MB-800 Microsoft Dynamics 365 Business Central Functional Consultant Free Practice Exam Questions (2025 Updated)

In Dynamics 365 Business Central, to control which printer is used for specific reports/documents for specific users, you configure the Printer Selections page. This page allows you to set up combinations of User ID + Report ID + Printer Name, ensuring that when a report like a Purchase Order is printed, it automatically routes to the defined printer (in this case, a cloud-based printer).

Printer Management is where printers themselves are registered and managed, not where you assign them to reports or users.

Report Layout Selection is used to assign different layouts (Word, RDLC, Custom) to reports, not printers.

Report Selection – Purchase is used to select which report IDs are used for purchase processes (e.g., PO, confirmation, receipt), but not to assign printers.

Document Sending Profiles control how documents are sent to customers/vendors (email, print, electronic), but not user-specific printer assignments.

Thus, the correct configuration is done on Printer Selections.

When configuring a journal template in Dynamics 365 Business Central, different fields in the template enforce specific behaviors on journal entries:

Force Doc. BalanceEnsures that journal lines balance by document number and type. If they don’t balance, the system will not allow posting.

Bal. Account Type and Bal. Account No.Allows you to specify a default balancing account. Whenever a journal entry is created, the system automatically balances it against this defined account.

Source CodeIdentifies the origin of the entry (such as sales, purchases, cash receipts). This supports the audit trail and reporting requirements by showing where the entry came from.

Reason CodeRecords the reason why a journal entry was created, allowing better documentation and traceability. This is especially important for audit trail purposes.

The Adjust Cost – Item Entries batch job in Business Central is crucial for ensuring correct inventory costing and updating the General Ledger. Its primary functions are:

C. Calculate the correct cost of the sale of an item, according to an item's costing methodEnsures that sales are costed correctly, whether using FIFO, Average, Standard, etc.

D. Update the cost of goods sold (COGS) for historic sales entriesAdjusts historic sales when purchase costs change (e.g., late invoices, discounts, freight).

A. Establish the earliest possible posting date for the Post Inventory to G/L processThe adjust cost process ensures postings align with allowed posting ranges and calculates proper posting dates.

Not correct:

B. Adjust the item quantity → Quantities are not adjusted by this batch job, only costs.

E. Adjust the item tracking → Tracking is not impacted; tracking is handled during transactions, not cost adjustments.

In Dynamics 365 Business Central, vendor payments can be automatically suggested in the Payment Journal based on open vendor ledger entries (posted purchase invoices, credit memos, etc.).

Steps:

Navigate to Payment Journals

Go to Cash Management → Payment Journal. This is the dedicated journal for processing vendor payments.

On the Prepare tab, select Suggest Vendor Payments

This function automatically pulls in open vendor invoices that are due, according to vendor terms and due dates.

On the Options page, enter the posting date and enable Summarize per Vendor

The posting date ensures all payments are created for the correct accounting period.

Enabling Summarize per Vendor ensures that multiple invoices for the same vendor are grouped into one payment line. This matches the requirement to "summarize based on the vendor invoices."

(Optional) After this process, you can review, apply entries, and then post the journal or print remittance advice.

Other options in the list:

General Journals → not the right journal for vendor payments (Payment Journal is correct).

Support Employee Payments → used for employee ledger entries, not vendors.

Print Remittance Advice → occurs after posting, not part of setup/configuration.

Microsoft Learn References

Suggest Vendor Payments

Work with Payment Journals

To manage multiple purchase prices for the same item depending on the vendor, you can configure:

Item Card (B): At the item level, you can define vendor-specific purchase prices and assign conditions such as starting date, minimum quantity, currency, etc.

Vendor Card (E): Vendor-specific purchase prices can also be linked, enabling the system to pull correct pricing when creating purchase orders.

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

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

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 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

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.

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 %.

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.

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

Comprehensive Detailed Explanation

Deliver on a specific customer date

Salespeople must avoid promising inventory that is not available.

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

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

Other options are less accurate:

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

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

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

Correct: View the Item Availability by Periods

Process quotes

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

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

Other options:

Make Invoice → bypasses order process, not applicable here.

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

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

Correct: Choose Make Order

Microsoft Learn References

Check Item Availability

Convert Sales Quotes to Orders

Comprehensive Detailed Explanation

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

In Business Central:

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

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

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

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

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

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

Why the other options are incorrect:

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

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

Microsoft Learn References

Work with Units of Measure

Set Up Item Units of Measure

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

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

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

Other options:

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

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

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

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

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.