MB-800 Questions and Answers

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

Regular price: $20.00

Buying group discount: $18.00

Autumn promotion price: $19.00

Overstock special: 15% off regular price ($20 × 0.85 = $17.00)

However, the case study requires the system to always give the lowest available price.

Comparison of all active prices:

Regular = $20.00

Buying group = $18.00

Autumn promotion = $19.00

Overstock 15% discount = $17.00

Lowest available = $17.00. But since the customer belongs to a buying group and it’s also an overstock day, the system applies stacking rules: the overstock discount applies on top of buying group price.

$18.00 × 0.85 = $15.30.

Comprehensive Detailed Explanation

The requirement is to ensure that every transaction posted to a customer account includes the Customer Source dimension (e.g., Cash & Carry, Brokered). This is achieved by creating and enforcing a mandatory dimension rule in Business Central.

Step 1: Create a dimension code to identify the customer source

First, define a Dimension Code such as Customer Source.

This will hold values like Cash & Carry and Brokered.

Dimensions are the foundation for all reporting segmentation in Business Central.

Step 2: Create dimension values for the customer source dimension code

After creating the dimension, define the specific Dimension Values (e.g., Cash & Carry, Brokered).

These represent the business lines the company wants to track.

Step 3: Add the Customer table

To enforce the dimension on customers, link the dimension to the Customer table.

This ensures that every transaction involving a customer account requires this dimension.

Step 4: Set the Value Posting to Code Mandatory

On the Default Dimensions page, set Value Posting = Code Mandatory for the Customer Source dimension.

This forces users (or the system) to provide a dimension value on every transaction involving customers.

Without this, users might skip dimension assignment, leading to incomplete reporting.

Step 5: Select the Dimension Value Code that is used for the customer source

Finally, assign the correct Dimension Value (Cash & Carry or Brokered) to each customer record.

This ensures automatic defaulting during transaction entry, reducing user errors and maintaining consistency.

Why not the other actions?

Chart of Accounts: Not needed here, since the requirement applies to customers, not G/L accounts.

Account Type Default Dimension: Useful for G/L accounts, but here we are applying it at the Customer table level.

Search icon, Customers: While this helps you navigate, it’s not a required setup step in the sequence.

Microsoft References

Work with Dimensions in Business Central

Set Up Default Dimensions for Customers

Dimension Value Posting Options

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

Comprehensive Detailed Explanation

The requirement is to configure the system so that sales discounts are visible and tracked correctly in Dynamics 365 Business Central.

Define simultaneous posting → General Ledger Setup

In Business Central, the General Ledger Setup page contains fields that control whether discounts are posted separately or combined with sales postings.

By defining discount posting behavior at the General Ledger Setup level, you ensure consistency across all sales transactions and financial reporting.

Other options (Sales & Receivable Setup, Customer, Item) do not define global simultaneous posting behavior for discounts; they control transaction processing but not the separation of discount postings.

Specify type to post separately → Discount Posting

To show sales discounts separately, you must enable Discount Posting.

This ensures discounts are posted to a dedicated G/L account, rather than being netted off directly against sales.

As a result, financial statements can show both gross sales and discounts given, which is critical for profitability analysis and discount tracking.

The other options in the list:

Invoice Disc. Code → Used to define specific invoice discounts, but not to enforce posting separately.

Special Prices & Discounts → Controls pricing rules but not posting behavior.

Adjust for Payment Disc. → Manages how payment discounts affect invoices, but again, not posting visibility.

With this setup, Wide World Importers can track gross sales, discounts, and net sales transparently in reports, allowing management to analyze the financial impact of discounts.

Microsoft References

General Ledger Setup in Business Central

Discount Posting Field (Post Discounts Separately)

Work with Sales Discounts in Business Central

Correct Answer:

Define simultaneous posting: General Ledger Setup

Specify type to post separately: Discount Posting

For items that are infinite (water, electricity, gas), inventory tracking is not required. In Business Central:

Non-Inventory item type is used when you need to record purchases/sales but do not track stock levels.

Inventory type would track stock, which is not suitable for infinite resources.

Resource type is used for capacity (like labor or machine resources), not consumables.

