MB-800 Microsoft Dynamics 365 Business Central Functional Consultant Question and Answers

The requirement is:

“When viewing G/L entries, the finance and accounting teams must be able to see debits and credits instead of a positive or negative amount.”

In Business Central, the General Ledger Entries page can display amounts in two different ways:

Amount (positive/negative): This is the default display of entry amounts as signed numbers.

Debit Amount / Credit Amount (separate fields): This allows accounting teams to clearly see whether an entry is a debit or a credit, consistent with traditional accounting presentation.

The configuration option "Debit/Credit" is specifically provided to control this display. By enabling this setting, amounts are shown in two columns (Debit Amount and Credit Amount) instead of one column with positive/negative signs.

Why not the other options?

B. Show Amounts – This relates to toggling whether amounts are displayed on certain ledger pages but does not change the format to Debit/Credit.

C. Check G/L Account Usage – This is a validation function for checking how accounts are used, not related to entry display format.

D. G/L Account Card – Used to configure properties of individual G/L accounts (posting type, direct posting, account category), not the general display mode for entries.

Therefore, the correct configuration to meet the requirement is Debit/Credit.

Microsoft Learn references

Work with General Ledger Entries – explains how G/L entries can be displayed and filtered.

Business Central General Ledger Setup – includes configuration options such as showing amounts as debit/credit.

General Ledger Overview in Business Central – details on how entries are posted and viewed.

Business Central Functional Consultant at end of each question below

The requirement is:

Purchasing agents must create and post purchase documents (which requires permissions to vendors, purchase headers/lines, posting routines).

They must be restricted from viewing General Ledger (G/L) balances and amounts.

They must still be able to select G/L accounts when coding purchase lines.

In Business Central, this scenario is solved by using Permission Sets with Security Filters:

Assign a Permission Set to the User

The purchasing agent must first be assigned a permission set (e.g., PURCHASER, or a custom one cloned from SUPER with reduced rights).

This ensures they have access to vendors, purchases, and posting processes.

Select the Permission Set to Modify

You then open the permission set (or copy/create a new one for Purchasing Agents).

Modify it to apply restrictions specifically for the G/L Account table.

Apply Security Filters on the G/L Account Table

Locate the G/L Account table within the permission set.

In the Security Filter column, choose the field Income/Balance.

Set the Filter Value to Income only (or exclude Balance).

Alternatively, set the filter on Direct Posting = Yes, ensuring they can pick accounts but not see balances.

This filter prevents access to balance-related fields, effectively hiding financial values from the user while allowing them to still select G/L codes for posting.

Thus, the correct sequence to meet the requirements is:

Assign a permission set to a user

Select the permissions set you want to modify

In the row for G/L account table, select the Security Filter column

In the Field Filter column, set the value to hide balances

Microsoft Learn References

Security Filters (how to restrict data visibility by table fields):https://learn.microsoft.com/en-us/dynamics365/business-central/dev-itpro/security/security-filters

Assign Permission Sets to Users:https://learn.microsoft.com/en-us/dynamics365/business-central/ui-define-granular-permissions

Create and Modify Permission Sets:https://learn.microsoft.com/en-us/dynamics365/business-central/dev-itpro/security/how-to-create-permission-sets

The scenario:

The customer wants to sell items that are not normally counted in the company's warehouse.

In Microsoft Dynamics 365 Business Central, you can define items as different Types:

Inventory → Stocked, physically tracked in the warehouse with inventory valuation.

Non-Inventory → Items that are not tracked in inventory. They can still be sold or purchased but are not included in inventory counts or valuations. This is commonly used for items like office supplies, spare parts not worth tracking, or resale products not stocked.

Service → Used for non-physical services (consulting, labor).

Resource → Used for capacity (e.g., machine or person for projects).

Item Charge → Used to distribute costs (freight, customs, handling) to item costs, not for selling tangible items.

Why the correct choice is A (Non-Inventory Item type):

Non-Inventory items allow the company to sell or purchase items without managing them in warehouse stock.

This matches the requirement that the company does not want the items counted in inventory.

Why not the others:

B. Item charge → Adds costs to items (e.g., freight), not for selling goods.

C. Inventory Item type → This would force tracking and counting in the warehouse.

D. Resource → Represents labor or machine capacity, not goods for sale.

Microsoft Learn References

About Item Types in Business Central

The scenario requires configuring Business Central to meet sales department needs:

Sales discounts

Requirement: “Discounts must post to a unique general ledger (G/L) account.”

In Business Central, this is managed through the Discount Posting field in Sales & Receivables Setup.

