Learn the correct settings for wholesale and retail customer payment terms in Dynamics 365 Business Central, a key topic for the MB-800 certification exam. Get a detailed explanation of the discount percentage, due date, and discount date calculations to configure.
Table of Contents
Question
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 select the values for the customer payment terms.
Which values should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Customer payment term setup
Discount % for wholesale customer payment term:
- 2
- 10
- 15
- 25
Due Date Calculation for retail customer payment term:
- 0 D
- 10 D
- 15 D
- 30 D
Discount Date Calculation for wholesale customer payment term:
- 0 D
- 10 D
- 15 D
- 30 D
Due Date Calculation for wholesale customer payment term:
- 0 D
- 10 D
- 15 D
- 30 D
Answer
Discount % for wholesale customer payment term: 2
Due Date Calculation for retail customer payment term: 0 D
Discount Date Calculation for wholesale customer payment term: 10 D
Due Date Calculation for wholesale customer payment term: 30 D
Explanation
To set up the customer payment terms correctly based on the case study details:
Discount % for wholesale customer payment term: 2
The case study states: “Wholesale customer payment terms are net 30, with a 2% discount if paid within 10 days.” Therefore, the discount percentage should be set to 2%.
Due Date Calculation for retail customer payment term: 0 D
The requirement is: “Retail customer payment terms are payable on receipt or shipment.” A due date calculation of 0 D means the payment is due immediately upon receipt or shipment, matching the retail terms.
Discount Date Calculation for wholesale customer payment term: 10 D
With a 2% discount available if paid within 10 days for wholesale customers, the discount date calculation needs to be set to 10 D (10 days). This allows the discount to be applied if payment is made within that 10 day window.
Due Date Calculation for wholesale customer payment term: 30 D
Wholesale terms are net 30, so the due date calculation should be 30 D (30 days). This means the full payment is due within 30 days of the invoice date for those customers.
In summary, the wholesale payment terms allow a 2% discount if paid within 10 days, with the full balance due in 30 days. Retail customers must pay immediately upon receipt or shipment of goods. Configuring these settings properly in Business Central is essential for managing customer payments and cash flow. Demonstrating mastery of payment term setup is an important skill for the MB-800 certification exam.
Microsoft MB-800 certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the Microsoft MB-800 exam and earn Microsoft MB-800 certification.