10 questions covering this official MB-800 domain.
Q01 - Question
A controller at a manufacturing company must forecast next year's depreciation expense for the existing machinery so the figures can be used in planning. The forecast must not create depreciation entries in the general ledger for those future periods. Which approach should the controller use in Dynamics 365 Business Central?
Domain: Configure financials Type: Single choice
- A. Post depreciation to the general ledger for each future period, then reverse the entries after the plan is approved.
- B. Calculate budgeted depreciation for the fixed assets so the projected amounts are available for planning.
- C. Create a second depreciation book that integrates with the general ledger and post next year's depreciation in it.
- D. Enter next year's depreciation for each asset as monthly general journal lines.
B is correct.
Explanation: Calculating budgeted depreciation produces projected depreciation amounts for the fixed assets over the planned period, so you can plan expense without posting depreciation to the general ledger for those future periods.
A is incorrect: Posting and then reversing future depreciation creates and removes real general ledger entries, which adds avoidable posting work and affects the posted results for those periods.
C is incorrect: A depreciation book that integrates with the general ledger causes depreciation to reach the general ledger, which is the outcome the controller must avoid.
D is incorrect: Manual general journal lines post actual amounts rather than producing a calculated depreciation forecast, and the effort grows with every asset and period.
Q02 - Question
An accountant has calculated budgeted depreciation for the company's fixed assets. The accountant now needs those projected amounts to appear as budget figures in the general ledger so that planned depreciation can be compared with posted results. What should the accountant do next?
Domain: Configure financials Type: Single choice
- A. Type each projected depreciation amount manually into the general ledger budget lines.
- B. Post the projected depreciation in the fixed asset G/L journal so the amounts appear in the general ledger.
- C. Change the depreciation book so it integrates with the general ledger, then run the depreciation calculation again.
- D. Copy the fixed asset transactions to the G/L budget.
D is correct.
Explanation: Copying the fixed asset transactions to the G/L budget transfers the projected fixed asset amounts into general ledger budget entries, which is what you need to compare planned depreciation with posted results.
A is incorrect: Manual entry of each amount repeats work that the copy function performs and increases the risk that the budget no longer matches the calculated fixed asset amounts.
B is incorrect: Posting in the fixed asset G/L journal creates posted general ledger entries rather than budget entries, so no plan-to-actual comparison is possible.
C is incorrect: Changing integration with the general ledger affects how depreciation posts, and it does not place the projected amounts in a general ledger budget.
Q03 - Question
A company plans to buy a delivery van later in the year. Finance wants the planned acquisition cost included in the fixed asset budget now, and wants the actual purchase recorded against the asset when the vendor invoice arrives. How should you set this up in Dynamics 365 Business Central?
Domain: Configure financials Type: Single choice
- A. Create the van as a budgeted fixed asset so the planned acquisition is included in the budget, then record the actual purchase when the invoice arrives.
- B. Wait until the purchase invoice arrives to create any fixed asset card, and leave the planned acquisition out of the budget.
- C. Post the planned acquisition cost on the asset now and credit the same amount back after the purchase invoice is posted.
- D. Enter a purchase order for the van that is never received, so the planned commitment appears in the budget.
A is correct.
Explanation: Setting up the planned van as a budgeted fixed asset lets you include the expected acquisition cost in the budget before the purchase, and you record the actual acquisition on the asset when the vendor invoice is processed.
B is incorrect: If no asset record exists before the purchase, the planned acquisition cost cannot be reflected in the fixed asset budget.
C is incorrect: Posting and then crediting the acquisition creates real fixed asset and general ledger entries for a purchase that has not happened, which distorts the posted asset value.
D is incorrect: An open purchase order that is never received does not produce budgeted fixed asset amounts and leaves an unresolved document in purchasing.
Q04 - Question
A company runs a calendar fiscal year with 12 monthly periods. The accountant must set up the next fiscal year in Dynamics 365 Business Central before transactions are posted in it. Which action creates the complete set of accounting periods for the new year?
Domain: Configure financials Type: Single choice
- A. Run the Close Income Statement batch job for the previous year and let it generate the periods.
- B. Open the Accounting Periods page, choose Create Year, and specify the starting date, number of periods, and period length.
- C. Change the Allow Posting From date in General Ledger Setup to the first day of the new year.
- D. Post a general journal line dated in the new year so that the period is created on first use.
B is correct.
Explanation: Use the Create Year action on the Accounting Periods page and enter the starting date, the number of periods, and the period length. Business Central then generates all periods for the fiscal year in one step.
A is incorrect: The Close Income Statement batch job transfers income statement balances after a year is closed. It does not create accounting periods.
C is incorrect: Allow Posting From controls which posting dates users may use. It does not define fiscal year periods.
D is incorrect: Accounting periods are defined in advance on the Accounting Periods page and are not created by posting a document or journal line.
Q05 - Question
An accountant used the Close Year action on the Accounting Periods page. The income statement accounts still show balances for that year. What must the accountant do next to transfer the year's result to the balance sheet?
Domain: Configure financials Type: Single choice
- A. Run the Close Income Statement batch job and post the general journal that it creates.
- B. Run the Create Year action again so that the closing entry is generated automatically.
- C. Reopen the fiscal year, adjust the income statement accounts manually, and close the year again.
- D. Set Allow Posting To in General Ledger Setup to the last date of the closed year.
A is correct.
Explanation: Closing the year only marks the accounting periods as closed. You then run the Close Income Statement batch job to generate journal lines that zero out the income statement accounts, and you must post that journal to transfer the result to the retained earnings account.
