MB-800: Microsoft Dynamics 365 Business Central Functional Consultant

Question #: 44
Topic #: 2
Case study –

This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.

To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.

At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.

To start the case study –
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.

Background –

Northwind Traders is an independent, family-owned business. The company distributes natural pet products in the Northwest region of the country/region. Products are purchased directly from manufacturers and distributed by using its own fleet of trucks.

When the company started, deliveries were within a three-hour radius of the warehouse. Due to regional growth, current deliveries require drivers to stay overnight on some routes. The company plans to open a second warehouse to expand the region and eliminate overnights for route drivers. The company also plans to hire a second group of employees to run operations in this new location. The finance and accounting teams will remain in the original location.

The company uses a third-party system for financials and order management. The finance department stated that the company’s fiscal year begins on July 1 and ends on June 30. The mm/dd/yyyy date format is used.

As part of the expansion, the owner plans to upgrade to an ERP system and use Business Central to fulfill the company requirements and manage growth.

Current environment –

Orders –
• Orders are emailed to customer service and manually keyed into the inventory system.

Pricing and discounts –
• Customer pricing is determined by the customer market type. Customer market types are Retail, Veterinarian, and Breeder. Each customer is associated with only one market type.
• Vendors offer monthly promotions to customers by item, brand, or item category.
• Invoices should show each customer’s base price, the discount amount, and the net price.

Accounts payable –
• The company wants to expand vendor payment options in the new system.

Requirement –

Customers –
• The sales team must be able to do the following:
o Quickly set up new customers with the proper settings based on customer type. o Identify customers by market type. Customer posting groups will be used to identify which market the customer belongs to.
• Base price is determined by the customer market type.
• The sales department should receive a warning when entering the order if a customer is over their credit limit.

Sales –
• Customer discounts are offered for specific time frames by item, brand, or product category. Discounts should be added to sales lines automatically.
• Discounts must post to a unique general ledger (G/L) account.
• The business needs to be able to track revenue by location, market, and product category dimensions. Locations 100 and 200 will be set as default dimensions on the two warehouse locations. Food, treats, toys, and supplies are the required product categories, which will be set as default dimensions on the item cards. Each customer card will have a default market dimension.
• The sales manager wants to delete canceled orders and automatically archive them.

Warehouse –
• Orders will be fulfilled from two possible warehouse locations.
• Product will be transferred between locations by using transfer orders.

Sales invoices –
• Invoices will be posted after delivery.
• Invoices will be emailed to the customer.
• The sales department must be able to quickly correct posted invoices for the following scenarios: o Posted invoices that have not been paid. o Posted invoices that have been paid. o Posted invoices created from sales orders. o Posted invoices not created from sales orders.

Accounting –
• The finance department requires that the company has 12 monthly accounting periods per fiscal year.
• Finance department users must be able to reconcile the accounts receivable (AR) subledger to the G/L account at month end.
• AR department users need the ability to settle and close invoices when customers take payment discounts after the payment discount date has passed. AR users should be allowed to accept or reject the payment tolerance.
• Accounts payable (AP) department users must be able to pay vendors by electronic funds transfer (EFT) and use a payment journal batch named EFT to process payments.
• 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.
• The company needs to be able to track expenses by department and location. The departments are sales, operations, and administration.
• AR must be able to correct cash application entries.

Issues –

Payment application –
• Customers may have several stores that are responsible for their own orders and payments.
• Occasionally, AR clerks mistakenly apply payments to the incorrect customer invoice.

Invoicing –
• When items are delivered, customers refuse the items for reasons such as damaged or wrong item.
• After the invoices are posted, they must be corrected, which is time-consuming.

Warehouse –
• The sales department and warehouse managers must have visibility into products that are in the process of being transferred between locations.

Accounts –
• Customer accounts are difficult to view by market type.
• The finance team does not have the ability to report revenue by customer type.

Accounting –
• AR users often find variances between the AR subledger and G/L account.
• Customers often take the payment discount after the payment discount date has passed, leaving open invoices for small amounts.
• The AP department is unable to pay vendors by EFT in the current system.
• Finance and accounting team members have trouble validating postings when they use only the amounts field on G/L entries.
• The finance department is unable to run financial reports by market. All revenue postings must reference a market.

