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.
A company uses Dynamics 365 Business Central. The company works with physical goods.
The system must automatically populate the Type field on the document line when a user creates a purchase order.
You need to configure the system.
Solution: On the Purchases & Payables Setup page, set the default document line type to Item.
Does the solution meet the goal?
A. Yes
B. No
Show Answer
Correct Answer: A
Explanation: Business Central includes a Default Document Line Type setting in Purchases & Payables Setup. Setting it to Item causes new purchase document lines to default the Type field to Item, which meets the requirement to automatically populate the Type field for purchase orders.
Sources:
https://www.coursehero.com/file/p68s38ce/Question-15-Note-This-question-is-part-of-a-series-of-questions-that-present-the
Question 43
You are setting up Business Central for a company.
The accounting manager requires the following setup for posted transactions:
• The use of locations must be mandatory for all users
• Bins must be set up as mandatory for each location.
You need to configure the system to meet the requirements.
Which two pages should you use? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Inventory Setup
B. Location Card
C. Inventory Posting Setup
D. Sales & Receivables Setup
E. Item Card
Show Answer
Correct Answer: A, B
Explanation: Use Inventory Setup to make Location Mandatory across inventory transactions. Use the Location Card to enable Bin Mandatory for each individual location, since bin usage is configured per location. Inventory Posting Setup, Sales & Receivables Setup, and Item Card do not control these mandatory location/bin requirements.
Question 44
DRAG DROP
-
A client uses Dynamics 365 Business Central.
The client must create a manufacturing company and a sales company in Business Central. Each company must be a separate legal entity.
The client must select a costing method to use.
You need to explain the effects of the different costing methods.
What should you describe for each costing method? To answer, move the appropriate effect to the correct costing method. You may use each effect once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Average → Use in businesses where product cost is unstable.
Specific → The unit cost of an item is the exact cost at which the particular unit was received.
Standard → The unit cost of an item is preset based on estimated costs.
Explanation: Average smooths fluctuating costs, Specific tracks the actual cost of each identified unit, and Standard uses predefined estimated costs with variances tracked separately.
Question 45
DRAG DROP
-
A manufacturer uses Dynamics 365 Business Central.
The company has the following item types:
• Raw Materials
• Work-in-progress (WIP)
• Finished Goods
Different prefixes are used for item numbers to identify these item types.
The company requires the following system setup:
• Use a unique number series for each item type.
• No. Series must be selectable when creating manual items.
• Implement automatic number assignment.
You need to configure the system.
In which order should you perform the actions? To answer, move all actions from the list of actions to the answer area and arrange them in the correct order.
NOTE: More than one order of answer choices is correct. You will receive credit for any of the correct orders you select.
Show Answer
Correct Answer: Create a number series.
Enable the ability to use default numbers.
Create relationships between the number series.
Set the default number series on the Inventory Setup page.
Explanation: First define the item number series. Then enable automatic default numbering on the series. Next relate the series so users can choose alternate item-type series during manual creation. Finally assign the default item number series in Inventory Setup.
Question 46
You are setting up a new company for a customer.
The customer wants to sell items in boxes and pallets, 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 Pallet as an item unit of measure with the quantity per unit set to 12.
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 Boxes as an item unit of measure with a quantity per unit of measure set to 1.
Show Answer
Correct Answer: C
Explanation: In Business Central, the base unit of measure should be the smallest inventory unit. Since items are referred to as pieces, the base unit should be Pieces. Then define larger units as item units of measure: Box with Qty. per Unit = 12 and Pallet with Qty. per Unit = 144. Option C correctly establishes Pieces as the base unit and Box as an item unit with quantity 12.
Question 47
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 the 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. When you are ready to answer a question, click the Question button to return to the question.
Background -
Fabrikam, Inc., is a manufacturer of products for the gift industry. The company plans to implement Business Central as its new enterprise resource planning (ERP) system.
The company sells to two types of customers: wholesale and retail. Retail customers order at special events and online. Wholesale customers send in orders by email.
Current Environment -
Order processing -
• The company uses a purchase order (PO) workflow for any PO over $500.
• The system has been fully configured for sales order prepayments and will check for a prepayment invoice at posting.
• Customers can special order products with a prepayment that is due on receipt.
Invoicing -
• Wholesale customer payment terms are net 30, with a 2% discount if paid within 10 days.
• Retail customer payment terms are payable on receipt or shipment.
