MB-310 Practice Question: Implement Accounts Receivable, Credit, Collections, and Subscription Billing
A company wants to offer a discount to customers who pay their invoices within 10 days. The invoice total is $1,000, and the discount is 2% if paid within 10 days, otherwise the net amount is due within 30 days. Which configuration should you use in Dynamics 365 Finance?
⚠ Common exam trap
A common mix-up: candidates confuse payment terms with other features like collection letters or credit limit rules; cash discounts are exclusively configured in payment terms.
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 up a payment term with 'Net 30' and a cash discount of 2% if paid within 10 days.
To offer a cash discount for early payment, you configure payment terms with a discount line. In Dynamics 365 Finance, payment terms can specify a discount percentage and the number of days within which payment must be made. The 'Net 30' indicates the full amount is due in 30 days. When an invoice is created with these terms, the system calculates the discount if the payment is made within the discount period. This is the standard way to handle early payment discounts.
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 up a payment term with 'Net 30' and a cash discount of 2% if paid within 10 days.
Why this is correct
This is the correct setup. In Dynamics 365 Finance, payment terms define the due date and can include cash discount terms. You create a payment term with lines that specify the discount percentage and the number of days within which payment must be made to qualify for the discount. The 'Net 30' indicates the full amount is due in 30 days. This configuration automatically calculates the discount when the payment is entered within the discount period.
- ✗
Set up a credit limit rule that reduces the invoice amount by 2% if paid within 10 days.
Why it's wrong here
Credit limit rules are used to enforce credit limits and do not modify invoice amounts or apply discounts. They are part of credit management and are used to calculate credit exposure. Cash discounts are handled through payment terms, not credit limit rules. This option would not achieve the desired discount.
- ✗
Create a collection letter sequence that offers a 2% discount if payment is received within 10 days.
Why it's wrong here
Collection letter sequences are used for dunning and do not offer discounts. They are designed to remind customers of overdue payments and cannot apply cash discounts. The discount must be configured in payment terms, which are applied during invoice creation and payment settlement. Collection letters are unrelated to discount offerings.
- ✗
Configure a billing schedule with a 2% reduction for early payment.
Why it's wrong here
Billing schedules are used for subscription billing to generate invoices on a recurring basis. They do not apply cash discounts for early payment. Cash discounts are configured in payment terms and applied during settlement. Billing schedules are not relevant to this scenario, which involves a one-time invoice with a discount for early payment.
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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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