that banks can process directly, eliminating manual data entry. On the Microsoft Dynamics 365 Fundamentals ERP MB-920 exam, this question tests your understanding of the payment automation workflow within Dynamics 365 Finance, often appearing as a “which two” scenario where you must distinguish true automation features from supporting tools like vendor holds or payment calendars. A common trap is confusing vendor hold (which only blocks payments) with an automation feature, so remember: proposals select, formats transmit. Memory tip: think “Proposals pick, formats file”—the pair that replaces manual keystrokes with system-driven selection and bank-ready output.
MB-920 Describe Dynamics 365 Finance Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 finance. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company is implementing Dynamics 365 Finance and needs to manage vendor payments efficiently. Which TWO features should be used to automate payment processing and reduce manual effort?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Electronic payment formats
Payment proposals automate the selection of invoices for payment. Electronic payment formats enable automated payment files for banks. Vendor hold prevents payment but does not automate. Payment calendar is for scheduling. Vendor invoice pool is for holding invoices, not automation. Options A and D are correct.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Electronic payment formats
Why this is correct
Electronic payment formats generate automated payment files for bank processing.
Related concept
Read the scenario before looking for a memorised answer.
✗
Vendor invoice pool
Why it's wrong here
Vendor invoice pool holds invoices for review, not automation.
✗
Vendor hold
Why it's wrong here
Vendor hold blocks payments but does not automate processing.
✓
Payment proposals
Why this is correct
Payment proposals automatically select invoices due for payment based on criteria.
Related concept
Read the scenario before looking for a memorised answer.
✗
Payment calendar
Why it's wrong here
Payment calendar defines non-payment days but does not automate.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Electronic payment formats — Payment proposals automate the selection of invoices for payment. Electronic payment formats enable automated payment files for banks. Vendor hold prevents payment but does not automate. Payment calendar is for scheduling. Vendor invoice pool is for holding invoices, not automation. Options A and D are correct.
What should I do if I get this MB-920 question wrong?
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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