You need to resolve the issue reported by the AR users from the finance department.

What should you do?

A. Switch Blocked on the Customer Card to Yes.
B. Switch Direct Posting on the G/L Account Card to No.
C. Switch Blocked on the G/L Account Card to Yes.
D. Switch Direct Posting on the G/L Account Card to Yes.

Selected Answer: B

Question #: 1
Topic #: 10
You need to set up units of measure for an item to meet the requirements.
What are two possible ways to achieve the goal? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. Set a Unit of Measure for case to a Qty. of 10.
B. Set a Qty. per Unit of Measure to 1 in the Item Units of Measure table.
C. Set a Unit of Measure for case to a Qty. of 1.
D. Add a Code and Description to the Units of Measure table.

Selected Answer: AD

Question #: 54
Topic #: 1
You are configuring Dynamics 365 Business Central security settings.

You assign the following permission sets to a user:

You need to determine how the system handles the user’s permissions.

What is the outcome of the user permission configuration?

A. The Yes option will allow a user to create a new customer.
B. The permission set order will allow a user to create a new customer.
C. The Blank option will allow a user to create a new customer.

Selected Answer: A

Question #: 7
Topic #: 1
A company uses Dynamics 365 Business Central.
The company wants to print financial statements by using a cloud-based printer.
You need to recommend the type of printer the customer should install.
Which type of printer should you recommend?

A. Email
B. System
C. Client default
D. Server default

Selected Answer: A

Question #: 4
Topic #: 2
A company purchases items by using cash. You register a vendor payment when you a post a purchase invoice for a cash vendor.
You are creating a new cash vendor. No prior vendors have been set up as cash vendors.
You need to set up the vendor so that payments post automatically when you post a purchase invoice.
Which type of setup should you use?

A. Payment Method as Cash
B. Payment Term as COD
C. Payment Method as Cash with balancing account
D. Prepayment

Selected Answer: C

Question #: 18
Topic #: 1
A company uses Dynamics 365 Business Central to record payments for vendors. All payment records include similar data elements.
You are onboarding a new vendor. You must create a unique number series for payments from the vendor. No other vendors will use the new number series.
You need to configure the system.
What should you use?

A. Vendors
B. General Journals
C. General Journal template
D. Payment journals
E. Workflow

Selected Answer: C

Question #: 26
Topic #: 1
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You are configuring default reports and layouts in Dynamics 365 Business Central.
You must add new data items to the report and change the layout associated with the default Purchase Order report.
A developer creates and deploys a new report object that includes the new data items and layout.
You need to configure Business Central to use the new report object as the system default when printing purchase orders.
Solution: On the Report Selection `” Service page, set the value of the Usage option to Order. Update the Report ID shown on the page to reflect the new report object.
Does the solution meet the goal?

A. Yes
B. No

Selected Answer: B

Question #: 16
Topic #: 4
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You are implementing Dynamics 365 Business Central for a company. The company provides subscription services to their customers. The subscription invoices are almost identical each month.
The company wants to set up recurring sales lines for subscription invoices.
You need to create systems for creating subscription invoices.
Solution: Create a sales quote for each customer. Add the sales lines to the quote. Then, use the Copy Document feature to create a new invoice.
Does the solution meet the goal?

A. Yes
B. No

Selected Answer: B

Question #: 11
Topic #: 3
You are implementing Dynamics 365 Business Central Online.
You receive a comprehensive price list from the customer. The customer wants you to set up the best price feature for sales by using the standard discount and pricing functionality in Business Central.
You need to set up this feature.
Which three components are part of the best price calculation feature? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. Unit cost on items
B. Sales Line Discounts
C. Vendor Discount Groups
D. Special Prices
E. Unit prices on items

Selected Answer: BDE

Question #: 20
Topic #: 2
A company plans to verify that purchase invoices use agreed-upon prices and discounts.
The company is configuring settings on a vendor card. The company receives a validation error when creating a purchase order for the vendor.
You need to find out which setting is causing the validation error.
Which configuration option on the vendor card must you populate?