Reporting -
• The company uses headcount (number of employees) and square footage for statistical accounts.
Integrations -
The company currently uses Outlook, Excel, Word, and Teams to communicate internally and externally with customers and vendors.
Requirements -
Order processing -
• The company must be able to combine multiple purchase receipts into one vendor invoice.
• Posted vendor invoices must be reverted when damages are reported or a product is returned to the vendor.
• Fully invoiced POs must not appear on the PO list page.
• Customer prepayments vary based on customer relationship. Special orders from new customers have a 25% prepayment. Established customers have only a 15% prepayment.
• The company must be able to approve POs by email without opening Business Central.
• Customers often reorder the same items with similar quantities. The system must be configured to ask the user if recurring lines should be added to sales orders.
Invoicing -
• Customer revenue must be posted to separate general ledger (G/L) accounts based on customer type. The G/L account must have subcategories for wholesale and retail revenue.
• Accounts receivable must be posted to separate G/L accounts based on customer type. The G/L account must have subcategories for wholesale and retail accounts receivable.
• Currently, inventory is sold at a cost based on purchase and sales over a period.
Reporting -
• Financial reports must include statistical accounts.
• The financial report structure must map to account categories.
Integrations -
The company requires the following integration capabilities:
• Create sales orders while collaborating with customers by email.
• Edit customer information while messaging the sales team in a group chat.
• Communicate a brochure to all customers at once about a sales campaign.
General ledger posting accounts -
The company requires the following G/L posting accounts:
• Retail Receivables = 13100
• Wholesale Receivables = 13200
• Payment Discount = 54800
• Retail Sales = 44100
• Wholesale Sales = 44200
• Sales Prepayments = 22160
Issues -
• Order entry takes too long for wholesale customers.
• Vendors ship partial orders but send one monthly invoice. The company is unable to associate one invoice with multiple POs in the current environment.
• Inventory reconciliation was difficult in the company's old system because it allowed users to sell more inventory than was physically available.
• Users must log in to the system to provide workflow approvals.
You need to train users on order processing requirements and how to process purchase invoices created from combined receipts.
Which two related processes should you include? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A. Create recurring purchase lines.
B. Delete POs that are fully invoiced.
C. Create a purchase credit memo.
D. Correct or cancel unpaid purchase invoices.
Show Answer
Correct Answer: C, D
Explanation: To process purchase invoices created from combined receipts, users should know how to reverse posted vendor invoices by creating a purchase credit memo when goods are returned or damaged, and how to correct or cancel unpaid purchase invoices when an invoice was posted in error. Recurring purchase lines are unrelated to combining receipts, and fully invoiced purchase orders can be hidden from the list through filtering/configuration rather than being deleted.
Question 48
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 the 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. When you are ready to answer a question, click the Question button to return to the question.
Background -
Fabrikam, Inc., is a manufacturer of products for the gift industry. The company plans to implement Business Central as its new enterprise resource planning (ERP) system.
The company sells to two types of customers: wholesale and retail. Retail customers order at special events and online. Wholesale customers send in orders by email.
Current Environment -
Order processing -
• The company uses a purchase order (PO) workflow for any PO over $500.
• The system has been fully configured for sales order prepayments and will check for a prepayment invoice at posting.
• Customers can special order products with a prepayment that is due on receipt.
Invoicing -
• Wholesale customer payment terms are net 30, with a 2% discount if paid within 10 days.
• Retail customer payment terms are payable on receipt or shipment.
Reporting -
• The company uses headcount (number of employees) and square footage for statistical accounts.
Integrations -
The company currently uses Outlook, Excel, Word, and Teams to communicate internally and externally with customers and vendors.
Requirements -
Order processing -
• The company must be able to combine multiple purchase receipts into one vendor invoice.
• Posted vendor invoices must be reverted when damages are reported or a product is returned to the vendor.
• Fully invoiced POs must not appear on the PO list page.
• Customer prepayments vary based on customer relationship. Special orders from new customers have a 25% prepayment. Established customers have only a 15% prepayment.
• The company must be able to approve POs by email without opening Business Central.
• Customers often reorder the same items with similar quantities. The system must be configured to ask the user if recurring lines should be added to sales orders.
Invoicing -
• Customer revenue must be posted to separate general ledger (G/L) accounts based on customer type. The G/L account must have subcategories for wholesale and retail revenue.
