MB-800 Microsoft Dynamics 365 Business Central Functional Consultant Free Practice Exam Questions (2026 Updated)

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Sales Invoice Correction

Based on the scenarios, here is the correct action for each:

Scenario 1: Use this action when the posted invoice has not been paid and the original invoice was posted from a sales order.

Action: Correct

The Correct action is specifically designed for this scenario. It automatically creates a new sales order, reverses the original posted invoice, and copies the original lines to the new order. The new sales order is then ready for editing, allowing you to make corrections and post it again.

Scenario 2: Use this action when the posted invoice has not been paid and the original invoice was not posted from a sales order.

Action: Cancel

The Cancel action is used when the invoice wasn ' t created from a sales order. It creates a credit memo to fully reverse the posted invoice. This effectively cancels the invoice without needing to go through a new sales order process, as no original sales order exists.

Scenario 3: Use this action when the posted invoice has been paid and warehouse documents are not required.

Action: Create corrective credit memo

The Create corrective credit memo action is the appropriate choice when the invoice has already been paid. Since the payment has been applied, you can ' t simply " correct " or " cancel " the invoice directly. Instead, you create a credit memo that can then be applied against the payment, effectively reversing the transaction. This action is also used when warehouse documents are not necessary, as a separate sales return order with warehouse processes is not required.

The 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

When posting a partial shipment in Microsoft Dynamics 365 Business Central, you must adjust the " Qty. to Ship " field on the sales order line before posting. Here’s why the sequence is correct:

Select the sales order

You must open the correct sales order that you want to process.

Set the Qty. To Ship to 50

Since the sales order originally has a quantity of 100, and only 50 should be shipped now, you must update the " Qty. to Ship " field to 50. This allows partial shipment.

Choose the Ship option

This tells the system that you are performing a shipment action (not invoicing yet).

Select the Post action

Finally, post the shipment so the 50 units are shipped, and the remaining 50 stay open on the sales order for future fulfillment.

Why not the other actions:

Set the Quantity to 50 → Incorrect field; must use Qty. to Ship for partial shipment.

Select the Post Batch option → Used for batch posting, not relevant for a single manual shipment.

Select Ship and Invoice → Would post both shipment and invoice at the same time; requirement was to post shipment only.

Microsoft Learn References

Post Sales Shipments

Partial Shipments and Invoicing

The requirement is: “You need to configure retail store customer cards to track revenue by market.”

In Business Central, to track revenue by customer market (Retail, Veterinarian, Breeder), you configure default dimensions on the Customer Card.

Assign the dimension code → Market

The business wants to analyze revenue by Market (Retail, Veterinarian, Breeder).

Therefore, the dimension code must be Market.

Assign the dimension value code → Retail

For this specific setup, the customer is a retail store, so the dimension value must be Retail.

Select a value posting → Same code

To ensure that every posting for this customer always carries the same dimension value, use Same Code.

Other options:

Blank = no default dimension.

No code = optional dimension.

Code mandatory = requires entry but allows flexibility in values.

Since we want strict tracking by a fixed market (Retail), Same code is correct.

This ensures that every transaction posted for the customer will always have Market = Retail, enabling accurate revenue tracking.

Microsoft Learn references:

Work with Dimensions

Set Up Default Dimensions

Dimension Value Posting Options

The 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

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.

In Dynamics 365 Business Central, inventory posting involves multiple layers of data, starting with the master record and flowing into transactional details. The hierarchy is as follows:

Items (Master Data)

The Item Card defines the master information (item number, description, posting groups, costing method, etc.).

Item Ledger Entries (Transactions)

Every transaction (purchase receipt, sale, adjustment, transfer, etc.) creates an Item Ledger Entry (ILE).

The ILE tracks quantity-related information such as increases and decreases in stock, location, and posting date.

Value Entries (Costs/Values)

For each Item Ledger Entry, one or more Value Entries are created to record the financial value (cost, price, adjustments, etc.).

Value Entries ensure the link between physical inventory movements and financial postings.

Why not others?

Stockkeeping Units (SKUs): Used for location/variant-specific settings, but not mandatory for basic inventory posting.

Warehouse Entries: Created only when warehouse functionality (directed pick/put-away, warehouse receipts/shipments) is enabled, not part of the basic posting structure.

Microsoft Learn References:

Design Details: Item Ledger Entries and Value Entries

Work with Items

 Currency Code → USD

 Last Statement No. → 9075

Comprehensive Detailed Explanation

You are setting up a bank account in Dynamics 365 Business Central. The requirements are:

Use US dollars

The company’s local currency code (LCY) is US dollars ($).

On the Bank Account Card, the Currency Code must be set to USD (not < blank > or $).

