- A
Create a credit note template and use the 'Generate recurring credit notes' batch job to offset invoices.
Why wrong: Incorrect: Credit notes are for corrections, not invoicing.
- B
Create free text invoice templates and use the 'Generate recurring invoices' batch job to create them on a schedule.
Why wrong: Incorrect: Free text invoices are not designed for recurring generation.
- C
Create a recurring invoice template with the subscription items, and set up a recurring invoice batch job to generate invoices on the first day of each month.
Correct: Recurring invoices are designed for this purpose.
- D
Create sales order templates and use the 'Create recurring orders' batch job to generate sales orders each month.
Why wrong: Incorrect: Sales orders are for goods, not subscriptions.
Quick Answer
The correct answer is to create a recurring invoice template with the subscription items and set up a recurring invoice batch job to generate invoices on the first day of each month. This works because Dynamics 365 Finance uses a dedicated recurring invoice module that allows you to define a template with predefined line items and amounts, then attach a recurrence pattern—such as monthly—to automate the generation process. On the MB-920 exam, this scenario tests your understanding of the difference between recurring invoices for subscription services and other invoice types like free text invoices or sales orders, which are not designed for automated, template-based recurring billing. A common trap is confusing recurring invoices with free text invoices, but remember that free text invoices are for one-off, non-standard charges, while recurring invoices are built for predictable subscription services. Memory tip: think “Template + Batch = Automation” to recall that you need both a saved template and a scheduled batch job to achieve recurring invoice automation.
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 the finance manager for a company that uses Dynamics 365 Finance. The company has a requirement to process recurring invoices for subscription services. The finance team wants to automate the generation of recurring invoices at the beginning of each month. The recurring invoices should be based on a template that includes predefined line items and amounts. You need to configure the system to automate this process. 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
Create a recurring invoice template with the subscription items, and set up a recurring invoice batch job to generate invoices on the first day of each month.
Option C is correct because recurring invoices are created from a template with a recurrence pattern. Option A is wrong because free text invoices are for occasional use. Option B is wrong because sales orders are for goods, not subscriptions. Option D is wrong because credit notes are for corrections.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
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 credit note template and use the 'Generate recurring credit notes' batch job to offset invoices.
Why it's wrong here
Incorrect: Credit notes are for corrections, not invoicing.
- ✗
Create free text invoice templates and use the 'Generate recurring invoices' batch job to create them on a schedule.
Why it's wrong here
Incorrect: Free text invoices are not designed for recurring generation.
- ✓
Create a recurring invoice template with the subscription items, and set up a recurring invoice batch job to generate invoices on the first day of each month.
Why this is correct
Correct: Recurring invoices are designed for this purpose.
Related concept
Static NAT maps one inside address to one outside address.
- ✗
Create sales order templates and use the 'Create recurring orders' batch job to generate sales orders each month.
Why it's wrong here
Incorrect: Sales orders are for goods, not subscriptions.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
- Static NAT maps one inside address to one outside address.
- PAT allows many inside hosts to share one public address using ports.
- Inside local and inside global describe the private and translated addresses.
- NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
- Identify inside and outside interfaces first.
- Check whether the scenario needs static NAT, dynamic NAT or PAT.
- Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
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. NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated. 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.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related MB-920 NAT questions on configuration and troubleshooting.
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Describe Dynamics 365 Finance — study guide chapter
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FAQ
Questions learners often ask
What does this MB-920 question test?
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Create a recurring invoice template with the subscription items, and set up a recurring invoice batch job to generate invoices on the first day of each month. — Option C is correct because recurring invoices are created from a template with a recurrence pattern. Option A is wrong because free text invoices are for occasional use. Option B is wrong because sales orders are for goods, not subscriptions. Option D is wrong because credit notes are for corrections.
What should I do if I get this MB-920 question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related MB-920 NAT questions on configuration and troubleshooting.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
About these practice questions
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Last reviewed: Jun 21, 2026
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.
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