MB-310 Practice Question: Implement Accounts Receivable, Credit, Collections, and Subscription Billing
A company uses Dynamics 365 Finance to bill customers for recurring maintenance services. The billing schedule must generate invoices monthly, but the amount must be prorated for the first and last periods based on the number of days. The consultant sets up a billing schedule with a monthly frequency. Which configuration should the consultant use to ensure proration occurs correctly?
⚠ Common exam trap
The trap here is assuming that proration requires changing the billing frequency or manually adjusting amounts, when the Prorate option handles it automatically.
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 Prorate option to Yes on the billing schedule line and define the start date and end date on the billing schedule.
The Prorate option on the billing schedule line automatically calculates prorated amounts for the first and last periods based on the schedule's start and end dates. This ensures accurate billing for partial months without manual intervention. Other options either change the billing frequency, rely on manual adjustments, or disable proration, none of which meet 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.
- ✓
Set the Prorate option to Yes on the billing schedule line and define the start date and end date on the billing schedule.
Why this is correct
The Prorate option on the billing schedule line enables proration for the first and last periods based on the start and end dates of the billing schedule. The system calculates the daily rate and charges only for the active days in those periods. This is the correct configuration to meet the requirement of prorating the first and last invoices.
- ✗
Use a billing schedule with a monthly frequency and set the Prorate option to No, then create separate billing schedule lines for the first and last periods with adjusted amounts.
Why it's wrong here
Setting Prorate to No disables automatic proration. Creating separate lines with adjusted amounts is a manual workaround that does not leverage the system's proration logic. This approach is cumbersome and not scalable. The Prorate option is designed to handle partial periods automatically, so disabling it contradicts the requirement.
- ✗
Set the Billing frequency to Daily and manually adjust the invoice amounts for the first and last periods.
Why it's wrong here
Changing the billing frequency to Daily would generate daily invoices, which is not the requirement. Manually adjusting amounts is error-prone and not automated. The Prorate option exists specifically to handle partial periods automatically without changing the frequency. This approach would create unnecessary overhead and potential billing errors.
- ✗
Configure a billing schedule with a monthly frequency and set the Invoice now option to Yes for all periods.
Why it's wrong here
The Invoice now option controls when invoices are generated relative to the period start, not proration. It does not prorate amounts for partial periods. Setting it to Yes for all periods would simply generate invoices immediately for each period, but the first and last periods would still be billed at the full monthly amount unless proration is enabled.
About these practice questions
This MB-310 question is part of Courseiva's 211-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
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
This MB-310 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-310 exam.