MB-800: Dynamics 365 Business Central Functional Consultant Practice Exam

What the MB-800 exam covers

• Set up Business Central166 questions
• Configure financials244 questions
• Configure sales and purchasing91 questions
• Perform Business Central operations244 questions

Free MB-800 practice test questions

A sample of 10 questions with answers and explanations. Sign up free to practice all 745.

1. Question 1Configure financials

   A controller wants Business Central to reject any general journal line dated before the first day of the current fiscal year. Which General Ledger Setup field enforces this?

   • AAllow Posting FromCorrect
   • BAllow Posting To
   • CRegister Time
   • DLCY Code
   ✓ Correct answer: A

   General Ledger Setup stores a company-wide posting date window, and Business Central rejects any journal line dated earlier than the Allow Posting From value at the moment of posting. Setting it to the first day of the current fiscal year blocks entries dated back into the prior year, which keeps closed periods clean. Pair From with earliest and To with latest whenever a posting-date question comes up.

   Why the other options are wrong

   • BAllow Posting To restricts the latest allowed posting date, the opposite boundary from what the controller needs here.
   • CRegister Time only records a system timestamp for auditing; it has no effect on which dates can be posted.
   • DLCY Code identifies the company's local currency and plays no role in date validation.
2. Question 2Configure financials

   A consultant needs a chart of accounts row that shows 'Total Liabilities' as the sum of every account between the 'Liabilities' Begin-Total row and this row, without listing individual account numbers. What must this row's Account Type be?

   • ABegin-Total
   • BEnd-TotalCorrect
   • CHeading
   • DPosting
   ✓ Correct answer: B

   Pairing a Begin-Total row for 'Liabilities' with an End-Total row for 'Total Liabilities' automatically sums every posting account that falls between them, with no need to list individual account numbers or set an explicit Totaling filter. The range is implicit in where the two rows sit in the chart. Takeaway: Begin-Total opens a range and End-Total closes it and displays the sum, so the two are always used as a matched pair.

   Why the other options are wrong

   • ABegin-Total only marks where a bracketed range starts in the chart; it does not itself display the summed total for that range.
   • CHeading carries no balance at all and exists only for visual section labeling; it cannot sum or display any account total.
   • DPosting accounts hold individual transaction detail and post real balances themselves, rather than summing a range of other accounts.
3. Question 3Configure financials

   Contoso uses the Balance recurring method to post a monthly overhead allocation split by allocation keys, and now wants that same allocation to automatically reverse the next day so it does not double up with a permanent entry booked later. Which Recurring Method should replace Balance?

   • AFixed
   • BReversing BalanceCorrect
   • CVariable
   • DReversing Fixed
   ✓ Correct answer: B

   Reversing Balance still reads and distributes the account's remaining balance through the attached allocation keys exactly like plain Balance does, but it additionally inserts an automatic reversing entry on the following posting date, which prevents the monthly overhead allocation from double-counting once the permanent entry is booked later. Remember: adding automatic reversal to a balance-and-allocation-key setup means switching Balance to Reversing Balance, not to one of the fixed-amount methods.

   Why the other options are wrong

   • AFixed posts a constant, pre-set amount and neither reads the account's remaining balance nor reverses automatically.
   • CVariable requires the accountant to manually key an amount each period and, like Fixed, does not reverse automatically.
   • DReversing Fixed does reverse automatically but posts a fixed figure rather than distributing the account's actual remaining balance through allocation keys.
4. Question 4Configure financials

   An office wants a piece of standard equipment to depreciate by the exact same amount every period until it reaches zero value. Which depreciation method fits this need?

   • ADeclining-Balance 1
   • BDB/SL
   • CUser-Defined
   • DStraight-LineCorrect
   ✓ Correct answer: D

   Straight-Line depreciation charges exactly the same amount every period over the asset's useful life until the asset reaches zero, which is precisely the simple, even write-off this standard office equipment needs. Takeaway: whenever a question asks for the exact same amount every period, Straight-Line is the fit. The accelerated and manually scheduled methods all exist for cases where the charge is deliberately uneven.

   Why the other options are wrong

   • ADeclining-Balance 1 produces a decreasing amount each period based on remaining book value, not an equal amount.
   • BDB/SL blends accelerated declining-balance depreciation with a later switch to straight-line, more complex than a simple even write-off.
   • CUser-Defined relies on a manually entered schedule, unnecessary when a simple even depreciation is all that is needed.
5. Question 5Perform Business Central operations

   A customer accepts a sales quote and wants to be billed immediately without any separate shipment tracking needed, since the item is a service. What is the best conversion action?

   • AMake Order
   • BMake Blanket Order
   • CCopy Document
   • DMake InvoiceCorrect
   ✓ Correct answer: D

   Make Invoice converts a sales quote straight into a sales invoice in one step, skipping the sales order stage altogether. That is the right shape for a service sale. There is no physical shipment to post, no outstanding quantity to track, and nothing to be delivered later, so an order document would add a step without adding any information. The accepted quote's lines, prices, and customer details carry over onto the invoice, which can then be posted to bill the customer immediately.

   Why the other options are wrong

   • AMake Order creates a sales order, useful when shipment and invoicing need separate tracking, which is more process than a service with no shipment step needs.
   • BMake Blanket Order is used for long-term release agreements over time, not for billing a single accepted quote immediately.
   • CCopy Document duplicates an existing document's lines onto a new one; it is not the standard action for converting a quote into an invoice.
6. Question 6Perform Business Central operations

   A clerk manually enters a payment journal line for a vendor and wants the payment to settle one specific outstanding invoice rather than being left unapplied. Which field should be set on the line?

