MB-920 Describe Dynamics 365 Finance Practice Question
You are a Dynamics 365 Finance administrator for a small business that uses Dynamics 365 Finance for financial management. The company has a single legal entity and uses the cash basis accounting method for tax purposes. The company recently hired a new accountant who is unfamiliar with the system. The accountant needs to record a vendor invoice for office supplies. The invoice is from a vendor already set up in the system. The invoice amount is $500, and the applicable tax rate is 8%. The accountant wants to ensure that the invoice is posted correctly and that the tax amount is calculated automatically. Which steps should the accountant take to record the vendor invoice?
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
✓
Open the vendor invoice journal, select the vendor, enter the invoice number, invoice date, amount, and post. The tax will be calculated automatically.
The vendor invoice journal is the standard method to record vendor invoices with automatic tax calculation. Option A is wrong because a purchase order is not required for a simple vendor invoice; it is typically used for procure-to-purchase processes. Option C is wrong because the general journal is for manual journal entries, not vendor invoices. Option D is wrong because the payment journal is used for recording payments, not invoices.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create a purchase order for the supplies, then post a vendor invoice based on the purchase order.
Why it's wrong here
A purchase order is unnecessary for a simple invoice recording.
- ✓
Open the vendor invoice journal, select the vendor, enter the invoice number, invoice date, amount, and post. The tax will be calculated automatically.
Why this is correct
The vendor invoice journal handles vendor invoices and tax calculation.
- ✗
Open the general journal, select the vendor account, enter the debit and credit entries manually, and post.
Why it's wrong here
General journal is not designed for vendor invoices and may not calculate tax.
- ✗
Open the payment journal, select the vendor, enter the invoice details, and post the payment.
Why it's wrong here
Payment journal is for recording payments, not invoices.
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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.