MB-310 Practice Question: Implement Accounts Receivable, Credit, Collections, and Subscription Billing
A company uses Dynamics 365 Finance. They need to automatically create collection activities when customer invoices become overdue. Collection activities should be generated based on aging periods, and the system must prevent duplicate activities for the same invoice. Which configuration should you use?
⚠ Common exam trap
Many candidates confuse collection letters with collection activities; letters are customer communications, while activities are internal tasks for collections agents.
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
✓
Configure collection activities in the Collections page and enable the 'Create collection activities automatically' parameter, then define aging period definitions.
To automatically create collection activities based on aging periods and avoid duplicates, you must configure the collections parameters to enable automatic activity creation and define aging period definitions. The system uses these definitions to identify overdue invoices and then creates activities, checking for existing open activities. Collection letters, workflows, and interest codes serve different purposes and do not fulfill the requirement.
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 workflow for collection letters that triggers when an invoice is overdue.
Why it's wrong here
Workflows can automate approvals and tasks, but they do not directly create collection activities based on aging periods. Workflow for collection letters would manage the approval or posting of letters, not the generation of activities. This does not meet the requirement to automatically create activities and prevent duplicates.
- ✗
Set up interest codes and assign them to customer posting profiles to generate activities.
Why it's wrong here
Interest codes calculate interest on overdue amounts and can be included on collection letters, but they do not create collection activities. Interest codes are used for financial charges, not for activity tracking. This would not automatically generate activities based on aging periods or prevent duplicates.
- ✓
Configure collection activities in the Collections page and enable the 'Create collection activities automatically' parameter, then define aging period definitions.
Why this is correct
This is the correct approach. In Dynamics 365 Finance, you set up collection activities on the Collections page, enable automatic creation, and link aging period definitions to customers. The system then creates activities for overdue invoices based on aging periods, and it checks for existing open activities for the same invoice to avoid duplicates.
- ✗
Set up collection letter sequences and assign them to customer posting profiles.
Why it's wrong here
Collection letters are printed or emailed documents that notify customers of overdue balances; they do not create collection activities. While they can be part of the collections process, they do not automatically generate activities based on aging periods, nor do they prevent duplicate activities for the same invoice. This configuration addresses a different communication method.
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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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