MB-310 Practice Question: Implement Accounts Receivable, Credit, Collections, and Subscription Billing
A consultant is implementing subscription billing for a company that offers software as a service (SaaS). The company wants to bill customers in advance for a 12-month subscription, but wants to recognize revenue monthly over the subscription period. The consultant sets up a billing schedule with a yearly frequency and a 12-month duration. Which additional configuration is required to defer revenue and recognize it monthly?
⚠ Common exam trap
The trap here is assuming that changing the billing frequency or using the Invoice now option will affect revenue recognition, when revenue deferral requires a deferral schedule.
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 revenue deferral schedule and assign it to the item group used for the subscription.
Revenue deferral schedules in Subscription billing allow you to defer revenue from an invoice and recognize it over a specified schedule. Assigning a deferral schedule to the item group ensures that when the annual invoice is posted, the revenue is deferred and then recognized monthly. This aligns with the requirement to bill annually but recognize revenue monthly.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Configure a billing schedule with a yearly frequency and enable the Invoice now option for all periods.
Why it's wrong here
The Invoice now option controls when the invoice is generated, not how revenue is recognized. Enabling it would simply generate the invoice immediately, but revenue would still be recognized at the time of invoicing unless a deferral schedule is used. This does not meet the requirement for monthly revenue recognition.
- ✓
Set up a revenue deferral schedule and assign it to the item group used for the subscription.
Why this is correct
Revenue deferral schedules allow you to defer revenue and recognize it over a specified period. By assigning a deferral schedule to the item group, the system will automatically defer the revenue from the yearly invoice and recognize it monthly over the 12-month subscription period. This meets the requirement for monthly revenue recognition while billing annually.
- ✗
Change the billing schedule frequency to monthly and set the Prorate option to Yes.
Why it's wrong here
Changing the billing frequency to monthly would generate monthly invoices, which is not the requirement. The company wants to bill annually. Proration is for partial periods, not for revenue recognition. This approach would alter the billing cadence and not achieve the desired revenue deferral.
- ✗
Set up a collection letter sequence to remind customers of the annual payment.
Why it's wrong here
Collection letter sequences are for collections, not revenue recognition. They have no impact on how revenue is deferred or recognized. This configuration is entirely unrelated to the requirement of recognizing revenue monthly over the subscription period.
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.