MB-800 Microsoft Dynamics 365 Business Central Functional Consultant 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

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.

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.

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

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 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

Requirement: Each salesperson must be assigned to only one region, and combinations must be enforced automatically to avoid inconsistent commission reporting.

In Business Central, this is achieved by defining a Dimension Combination rule between the Salesperson dimension and the Region dimension.

Setting it to Blocked prevents users from posting with an invalid salesperson-region combination.

Other options:

A. Limited restricts only dimension values on certain accounts.

B. Default Dimension Priorities controls which default dimension wins, but does not enforce uniqueness.

D. Default Dimensions on Customer Cards helps with defaults, but doesn’t prevent invalid combos.

Comprehensive Detailed Explanation

When configuring the Chart of Accounts in Dynamics 365 Business Central, each G/L account requires specific setups to ensure it works properly in financial reporting, reconciliation, and year-end closing.

Inventory account reconciliation (Direct Posting):

Inventory accounts should not allow direct postings.

Their balance must come exclusively from item transactions (value entries).

Setting Direct Posting = No ensures that the account balances always match the sum of all item value entries.

Financial Statement reporting (Account Category and Account Subcategory):

To group G/L accounts into correct sections of financial statements (e.g., Assets, Liabilities, Equity, Income, Expenses), you must assign them to Account Categories and Subcategories.

These mappings drive the layout of Balance Sheet and Income Statement reports.

Summarizing other accounts (Account Type):

Use Account Type = Heading or Total to summarize balances of related accounts.

Example: A Total account sums several Posting accounts.

Year-end closing (Income/Balance):

The Income/Balance field determines whether the account is treated as an Income Statement account (closed to Retained Earnings at year-end) or as a Balance Sheet account (carried forward).

Microsoft Learn References

Design the Chart of Accounts

Set Up G/L Accounts

Year-End Closing and Income/Balance Setup

The Direct Cost Applied Account is a G/L account defined in the General Posting Setup.

It is used when posting purchase transactions to offset inventory increases with applied direct costs.

Item Card → defines posting groups, but not accounts.

Inventory Posting Setup → defines Inventory accounts, not Direct Cost Applied.

Vendor Posting Groups → used for Payables accounts.

In Dynamics 365 Business Central, the system can be configured to notify users about credit limits and overdue balances when creating sales documents:

The Credit Warnings field (found on the Sales & Receivables Setup page or Customer Card) controls how warnings are displayed.

Options are:

No Warning → No alerts are shown.

Credit Limit → Warns only when the customer exceeds their credit limit.

Overdue Balance → Warns only when the customer has overdue invoices.

Both Warnings → Warns when either the customer exceeds the credit limit or has overdue balances.

This matches the requirement in the question:

Alert users about remaining credit.

Alert users about overdue payments.

Other options:

A. Exact Cost Reversing Mandatory → Relates to inventory costing, not customer credit.

B. Block Customer field → Blocks transactions, but does not provide warnings (hard stop instead of alerts).

D. Late Payment Predict extension → Uses AI to predict late payments, not for credit warnings.

Microsoft Learn Reference

Credit Limits and Warnings in Business Central

When configuring a Customer Card in Dynamics 365 Business Central, the following fields/components control the required behaviors:

Process payments through a bank account → Preferred Bank Account

The Preferred Bank Account field specifies which customer bank account is used for receiving payments.

This ensures payments are routed through the correct bank account.

Payment Method Code defines how customers pay (e.g., Cash, Check, Bank Transfer), but does not specify which bank account.

Bill a different customer for invoices → Bill-to Customer

The Bill-to Customer No. field allows invoices to be billed to a different customer than the one receiving the goods.

Example: A parent company is billed, while the subsidiary is the "Sell-to Customer".

Print invoices in a specific language → Language Code

The Language Code field on the customer card determines which language is used when printing invoices and other documents for that customer.

Ensures that customers receive documents in their preferred language.

Other options not correct:

Payment Terms Code → Defines due date/payment schedules, not the bank account.

Contact Name / Ship-to Code → Define delivery or contact details, not billing behavior.

Country/Region Code → Controls VAT and shipping zones, not document language.

Responsibility Center → Defines which company department handles the customer, not invoice printing language.

Microsoft Learn References

Customer Card Fields

Set Up Customer Bank Accounts

Bill-to Customers

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

To configure payment terms in Dynamics 365 Business Central:

Due Date Calculation (B → 30D): Sets the invoice due date to 30 days after the document date.