When enabled, the system posts line discounts and invoice discounts to dedicated G/L accounts instead of combining them with revenue.

This ensures transparency and compliance with accounting’s requirement to track discounts separately.

Correct match: Sales discounts → Discount posting

Credit limits

Requirement: “The sales department should receive a warning when entering the order if a customer is over their credit limit.”

In Business Central, this behavior is controlled by Credit Warnings in the Sales & Receivables Setup.

This setup defines whether to warn the user, block posting, or allow posting when the customer’s balance exceeds the defined credit limit.

Correct match: Credit limits → Credit warnings

Why not the other options?

Calc. inv. discount – Controls whether invoice discounts are automatically calculated, but not relevant here.

Stockout warnings – Alerts when an item has insufficient inventory; unrelated to discounts or credit limits.

Microsoft Learn references

Set Up Sales and Receivables

Discount Posting setup – posting discounts to G/L accounts.

Credit Warnings setup – warnings and blocking options.

Comprehensive Detailed Explanation

In Dynamics 365 Business Central, posting groups are used to map transactions to the correct General Ledger accounts. Each posting group has a specific purpose:

Gen. Bus. Posting Group (General Business Posting Group)

Used in combination with the Gen. Prod. Posting Group to determine income statement accounts (such as sales, discounts, COGS, purchase accounts).

Therefore, it controls the income statement side of customer and vendor transactions.

Customer Posting Group

Determines the balance sheet accounts for customers, e.g., Accounts Receivable (AR).

All transactions with customers post to AR accounts defined here.

Gen. Prod. Posting Group (General Product Posting Group)

Used in combination with Gen. Bus. Posting Group to determine the income statement accounts for items (such as sales revenue, COGS, inventory adjustments).

Inventory Posting Group

Determines the balance sheet accounts for items (e.g., Inventory accounts).

Ensures items are posted to the correct asset accounts.

Microsoft Learn References

Posting Groups in Business Central

Set Up General Posting Groups

The Accounts Receivable (AR) team often needs to correct payment applications when cash is applied incorrectly. In Business Central, unapplied entries can be corrected in several ways:

From the Customer Card, under Navigate > Ledger Entries, users can select entries and use the Unapply Entries action.

From the Customer Ledger Entries page, users can directly select a posted application and choose Unapply Entries.

The Detailed Customer Ledger Entries page is used for analysis and shows how entries were applied, but the actual “Unapply” action is not typically performed here (it is read-only in terms of correction).

“Apply entries” can be done from Detailed Customer Ledger Entries, but unapplies are performed from Customer or Customer Ledger Entries.

Correct answers: A and C

The AR users reported an issue about reconciling AR subledger to the G/L. In Business Central, subledger control accounts (like Accounts Receivable and Accounts Payable) must not be posted to directly; they should only be posted through transactions (invoices, payments).

If Direct Posting = Yes, users can post directly into AR or AP control accounts, which causes reconciliation issues.

To prevent this, you set Direct Posting = No on the G/L Account Card for control accounts.

Why not others:

A. Switch Blocked on the Customer Card → Blocks transactions but does not solve reconciliation issues.

B. Switch Direct Posting on the G/L Account Card to Yes → Makes the issue worse.

C. Switch Blocked on the G/L Account Card to Yes → Prevents all postings, even system ones, which is incorrect.

Correct answer: D. Switch Direct Posting on the G/L Account Card to No

The requirement is: “Customer pricing is determined by the customer market type (Retail, Veterinarian, Breeder). Each customer is associated with only one market type.”

A. Assign the Customer Price Group code on the customer card → Correct, because each customer must be tied to its market type via a Customer Price Group.

C. Create a Sales Price List by using the assign-to type of Customer Price Group → Correct, because pricing and discounts should be managed at the group level, not per individual customer, ensuring easier maintenance.

E. Create Customer Price Groups that allow line discounts → Correct, because discounts are offered by item, brand, or product category, and must flow to sales lines automatically.

Incorrect options:

B. Exclude line discounts → Opposite of requirements.

D. Create a Sales Price List for the customer → Not scalable; must be done by group, not individual customer.

Correct answers: A, C, E

In Dynamics 365 Business Central, the General Journal Reconciliation feature allows reconciliation of ledger entries against G/L accounts (often bank, clearing, or control accounts).

To include a G/L account in the general journal reconciliation window:

You must enable the Reconciliation Account field on the G/L Account Card.

This setting flags the account as reconcilable, so it appears in the reconciliation process.

Why not the others?