B is incorrect: Create Year generates accounting periods for a new fiscal year and produces no closing entries.
C is incorrect: A fiscal year that has been closed cannot be reopened, so the correction path is to post entries rather than reverse the close.
D is incorrect: Posting date restrictions only control which dates users may post to. They do not move income statement balances to equity.
Q06 - Question
A manufacturing company must report depreciation for its machinery one way for financial statements and a different way for tax reporting. Both sets of values must exist for the same physical assets at the same time. What should you configure in Dynamics 365 Business Central?
Domain: Configure financials Type: Single choice
- A. One depreciation book, and change the depreciation method on the book before each tax period
- B. Two depreciation books, and assign both books to each machinery fixed asset
- C. Two fixed asset cards for every machine, one for financial values and one for tax values
- D. One depreciation book, and record the tax values only as general journal lines
B is correct.
Explanation: Depreciation books hold the depreciation rules and values for an asset. When you need parallel sets of values for the same asset, create a separate depreciation book for each reporting requirement and assign both books to the fixed asset so each book keeps its own entries.
A is incorrect: Changing the method on a single book replaces the rules used for that book, so you cannot keep financial and tax values side by side.
C is incorrect: Duplicating fixed asset cards splits one physical asset into two asset records, which complicates acquisition, maintenance, and disposal tracking instead of using the book structure designed for parallel values.
D is incorrect: Loose general journal lines are not linked to fixed asset depreciation book entries, so the tax values would not be calculated or reported through the fixed asset ledger.
Q07 - Question
During implementation, an accountant asks how write-down and appreciation amounts should affect the depreciation basis and how they should be treated when an asset is sold. Where do you define this behavior for a specific depreciation book?
Domain: Configure financials Type: Single choice
- A. On the fixed asset card for each asset
- B. In the fixed asset journal setup for the depreciation book
- C. In the fixed asset posting type setup for the depreciation book
- D. In the general posting setup for the fixed asset account
C is correct.
Explanation: The fixed asset posting type setup is defined per depreciation book. Use it to control how each posting type, such as write-down and appreciation, is included in the depreciation basis and how it is handled on disposal.
A is incorrect: The fixed asset card identifies the asset and its depreciation book assignments, but it does not define posting type treatment for the book.
B is incorrect: The fixed asset journal setup determines which journal templates and batches the batch jobs use, not how posting types affect the depreciation basis.
D is incorrect: General posting setup governs sales and purchase posting combinations, not fixed asset posting type treatment within a depreciation book.
Q08 - Question
A user runs the Calculate Depreciation batch job for a newly created depreciation book and receives an error that no journal is defined. What is the most direct way to resolve the issue?
Domain: Configure financials Type: Single choice
- A. Configure the fixed asset journal setup for the depreciation book and the user, specifying the journal template and batch
- B. Recreate the depreciation book with a different code
- C. Change the fixed asset posting type setup so depreciation is part of the depreciation basis
- D. Post an acquisition cost entry for every fixed asset before running the batch job
A is correct.
Explanation: Batch jobs such as Calculate Depreciation place the resulting lines in a journal. The fixed asset journal setup tells the system which journal template and batch to use for the depreciation book, and it can be defined per user.
B is incorrect: The book code is not the cause. Recreating the book still leaves the missing journal setup.
C is incorrect: Posting type setup affects how amounts are included in the depreciation basis and disposal, not where batch job lines are created.
D is incorrect: Acquisition cost entries are needed before depreciation amounts are calculated, but they do not tell the batch job which journal to use.
Q09 - Question
You must set up a new depreciation book named TAX so that selected fixed assets can be depreciated separately from the company book. Which two actions are required? Each correct answer presents part of the solution.
Domain: Configure financials Type: Multiple choice
- A. Create a new company for tax reporting and repeat the fixed asset setup there
- B. Create the TAX depreciation book and define its settings on the Depreciation Books page
- C. Delete the existing company depreciation book so the assets use only TAX
- D. Add a fixed asset depreciation book line for TAX on each fixed asset that must use the new book
B and D are correct.
Explanation: First create the depreciation book and define its settings on the Depreciation Books page. Then assign the book to the relevant assets by adding a fixed asset depreciation book line for each asset, because an asset is depreciated in a book only when that assignment exists.
A is incorrect: A separate company is not needed for parallel depreciation values, and it duplicates fixed asset master data and maintenance.
C is incorrect: Deleting the company book removes the values used for financial reporting, which defeats the purpose of running two books in parallel.
Q10 - Question
A controller at Contoso wants one financial report that shows, side by side, the current period amounts, the year-to-date amounts, and the budgeted amounts for the same set of income statement accounts. The accounts and their totaling structure are already correct. What should you configure to meet this requirement?
Domain: Configure financials Type: Single choice
- A. Add more rows to the row definition so that each period and budget figure has its own row.
- B. Create a separate financial report for each period and budget comparison.
- C. Create a column definition that contains one column for each period and amount type that you want to compare.
- D. Apply a date filter on the general ledger accounts used in the row definition.
C is correct.
Explanation: In a financial report, the column definition controls the vertical layout, so you define one column for each figure you want to compare, such as current period, year to date, and budget, and the same rows are reported across all columns.
A is incorrect: Rows define the accounts and totals that are reported, so duplicating rows repeats the account structure instead of adding comparison figures.
B is incorrect: Separate reports remove the side-by-side comparison and create extra report definitions to maintain.
D is incorrect: Filtering the accounts changes which amounts are included for the whole report and cannot produce several different periods and amount types in one view.