The Microsoft Dynamics 365 Business Central Functional Consultant (MB-800)

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

The requirement is: “Customer pricing is determined by the customer market type (Retail, Veterinarian, Breeder). Each customer is associated with only one market type.”

A. Assign the Customer Price Group code on the customer card → Correct, because each customer must be tied to its market type via a Customer Price Group.

C. Create a Sales Price List by using the assign-to type of Customer Price Group → Correct, because pricing and discounts should be managed at the group level, not per individual customer, ensuring easier maintenance.

E. Create Customer Price Groups that allow line discounts → Correct, because discounts are offered by item, brand, or product category, and must flow to sales lines automatically.

Incorrect options:

B. Exclude line discounts → Opposite of requirements.

D. Create a Sales Price List for the customer → Not scalable; must be done by group, not individual customer.

Correct answers: A, C, E

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

In Dynamics 365 Business Central, when using Approval User Setup with Approver Chain as the limit type:

Each approver has a defined Approval Limit (the maximum amount they can approve).

If a document exceeds the requester’s approval limit, the workflow escalates through the Approver Chain until a user with sufficient limit is found.

The workflow continues until the purchase order reaches an approver with authority greater than or equal to the document amount.

For this question:

User1 creates a purchase order for $1,100.

Since the order is above User1’s limit, it escalates to User2.

If User2’s limit is not sufficient to fully approve $1,100, it then escalates to User3, who has a higher approval limit.

The workflow only releases the purchase order once all required approvers (User2 and User3 in this case) approve it.

Therefore, the correct chain of events is:

User2 receives the approval request first.

After User2 approves, it is routed to User3.

Once both User2 and User3 approve, the purchase order is released.

Microsoft Learn References:

Set up approval users and approval chains

Use approval workflows in Business Central

In Dynamics 365 Business Central, the General Ledger Setup page controls how amounts are displayed and rounded.

Amount Decimal Places specifies how many decimal places will be displayed for all monetary amounts in local and foreign currencies.

A value of 3:3 means exactly 3 decimals will always be shown.

This directly matches the requirement: " Monetary amounts for local currency must always display three decimal places. "

Unit-Amount Decimal Places controls the decimals for unit costs or prices on items, not for general monetary amounts.

Inv. Rounding Precision sets the rounding for invoice totals, not for displaying all local currency amounts.

Unit-Amount Rounding Precision applies to rounding of item unit costs/amounts.

Amount Rounding Precision determines how monetary amounts are rounded during posting (for example, rounding to 0.01 or 0.001), but does not control how they are displayed.

Therefore, the correct configuration is to set Amount Decimal Places = 3:3 in General Ledger Setup.

Explanation

The Report Selection - Purchase page is used to define which report layout to use when printing purchase documents (orders, invoices, credit memos).

It does not affect the document line defaults such as automatically setting the Type field.

Thus, this solution also does not meet the requirement.

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.

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.

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.