B. Direct Posting field → Controls whether you can post directly to the account, not related to reconciliation.

C. Bank Account Posting Group → Links bank accounts to G/L accounts, but the reconciliation flag still must be set.

D. Create a new payment reconciliation journal → Used for bank statement reconciliation, not general ledger account reconciliation.

Microsoft Learn Reference

Reconcile General Ledger Accounts in Business Central

Query successful

Sales Invoice Correction

Based on the scenarios, here is the correct action for each:

Scenario 1: Use this action when the posted invoice has not been paid and the original invoice was posted from a sales order.

Action: Correct

The Correct action is specifically designed for this scenario. It automatically creates a new sales order, reverses the original posted invoice, and copies the original lines to the new order. The new sales order is then ready for editing, allowing you to make corrections and post it again.

Scenario 2: Use this action when the posted invoice has not been paid and the original invoice was not posted from a sales order.

Action: Cancel

The Cancel action is used when the invoice wasn't created from a sales order. It creates a credit memo to fully reverse the posted invoice. This effectively cancels the invoice without needing to go through a new sales order process, as no original sales order exists.

Scenario 3: Use this action when the posted invoice has been paid and warehouse documents are not required.

Action: Create corrective credit memo

The Create corrective credit memo action is the appropriate choice when the invoice has already been paid. Since the payment has been applied, you can't simply "correct" or "cancel" the invoice directly. Instead, you create a credit memo that can then be applied against the payment, effectively reversing the transaction. This action is also used when warehouse documents are not necessary, as a separate sales return order with warehouse processes is not required.

Step-by-Step Explanation

Set up inventory periods: Before performing any inventory costing adjustments, you must first define the period for which the adjustments will be made. This step is a prerequisite for most inventory management tasks, ensuring that the work is contained within a specific timeframe.

Run the Adjust Cost – Item Entries batch job: This is the core action for adjusting inventory costs. This batch job automatically recalculates and updates the costs of all inventory items to reflect the most current and accurate valuation. It's a critical step for systems that use costing methods like average cost or FIFO, which might require periodic re-evaluation.

Run Post Inventory Cost to G/L: Once the inventory item costs have been adjusted, the next logical step is to post these updated values to the general ledger (G/L). This action synchronizes the inventory sub-ledger with the financial records, ensuring that the company's financial statements accurately reflect the true value of its inventory.

Close the inventory period: After all adjustments are made and costs are posted to the G/L, you must close the inventory period. Closing the period prevents any new entries or changes from affecting the adjusted costs, thereby maintaining the integrity of the financial data and satisfying audit and compliance requirements.

In Dynamics 365 Business Central, the Best Price feature ensures that the system automatically applies the most advantageous price or discount for the customer based on various price and discount configurations.

The three components that are part of this calculation are:

Sales Line Discounts

Allow you to configure percentage discounts on sales lines, based on conditions like minimum quantity, currency, customer, or customer group.

These are evaluated in the best price calculation.

Discount Groups

Used to group together multiple items, customers, or vendors for applying collective discounts.

Helps ensure the correct discount group conditions are considered in the best price feature.

Special Prices

Allow configuration of special prices for specific customers, customer groups, or items.

The system evaluates these against line discounts and discount groups to pick the best applicable price.

Why not the others:

A. Unit cost on items → Used for purchase and costing, not for sales best price calculation.

E. Unit prices on items → The base unit price on the item card is only a fallback/default, not part of the best price algorithm; best price comes from Sales Prices, Discounts, and Groups.

Requirement: Invoices must be automatically emailed to customers using a fixed template.

Solution:

A. Set Email to Yes (Use Default Settings) → ensures invoices are sent automatically without prompting.

E. Apply Office Server Settings to the SMTP Mail Setup → configures the company’s mail server (SMTP/Office 365) so that emails are sent.

F. Assign a Document Sending Profile to the Customer where Email is set to Yes → links customers to the correct sending method (Email with fixed template).

Other options:

B. Allow Sender Substitution is optional, not required.

C. Prompt for Settings requires manual action (not automatic).

D. Assigning “Email = No” contradicts the requirement.

The requirement is: “You need to configure retail store customer cards to track revenue by market.”

In Business Central, to track revenue by customer market (Retail, Veterinarian, Breeder), you configure default dimensions on the Customer Card.

Assign the dimension code → Market

The business wants to analyze revenue by Market (Retail, Veterinarian, Breeder).

Therefore, the dimension code must be Market.

Assign the dimension value code → Retail

For this specific setup, the customer is a retail store, so the dimension value must be Retail.

Select a value posting → Same code

To ensure that every posting for this customer always carries the same dimension value, use Same Code.

