MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
This MB-920 practice question tests your understanding of describe the core capabilities of the finance and operations apps. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 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?
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.
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.
✗
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.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often 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.
Detailed technical explanation
How to think about this question
Under the hood, the cash discount is stored in the CashDisc table and linked to the Terms of payment via a CashDiscCode field. When a vendor invoice is posted, the system calculates the discount amount using the DueDate and DiscountDate fields, and if payment is made within the discount period, the discount is automatically applied during the settlement process. A real-world scenario where this matters is when a company has multiple discount tiers (e.g., 1% 10, net 30 and 2% 10, net 30) for different vendors; each requires a unique Terms of payment and cash discount code combination to ensure correct automatic calculation.
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.
TExam Day Tips
→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 exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Describe the core capabilities of the finance and operations apps — This question tests Describe the core capabilities of the finance and operations apps — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: 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.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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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