MB-920 Payment proposals Practice Question
You are a business analyst at Northwind Traders, a wholesale distribution company using Dynamics 365 Finance. The company processes a high volume of customer invoices daily. The accounts receivable team is spending too much time manually applying customer payments to open invoices. The CFO wants to automate the payment application process to reduce manual effort. You are evaluating the use of payment journal templates and payment proposals. What should you configure?
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
✓
Set up payment proposals in the customer payment journal to automatically apply payments to open invoices.
Payment proposals in Dynamics 365 Finance can automatically apply customer payments to open invoices based on matching criteria, such as invoice number or amount, reducing manual effort. Option A is incorrect: settlement priority only determines the order in which invoices are settled when multiple invoices are selected, but it does not automate the application process. Option B is incorrect: payment journal templates define default values for payment journals but do not automate the application of payments. Option C is incorrect: the 'Apply payments' button requires manual selection of invoices, which is not automated.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Configure settlement priority so that payments are automatically applied to the oldest invoice first.
Why it's wrong here
Incorrect: Settlement priority is a parameter, but it does not automate the entire process.
- ✗
Create payment journal templates that automatically post payments to the ledger.
Why it's wrong here
Incorrect: Templates do not automate payment application.
- ✗
Use the 'Apply payments' button on the customer payment journal to manually select invoices for each payment.
Why it's wrong here
Incorrect: This is manual, not automated.
- ✓
Set up payment proposals in the customer payment journal to automatically apply payments to open invoices.
Why this is correct
Correct: Payment proposals automate the application of payments to invoices.
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