• Accounts receivable must be posted to separate G/L accounts based on customer type. The G/L account must have subcategories for wholesale and retail accounts receivable.
• Currently, inventory is sold at a cost based on purchase and sales over a period.
Reporting -
• Financial reports must include statistical accounts.
• The financial report structure must map to account categories.
Integrations -
The company requires the following integration capabilities:
• Create sales orders while collaborating with customers by email.
• Edit customer information while messaging the sales team in a group chat.
• Communicate a brochure to all customers at once about a sales campaign.
General ledger posting accounts -
The company requires the following G/L posting accounts:
• Retail Receivables = 13100
• Wholesale Receivables = 13200
• Payment Discount = 54800
• Retail Sales = 44100
• Wholesale Sales = 44200
• Sales Prepayments = 22160
Issues -
• Order entry takes too long for wholesale customers.
• Vendors ship partial orders but send one monthly invoice. The company is unable to associate one invoice with multiple POs in the current environment.
• Inventory reconciliation was difficult in the company's old system because it allowed users to sell more inventory than was physically available.
• Users must log in to the system to provide workflow approvals.
You need to configure posting groups to post revenue per invoicing requirements.
Which two groups should you use? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. bank account posting groups
B. general business posting groups
C. customer posting groups
D. general product posting groups
E. inventory posting groups
Show Answer
Correct Answer: B, C
Explanation: To post revenue by customer type, use General Business Posting Groups, which determine the sales G/L account in combination with the General Product Posting Group. Since the differentiation is based on customer type (retail vs. wholesale), the business posting group should vary by customer. To post accounts receivable to different G/L accounts by customer type, use Customer Posting Groups, which control the receivables account. Inventory posting groups and bank account posting groups are unrelated to this requirement.
Question 49
HOTSPOT
-
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 the 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. When you are ready to answer a question, click the Question button to return to the question.
Background
-
Fabrikam, Inc., is a manufacturer of products for the gift industry. The company plans to implement Business Central as its new enterprise resource planning (ERP) system.
The company sells to two types of customers: wholesale and retail. Retail customers order at special events and online. Wholesale customers send in orders by email.
Current Environment
-
Order processing
-
• The company uses a purchase order (PO) workflow for any PO over $500.
• The system has been fully configured for sales order prepayments and will check for a prepayment invoice at posting.
• Customers can special order products with a prepayment that is due on receipt.
Invoicing
-
• Wholesale customer payment terms are net 30, with a 2% discount if paid within 10 days.
• Retail customer payment terms are payable on receipt or shipment.
Reporting
-
• The company uses headcount (number of employees) and square footage for statistical accounts.
Integrations
-
The company currently uses Outlook, Excel, Word, and Teams to communicate internally and externally with customers and vendors.
Requirements
-
Order processing
-
• The company must be able to combine multiple purchase receipts into one vendor invoice.
• Posted vendor invoices must be reverted when damages are reported or a product is returned to the vendor.
• Fully invoiced POs must not appear on the PO list page.
• Customer prepayments vary based on customer relationship. Special orders from new customers have a 25% prepayment. Established customers have only a 15% prepayment.
• The company must be able to approve POs by email without opening Business Central.
• Customers often reorder the same items with similar quantities. The system must be configured to ask the user if recurring lines should be added to sales orders.
Invoicing
-
• Customer revenue must be posted to separate general ledger (G/L) accounts based on customer type. The G/L account must have subcategories for wholesale and retail revenue.
• Accounts receivable must be posted to separate G/L accounts based on customer type. The G/L account must have subcategories for wholesale and retail accounts receivable.
• Currently, inventory is sold at a cost based on purchase and sales over a period.
Reporting
-
• Financial reports must include statistical accounts.
• The financial report structure must map to account categories.
Integrations
-
The company requires the following integration capabilities:
• Create sales orders while collaborating with customers by email.
• Edit customer information while messaging the sales team in a group chat.
• Communicate a brochure to all customers at once about a sales campaign.
General ledger posting accounts
The company requires the following G/L posting accounts:
• Retail Receivables = 13100
• Wholesale Receivables = 13200
• Payment Discount = 54800
• Retail Sales = 44100
• Wholesale Sales = 44200
• Sales Prepayments = 22160
Issues
-
• Order entry takes too long for wholesale customers.
• Vendors ship partial orders but send one monthly invoice. The company is unable to associate one invoice with multiple POs in the current environment.
