MB-310 Practice Question: Implement and Manage Accounts Payable and Expenses
A company needs to pay a vendor in a currency different from the accounting currency. Where is the currency set for the vendor?
⚠ Common exam trap
Candidates often suggest the currency is set on the invoice or the legal entity. The vendor's default transaction currency is defined on the vendor master record itself.
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
✓
On the Vendor record.
The currency for a vendor is defined on the vendor master record. This setting drives the currency used for all invoices and payments related to that vendor. By setting it correctly at the master level, the system automatically handles the conversion to the accounting currency based on the exchange rates defined in the system, ensuring multi-currency transactions are recorded accurately and financial statements reflect the correct valuation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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In the Accounts payable parameters.
Why it's wrong here
The Accounts payable parameters define system-wide defaults for AP, not specific configurations for individual vendors. Changing a setting here would affect all vendors globally, which is incorrect when the goal is to set a specific currency for a single, individual vendor entity.
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On the Vendor group definition.
Why it's wrong here
The vendor group defines accounting posting profiles and groupings, not the currency. While you could theoretically group vendors by currency, the specific currency definition must reside on the vendor master record itself to ensure that transactions are correctly processed according to the vendor's specific contract terms.
- ✓
On the Vendor record.
Why this is correct
The vendor record is the correct place to define the currency. This ensures that every invoice or payment created for this specific vendor defaults to the correct currency, allowing the system to handle foreign exchange calculations automatically during the posting process based on the configured exchange rate tables.
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In the General Ledger currency settings.
Why it's wrong here
General Ledger currency settings define the company's reporting and accounting currencies. They do not allow for the specification of a currency for an individual vendor. The vendor-specific currency must be set within the AP module on the vendor record to facilitate international trade and payment processing.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
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