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Describe Dynamics 365 Supply Chain ManagementmediumMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Supply Chain Management Practice Question

A company needs to ensure that when a sales order is created, the system automatically checks if the customer's credit limit is sufficient. If not, the order should be placed on hold. Which setup is required?

⚠ Common exam trap

Many exam-takers confuse Accounts receivable parameters with credit management, assuming that general AR setup includes credit limit enforcement, when in fact a separate Credit management module is required for automated order holds.

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

Credit management

Credit management in Dynamics 365 Supply Chain Management is the dedicated module that enforces credit limits during sales order processing. When a sales order is created, the system evaluates the customer's credit limit against the order total; if the limit is exceeded, the order is automatically placed on hold. This behavior is controlled by credit limit rules and blocking configurations within the Credit management module.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Credit management

    Why this is correct

    Credit management enables credit limit checks and automatic order holds.

  • Accounts receivable parameters

    Why it's wrong here

    Accounts receivable parameters include credit management setup, but the feature is credit management.

  • Collections management

    Why it's wrong here

    Collections management deals with past due invoices, not credit limits on new orders.

  • Customer payment settlement

    Why it's wrong here

    Customer payment settlement is for applying payments to invoices.

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