MB-920 Payment proposal Practice Question
You are a Dynamics 365 Finance consultant for Northwind Traders, a wholesale distribution company. The company uses Dynamics 365 Finance and is experiencing a problem with vendor payments. The accounts payable clerk reports that when running a payment proposal for a specific vendor, the system includes invoices that are not yet due. The company wants to pay invoices only on their due dates. You review the payment proposal setup and find that the payment proposal uses the default settings. You need to configure the payment proposal to include only invoices that are due on or before the payment date. Additionally, the company wants to apply a discount if payment is made within 10 days of the invoice date (a 2% cash discount). The payment terms must be set up accordingly. You need to ensure that the payment proposal correctly calculates cash discounts for early payment. What should you do?
⚠ Common exam trap
A common trap is confusing the 'Date criterion' options. 'Due date' filters by the invoice due date, while 'Payment date' uses the invoice date, not the due date. The offset controls how many days after the selected date are included; setting it to 0 includes only invoices due on or before the payment date.
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 the payment proposal date criterion to 'Due date' and set the offset to 0. Configure payment terms with a 2% discount if paid within 10 days.
To include only invoices due on or before the payment date, the 'Date criterion' for the payment proposal must be set to 'Due date' with an offset of 0. This ensures that only invoices whose due date is on or before the payment date are included. To apply a 2% cash discount for payment within 10 days, payment terms must be configured with a discount percentage of 2% and a discount period of 10 days. The system will then automatically calculate the discount when the payment is made within the discount period. Option A is incorrect because an offset of 30 would include invoices due up to 30 days after the payment date, which is not desired. Option B is incorrect because 'Payment date' criterion uses the invoice date, not the due date, so it would not filter by due date. Option D is incorrect because setting the date criterion to 'Discount date' would include invoices based on the discount date, but the company wants to pay on the due date; the requirement is to pay only invoices due on or before the payment date, not based on discount dates.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Set the payment proposal date criterion to 'Due date' and set the offset to 30. Configure payment terms with a 2% discount.
Why it's wrong here
Setting the date criterion to 'Due date' with an offset of 30 includes invoices due up to 30 days after the payment date, not just those due on or before the payment date. This does not meet the requirement.
- ✗
Set the payment proposal date criterion to 'Payment date' and set the offset to 10. Configure payment terms with a 2% discount if paid within 10 days.
Why it's wrong here
Setting the date criterion to 'Payment date' uses the invoice date, not the due date. It does not filter invoices by due date, so it cannot ensure only invoices due on or before the payment date are included.
- ✓
Set the payment proposal date criterion to 'Due date' and set the offset to 0. Configure payment terms with a 2% discount if paid within 10 days.
Why this is correct
Setting the date criterion to 'Due date' with an offset of 0 ensures only invoices due on or before the payment date are included. Configuring payment terms with a 2% discount for payment within 10 days allows the system to apply the cash discount automatically.
- ✗
Set the payment proposal date criterion to 'Discount date' to include invoices where the discount date has passed. Configure payment terms with a 2% discount.
Why it's wrong here
Setting the date criterion to 'Discount date' is a valid option, but it filters invoices based on discount dates, not due dates. While the discount date may be earlier than the due date, this criterion does not directly meet the requirement to include only invoices due on or before the payment date.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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