Other options:

Blank = no default dimension.

No code = optional dimension.

Code mandatory = requires entry but allows flexibility in values.

Since we want strict tracking by a fixed market (Retail), Same code is correct.

This ensures that every transaction posted for the customer will always have Market = Retail, enabling accurate revenue tracking.

Microsoft Learn references:

Work with Dimensions

Set Up Default Dimensions

Dimension Value Posting Options

The requirement is to configure the new customer creation process in Dynamics 365 Business Central. The goal is to make sure that when users quickly add new customers (for example, at the Cash & Carry desk), all required fields and correct defaults are consistently applied.

1. Configuration Worksheet (B)

The Configuration Worksheet is used in RapidStart Services to plan and manage setup data across tables.

It lets you map out which tables (e.g., Customers, Vendors, Items) you want to configure and load master data into.

For customer creation, this ensures that the Customer table and related setup tables are properly configured before using templates.

This acts as the foundation of the process: deciding what must be included in the customer creation workflow.

2. Configuration Template (C)

Configuration Templates define default values for new master data records (e.g., customers, vendors, items).

For example, when creating a new customer, the template can pre-fill fields like:

Posting groups

Payment terms

Customer source dimension

Responsibility center (if required)

This ensures consistency and reduces errors when users add new customers.

In this scenario, since the company wants fast and accurate customer creation, templates are essential.

Why not A (Responsibility center)?

Responsibility centers are used to manage operations by location, department, or profit center.

They are useful for reporting and segregation of transactions, but not mandatory for customer creation setup.

Why not D (Permissions)?

Permissions define who can create or modify customers.

While important for security, this is not part of the configuration process for ensuring consistent field population and defaults in customer creation.

Microsoft References

Set Up Configuration Packages and Templates (RapidStart Services)

Configuration Templates for Customers, Vendors, and Items

Customer Table Setup and Creation

When working with posted purchase invoices in Dynamics 365 Business Central, there are three main reversal/correction actions available:

Cancel

This action is used when you need to fully reverse (cancel) a posted purchase invoice.

The system automatically creates and posts a purchase credit memo that exactly reverses the original invoice.

No manual editing is possible.

Best suited for full reversal of an unpaid invoice.

You are setting up a G/L account for a bank checking account in the chart of accounts. Let’s break down each field:

Income/Balance → Must be Balance Sheet

Bank accounts represent assets (cash) and always belong to the Balance Sheet.

If you select Income Statement, it would be treated as a P&L account, which is incorrect.

Account Category → Must be Assets

Within the Balance Sheet, checking accounts are part of current assets.

Choosing Assets ensures correct financial reporting under Assets.

Account Type → No Code

Account Type is typically used for special accounts like Begin-Total, End-Total, or Heading.

A checking account is a posting account, so you should leave No Code, meaning it's a normal posting account.

Direct Posting → Enabled

For bank accounts, direct posting must be enabled so that you can post transactions (like payments, deposits) directly against this G/L account.

If it were disabled, only system processes could post to it, which is not desired here.

Microsoft Learn References:

Design Details - Chart of Accounts

Set Up General Ledger Accounts

Account Categories

The requirement is:

The use of locations must be mandatory for all users.

Bins must be set up as mandatory for each location.

Here’s how it is configured in Dynamics 365 Business Central:

Inventory Setup (A)

On the Inventory Setup page, there is a field called Location Mandatory.

When this is enabled, every inventory transaction must have a location specified.

This makes locations mandatory globally across the system.

Location Card (B)

On each Location Card, you can enable Bin Mandatory.

This ensures that for all items at that location, transactions must specify a bin.

Other options:

Inventory Posting Setup (C): Defines how items post to the G/L (account mapping) but not about mandating locations or bins.

Sales & Receivables Setup (D): Controls sales process settings, not inventory/bin usage.

Item Card (E): Item-specific data; bins and mandatory settings are not defined here.

Microsoft Learn References

Set Up Locations

Inventory Setup

Bins in Locations

The Vendor Card → Document Layout setup is only used to assign custom report layouts (e.g., a specific purchase order layout to a vendor).

This does not control the line Type field (Item, G/L Account, Resource, etc.) on a purchase order.

Therefore, this configuration does not meet the requirement.

Comprehensive Detailed Explanation

When posting a partial shipment in Microsoft Dynamics 365 Business Central, you must adjust the "Qty. to Ship" field on the sales order line before posting. Here’s why the sequence is correct:

Select the sales order

You must open the correct sales order that you want to process.

