This MB-920 practice question tests your understanding of describe the core capabilities of the finance and operations apps. 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. They want to automatically generate and post vendor payments based on approved invoices. Which feature should they use?
Electronic payment
Why wrong: Electronic payment is a payment method, not an automatic process.
Vendor invoice automation
Why wrong: Vendor invoice automation posts invoices, not payments.
Payment proposal
Payment proposal automatically generates payments for approved invoices.
Workflow
Why wrong: Workflow routes documents for approval, not automatic payment.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Payment proposal
The Payment proposal feature in Dynamics 365 Finance allows users to automatically generate and post vendor payments based on approved invoices. It selects due invoices according to defined criteria (e.g., due date, discount date) and creates payment journal lines, which can then be posted. This directly meets the requirement of automating payment generation from approved invoices.
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.
Electronic payment
Why it's wrong here
Electronic payment is a payment method, not an automatic process.
Vendor invoice automation
Why it's wrong here
Vendor invoice automation posts invoices, not payments.
Payment proposal
Why this is correct
Payment proposal automatically generates payments for approved invoices.
Related concept
Read the scenario before looking for a memorised answer.
Workflow
Why it's wrong here
Workflow routes documents for approval, not automatic payment.
Common exam traps
The trap here is confusing the automation of invoice processing (Vendor invoice automation) with the automation of payment generation (Payment proposal), as both involve 'automation' but target different stages of the procure-to-pay cycle.
Detailed technical explanation
The Payment proposal engine uses a 'suggestion' algorithm that evaluates vendor open transactions based on payment terms, cash discounts, and cutoff dates. It creates a temporary payment journal that can be reviewed and modified before posting, ensuring control over cash flow. In a real-world scenario, a company might run a weekly payment proposal for all vendors with net-30 terms, then manually adjust a few payments before posting via electronic funds transfer.
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
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FAQ
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..
The correct answer is: Payment proposal — The Payment proposal feature in Dynamics 365 Finance allows users to automatically generate and post vendor payments based on approved invoices. It selects due invoices according to defined criteria (e.g., due date, discount date) and creates payment journal lines, which can then be posted. This directly meets the requirement of automating payment generation from approved invoices.
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 24, 2026
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