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

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

The case study states:

The company often receives a higher quantity of produce items than ordered because vendors allow for spoilage/damage during transit.

The company wants to allow over-receipt only for produce but not for non-produce items.

In Dynamics 365 Business Central, this requirement is handled by Over-Receipt Codes:

You define a code with a tolerance percentage (e.g., 5% or 10%).

The code can be assigned to specific items (e.g., produce) or vendors.

This allows receiving slightly more than ordered, while blocking over-receipt for other items.

Why not the other options?

B. Payment Tolerance % → relates to differences in payment amounts (e.g., customer underpaying by a few cents), not receiving inventory.

C. Default Deferral Template → used to defer revenue/expense recognition over time, unrelated to item receipt.

D. Dampener Quantity → used in demand planning/MRP to avoid unnecessary changes to supply orders; not for receiving more items.

So the correct configuration is Over-Receipt Code with Tolerance %.

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 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.

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 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

In Dynamics 365 Business Central, the General Ledger Setup page controls how amounts are displayed and rounded.

Amount Decimal Places specifies how many decimal places will be displayed for all monetary amounts in local and foreign currencies.

A value of 3:3 means exactly 3 decimals will always be shown.

This directly matches the requirement: "Monetary amounts for local currency must always display three decimal places."

Unit-Amount Decimal Places controls the decimals for unit costs or prices on items, not for general monetary amounts.

Inv. Rounding Precision sets the rounding for invoice totals, not for displaying all local currency amounts.

Unit-Amount Rounding Precision applies to rounding of item unit costs/amounts.

Amount Rounding Precision determines how monetary amounts are rounded during posting (for example, rounding to 0.01 or 0.001), but does not control how they are displayed.

Therefore, the correct configuration is to set Amount Decimal Places = 3:3 in General Ledger Setup.

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

In Business Central, when you want to import master data (like customers, vendors, items, etc.) using configuration packages, you follow a structured sequence:

Create a configuration package – First, you define the configuration package and select the related tables to be imported.

Export an Excel template and populate the data – Once the package is created, you export the template to Excel. This gives you the correct structure (fields, columns) that match Business Central. Then you (or the customer) fill in the Excel file with the master data.

Import a populated Excel template into the package data – You then import the filled-in Excel file back into the configuration package in Business Central.

Apply the data – Finally, after validation, you apply the data so it is committed to the database tables of the new company.

Why not the others?

Export a configuration package is used to share configuration setups with another environment, not part of this workflow.

Import a populated Excel template into the sales header and lines is only for document data (transactions), not master data imports via configuration packages.

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

In Business Central, the Payment Terms calculation uses the Document Date (not Posting Date or Order Date). The system takes the Document Date and applies the due date calculation formula defined in the Payment Terms.

Order Date is primarily for purchase/sales documents scheduling.

Posting Date drives G/L posting date.

Due Date is the result of the calculation, not the input.

Comprehensive Detailed Explanation along with All References available from Microsoft Dynamics 365 Business Central Functional Consultant at end of each question below

The scenario requires that partially shipped and invoiced sales orders that will not be fulfilled should not clutter the Open Sales Order list. However, management still wants visibility for reporting on ordered vs. delivered quantities.

This is achieved by archiving sales orders before deletion, and then adjusting the order properly. Let’s break down the steps:

Enable Archive Sales Orders in Sales & Receivables Setup.

This ensures that every time you delete or modify sales orders, a copy is archived. Archived orders provide a historical record for reporting and reconciliation.

Comprehensive Detailed Explanation along with All References available from Microsoft Dynamics 365 Business Central Functional Consultant at end of each question below

Processing a Purchase Order in Business Central follows a standard sequence:

Add a vendor – Every purchase order must begin with selecting a vendor. This establishes the vendor card defaults (e.g., currency, lead times, payment terms).

Add a Purchaser Code – The Purchaser Code identifies the buyer responsible for the order and is often used in approval workflows and reporting.

Add Items, including Quantity, to the lines – On the lines of the purchase order, specify which items/services you are buying and the quantity to be received.

Change the Purchase Order to a Status of Released – Draft orders are “Open.” Before posting, you must change to “Released.” This signals that the document is ready for posting (and may also trigger approval processes if workflows are enabled).

Post the Purchase Order –

Post and Receive = records the goods receipt into inventory, but does not create a purchase invoice yet.

Post and Invoice = performs both receipt and invoice posting in one step (commonly used when receiving and invoicing happen at the same time).

Other options not in the sequence:

Run a Test Report – Optional, to preview the expected posting entries; not mandatory in the flow.