Set the Qty. To Ship to 50

Since the sales order originally has a quantity of 100, and only 50 should be shipped now, you must update the "Qty. to Ship" field to 50. This allows partial shipment.

Choose the Ship option

This tells the system that you are performing a shipment action (not invoicing yet).

Select the Post action

Finally, post the shipment so the 50 units are shipped, and the remaining 50 stay open on the sales order for future fulfillment.

Why not the other actions:

Set the Quantity to 50 → Incorrect field; must use Qty. to Ship for partial shipment.

Select the Post Batch option → Used for batch posting, not relevant for a single manual shipment.

Select Ship and Invoice → Would post both shipment and invoice at the same time; requirement was to post shipment only.

Microsoft Learn References

Post Sales Shipments

Partial Shipments and Invoicing

In BC, invoices can be generated from:

Sales Order Invoicing (D): Post invoices directly from sales orders.

Combine Shipments (A): Consolidate multiple shipments into a single invoice (used for customers who require weekly or monthly invoices).

Get Shipment Lines from Sales Order (B) is incorrect — shipment lines are retrieved in warehouse processing, not for invoicing.

Sales Order Shipping (C) posts shipment only, not invoices.

Get Shipment Lines from Sales Invoice (E) is used for service scenarios but is not the standard sales invoicing process here.

Correct: A and D

When you need to duplicate an existing company in Dynamics 365 Business Central, the process is done directly from the Companies page. The system provides a Copy function that copies data and setup from an existing company to a new one.

The step-by-step process:

Open the Companies page

Go to the search bar and enter Companies. This page lists all companies in the tenant.

Select a company to copy

Highlight the source company that contains the setup and data you want duplicated.

Select the Copy function

Use the Copy action to create a new company based on the selected one. You will also be asked which tables to copy (setup, master data, transactions, or all).

Add the new company name

Provide a name for the duplicated company. This will be the identifier that users see when logging in or switching companies.

Why not the other options?

Open the assisted setup page / Open the data migration task → These are used for configuring a new company or migrating data, not for duplicating an existing company.

Use the New function → Creates a completely new blank company, not a copy.

Select tables to copy → This step is handled inside the Copy function itself; you don’t select tables as a separate action here.

Microsoft Learn References

Create New Companies in Business Central

Copy a Company

Buying groups require all invoices in a month to be due on the 20th of the following month (from the case study).

In BC, this is achieved by setting up Payment Terms = CM+20D (Current Month + 20 Days). Example: Invoice on Sept 5 → due Oct 20.

Payment terms are assigned directly to the customer card, not to the posting group or price group.

Option E (D20) would set due date 20 days after invoice date, which is incorrect.

Assigning to Customer Posting Group or Price Group does not control due dates.

Correct: A and C

In Dynamics 365 Business Central, when configuring special purchase prices for vendor and item combinations, you can define optional criteria that the system uses to determine the best price. The key optional fields include:

Minimum Quantity: Special pricing applies only when the order quantity meets or exceeds this threshold.

Unit of Measure Code: Price can vary depending on the unit of measure (e.g., price per box vs. per piece).

Currency Code: Price can be set depending on the vendor’s currency.

Other options:

Purchasing Code: Defines special order handling (drop shipment, special order), not used in price calculation.

Line Discount Percentage: This is a discount, not a price, and is handled separately under discounts setup.

Comprehensive Detailed Explanation

When creating or configuring new companies in Microsoft Dynamics 365 Business Central, there are different tools with specific roles:

Assisted Setup

Provides guided wizards to help you create a new company quickly, entering the first essential details like company name, address, VAT registration, etc.

Useful for getting the company started before loading more detailed configuration.

RapidStart Services

A framework in Business Central used for data migration and configuration tasks.

It allows you to create a set of setup tasks (like payment methods, posting groups, dimensions) and run them in a defined sequence. Users can mark tasks as done once finished.

Ideal for structured implementations.

Configuration Questionnaire

A part of RapidStart, used to template existing setup and data (master data, posting groups, setups) into packages.

These templates can then be applied to a new company in one process, essentially cloning configuration from an existing company.

Microsoft Learn References

Assisted Setup

RapidStart Services Overview

Configuration Packages and Questionnaires

Comprehensive Detailed Explanation

Set up a new fiscal year

In Business Central, fiscal years are created in the Accounting Periods page.

To start a new fiscal year, you must Select Create Year, which generates the periods for the new fiscal year.

Other options like Close Year or Fiscal Year Balance are for closing or balancing, not for initial setup.Correct: Select Create Year

Define the fiscal year start date

The case study specifies that the company’s fiscal year starts on June 1.