• Inventory reconciliation was difficult in the company's old system because it allowed users to sell more inventory than was physically available.
• Users must log in to the system to provide workflow approvals.
You need to recommend integration solutions to fulfill the company requirements.
Which Microsoft integration aligns with each requirement? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Customer email collaboration — Business Central Outlook add-in
Sales team collaboration — Business Central app for Teams
Customer notifications for sales campaign — Power Automate
Explanation: Outlook add-in enables creating sales orders from email. Teams integration allows editing customer records while chatting. Power Automate can send campaign notifications to all customers automatically.
Question 50
HOTSPOT
-
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 the 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. When you are ready to answer a question, click the Question button to return to the question.
Background
-
Fabrikam, Inc., is a manufacturer of products for the gift industry. The company plans to implement Business Central as its new enterprise resource planning (ERP) system.
The company sells to two types of customers: wholesale and retail. Retail customers order at special events and online. Wholesale customers send in orders by email.
Current Environment
-
Order processing
-
• The company uses a purchase order (PO) workflow for any PO over $500.
• The system has been fully configured for sales order prepayments and will check for a prepayment invoice at posting.
• Customers can special order products with a prepayment that is due on receipt.
Invoicing
-
• Wholesale customer payment terms are net 30, with a 2% discount if paid within 10 days.
• Retail customer payment terms are payable on receipt or shipment.
Reporting
-
• The company uses headcount (number of employees) and square footage for statistical accounts.
Integrations
-
The company currently uses Outlook, Excel, Word, and Teams to communicate internally and externally with customers and vendors.
Requirements
-
Order processing
-
• The company must be able to combine multiple purchase receipts into one vendor invoice.
• Posted vendor invoices must be reverted when damages are reported or a product is returned to the vendor.
• Fully invoiced POs must not appear on the PO list page.
• Customer prepayments vary based on customer relationship. Special orders from new customers have a 25% prepayment. Established customers have only a 15% prepayment.
• The company must be able to approve POs by email without opening Business Central.
• Customers often reorder the same items with similar quantities. The system must be configured to ask the user if recurring lines should be added to sales orders.
Invoicing
-
• Customer revenue must be posted to separate general ledger (G/L) accounts based on customer type. The G/L account must have subcategories for wholesale and retail revenue.
• Accounts receivable must be posted to separate G/L accounts based on customer type. The G/L account must have subcategories for wholesale and retail accounts receivable.
• Currently, inventory is sold at a cost based on purchase and sales over a period.
Reporting
-
• Financial reports must include statistical accounts.
• The financial report structure must map to account categories.
Integrations
-
The company requires the following integration capabilities:
• Create sales orders while collaborating with customers by email.
• Edit customer information while messaging the sales team in a group chat.
• Communicate a brochure to all customers at once about a sales campaign.
General ledger posting accounts
The company requires the following G/L posting accounts:
• Retail Receivables = 13100
• Wholesale Receivables = 13200
• Payment Discount = 54800
• Retail Sales = 44100
• Wholesale Sales = 44200
• Sales Prepayments = 22160
Issues
-
• Order entry takes too long for wholesale customers.
• Vendors ship partial orders but send one monthly invoice. The company is unable to associate one invoice with multiple POs in the current environment.
• Inventory reconciliation was difficult in the company's old system because it allowed users to sell more inventory than was physically available.
• Users must log in to the system to provide workflow approvals.
You need to complete inventory setup in Business Central to meet requirements and resolve issues.
Which two inventory setup configurations should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Average
Prevent negative inventory
Explanation: The requirement states inventory is sold at a cost based on purchases and sales over a period, which matches the Average costing method. To resolve the reconciliation issue caused by selling more than was physically available, enable Prevent negative inventory.
Question 51
DRAG DROP
-
A company uses Dynamics 365 Business Central.
The finance manager requires distinct processes for posting sales, purchase invoices, and shipments.
You need to configure the restrictions.
Which invoice posting policy should you use? To answer, move the appropriate invoice posting policies to the correct requirements. You may use each requirement once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Allow the user to ship only from sales orders. → Prohibited
Force the user to post invoices together with receipts for purchase orders. → Mandatory
Enable the user to ship or ship and invoice on inventory pick. → Allowed
Explanation: Prohibited blocks invoice posting and only allows Ship/Receive. Mandatory requires Ship and Invoice or Receive and Invoice together. Allowed permits all posting options, including Ship or Ship and Invoice.
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