MB-310 Practice Question: Implement and Manage Accounts Payable and Expenses
A vendor invoice for $12,000 has a payment term of Net 30. The accounting manager wants the system to automatically apply a 2% early payment discount if the invoice is paid within 10 days. The discount is not currently being calculated on the payment proposal. You need to configure the system so the discount is calculated and posted correctly. What should you do first?
⚠ Common exam trap
The trap here is assuming that payment terms such as Net 30 automatically include early payment discount logic, when in fact a separate cash discount code must be configured and linked.
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 cash discount code in Accounts payable > Payment setup > Cash discounts and assign it to the vendor invoice.
Cash discounts in Dynamics 365 Finance are defined through cash discount codes, which store the discount percentage, the number of days the discount is available, and the ledger accounts for the discount. Assigning the code to the vendor or invoice enables the payment proposal and payment journal to calculate and post the discount. Without this setup, no discount logic is applied.
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 payment schedule in Accounts payable > Payment setup > Payment schedules and attach it to the vendor.
Why it's wrong here
Payment schedules split an invoice into multiple installments with due dates. They do not define early payment discount terms. Using a payment schedule would not produce the 2% discount within 10 days; it would only change the timing of installments.
- ✗
Create a payment fee in Accounts payable > Payment setup > Payment fee and assign it to the vendor.
Why it's wrong here
Payment fees are charges added to a payment, such as bank transfer fees. They do not calculate early payment discounts. Setting up a payment fee would add a cost to the payment rather than apply the 2% reduction the manager expects.
- ✓
Set up a cash discount code in Accounts payable > Payment setup > Cash discounts and assign it to the vendor invoice.
Why this is correct
The cash discount code defines the discount percentage, discount days, and discount account. Once the code is created and assigned to the vendor or invoice, the payment proposal and payment journal will calculate the discount automatically. This directly addresses the missing discount calculation.
- ✗
Set the vendor's default payment method to a method that supports cash discounts.
Why it's wrong here
Payment methods determine how the payment is generated, such as check or electronic payment. They do not contain the discount percentage or discount period. Changing the payment method alone will not enable the system to calculate the 2% early payment discount.
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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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