Free Microsoft MB-800 Practice Exam with Questions & Answers | Set: 2

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 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

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

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:

The scenario:

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

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

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

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

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

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

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

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

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

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

Why not the others:

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

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

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

Microsoft Learn References

About Item Types in Business Central

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