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Describe Dynamics 365 FinanceeasyMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Finance Practice Question

You are a system administrator for a retail company using Dynamics 365 Finance. The company processes a large number of purchase orders and invoices daily. The accounts payable team wants to automate the matching of purchase order receipts with vendor invoices to reduce errors. You need to configure the system to perform three-way matching (purchase order, receipt, invoice). What should you do?

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

Enable three-way matching in Accounts payable parameters, and configure matching policies to validate prices and quantities.

Three-way matching is configured in Accounts payable parameters, where you can enable matching validation and set policies to match prices and quantities across the purchase order, receipt, and invoice. Option A is incorrect because two-way matching only matches the purchase order and invoice, not the receipt. Option B is incorrect because vendor invoice policies control receipt confirmation requirements but do not enable three-way matching. Option C is incorrect because purchase agreements set price tolerances, but the invoice matching validation is configured in Accounts payable parameters, not via agreements.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Enable two-way matching in Accounts payable parameters, and set up matching tolerance.

    Why it's wrong here

    Incorrect: Two-way matching does not include receipt matching.

  • Configure vendor invoice policies to require receipt confirmation before posting.

    Why it's wrong here

    Incorrect: Invoicing policies do not perform matching.

  • Set up purchase agreements with price tolerance, and use invoice matching validation.

    Why it's wrong here

    Incorrect: Purchase agreements are not for matching.

  • Enable three-way matching in Accounts payable parameters, and configure matching policies to validate prices and quantities.

    Why this is correct

    Correct: Three-way matching validates PO, receipt, and invoice.

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