MB-920 Describe Dynamics 365 Finance Practice Question
A company needs to ensure that purchase orders cannot be created without an approved vendor. Which configuration should be used?
⚠ Common exam trap
Watch out — candidates often confuse a purchase order approval workflow (which approves the order itself) with the vendor approval prerequisite, or assume that simply setting a vendor to Active is sufficient to enforce the restriction.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Set 'Require approval for vendor' to Yes in Procurement and sourcing parameters
Setting 'Require approval for vendor' to Yes in Procurement and sourcing parameters ensures that a purchase order cannot be created unless the vendor is in an approved status. This configuration enforces a prerequisite check at the time of purchase order creation, preventing unapproved vendors from being used.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create a purchase order approval workflow
Why it's wrong here
Approves purchase orders, not vendor status.
- ✓
Set 'Require approval for vendor' to Yes in Procurement and sourcing parameters
Why this is correct
Prevents use of unapproved vendors in purchase orders.
- ✗
Enable 'Invoice matching validation'
Why it's wrong here
Affects invoice processing, not purchase orders.
- ✗
Set vendor status to Active
Why it's wrong here
Does not enforce approval requirement.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.