Create a warehouse receipt – Only required if using advanced warehouse management (directed put-away & pick), not in the base purchase order flow.

Microsoft Learn References

Create Purchase Orders:https://learn.microsoft.com/en-us/dynamics365/business-central/purchasing-how-record-purchase-order

Posting Purchase Orders (Receive/Invoice):https://learn.microsoft.com/en-us/dynamics365/business-central/purchasing-how-to-post-purchases

Purchase Order Lifecycle:https://learn.microsoft.com/en-us/dynamics365/business-central/procurement-process

Thus, the correct ordered steps:

Comprehensive Detailed Explanation

To record customer payments in Business Central and apply them against invoices while updating the bank account, you use the Cash Receipt Journal. The preparation follows a clear sequence:

Open a cash receipt journal

Navigate to Cash Receipt Journal via search. This opens the batch where payments are entered.

Add lines for each customer payment

Enter the Account Type = Customer, the Customer No., the Payment Amount, and the posting date.

Each line represents one customer payment.

Select G/L Account as the Balance account type

Set the Bal. Account Type = G/L Account (or Bank Account depending on how the company manages postings).

Enter the Bal. Account No. to represent the bank G/L account where the payment will be deposited.

Apply entries

Use Process → Apply Entries to match the payment against one or more open customer invoices.

This ensures the payment clears the correct outstanding balances.

Post the cash receipt journal

Once all lines are entered and applied, select Post to create the customer ledger entries and bank G/L entry.

This workflow ensures:

Customer balances are reduced.

The payment is reflected in the bank account.

The invoices are applied correctly.

Microsoft Learn References

Apply Customer Payments Manually

Cash Receipt Journals

Work with General Journals

We are recording an incoming customer payment in the Cash Receipt Journal:

Account Type = Customer → Because we are applying the payment to a customer balance.

Account No. = 2030 → This is the customer account number provided.

Amount = $500 → Since it’s an incoming receipt (cash inflow), the value is positive. (A negative would represent refunds or outgoing payments.)

Bal. Account Type = Bank account → Payments received must be offset against a bank account, not a G/L account directly.

Bal. Account No. = 1010 → This is the specific bank account receiving the payment.

⚠️ Note: The G/L account 10100 mentioned in the scenario is the general ledger posting account associated with the bank account card (No. 1010). Users do not directly post against that G/L account in the journal; instead, the system automatically posts to it when you select the bank account.

This ensures proper double-entry posting:

Debit Bank (G/L 10100 via Bank Account 1010)

Credit Customer (Customer 2030).

Microsoft Learn References

Work with General Journals in Business Central

Apply Payments with the Cash Receipt Journal

Bank Accounts 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.

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

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.

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.

Comprehensive Detailed Explanation

In Dynamics 365 Business Central, posting groups are used to map transactions to the correct general ledger (G/L) accounts. There are two main types of posting groups:

General posting groups

Used to define combinations of customers/vendors and items/resources to determine posting of revenues, expenses, inventory, and COGS.

Example: Sales accounts, COGS accounts, Inventory accounts.

Controlled by General Business Posting Group (customer/vendor side) and General Product Posting Group (item side).

Specific posting groups

Used to directly map balances for customers and vendors.

Example: Customer Receivables (Accounts Receivable) and Vendor Payables (Accounts Payable).

Controlled by Customer Posting Group or Vendor Posting Group.

Mapping to Entities:

Sales → General posting groups (determined by general business/product posting group setup).

Cost of goods sold → General posting groups (comes from the inventory and product posting groups).

Customer receivables → Specific posting groups (Customer Posting Group determines which AR account is used).

Vendor payables → Specific posting groups (Vendor Posting Group determines which AP account is used).

Microsoft Learn References:

Posting Groups in Business Central

Set Up General Posting Groups

Set Up Customer and Vendor Posting Groups

The requirement:

An accountant must post sales services in a journal by using a predefined alphanumeric sequence. The accountant is using multiple general journal batches. You need to configure invoice numbers for the journal.

In Dynamics 365 Business Central, when you post journals (such as General Journals, Sales Journals, or Cash Receipt Journals), the system assigns posting numbers based on No. Series defined at either the General Journal Template or General Journal Batch level.

Field Details

Posting No. Series (General Journal Templates)

Defines the default number series for posting across all batches that use this template.

For example, the GENERAL template can have a posting number series assigned that applies to all batches under it.

Posting No. Series (General Journal Batches)

Allows overriding the template’s posting number series on a per-batch basis.

This is essential when multiple batches are in use and each requires a different posting sequence.

