The answer is to enable invoice matching validation in Accounts payable parameters. This configuration is correct because it enforces three-way matching between the vendor invoice, the purchase order, and the product receipt, ensuring that payments are only processed when all three documents align in quantity and price. On the Microsoft Dynamics 365 Fundamentals ERP MB-920 exam, this concept tests your understanding of the procure-to-pay process and how Dynamics 365 Finance automates financial controls to prevent overpayment. A common trap is confusing invoice matching with vendor invoice workflow, which handles approval routing rather than validation against source documents. Remember the mnemonic "Three for Free" — three-way matching frees the company from paying incorrect invoices by matching invoice, PO, and receipt.
MB-920 Describe Dynamics 365 Finance Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 finance. 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 implements Dynamics 365 Finance and needs to ensure that vendor invoices are automatically matched to purchase orders and product receipts before payment. Which configuration should be used?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Enable invoice matching validation in Accounts payable parameters.
Option C is correct because Accounts payable invoice matching policies enforce three-way matching (invoice, PO, receipt). Option A is wrong because budget control is for expenditure limits. Option B is wrong because vendor invoice workflow is for approval routing. Option D is wrong because payment schedules define installment plans.
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.
✗
Define payment schedules for each vendor.
Why it's wrong here
Payment schedules control installment payments, not matching.
✗
Configure vendor invoice workflow for approval.
Why it's wrong here
Workflow is for approval, not matching.
✓
Enable invoice matching validation in Accounts payable parameters.
Why this is correct
Invoice matching validates that invoice amounts match PO and receipt quantities.
Related concept
Read the scenario before looking for a memorised answer.
✗
Set up budget control to validate invoice amounts against available budget.
Why it's wrong here
Budget control does not perform invoice matching.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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 MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Enable invoice matching validation in Accounts payable parameters. — Option C is correct because Accounts payable invoice matching policies enforce three-way matching (invoice, PO, receipt). Option A is wrong because budget control is for expenditure limits. Option B is wrong because vendor invoice workflow is for approval routing. Option D is wrong because payment schedules define installment plans.
What should I do if I get this MB-920 question wrong?
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Variation 1. A company uses Dynamics 365 Finance and needs to ensure that purchase order invoices are automatically matched to the original purchase order and receipt quantities before payment. Which configuration is required?
medium
A.Create a vendor payment journal
B.Configure a purchase agreement
C.Set up a payment schedule
✓ D.Enable invoice matching validation
Why D: Invoice matching policy enforces three-way matching (PO, receipt, invoice). Payment schedule is for installment payments. Vendor payment journal is for recording payments. Purchase agreement is for long-term contracts. Option B is correct.
Last reviewed: Jun 21, 2026
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