   • ARecurring Method
   • BBal. Account Type
   • CApplies-to Doc. No.Correct
   • DGen. Posting Type
   ✓ Correct answer: C

   Typing the invoice's document number into Applies-to Doc. No. instructs Business Central to apply the payment directly to that vendor ledger entry the moment the line is posted, rather than leaving the payment sitting unapplied for later matching. This is the manual counterpart to what Suggest Vendor Payments does automatically, letting a clerk target one specific invoice by hand. The scenario calls for exactly that: a single named invoice settled, not a payment thrown against the vendor's general balance.

   Why the other options are wrong

   • ARecurring Method controls how a recurring journal line behaves on its next posting cycle; it has no effect on which invoice a payment settles.
   • BBal. Account Type identifies the offsetting account type, such as Bank Account, for the balancing side of the entry, not the invoice being paid.
   • DGen. Posting Type drives VAT and general ledger posting classification for the line; it plays no part in selecting which invoice a payment applies to.
7. Question 7Perform Business Central operations

   A consultant scraps a fully depreciated fixed asset whose book value is already zero. What happens when the disposal is posted?

   • AA large loss is posted here
   • BNo gain or loss posts at zero book valueCorrect
   • CA large gain is posted here
   • DBusiness Central blocks the disposal
   ✓ Correct answer: B

   Gain or loss on disposal is calculated as sales amount minus book value. When an asset has already been depreciated down to zero and is then scrapped for no proceeds, both figures in that formula are zero, so the result is zero. Posting the disposal in this case simply clears the acquisition cost and the matching accumulated depreciation from the FA ledger, with no impact on the profit and loss statement. Takeaway: a fully depreciated asset scrapped for nothing nets to zero.

   Why the other options are wrong

   • AA loss requires remaining book value to write off, but there is none left once an asset is fully depreciated.
   • CA gain would require sale proceeds exceeding book value, but there are no proceeds and book value is already zero.
   • DBusiness Central does not block disposal postings for fully depreciated assets; this is a normal, routine transaction that consultants perform regularly.
8. Question 8Configure sales and purchasing

   Which posting setup determines the Inventory Account and COGS Account used when a value entry posts to the G/L?

   • AShipping Agent Services on the customer card
   • BVendor Invoice Discounts in the purchase setup
   • CItem attribute values on the item category
   • DInventory Posting Setup with General Posting SetupCorrect
   ✓ Correct answer: D

   The Inventory Account and COGS Account used when a value entry posts to the G/L come from two setups working together. Inventory Posting Setup pairs an inventory posting group with a location to reach the specific inventory accounts, and General Posting Setup supplies the COGS and related accounts based on the posting groups carried on the transaction. Neither setup alone determines the full picture, which is why account-determination questions point at the combination rather than at either page on its own.

   Why the other options are wrong

   • AShipping Agent Services on the customer card define delivery transit timing; they play no role in determining G/L posting accounts.
   • BVendor Invoice Discounts in the purchase setup control discount percentages; they have no bearing on inventory or COGS account determination.
   • CItem attribute values on the item category are classification data; they play no role in determining posting accounts.
9. Question 9Set up Business Central

   A consultant is entering opening balances for General Ledger accounts as part of a go-live cutover. Which document is typically used to post these balances?

   • AA general journal batch for opening balancesCorrect
   • BA configuration package applied to G/L Entry
   • CA sales credit memo
   • DA job queue entry
   ✓ Correct answer: A

   A consultant sets up a general journal batch used specifically for opening balances, entering each account's opening amount along with an offsetting balancing entry. Once that batch is posted, the resulting trial balance in Business Central matches the legacy system as of the cutover date, which is exactly what a go-live cutover is meant to achieve.

   Why the other options are wrong

   • BThe G/L Entry table is populated only by posting a journal or document; a configuration package cannot write to it directly.
   • CA sales credit memo is a customer-facing sales document, not a way to post general ledger opening balances.
   • DA job queue entry schedules background tasks; it does not post financial data itself.
10. Question 10Set up Business Central

    On the Permission Set page, what does setting the Insert Permission to Yes for the Customer table actually allow a user to do?

    • AView existing customer records only
    • BApprove customer credit limits
    • CChange the customer's dimensions
    • DCreate new customer recordsCorrect
    ✓ Correct answer: D

    Each of the distinct permission types on a Permission Set row controls one specific action independently: Read governs whether existing records can be viewed, Insert governs whether new records can be created, Modify governs whether existing records can be edited, and Delete governs whether records can be removed. Setting Insert Permission to Yes for the Customer table therefore allows a user to create new customer records. That granular separation is deliberate. An administrator can allow a user to view and create customers but not change or remove them, by setting Read and Insert to Yes while leaving Modify and Delete at No. Takeaway: Insert specifically and only controls the ability to create new records.

    Why the other options are wrong

    • AViewing existing customer records corresponds to Read permission, a separate permission type from Insert.
    • BApproving a customer's credit limit is handled through an approval workflow, not a base table permission type like Insert.
    • CChanging a customer's dimensions corresponds to Modify permission, a separate permission type from Insert.

Who this MB-800 practice exam is for

This practice set is for anyone preparing for the MB-800: Dynamics 365 Business Central Functional Consultant exam - from first-time candidates building a foundation to experienced Microsoft practitioners doing a final review before test day. If you learn best by working through realistic questions and reading why each answer is right or wrong, it is built for you.

How to use this MB-800 practice exam

1. Start with the free sample questions above to gauge your current baseline.
2. Read the full explanation on every question, including why each wrong option is wrong.
3. Track your weak domains and focus your study where you are losing the most marks.
4. Once you are scoring consistently well, take a timed, full-length mock exam.
5. Use your readiness score to decide when you are ready to book the real MB-800 exam.

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