A company purchases items by using cash. You register a vendor payment when you a post a purchase invoice for a cash vendor. You are creating a new cash vendor. No prior vendors have been set up as cash vendors. You need to set up the vendor so that payments post automatically when you post a purchase invoice. Which type of setup should you use? 

Answer options:

A. Payment Method as Cash
B. Payment Term as COD
C. Payment Method as Cash with balancing account
D. Prepayment

C

Reference: https://docs.microsoft.com/en-gb/dynamics365/business-central/finance-how-to-settle-purchase-invoices-promptly