For example, batch SERVICES might use a series SRV-0001, while batch SALES uses SAL-0001.

Why not the other options?

B. No. Series field in General Journal Batches

This field applies to document numbers on the journal lines, not the posting number. It controls the numbering for the lines entered, not the posting entries.

D. No. Series field in General Journal Templates

Same reasoning as above: it relates to the entry/document numbering at line level, not the posting number that is required in this case.

Since the question explicitly requires configuring invoice numbers for posting, the correct fields are the Posting No. Series fields.

Microsoft Learn References

Set Up General Journal Templates and Batches

No. Series in Business Central

General Journal Fields Explained

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

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: “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

This sequence makes sense because you first create the series itself, then define the lines (the actual numbers within the series), and finally define the relationships to link the series to the specific data table (like the Accounts table) where it will be used.

Sequence 2: Using a Configuration Package to Manage Data

This sequence focuses on using a configuration package to manage and update data, which might include fixing issues with existing accounts or importing new ones.

Create a configuration package.

Configure the Vendor Table on the configuration package.

Create the Data template.

While this sequence is plausible, it has a significant flaw: the prompt mentions "Accounts," but this sequence specifically mentions the Vendor Table. If we assume the "Vendor Table" is a placeholder for a generic data table like the Accounts table, the sequence makes sense. You create a package, configure it for a specific table, and then create a data template to import the data into that table.

Sequence 3: Resolving Issues by Defining the Number Series on the Configuration Template

This sequence focuses on resolving issues by directly modifying the configuration template within a configuration package.

Create a configuration package.

Create the Data template.

Define the No. Series on the configuration template.

This sequence is logical for a scenario where you're using a configuration package to manage both data and its associated number series. You first create the package, then create the data template (which is a core component of the package), and finally define the number series on that template to ensure the imported data uses the correct number sequencing.

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

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

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.

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

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 report profitability by business line (cash & carry vs. brokered). In Business Central, the way to achieve this is by creating a Global or Shortcut Dimension (for example, a dimension called Business Line) and ensuring that it is captured on every sales, purchase, and general ledger transaction.

Create a dimension → Value

The correct choice is Value because profitability reporting is driven by dimension values such as Cash & Carry and Brokered.

Combination, Default Priorities, and Account Type Default are used for control and automation of dimensions, not for the initial creation of reporting dimensions.

In Business Central, the over-receipt functionality (receiving more than ordered) requires setup in two places:

Item Card (or SKU Card) → Define whether an item can be over-received and the % tolerance.

Over-Receipt Codes → Configure allowable over-receipt percentages and reasons in the Over-Receipt Code list.

The Vendor Card does not control over-receipt settings, and SKUs inherit from items unless specifically overridden.

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

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

Comprehensive Detailed Explanation

The case study mentions reconciliation issues caused by manual entries being made directly into certain G/L accounts, which led to discrepancies between subledger balances (like customers, vendors, or inventory) and the General Ledger. To resolve this, Business Central allows you to restrict how accounts are posted.

Restrict use on → G/L Account Card

The most appropriate place to restrict usage of specific accounts (such as control accounts for A/R, A/P, or Inventory) is on the G/L Account Card.

Here, you can configure posting restrictions for each account individually (e.g., Accounts Receivable account should only be posted through the customer subledger, not by manual G/L journals).

Other options:

General Ledger Setup → Controls global accounting settings, not account-specific restrictions.

Sales & Receivable Setup → Defines control accounts but does not enforce restrictions.

Chart of Accounts → Displays accounts but restrictions are managed per account card.

Set value for → Direct posting

On the G/L Account Card, the field Direct Posting determines whether users can post manual entries directly into the account.

To prevent reconciliation issues, Direct Posting must be disabled (unchecked) for accounts controlled by subledgers (e.g., A/R, A/P, Inventory).

This ensures that postings only come from system-generated entries (like sales invoices, purchase invoices, or inventory adjustments) and not from manual journals that could break reconciliation.

Other options:

Reconciliation account → Relevant in SAP, not BC.

Check G/L account usage → Not a standard control in BC.

Gen. Posting Type → Defines how entries are posted (Sale, Purchase, Inventory), but does not enforce direct posting restrictions.

With this setup:

Reconciliation issues are avoided because control accounts cannot be posted to manually.

Users are guided to post through the proper subledger processes (sales, purchasing, inventory, etc.).

Financial integrity between subledgers and the G/L is maintained.

Microsoft References

G/L Account Card - Direct Posting Field

Prevent Direct Posting to Control Accounts

Chart of Accounts in Business Central

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