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

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

Query successful

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.

Regular price: $20.00

Buying group discount: $18.00

Autumn promotion price: $19.00

Overstock special: 15% off regular price ($20 × 0.85 = $17.00)

However, the case study requires the system to always give the lowest available price.

Comparison of all active prices:

Regular = $20.00

Buying group = $18.00

Autumn promotion = $19.00

Overstock 15% discount = $17.00

Lowest available = $17.00. But since the customer belongs to a buying group and it’s also an overstock day, the system applies stacking rules: the overstock discount applies on top of buying group price.

$18.00 × 0.85 = $15.30.

Comprehensive Detailed Explanation

The case study mentions reconciliation issues caused by manual entries being made directly into certain G/L accounts, which led to discrepancies between subledger balances (like customers, vendors, or inventory) and the General Ledger. To resolve this, Business Central allows you to restrict how accounts are posted.

Restrict use on → G/L Account Card

The most appropriate place to restrict usage of specific accounts (such as control accounts for A/R, A/P, or Inventory) is on the G/L Account Card.

Here, you can configure posting restrictions for each account individually (e.g., Accounts Receivable account should only be posted through the customer subledger, not by manual G/L journals).

Other options:

General Ledger Setup → Controls global accounting settings, not account-specific restrictions.

Sales & Receivable Setup → Defines control accounts but does not enforce restrictions.

Chart of Accounts → Displays accounts but restrictions are managed per account card.

Set value for → Direct posting

On the G/L Account Card, the field Direct Posting determines whether users can post manual entries directly into the account.

To prevent reconciliation issues, Direct Posting must be disabled (unchecked) for accounts controlled by subledgers (e.g., A/R, A/P, Inventory).

This ensures that postings only come from system-generated entries (like sales invoices, purchase invoices, or inventory adjustments) and not from manual journals that could break reconciliation.

Other options:

Reconciliation account → Relevant in SAP, not BC.

Check G/L account usage → Not a standard control in BC.

Gen. Posting Type → Defines how entries are posted (Sale, Purchase, Inventory), but does not enforce direct posting restrictions.

With this setup:

Reconciliation issues are avoided because control accounts cannot be posted to manually.

Users are guided to post through the proper subledger processes (sales, purchasing, inventory, etc.).

Financial integrity between subledgers and the G/L is maintained.

Microsoft References

G/L Account Card - Direct Posting Field

Prevent Direct Posting to Control Accounts

Chart of Accounts in Business Central

The scenario describes cash and carry sales, where customers pay immediately at the desk and sales invoices must be posted as paid in full at the time of sale. In Dynamics 365 Business Central, this is achieved by setting Payment Terms that indicate no delay between invoice date and due date.

Why D (Payment Terms = 0D)

The Payment Terms setup in Business Central allows you to define how the Due Date is calculated.

For cash and carry transactions, the invoice is due on the same day (zero days). Setting the Due Date Calculation to 0D ensures that the system always marks invoices as immediately due, reflecting the cash-and-carry business process.

This aligns with requirements: “Invoices must be posted at the cash and carry desk at the time of sale” and “Invoices already paid in full should not appear as outstanding on aging reports.”

Why not A (Payment Service)

Payment Services are used for integration with external services like PayPal or credit card gateways. Wide World Importers does not require a POS or online payment gateway—just simple cash handling at the desk.

Why not B (Direct Debit Mandate)

Direct Debit is used for recurring bank withdrawals (SEPA mandates, subscription-type payments). It does not apply to one-time, immediate cash payments.

Why not C (Payment Method = Bank Account)

While Payment Methods (e.g., Cash, Bank Transfer, Check) are also important for tracking how customers pay, the critical requirement in the scenario is ensuring the invoice is due immediately. That is achieved by Payment Terms = 0D, not by Payment Method alone.

Best Practice Setup in Business Central for Cash & Carry:

Payment Terms: 0D (ensures invoice due immediately).

Payment Method: Cash (ensures posted directly against the cash account).

Apply to invoices at posting: Invoices will automatically be shown as paid in full.

This combination ensures correct cash sales processing and eliminates the issue noted in the case study where invoices incorrectly appear in aging reports.

Microsoft References

Set Up Payment Terms in Business Central

Set Up Payment Methods in Business Central

Work with Payment Transactions

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

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.

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

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.