Therefore, when creating the new fiscal year, you must ensure the first period begins on June 1.

The correct action is Check New Fiscal Year for June 1.Correct: Check New Fiscal Year for June 1

Restrict posting

The business requirement is:

Restrict users to post only in the current month.

Only certain accounting users may have broader posting permissions.

In General Ledger Setup, the Allow Posting From and Allow Posting To fields control the global posting date range.

For user-specific restrictions or exceptions, User Setup allows overriding posting ranges for individual users.

Since the requirement is to restrict all users generally, the best action is:In General Ledger Setup, set the Allow Posting From and Allow Posting To options to current dates.Correct: In General Ledger Setup, set the Allow Posting From and Allow Posting To options to current dates

Microsoft Learn References

Accounting Periods (Create and Close Fiscal Years)

General Ledger Setup – Allow Posting From/To

User Setup and Posting Date Permissions

Create a Customer Discount Group

Create an Item Discount Group

Select the Item Discount Group for the Item

Comprehensive Detailed Explanation

To configure sales discounting in Dynamics 365 Business Central, you need to set up the relationship between customers and items so that the system can automatically apply the correct discounts during sales transactions. The process involves both customer grouping and item grouping.

1. Create a Customer Discount Group

This step defines which customers are eligible for group-based discounts (e.g., a retail chain, buying group, or brokers).

By creating a Customer Discount Group, you can later apply uniform discount rules across all customers belonging to that group, instead of configuring each customer individually.

2. Create an Item Discount Group

Next, you create Item Discount Groups to categorize items into discountable product lines (e.g., Olive Oils, Spices, Snacks).

This ensures that discount rules apply consistently across items in the same category, rather than having to define rules item by item.

3. Select the Item Discount Group for the Item

Finally, you link each relevant Item Card to the correct Item Discount Group.

This connection ensures that whenever a sales order/invoice is created for a customer belonging to a discount group and includes items in an item discount group, the system automatically applies the correct Sales Line Discounts.

Why not the other actions?

Define the Sales Invoice Discounts → Used for invoice-level discounts, but here the requirement is item/line-based discounting.

Define the Customer Special Sales Prices & Discounts → Used for customer-specific or promotional pricing, not for group-wide discount structures.

Configure Discount Posting in Sales & Receivable Setup → Relevant for accounting/reporting (whether discounts post separately) but not for setting up how discounts are determined and applied.

Define the Sales Line Discounts → This is the outcome of linking customer discount groups and item discount groups, but it requires the setup steps above first.

Microsoft References

Set Up Customer and Item Discount Groups

Work with Sales Line Discounts

Special Prices and Discounts in Business Central

The requirement is:

“You need to train users on order processing requirements and how to process purchase invoices created from combined receipts.”

From the case study requirements:

“The company must be able to combine multiple purchase receipts into one vendor invoice.”

“Fully invoiced POs must not appear on the PO list page.”

“Posted vendor invoices must be reverted when damages are reported or a product is returned to the vendor.”

To meet these requirements:

Correct or cancel unpaid purchase invoices (B)

Users need to know how to reverse or correct vendor invoices that were created from combined purchase receipts if errors or issues occur.

Business Central provides Correct and Cancel actions for unpaid purchase invoices, ensuring proper reversal and audit trail.

Delete POs that are fully invoiced (C)

Once a PO has been fully invoiced (and all lines are closed), it should be deleted so it no longer appears in the purchase order list.

This keeps the purchase order list clean and ensures users don’t attempt to reuse completed POs.

Why not the others?

A. Create a purchase credit memo – This is used for vendor returns, not directly tied to the process of combined purchase receipts training.

D. Create recurring purchase lines – Used for repeated purchases of the same items (like monthly subscriptions or utilities), not relevant to combining receipts into one invoice.

Microsoft Learn references

Correct or Cancel Unpaid Purchase Invoices

Work with Purchase Orders

Combine Receipts on a Single Invoice

The requirement is to match each integration requirement with the correct Microsoft integration solution in Business Central.

Customer email collaboration → Business Central Outlook add-inThe Business Central Outlook add-in allows users to create sales documents such as quotes, orders, or invoices directly from Outlook emails. This supports the requirement to create sales orders while collaborating with customers by email.

Sales team collaboration → Business Central app for TeamsThe Business Central app for Teams enables users to view, share, and even edit Business Central data such as customer records while working inside Microsoft Teams chat or channels. This aligns with the requirement to edit customer information while collaborating with the sales team in a group chat.

