MB-310 Practice Question: Implement Accounts Receivable, Credit, Collections, and Subscription Billing
A Dynamics 365 Finance consultant is configuring the Accounts receivable module for a company that sells to other businesses. The company wants to automatically place a customer on credit hold when their overdue balance exceeds a specific threshold. The consultant needs to set up the credit management functionality. Which configuration should the consultant perform first?
⚠ Common exam trap
Test-takers frequently confuse collections management features like aging periods and collection letters with the credit management feature that enforces credit holds.
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
✓
Enable the Credit management feature in Feature management and configure credit management parameters.
The Credit management feature must be enabled and its parameters configured before any credit limits, rules, or customer credit groups can be set up. This provides the framework for automatically placing customers on credit hold when overdue balances exceed a threshold. Aging periods, collection letters, and payment methods do not automate credit holds based on balance thresholds.
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 collection letter sequence and assign it to the customer's posting profile.
Why it's wrong here
Collection letter sequences are used to generate collection letters for overdue customers. They do not automatically place customers on credit hold when a balance threshold is exceeded. Collection letters are part of the collections process, but they are not the mechanism for credit hold automation. This configuration would send reminders but would not enforce credit holds on new orders.
- ✗
Configure credit card processing for the customer and set up payment terms to require prepayment.
Why it's wrong here
Credit card processing and prepayment terms are payment methods, not credit hold mechanisms. They can reduce risk but do not automatically place a customer on hold based on overdue balances. The requirement is for automatic credit hold when a threshold is exceeded, which is handled by credit management rules, not by payment processing or terms.
- ✗
Set up aging period definitions in Accounts receivable parameters and assign them to customer posting profiles.
Why it's wrong here
Aging period definitions are used for aging reports and collections, not for credit hold automation. They do not control credit limits or hold rules. While aging periods are part of collections management, they do not enable the credit management feature or define credit thresholds. Therefore, this step alone will not fulfill the requirement to automatically place customers on credit hold.
- ✓
Enable the Credit management feature in Feature management and configure credit management parameters.
Why this is correct
Enabling the Credit management feature in Feature management activates the Credit management workspace, credit limit and credit hold rules, and related parameters. Configuring credit management parameters defines the company's credit policy, including how credit limits are calculated and how holds are applied. This is the foundational step before setting up credit limits, rules, and customer credit groups.
About these practice questions
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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
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.