MB-310 Practice Question: Implement Accounts Receivable, Credit, Collections, and Subscription Billing
A US-based legal services firm posts a free-text invoice for $12,000 with payment terms of 2/10, Net 30. The customer emails on day 8 asking to take the discount, but the payment will not arrive until day 15. A collections clerk wants to grant the discount anyway to preserve the relationship. Which Accounts receivable setup should the clerk use to allow the discount after the discount date without editing the original invoice?
⚠ Common exam trap
The trap here is assuming that editing payment terms on the customer or creating a credit note is the standard way to grant a late cash discount, when the supported control is a per-transaction flag on the open invoice.
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
✓
Use the Allow cash discount after discount date option on the open transaction before applying the payment.
The Allow cash discount after discount date flag on the open customer transaction is the supported mechanism to accept a discount past its expiration. It preserves the original invoice date and due date while posting the discount to the correct ledger account, which is exactly what the legal firm needs when the customer pays late yet still expects the early-payment discount.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Use the Allow cash discount after discount date option on the open transaction before applying the payment.
Why this is correct
Dynamics 365 Finance provides a transaction-level parameter that permits a cash discount to be taken after the original discount date. Enabling this option on the open invoice lets the clerk apply the payment with the discount on day 15 while keeping the audit trail intact and posting the discount to the cash discount ledger account as intended.
- ✗
Create a new payment term with the discount calculated on the net amount and assign it to the customer master.
Why it's wrong here
Changing the customer's payment terms alters future invoices only and does not retroactively modify the posted invoice's discount date. The clerk needs a transaction-level action that extends the existing discount eligibility on the already-posted invoice, so reassigning payment terms on the customer record fails to solve the day-15 payment scenario.
- ✗
Change the invoice date to day 15 so the discount window recalculates.
Why it's wrong here
Modifying the invoice date of a posted free-text invoice is not permitted without reversing and reposting, and it would also alter the due date, aging, and tax reporting period. This heavy-handed workaround does not address the specific discount-date extension the clerk needs and creates downstream reporting inaccuracies.
- ✗
Post a credit note for the discount amount and apply it against the open invoice.
Why it's wrong here
A credit note reduces the customer balance but does not formally record the cash discount taken on the original invoice. It also misstates the discount ledger posting and can distort sales tax and discount reporting. The correct approach uses the dedicated discount extension feature that adjusts the cash discount date on the open transaction without creating a separate credit document.
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.