< blank > means it uses LCY without explicitly specifying the currency, but since the requirement states " use US dollars, " the correct explicit setup is USD.

Next statement number should be 9075

The Last Statement No. field on the Bank Account Card should be set to 9075, which will ensure the next bank reconciliation statement starts from this number.

Why not the other options?

Currency Code = < blank > would default to LCY, but requirement explicitly says " use US dollars, " so USD is correct.

Currency Code = $ is incorrect because $ is a currency symbol, not a valid currency code in Business Central.

Last Statement No. = 9074 would make the next reconciliation 9075, but since requirement says " use 9075 as the next bank account statement, " we must set 9075 directly.

Microsoft Learn References:

Set Up Bank Accounts in Business Central

Currencies in Business Central

Business Central Functional Consultant at end of each question below

The requirement is:

Purchasing agents must create and post purchase documents (which requires permissions to vendors, purchase headers/lines, posting routines).

They must be restricted from viewing General Ledger (G/L) balances and amounts.

They must still be able to select G/L accounts when coding purchase lines.

In Business Central, this scenario is solved by using Permission Sets with Security Filters:

Assign a Permission Set to the User

The purchasing agent must first be assigned a permission set (e.g., PURCHASER, or a custom one cloned from SUPER with reduced rights).

This ensures they have access to vendors, purchases, and posting processes.

Select the Permission Set to Modify

You then open the permission set (or copy/create a new one for Purchasing Agents).

Modify it to apply restrictions specifically for the G/L Account table.

Apply Security Filters on the G/L Account Table

Locate the G/L Account table within the permission set.

In the Security Filter column, choose the field Income/Balance.

Set the Filter Value to Income only (or exclude Balance).

Alternatively, set the filter on Direct Posting = Yes, ensuring they can pick accounts but not see balances.

This filter prevents access to balance-related fields, effectively hiding financial values from the user while allowing them to still select G/L codes for posting.

Thus, the correct sequence to meet the requirements is:

Assign a permission set to a user

Select the permissions set you want to modify

In the row for G/L account table, select the Security Filter column

In the Field Filter column, set the value to hide balances

Microsoft Learn References

Security Filters (how to restrict data visibility by table fields): https://learn.microsoft.com/en-us/dynamics365/business-central/dev-itpro/security/security-filters

Assign Permission Sets to Users: https://learn.microsoft.com/en-us/dynamics365/business-central/ui-define-granular-permissions

Create and Modify Permission Sets: https://learn.microsoft.com/en-us/dynamics365/business-central/dev-itpro/security/how-to-create-permission-sets

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

In Dynamics 365 Business Central, deletion of general ledger (G/L) accounts is restricted if the Check G/L Account Usage field is enabled in General Ledger Setup. This setting ensures data integrity by preventing the removal of accounts that are actively referenced in posting groups, posting setups, or transactions.

Requirements for deletion:

The G/L account must not be used in posting groups (such as customer, vendor, bank, or inventory posting groups).

The G/L account must not be used in posting setup tables (like VAT posting setup or general posting setup).

The account must not have existing ledger entries.

Why not the others:

B. The fiscal year needs to be closed: Not a requirement for deleting an account.

C. The G/L account must be Balance Sheet type: Deletions are not restricted by account type.

D. Allowing deletion is not a field option on the account card.

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.

In Dynamics 365 Business Central, posting groups automatically direct entries to the appropriate general ledger accounts based on transaction type.

Customer Posting Groups

Define how customer transactions are posted to the general ledger.

They handle accounts such as receivables and also manage payment differences (e.g., rounding or short payments).

Correct for: Automatic posting of received payment differences.

Vendor Posting Groups

Define how vendor transactions are posted.

They specify the payables account in the G/L where vendor balances are tracked.

Correct for: Automatic posting to the payables account.

Inventory Posting Groups and Inventory Posting Setup

Define how inventory transactions post to G/L accounts.

They also control postings to work in progress (WIP) accounts, including location-specific accounts.

Correct for: Automatic posting to different work in progress balance accounts, depending on the location.

Why not the others:

Bank Account Posting Groups → Define which G/L accounts are linked to bank accounts, not payment differences, payables, or WIP.

General Posting Setup → Determines revenue, COGS, and VAT accounts based on business/product posting groups, not the specific actions in this scenario.

In Dynamics 365 Business Central, if you want to track inventory separately across different sites/branches/warehouses, you must set up Locations. Each location represents a physical site where inventory is stored and can be managed separately.

Warehouse (A): Refers to advanced warehouse functionality inside a location (bins, picks, put-aways).

In-Transit location (B): Used for transfer shipments, not for permanent site tracking.

Responsibility center (D): Used for reporting/management responsibility, not for inventory tracking.