Service type is used for intangible services, not utilities.

The scenario describes cash and carry sales, where customers pay immediately at the desk and sales invoices must be posted as paid in full at the time of sale. In Dynamics 365 Business Central, this is achieved by setting Payment Terms that indicate no delay between invoice date and due date.

Why D (Payment Terms = 0D)

The Payment Terms setup in Business Central allows you to define how the Due Date is calculated.

For cash and carry transactions, the invoice is due on the same day (zero days). Setting the Due Date Calculation to 0D ensures that the system always marks invoices as immediately due, reflecting the cash-and-carry business process.

This aligns with requirements: “Invoices must be posted at the cash and carry desk at the time of sale” and “Invoices already paid in full should not appear as outstanding on aging reports.”

Why not A (Payment Service)

Payment Services are used for integration with external services like PayPal or credit card gateways. Wide World Importers does not require a POS or online payment gateway—just simple cash handling at the desk.

Why not B (Direct Debit Mandate)

Direct Debit is used for recurring bank withdrawals (SEPA mandates, subscription-type payments). It does not apply to one-time, immediate cash payments.

Why not C (Payment Method = Bank Account)

While Payment Methods (e.g., Cash, Bank Transfer, Check) are also important for tracking how customers pay, the critical requirement in the scenario is ensuring the invoice is due immediately. That is achieved by Payment Terms = 0D, not by Payment Method alone.

Best Practice Setup in Business Central for Cash & Carry:

Payment Terms: 0D (ensures invoice due immediately).

Payment Method: Cash (ensures posted directly against the cash account).

Apply to invoices at posting: Invoices will automatically be shown as paid in full.

This combination ensures correct cash sales processing and eliminates the issue noted in the case study where invoices incorrectly appear in aging reports.

Microsoft References

Set Up Payment Terms in Business Central

Set Up Payment Methods in Business Central

Work with Payment Transactions

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

In Dynamics 365 Business Central, the Value Posting field on dimensions defines how dimensions behave during posting:

No Code

The dimension is optional.

Users can change or skip the default dimension value when entering a transaction.

Used when you want flexibility.

Code Mandatory

A dimension value must be entered before posting is allowed.

Ensures the transaction always contains a dimension value, but users can pick any valid one.

Used when dimension entry is required for reporting.

Same Code

The system enforces that only the default dimension value assigned to the account type can be used.

Users cannot change the default value, ensuring strict consistency.

Microsoft Learn References

Default Dimensions and Value Posting Types

Set Up Dimensions

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.

Comprehensive Detailed Explanation

The requirement:

The company is using a standard costing method.

With standard costing, when actual purchase costs differ from the standard cost, the difference must be posted to a specific General Ledger account (commonly referred to as the Purchase Variance Account).

In Dynamics 365 Business Central, the account for these variances is defined in the General Posting Setup.

Why the correct answer is B (General Posting Setup):

The General Posting Setup page links the Gen. Business Posting Group (assigned to vendors/customers) with the Gen. Product Posting Group (assigned to items).

In this setup, you configure accounts for purchases, discounts, and most importantly here: the Purchase Variance Account (where the system posts differences between actual and standard costs).

This ensures variances are tracked automatically when using standard

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 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

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.

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

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

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

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

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.

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

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

Comprehensive Detailed Explanation

The company’s reporting requirements are:

They need to analyze which customers are buying which items.

They need to analyze which salespeople are selling in which regions.

They also need consistent reporting for Customer Groups, Item Groups, Salesperson, and Region.

In Business Central, dimensions are the mechanism to capture these classifications (customer groups, item groups, salesperson, region). To configure reporting dimensions properly, the following steps are required:

Set up dimensions

Before using any dimensions, you must define them in the Dimensions page. This is where new entries such as Customer Group, Item Group, Salesperson, and Region are created.

Correct action: Create a new entry on Dimensions.

Configure global dimensions

Business Central allows two global dimensions that become available on all transaction lines and entries. These are the most used reporting breakdowns.

Since the company must always report sales by customer and item, these should be set as global dimensions.

Correct action: Change global dimensions on General Ledger Setup.

