Quick Answer
The answer is payment proposals and vendor invoice automation. These two features are core to managing accounts payable in Dynamics 365 Finance because they streamline the entire vendor payment lifecycle: payment proposals allow you to automatically generate and batch payments based on due dates and discounts, while vendor invoice automation uses optical character recognition and matching rules to process invoices with minimal manual intervention. On the Microsoft Dynamics 365 Fundamentals ERP MB-920 exam, this question tests your ability to distinguish between accounts payable and accounts receivable functions—a common trap is confusing collection letters or billing schedules (both AR features) with AP tools. To remember, think of AP as money going out: you receive an invoice (automation), then you propose a payment (proposal). For a quick memory tip, associate “proposal” with “pay” and “automation” with “arriving invoice.”
This MB-920 practice question tests your understanding of describe dynamics 365 finance. 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.
Which TWO features are part of Dynamics 365 Finance for managing accounts payable?
Billing schedules
Why wrong: Billing schedules are for recurring customer invoices.
Vendor invoice automation
Automates the processing of vendor invoices.
Payment proposals
Payment proposals generate suggested vendor payments.
Fixed asset depreciation
Why wrong: Fixed asset depreciation is part of fixed assets management.
Collection letters
Why wrong: Collection letters are used in accounts receivable for customer collections.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Vendor invoice automation
Options A and D are correct. Vendor invoice automation and payment proposals are key accounts payable features. Option B is wrong because collection letters are for accounts receivable. Option C is wrong because billing schedules are for accounts receivable. Option E is wrong because fixed asset depreciation is for fixed assets.
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.
Billing schedules
Why it's wrong here
Billing schedules are for recurring customer invoices.
Vendor invoice automation
Why this is correct
Automates the processing of vendor invoices.
Related concept
Read the scenario before looking for a memorised answer.
Payment proposals
Why this is correct
Payment proposals generate suggested vendor payments.
Related concept
Read the scenario before looking for a memorised answer.
Fixed asset depreciation
Why it's wrong here
Fixed asset depreciation is part of fixed assets management.
Collection letters
Why it's wrong here
Collection letters are used in accounts receivable for customer collections.
Common exam traps
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
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.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
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 — study guide chapter
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FAQ
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
The correct answer is: Vendor invoice automation — Options A and D are correct. Vendor invoice automation and payment proposals are key accounts payable features. Option B is wrong because collection letters are for accounts receivable. Option C is wrong because billing schedules are for accounts receivable. Option E is wrong because fixed asset depreciation is for fixed assets.
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.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 21, 2026
This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.
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