A. Order address
B. Location code
C. Vendor Template
D. Purchase Prices
E. Vendor Posting Group

Selected Answer: E

Question #: 3
Topic #: 2
You are creating payment terms.
A company processes standard vendor payments on the seventh day of the next month.
You need to set up payment terms for the vendor.
Which date formula should you use?

A. 37D
B. 1M+7D
C. 1M+6D
D. CM+7D

Selected Answer: D

Question #: 6
Topic #: 3
You are implementing Dynamics 365 Business Central for a customer who has two warehouses.
The customer requires the following:
✑ different item pricing and vendors set up for items in each warehouse
✑ transactions tied to a specific location
You need to configure Business Central per the customer requirements.
Which three entities should you configure? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Inventory setup
B. Warehouse setup
C. Stockkeeping units
D. Item card
E. Locations

Selected Answer: CDE

Question #: 3
Topic #: 3
A company uses Dynamics 365 Business Central. The company has three sites.
The company needs to track inventory separately for each site.
You need to configure the system to meet this requirement.
What should you configure?

A. Warehouse
B. In-Transit location
C. Location
D. Responsibility center

Selected Answer: C

Question #: 13
Topic #: 1
A customer has premium licenses for Dynamics 365 Business Central.
You need to make all actions and fields for the Manufacturing and Service modules available to users.
What should you do?

A. Assign users to the D365 BUS FULL ACCESS user group.
B. Select the Premium option in the Experience field on the Company Information page.
C. Assign SUPER permission sets to users.
D. Assign users to the D365 BUS PREMIUM user group.
E. Select the Custom option for the Company Badge field on the Company Information page.

Selected Answer: B

Question #: 41
Topic #: 2
A company uses Dynamics 365 Business Central. The company has a customer that will also be a vendor for the company in the next financial year.

The company plans to consolidate the customer and vendor balances to reduce unnecessary payments on receipts and reduce the amount of transaction fees.

You need to configure the contact card.

Which option should you configure first?

A. Create as Employee
B. Create as Customer
C. Create as Bank
D. Create as Vendor

Selected Answer: D

Question #: 14
Topic #: 2
A company is implementing Dynamics 365 Business Central.
The company needs to post monthly general journal batches for purchase expenses incurred throughout the month. The posted entries must have unique, incremental document numbers. The numbers must increment by one and be sequential.
You need to configure the system to meet the requirements.
Which three actions should you perform in sequence? Each correct answer presents part of the solution.

A. Create a Template Batch with Posting No. Series.
B. Create the No. Series.
C. Configure a General Journal with Purchase Reason Code.
D. Configure a General Journal Template with Purchase Type.
E. Create a Template Batch with No. Series.

Selected Answer: ABD

Question #: 1
Topic #: 3
A company records vendor-wise item descriptions.
You need to set up vendor-specific descriptions for items.
What should you set up?

A. Item variants
B. Substitutions
C. Item cross-references
D. Extended text

Selected Answer: C

Question #: 36
Topic #: 3
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

You must streamline monthly invoicing by automating repetitive entries for monthly charges when managing subscriptions.

You need to add default general ledger (GL) accounts to a Customer Card.

Solution: Configure the Standard Sales Lines Card and assign it to the Customer Card.

Does the solution meet the goal?

A. Yes
B. No

Selected Answer: D

Question #: 33
Topic #: 3
A global trading company maintains records of customer information in Business Central. The company frequently conducts international trade and works with customers who operate in different currencies.

You need to configure the system to invoice customers who use foreign currency.

Which two areas should you configure? Each correct answer presents a complete solution.

NOTE: Each correct selection is worth one point.

A. Customer Card
B. Sales Invoice
C. Vendor Card
D. Adjust Exchange Rates

Selected Answer: AD

Question #: 20
Topic #: 1
You are implementing Dynamics 365 Business Central. You create a role center page for all users.
Users must not be allowed to personalize the page.
You need to configure the system.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. On the Profiles (Role) page, select the profile and select the User as the default profile option.
B. On the User card, set the status to Disabled.
C. On the Profiles (Role) page, select the profile and select the Show in Role Explorer column.
D. On the Profiles (Role) page, select Enable the profile. Disable all other profiles.
E. On the Profiles (Role) page, select the profile and select the Disable Personalization option.

Selected Answer: ACE

Question #: 32
Topic #: 3
You are setting up a new company for a customer.

