MB-920 Describe Dynamics 365 Finance Practice Question
A company uses Dynamics 365 Finance. The accounts payable team needs to automatically calculate discounts based on payment terms when entering vendor invoices. Where should they configure the discount?
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
✓
Payment terms
Cash discounts are configured at the vendor payment terms level and automatically applied during invoice entry. Option B is wrong because procurement categories are for item classification, not discounts. Option C is wrong because invoice policies are for approval, not discounts. Option D is wrong because vendor master only stores company details.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Payment terms
Why this is correct
Payment terms configure cash discounts that are automatically applied during invoice entry.
- ✗
Procurement categories
Why it's wrong here
Procurement categories classify items, not discounts.
- ✗
Invoice policies
Why it's wrong here
Invoice policies are for approval processes, not discounts.
- ✗
Vendor master
Why it's wrong here
Vendor master stores company details, not payment terms.
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