Customer notifications for sales campaign → Power AutomatePower Automate is designed for automating workflows such as sending notifications, approval requests, or bulk communications. To notify all customers at once about a sales campaign, Power Automate can integrate Business Central data with email or marketing tools.

Why not Word template?

Word templates are mainly used for document formatting and mail merges but do not handle automated notifications at scale. For distributing campaign notifications to multiple customers, Power Automate is the correct tool.

Microsoft Learn references

Business Central and Outlook integration

Use Business Central in Teams

Automate Business Central with Power Automate

The requirement is to resolve the order entry issue:

“Customers often reorder the same items with similar quantities. The system must be configured to ask the user if recurring lines should be added to sales orders.”

Business Central has Standard (Recurring) Sales Lines functionality to address this.

Configure standard sales lines → Add items and quantities

Standard sales lines define templates of frequently ordered items and their quantities.

When configuring these, you specify which items and quantities belong to the recurring order.

This resolves the need to avoid retyping common order combinations.

Add recurring sales lines to customers → Set insert on orders to Always Ask

On the Customer Card, you assign the standard sales lines and configure how they should be inserted when creating sales orders.

The setting Always Ask prompts the user each time an order is created for that customer, allowing them to choose whether to insert the recurring sales lines.

This satisfies the requirement to “ask the user if recurring lines should be added.”

Why not other options?

Add valid from and to dates – Useful for time-limited campaigns, but not mentioned in the requirement.

Set insert on quotes to Automatic – Applies to sales quotes, not orders. The requirement specifically concerns sales orders.

Microsoft Learn references

Set Up Standard Sales and Purchase Lines

Assign Standard Sales Lines to Customers

FIFO is a widely used costing method where the oldest inventory items are sold first. This is a common and straightforward method for valuing inventory.

Automatic cost adjustment is a crucial setting for resolving inventory reconciliation issues. When this is enabled, Business Central automatically adjusts the cost of goods sold (COGS) to match the actual cost of the inventory. This helps prevent discrepancies between the inventory sub-ledger and the general ledger, ensuring that the financial data is accurate.

Based on the provided image, the correct values to select for the customer payment terms are the ones already highlighted.

Due Date Calculation for retail customer payment term:

Select the value 10.

Discount Date Calculation for wholesale customer payment term:

Select the value 10D.

Due Date Calculation for wholesale customer payment term:

Select the value 30D.

Due Date Calculation for wholesale customer payment term:

Select the value 15D.

The requirement is:

“Customer revenue must be posted to separate general ledger (G/L) accounts based on customer type. The G/L account must have subcategories for wholesale and retail revenue.”

In Business Central, sales revenue posting is controlled by the General Posting Setup, which combines two posting groups:

General Business Posting Groups (A)

These represent the type of customer or vendor (for example, WHOLESALE or RETAIL).

They allow you to differentiate revenue by customer type.

General Product Posting Groups (C)

These represent the type of item or resource being sold (for example, FINISHED GOODS, SERVICES).

They allow you to map revenue to the correct accounts by product line or category.

The combination of General Business Posting Group + General Product Posting Group determines which Revenue G/L Account is used.

Why not the others?

B. Customer posting groups – Control AR control accounts, not revenue.

D. Bank account posting groups – Used for bank transactions, not revenue.

E. Inventory posting groups – Control inventory accounts and adjustments, not revenue.

Microsoft Learn references

Posting Groups in Business Central

Set Up General Posting Groups

The correct solution to meet the company's order processing requirements involves two key components: the type of workflow to be created and the engine that will power it.

A. Create a purchase order approval workflow: This is a core component of most order processing systems. A purchase order approval workflow automates the process of submitting purchase orders for approval, sending notifications to the appropriate approvers, and ensuring that all orders comply with company policies. This is a common requirement to control spending and maintain an audit trail.

D. Use Power Automate as the engine for the workflow: Power Automate (formerly Microsoft Flow) is a powerful, cloud-based service that allows you to create automated workflows and connect various applications and services. It is the modern and highly versatile solution for creating complex and customized workflows that go beyond the basic capabilities of many built-in systems, including those in Business Central. While Business Central has a native workflow engine (as mentioned in option C), Power Automate is the recommended solution for more robust and integrated order processing workflows, especially when they need to interact with multiple systems or require advanced logic.

The requirement is:

“You need to configure the system to post to the receivables account for wholesale customers.”

From the case study, the G/L posting accounts required are:

Retail Receivables = 13100

Wholesale Receivables = 13200

In Business Central:

Customer Posting Groups (B)

Customer Posting Groups are used to map customers to specific Receivables G/L accounts.