The customer wants to sell items in D, but refer to the items as pieces. Each box contains 12 pieces. Each pallet contains 144 pieces.

You need to assign the unit of measures to items.

How should you assign the unit of measures?

A. Create Box as a base unit of measure. Add Pieces as an item unit of measure with the quantity per unit set to 0.08333.
B. Create Pieces as an item unit of measure with a quantity per unit of measure set to 1.
C. Create Pieces as a base unit of measure. Add Box as an item unit of measure with the quantity per unit set to 12.
D. Create Pallet as a base unit of measure. Add Pallet as an item unit of measure with the quantity per unit set to 12.

Selected Answer: C

Question #: 35
Topic #: 4
A company uses Dynamics 365 Business Central.

An accountant posts bank entries at month end. The accountant must manually reconcile customer and vendor payment entries.

You need to reconcile the entries.

Which two pages should you use? Each correct answer presents part of the solution.

NOTE: Each correct selection is worth one point.

A. Check Ledger Entries
B. Vendor Ledger Entries
C. Customer Ledger Entries
D. Bank Account Ledger Entries

Selected Answer: BC

Question #: 25
Topic #: 2
A company uses Dynamics 365 Business Central.
Which field is used to calculate the Due Date based on the Payment Terms?

A. Order Date
B. Due Date
C. Posting Date
D. Document Date

Selected Answer: D

Question #: 1
Topic #: 7
You need to configure sales for the cash and carry desk.
What should you select?

A. Payment Service
B. Direct Debit Mandate with a value of OneOff for Type of Payment
C. Payment Method with a value of Bank Account for Balance Account
D. Payment Terms with a value of 0D for Due Date Calculation

Selected Answer: D

Question #: 6
Topic #: 4
You need to configure Dynamics 365 Business Central to allow for receipt of quantities of items greater than the quantity ordered.
What are two possible ways to achieve the goal? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. Configure a maximum order quantity for the item
B. Configure a maximum inventory level for the item
C. Set up and select an over-receipt code in the item record
D. Set up and select an over-receipt code in the vendor record

Selected Answer: CD

Question #: 2
Topic #: 9
A customer in the restaurant buying group purchases olive oil on the date of the overstock special.
You need to verify the sales price of the product for the customer.
Which price will the system generate?

A. $15.30
B. $16.15
C. $17.00
D. $18.00

Selected Answer: C

Question #: 6
Topic #: 2
Monetary amounts for local currency must always display three decimal places.
In General Ledger Setup, you need to configure the appropriate setup field with the appropriate value.
What should you do?

A. Set the value of Amount Decimal Places to 3:3
B. Set the value of Unit-Amount Decimal Places to 3:3
C. Set the value of Inv. Rounding Precision to 0.001
D. Set the value of Unit-Amount Rounding Precision to 0.001
E. Set the value of Amount Rounding Precision to 0.001

Selected Answer: A

Question #: 34
Topic #: 4
You are using the Suggest Vendor Payments batch job to create payment lines for vendors.
You have a vendor invoice. The payment date must be two days before the invoice due date.
You need to pay the purchase invoice.
Which two fields should you configure? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Find Payment Discounts
B. Calculate Posting Date from Applies-to-Doc Due Date
C. Applies-to-Doc Due Date Offset
D. Summarize per Vendor

Selected Answer: C

Question #: 10
Topic #: 4
A user reports that they cannot create or view sales quotes in Dynamics 365 Business Central.
You need to help the user create and view sales quotes.
From which three cards can the user perform the required activities? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. Service Item
B. Opportunity
C. Job
D. Resource
E. Customer
F. Contact

Selected Answer: BEF

Question #: 9
Topic #: 3
You are implementing Dynamics 365 Business Central for a customer.
The customer wants to manually add many similar items.
You need to help the customer create copies of existing items.
Which three actions must be performed? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. On the Set up Customer/Vendor/Item Templates page, create a new item template
B. Open an existing item, and then click the Save as Template action on the item card
C. On the Set Up Customer/Vendor/Item Templates page, edit the information in the newly created item template
D. On the Configuration Templates page, create a new template for item table
E. Create a new item, and then select the new template name to copy the information to the item

Selected Answer: BCE