The correct choice is to set up payment proposals in the customer payment journal to automatically apply payments to open invoices. Payment proposals streamline the accounts receivable process by using predefined matching criteria—such as invoice number, amount, or due date—to automatically link incoming payments to their corresponding open invoices, eliminating the need for manual selection. On the MB-920 exam, this concept tests your understanding of automation tools within Dynamics 365 Finance, often appearing as a scenario where you must differentiate between payment proposals, which drive automation, and payment journal templates, which only set default values like descriptions or accounts. A common trap is confusing templates with automation, but remember: templates are static defaults, while proposals are dynamic matching engines. For a quick memory tip, think “Proposals propose matches; templates just set defaults.”
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.
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 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.
Option A is correct because payment proposals can automatically apply payments to open invoices based on matching criteria. Option B is wrong because payment journal templates only set default values, not automation. Option C is wrong because settlement priority is a manual setting. Option D is wrong because it describes a manual process.
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.
✗
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.
Related concept
Read the scenario before looking for a memorised answer.
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: Set up payment proposals in the customer payment journal to automatically apply payments to open invoices. — Option A is correct because payment proposals can automatically apply payments to open invoices based on matching criteria. Option B is wrong because payment journal templates only set default values, not automation. Option C is wrong because settlement priority is a manual setting. Option D is wrong because it describes a manual process.
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
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.