Discount Date Calculation (C → 10D): Allows a payment discount if the invoice is paid within 10 days.

Discount % (D → 2): Grants a 2% discount for early payment.

Comprehensive Detailed Explanation

In Dynamics 365 Business Central, pricing and discounts are managed with different setup types:

Sales Prices

Used to define special prices for specific customers, customer groups, items, or date ranges.

Correct setup when "customers receive special prices for a certain amount of time."

Sales Line Discounts

Used to configure line-level discounts based on item, item group, or quantity.

Correct when "the company offers different discounts for different item types."

Customer Invoice Discounts

Applied at the invoice (header) level when the total sales amount on an order/invoice exceeds a defined threshold.

Correct when "loyal customers are rewarded with additional discounts when a certain sales amount on an order is reached."

Unit Price

Not a separate setup type in this context; it's the actual price per item on a line. For structured price/discount management, Sales Prices and Discounts are used.

Microsoft Learn References:

Set Up Sales Prices

Set Up Sales Line Discounts

Set Up Customer Invoice Discounts

In Dynamics 365 Business Central, every item must have a Base Unit of Measure. This is typically the smallest unit in which you transact or track inventory.

The requirement states the company “refers to the items as pieces,” so Pieces must be the base unit of measure.

A Box = 12 pieces, a Pallet = 144 pieces.

When creating item units of measure, you set Quantity per Unit of Measure relative to the base unit.

Base Unit: Piece (Qty. per Unit = 1)

Box: Qty. per Unit = 12

Pallet: Qty. per Unit = 144

This way, Business Central can automatically convert quantities when selling in boxes, pallets, or pieces.

Why not others?

A: Incorrect → Box cannot be the base if pieces are the standard reference.

B: Incorrect → Pallet as base unit with pieces as 0.0069 is not practical and makes transactions confusing.

D: Incorrect → Pallet as base unit with Box as fraction (0.08333) again introduces complexity.

The Microsoft Power Platform extends the capabilities of Dynamics 365 Business Central by adding automation, analytics, and low-code apps. Here’s how the requirements align:

Real-time financial reporting → Power BI

Power BI integrates directly with Business Central using OData feeds and APIs.

Provides dashboards and real-time reports for financial data (sales, budgets, cash flow, etc.).

Automated customer onboarding → Power Apps

Power Apps can create custom apps and forms for entering customer data, which integrate back into Business Central.

Example: A sales rep uses a mobile app to collect customer details → syncs automatically into BC.

Automated invoice approval workflow → Power Automate

Power Automate connects BC with approval workflows (e.g., invoice > $10,000 must go to Finance Manager for approval).

Automates notifications and approval tasks.

Integrated item scanning capabilities → Power Apps

Power Apps allows building mobile apps with barcode/QR scanning capabilities.

Warehouse staff can use phones or tablets to scan items, which update BC inventory in real time.

Other tool (OneDrive): Not relevant in this scenario—it’s for file storage, not automation, reporting, or scanning.

Microsoft Learn References

Integrating Business Central with Power BI

Power Automate and Business Central

Power Apps Integration with Business Central

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 company uses Average Costing and Inventory Periods.

Inventory for July is closed, and Allow Posting From is set to August 1, 2020.

A freight invoice posted on August 8, 2020 relates to a purchase receipt dated July 15, 2020.

When you run Adjust Cost – Item Entries, the system must post the adjustment, but it cannot post in July (the period is closed).

Instead, Business Central posts the adjustment on the earliest allowed posting date → August 1, 2020.

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

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.

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

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.

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

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 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 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

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

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

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

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

Query successful

Based on the image, the correct sequence of actions to configure a purchase order process is:

Add a vendor

Add a Purchaser Code

Add Items, including Quantity, to the lines

Change the Purchase Order to a Status of Released

This sequence follows the logical flow of creating and finalizing a purchase order for an audit trail:

Add a vendor: A purchase order must be linked to a specific supplier (vendor).

Add a Purchaser Code: This identifies who is creating the order, which is crucial for accountability and audit purposes.

Add Items, including Quantity, to the lines: You must specify what is being purchased and in what quantity.

Change the Purchase Order to a Status of Released: Releasing the purchase order locks it from further changes and makes it ready for processing, fulfilling the auditor's requirement for a finalized, traceable document.

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 %.