The correct answer is to open the vendor invoice journal, select the vendor, enter the invoice number, date, amount, and post, because the vendor invoice journal is specifically designed to record vendor invoices in Dynamics 365 Finance with automatic tax calculation based on the vendor’s tax setup. This method streamlines the process for a simple invoice like office supplies, where no purchase order is required, and the system applies the 8% tax rate automatically upon posting. On the MB-920 exam, this question tests your understanding of the appropriate journal for vendor transactions, often trapping candidates who confuse the vendor invoice journal with the general journal or payment journal. A common memory tip is to remember that the vendor invoice journal is the “direct line” for vendor bills—just like handing a paper invoice to accounts payable—while the general journal is for adjusting entries, not vendor payables.
MB-920 Describe Dynamics 365 Finance Practice Question
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.
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?
Create a purchase order for the supplies, then post a vendor invoice based on the purchase order.
Why wrong: A purchase order is unnecessary for a simple invoice recording.
B
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 handles vendor invoices and tax calculation.
C
Open the general journal, select the vendor account, enter the debit and credit entries manually, and post.
Why wrong: General journal is not designed for vendor invoices and may not calculate tax.
D
Open the payment journal, select the vendor, enter the invoice details, and post the payment.
Why wrong: Payment journal is for recording payments, not invoices.
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.
Option A is correct because the vendor invoice journal is the standard method to record vendor invoices with automatic tax calculation. Option B is wrong because the general journal is not for vendor invoices. Option C is wrong because the purchase order is not needed for a simple invoice. Option D is wrong because the payment journal is for payments, not invoices.
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.
✗
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.
Related concept
Read the scenario before looking for a memorised answer.
✗
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.
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: Open the vendor invoice journal, select the vendor, enter the invoice number, invoice date, amount, and post. The tax will be calculated automatically. — Option A is correct because the vendor invoice journal is the standard method to record vendor invoices with automatic tax calculation. Option B is wrong because the general journal is not for vendor invoices. Option C is wrong because the purchase order is not needed for a simple invoice. Option D is wrong because the payment journal is for payments, not invoices.
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.