Describe the core capabilities of the finance and operations apps →hardMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
A company uses Dynamics 365 Finance and Operations. The finance team wants to post a vendor invoice that has a discount of 2% if paid within 10 days, otherwise net 30. How should this be configured?
⚠ Common exam trap
Test-takers frequently confuse the Vendor invoice journal (Option C) as the place to configure discounts, when in fact it is only a posting interface that references pre-configured cash discount codes, not a configuration tool.
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
✓
Define a Terms of payment with a cash discount code that specifies 2% discount within 10 days
In Dynamics 365 Finance and Operations, a cash discount for early payment is configured by defining a Terms of payment record that includes a cash discount code. The cash discount code specifies the discount percentage (2%) and the discount period (10 days), while the Terms of payment record defines the net due date (30 days). This setup ensures the discount is automatically applied when the vendor invoice is posted and the payment is made within the discount period, without requiring manual entry or per-invoice adjustments.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Enter the discount manually on each vendor invoice
Why it's wrong here
Manual entry is not automated and error-prone.
- ✗
Set up the discount in the Purchase order form
Why it's wrong here
Purchase order is for ordering, not for invoice payment terms.
- ✗
Configure the cash discount in the Vendor invoice journal
Why it's wrong here
Invoice journal is for entering invoices, not defining discounts.
- ✓
Define a Terms of payment with a cash discount code that specifies 2% discount within 10 days
Why this is correct
Terms of payment and cash discount codes handle this.
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