You typically create separate posting groups, e.g., "RETAIL" and "WHOLESALE," and assign them to customers based on type.

This ensures postings go to the correct control account.

Receivables account 13200 (D)

For wholesale customers, the posting group must be configured to point to 13200 (Wholesale Receivables).

Why not the others?

A. Receivables account 13100 – This is for retail customers, not wholesale.

C. General Posting Setup – This setup manages how transactions post based on combinations of General Business Posting Groups and General Product Posting Groups, but it does not control receivables accounts.

E. General Business Posting Groups – These are used for revenue, COGS, and VAT postings, not receivables control accounts.

Microsoft Learn references

Posting Groups in Business Central

Set Up Customer Posting Groups

Comprehensive Detailed Explanation

In Business Central, financial reporting is built from several components:

Row definition

Used to define which accounts or statistical accounts appear as rows in the financial report.

Since Headcount and Square Footage are statistical accounts (non-financial data tracked for reporting), they must be added via Row definition.

G/L account categories

Used to structure the income statement and balance sheet into financial categories such as Income, COGS, Assets, Liabilities.

The requirement states: “The financial report structure must map to account categories.”

Therefore, Income, Retail must be configured using G/L account categories.

Financial Report page

Used to assemble and present the report, combining row definitions, column definitions, and filters.

Accounts Receivables, Wholesale is a financial reporting output that must be displayed using the Financial Report page where the actual data is gathered.

Why not Column definition?

Column definitions control time periods (month, quarter, year, variance, etc.) but are not needed for these particular requirements.

Microsoft Learn references

Financial Reporting in Business Central

Set Up Row and Column Definitions

G/L Account Categories

Comprehensive Detailed Explanation

The requirement: “You need to train users on how to process a special order for an established customer.”

From the case study:

“Special orders from new customers have a 25% prepayment. Established customers have only a 15% prepayment.”

Prepayments must be invoiced before the final invoice is posted.

Step-by-step process in Business Central:

Create a sales order

The user begins by creating a sales order for the special order.

Enter 15% in the Prepayment % field

Since this is for an established customer, the prepayment percentage is 15%.

The Prepayment % field on the sales order line or header controls how much must be prepaid before the order can be processed.

Enter the code for due on receipt in the prepayment payment terms code

Prepayments are typically due immediately. The code for “due on receipt” ensures that the prepayment invoice requires immediate payment.

Post and print the prepayment invoice

This generates the prepayment invoice for the customer and ensures that prepayment is received before delivery.

Why not “Enter the code for net 30 in the prepayment payment terms code”?

That applies to wholesale customer regular payment terms, not to prepayments. Prepayments are due immediately.

Why not 25%?

25% prepayment applies to new customers. For established customers, the requirement specifies 15%.

Microsoft Learn references

Set Up Prepayments

Process Sales Prepayments

Create Sales Orders with Prepayments

Comprehensive Detailed Explanation

The requirement in the case study is that the company warehouses products as Case quantities but wants to expand capabilities by setting up all inventory in a quantity of Each. This means they need to configure Units of Measure (UoM) so that one item can be managed both by Case and by Each.

In Business Central:

Units of Measure Table – defines the available unit codes (e.g., EACH, CASE, BOX) with descriptions.

To use Case as a unit, you must first define it in the Units of Measure table.

Correct: D. Add a Code and Description to the Units of Measure table.

Item Units of Measure (Qty. per UoM) – links the item to multiple units of measure and specifies conversion (e.g., 1 Case = 10 Each).

For example, if a Case = 10 Each, you set Qty. per Unit of Measure = 10 for Case.

Correct: A. Set a Unit of Measure for case to a Qty. of 10.

Why the other options are incorrect:

B. Qty. per UoM = 1 is redundant (default Each already equals 1). It does not meet the requirement for Case-to-Each conversion.

C. Case with Qty. = 1 would make Case = Each, which is incorrect because Case must represent multiple units (10 Each).

Microsoft Learn References

Work with Units of Measure

Set Up Item Units of Measure

The scenario mentions that the company needs to properly record received items before invoices arrive.

In Business Central, enabling Expected Cost Posting ensures that receipts (goods received but not invoiced) are reflected in both inventory and the general ledger.

This avoids the need for a manual accrual process (one of the issues in the case study) and satisfies the requirement to record accounting impact for items received but not yet invoiced.

Other options:

A. Standard Costing is unrelated (they need FIFO/average etc. for produce).

B. Automatic Cost Posting just posts automatically but doesn’t address received-not-invoiced.

D. Automatic Cost Adjustment = Always updates inventory values for costing, not expected costs.