Quick Answer
The correct answer is to configure vendor invoice workflows. This feature in Dynamics 365 Finance allows you to define a business process that automatically routes invoices for approval based on specific conditions, such as requiring department manager sign-off before payment. By setting up these workflows, you ensure that every vendor invoice follows a controlled approval chain, preventing unauthorized payments and meeting the company’s internal control requirements. On the MB-920 exam, this concept tests your understanding of how Dynamics 365 automates business processes within the procure-to-pay cycle; a common trap is confusing workflows with simple approval limits or posting profiles. Remember, workflows are about routing and conditional approval, not just setting a dollar threshold. A helpful memory tip: think of "vendor invoice workflow" as the digital "pass-it-up-the-chain" system that enforces who must say "yes" before the money moves.
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 uses Dynamics 365 Finance and needs to ensure that all vendor invoices are approved by the department manager before payment. Which feature should they use?
Set up payment schedules
Why wrong: Why A is wrong
Enable invoice matching validation
Why wrong: Why D is wrong
Configure vendor invoice workflows
Why B is correct
Create purchase order approval workflows
Why wrong: Why C is wrong
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Configure vendor invoice workflows
Vendor invoice workflows in Dynamics 365 Finance allow you to define a business process that routes invoices for approval based on specific conditions, such as department manager approval. This feature ensures that invoices are reviewed and approved before payment is processed, meeting the requirement for managerial approval.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Set up payment schedules
Why it's wrong here
Why A is wrong
Enable invoice matching validation
Why it's wrong here
Why D is wrong
Configure vendor invoice workflows
Why this is correct
Why B is correct
Related concept
Read the scenario before looking for a memorised answer.
Create purchase order approval workflows
Why it's wrong here
Why C is wrong
Common exam traps
The trap here is confusing purchase order approval workflows with vendor invoice workflows, as both involve approvals but apply to different stages of the procurement-to-payment cycle.
Detailed technical explanation
Vendor invoice workflows in Dynamics 365 Finance are built on the Power Automate workflow engine, allowing conditional routing based on fields like invoice amount, vendor group, or department. When a workflow is configured, the system creates a work item in the approval queue, and the designated approver receives a notification via email or the Dynamics 365 client. This ensures audit trails and compliance with internal controls, as each approval step is logged and can be tracked.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
The correct answer is: Configure vendor invoice workflows — Vendor invoice workflows in Dynamics 365 Finance allow you to define a business process that routes invoices for approval based on specific conditions, such as department manager approval. This feature ensures that invoices are reviewed and approved before payment is processed, meeting the requirement for managerial approval.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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.
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