Implement and Manage Accounts Payable and Expenses →mediumMultiple Choice

MB-310 Practice Question: Implement and Manage Accounts Payable and Expenses

A vendor invoice for $12,000 is posted in Legal entity A. The shared service center in Legal entity B must pay this invoice on behalf of Legal entity A using centralized payments. You configure the payment journal in Legal entity B and select the invoice for payment. Which configuration must be in place so that the accounting entries are recorded correctly in Legal entity A while the payment is processed from Legal entity B?

⚠ Common exam trap

The trap here is assuming centralized payments are enabled through a parameter that names a processing legal entity rather than through the vendor record and intercompany accounting setup.

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 the vendor in Legal entity A with the 'Centralized payment' option enabled and define the intercompany relationship with Legal entity B.

Centralized payments let one legal entity pay invoices that belong to another legal entity. The originating vendor must have the centralized payment option enabled, and intercompany accounting must be configured between the two legal entities. When the payment journal is posted in the processing entity, the system automatically generates the corresponding vendor and ledger entries in the originating entity.

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 'Centralized payments' option in the Accounts payable parameters of Legal entity A and set Legal entity B as the payment processing entity.
Why it's wrong here
This option fails because centralized payment configuration is not controlled by a flag in Accounts payable parameters that designates a separate processing legal entity. The feature relies on intercompany accounting setup and the posting profile on the vendor, not on a parameter that names another legal entity as the payment processor.
✗
Create a duplicate vendor record in Legal entity B and manually post a balancing journal entry in Legal entity A after payment.
Why it's wrong here
Creating a duplicate vendor and manually balancing entries bypasses the centralized payments feature and introduces reconciliation risk. The scenario requires the system to automatically record the accounting impact in the originating legal entity, which this manual workaround does not provide and which is not how centralized payments are designed to function.
✗
Configure the payment journal in Legal entity B to use a ledger account from Legal entity A through the 'Offset account' field on each journal line.
Why it's wrong here
Using an offset account from another legal entity is not supported; journal lines post only to accounts within the legal entity where the journal resides. Centralized payments use intercompany accounting to generate the reciprocal entries automatically, so manually entering a cross-entity offset account would not produce valid postings.
✓
Set up the vendor in Legal entity A with the 'Centralized payment' option enabled and define the intercompany relationship with Legal entity B.
Why this is correct
This is correct because the vendor record in the originating legal entity must have the centralized payment option enabled, and the intercompany relationship between the two legal entities must be configured. This allows Legal entity B to pay the invoice on behalf of Legal entity A and post the offsetting entries back to the originating entity.

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Last reviewed September 2026 · checked against the official Microsoft exam blueprint

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