Configure shortcut dimensions

Shortcut dimensions (up to 8) are additional reporting dimensions that can be made available for entry on journals, documents, and transactions. These are perfect for Region and Salesperson requirements.

Correct action: Choose a shortcut dimension code on General Ledger Setup.

This setup ensures reporting can directly answer the business questions in financial results and enable analysis across Customer Groups, Item Groups, Salespeople, and Regions.

Microsoft Learn References

Work with Dimensions

Set Up Dimensions

General Ledger Setup – Global and Shortcut Dimensions

Analysis by Dimensions

Comprehensive Detailed Explanation

Deliver on a specific customer date

Salespeople must avoid promising inventory that is not available.

To check whether the requested delivery date can be met, the correct action is to review Item Availability by Periods.

This allows them to see when stock will be available across time periods, ensuring promised delivery dates are realistic.

Other options are less accurate:

Change the Requested Delivery Date → does not confirm if stock is available.

Check the Catalog on Sales Line → only for product lookup, not availability.

View the Location Code → shows location assignment, not time-phased availability.

Correct: View the Item Availability by Periods

Process quotes

Requirement: Salespeople must convert quotes to orders once they are finalized.

In Business Central, this is done by selecting Make Order from the Sales Quote.

Other options:

Make Invoice → bypasses order process, not applicable here.

Copy Document → creates a new document, not the required process.

Release → applies to orders but not to quotes-to-orders conversion.

Correct: Choose Make Order

Microsoft Learn References

Check Item Availability

Convert Sales Quotes to Orders

Comprehensive Detailed Explanation

The company requires:

Preset vendor invoice discounts applied automatically.

Automatic calculation of invoice-level discounts.

Ability to keep a copy of purchase orders for historical reference (for vendor contract negotiations).

Let’s break each down:

1. Configure the preset invoice level discounts

Vendors give regular discounts at the invoice level.

In Business Central, you configure this in Vendor Invoice Discounts.

You set a discount % (e.g., 5%, 10%) for the vendor.

Correct action: Set Discount % on Vend. Invoice Discount

2. Configure the automatic invoice level discounts calculation

After defining vendor invoice discounts, you must enable automatic calculation.

This is controlled in Purchase & Payables Setup by setting Calc. Inv. Discount = Yes.

Correct action: Set Calc. Inv. Discount to Yes on Purchase & Payables Setup

3. Configure purchase order history

The requirement is to be able to “see a copy of the completed purchase order in the system” for reference during vendor contract negotiations.

Business Central provides this via the Archive Orders function.

When archiving is enabled, every time an order is changed or posted, the system retains a copy.

Correct action: Set Archive Orders to Yes

Microsoft Learn References

Set Up Vendor Invoice Discounts

Set Up Purchases and Payables

Archive Sales and Purchase Orders

The case study specifies that:

Salespeople manage opportunities/quotes and release orders to the warehouse.

Warehouse staff fulfill orders and complete shipments.

Office/accounting staff are responsible for invoicing (separation of duties).

Therefore, the correct sequence for processing sales orders is:

Add External Document No. to Sales Order

An office employee enters this reference (often the customer’s PO number) before processing.

This step ensures traceability for auditors and aligns with required documentation.

Warehouse employee performs Post and Ship

The warehouse is responsible for picking, packing, and shipping items.

They must post the shipment in Business Central, creating a posted shipment record.

The warehouse does not invoice, since invoicing is the responsibility of the office.

Office employee performs Post and Invoice only

After confirmation that the order shipped, the office staff posts the invoice.

This matches the new division of duties and provides the financial document to the customer.

Why not the other options?

Warehouse performs Post, Ship, and Invoice: Incorrect because invoicing is not the warehouse’s responsibility.

Warehouse performs Post and Invoice only: Wrong, warehouse does not invoice.

Office employee performs Post, Ship, and Invoice: Wrong, because shipping is handled by warehouse.

Warehouse employee changes Posting Date: Not a standard requirement for fulfilling orders in this case.

Microsoft Learn References

Process Sales Orders

Post Shipments and Invoices Separately

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:

“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.

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.

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 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

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.

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