MB-310 Practice Question: Implement and Manage Accounts Payable and Expenses
A legal firm processes vendor invoices centrally in its US legal entity (LE-US) but needs the related expense and payment to be recorded in the Canadian legal entity (LE-CA) to reduce intercompany reconciliation effort. The vendor is defined in both legal entities and the invoice has already been posted in LE-US. You need to configure the system so the invoice can be posted once in LE-US and automatically create the corresponding vendor invoice and liability in LE-CA. What should you do?
⚠ Common exam trap
The trap here is assuming that setting up vendor records or posting profiles in a second legal entity is enough to replicate a posted invoice across entities.
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 intercompany accounting with a 'Vendor invoice' posting type and the corresponding original and destination legal entities.
Intercompany accounting is the mechanism that automatically mirrors a transaction posted in one legal entity into another legal entity. Configuring the vendor invoice posting type with the correct original and destination legal entities lets the LE-US invoice generate the LE-CA vendor invoice and liability without duplicate data entry, while a posting profile or reporting tool cannot create cross-entity documents.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Enable the 'Accounting source explorer' parameter on the Accounts payable parameters page in LE-US.
Why it's wrong here
The Accounting source explorer is a reporting and inquiry tool that lets users trace the accounting entries behind a posted voucher. It has no role in replicating a vendor invoice across legal entities. Turning it on in LE-US would only affect how users drill into ledger detail and would not create any document or liability in LE-CA, so the intercompany scenario would remain unsolved.
- ✗
Create a vendor collaboration workspace and invite the vendor to submit the invoice directly to LE-CA.
Why it's wrong here
Vendor collaboration is a portal that lets external vendors view purchase orders and submit invoices against them. It does not transfer an already-posted invoice from one legal entity to another. Asking the vendor to submit a second invoice to LE-CA would duplicate the liability and defeat the goal of posting once, so this configuration does not meet the stated requirement.
- ✓
Set up intercompany accounting with a 'Vendor invoice' posting type and the corresponding original and destination legal entities.
Why this is correct
Intercompany accounting in Dynamics 365 Finance lets a transaction posted in one legal entity automatically generate the mirror transaction in another. When the posting type is configured for vendor invoices, the original invoice in LE-US produces the corresponding vendor invoice, voucher, and liability in LE-CA, satisfying the requirement to post once while reflecting the expense in the correct entity without manual re-entry.
- ✗
Define a vendor posting profile in LE-CA and assign the vendor to it, then manually post a new invoice in LE-CA.
Why it's wrong here
A vendor posting profile controls which summary accounts are used for vendor transactions in a legal entity; it does not create documents. Assigning the vendor to a posting profile in LE-CA only prepares the ledger accounts, and a user would still have to key a second invoice manually. That manual re-entry is exactly what the firm wants to eliminate, so the requirement is not met.
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.