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Microsoft Dynamics 365 Business Central Functional Consultant

This Exam Topic does not have a case study.

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
Wide World Importers is a family-owned importer of specialty cooking ingredients and prepackaged foods from the Mediterranean.
When first established, the company's products were sold at farmers markets, All sales were on a cash-only basis.
Products are now sold locally to restaurant owners and chefs in a family-owned building with a warehouse.
Products are no longer sold at farmers markets. Cash and carry sales generate most of the revenue for the company.
The founder of Wide World Importers is turning over control of the company to the younger generation in the family. These family members want to use Dynamics 365 Business Central to support their efforts to grow and diversify the business. They recently started to build a new line of business selling and shipping products to specialty retailers outside their local area through a network of brokers and representatives.
The company uses QuickBooks, but the family is concerned that QuickBooks is not capable of supporting their new business model.
There are 30 full-time and part-time employees who work in sales, purchasing, shipping, customer service, accounts payable, accounts receivable, and finance. The family does not plan to hire additional personnel to support the new line of business.
Current environment
Cash and carry sales
When a customer makes a purchase at the company's cash and carry desk, the sale is handwritten on a three-part form.
The cash and carry associate retrieves the items listed on the order from the warehouse.

Special prices and discounts are used to move products that will expire soon or that are overstocked.

Cash is accepted for payments.

The cash drawer is balanced at the end of every day. A deposit is created for the cash and given to the accountant.
One-line sales invoices are saved in QuickBooks for each cash and carry sale to a miscellaneous customer.

Customer details for cash and carry sales are not kept in QuickBooks.

Brokered sales orders
Brokered sales are called in to customer service by the brokers and sometimes directly by customers. The sales are entered into QuickBooks.
Because inventory is not tracked in QuickBooks, the generic item Brokered Item is used.

Two copies of the packing slip are printed from QuickBooks and sent to the warehouse.

Order picking
The warehouse manager provides a container and the two copies of the packing slip to a picker.

Items that are out of stock are marked on both copies of the packing slip.

The shipping amount is determined and written on the packing slips.

One copy of the completed packing slip is placed in a basket for customer service.

Completed orders are boxed up with a copy of the invoice and shipped to customers.

Order invoicing
Throughout the day, the customer service manager collects the packing slip copies and updates the invoices in QuickBooks.
The customer service manager adds a line for shipping with the amount provided by the packer.

The customer service manager prints a copy of the final invoice and sends it to the warehouse.

The accountant uses Microsoft Word to create weekly invoices for all shipments invoiced in QuickBooks during the week for some customers.
Deposits
The accountant receives the deposit bag from the cash and carry sales desk at the end of every day.

Receipts are recorded in QuickBooks against cash and carry and brokered sales based on the deposit slips.
Brokers commission
Brokers fees are paid as a percentage of sales.

A Sales by Product/Service Summary report is run in QuickBooks every month for Brokered Item to calculate what is owned.
Requirements
Customers
Users with permission must be able to quickly add new customers.

The original source of all customers in the accounting system must be identified to be from cash and carry or brokered sales.
The company needs to keep a record of special price promotions given to specific customers.

Customers must be identified with a unique general business posting group so that the correct freight G/L

account is used in sales transactions.
Sales
The customer source must be used to identify the business line, and the customer source must be indicated on every sales transactions.
Customer service and cash and carry desk associates must be able to enter sales into Dynamics 365

Business Central by customer.
Excess paper must be eliminated, and paper management must be reduced.

If a customer is not already listed in the system, a cash and carry associate or customer service associate must be able to quickly add the new customer in the process of recording the first sale.
A point-of-sale system is not needed, but users must be able to record which items are purchased by customers, accept and record their payment, and print receipts indicating paid in full.

Items
The sales manager and warehouse manager must be able to set a specific timeframe for special promotion discounts on items.
For special promotions, discounts must be consistent for all items in a product line using a single discount calculation.
Special pricing may be given to a retail chain or buying group. This pricing must be automatically applied when an order is taken for any of these customers. The original price must be recorded with each sale.
Customers must always be charged the lowest amount for an item at the time of the sale. For example, an overstocked olive oil has a regular price of $20 per unit. Customers in a buying group for restaurants can buy it for $18 per unit. There is an autumn promotion price for the item at $19 per unit. However, on a specific day only, there is an overstock special at a 15 percent discount off the regular price.
Sales invoices
Warehouse workers must be able to indicate the following in the system for each order:

1. the items picked
2. the shipping charges
3. notifications, if any, that customer service needs to provide to the customer Items sold at a discount must show the original price, discount, and net amount on each line of the invoice.

Invoices must be posted at the cash and carry desk at the time of sale. For orders, accounting must post invoices and send them to customers.
Warehouse employees must be able to indicate what has been shipped on an order. They will use the G/L

account for shipping charges. They need to use the correct G/L account for sales versus cost through proper assignment of sales and purchase accounts in the general posting setup.
Some of the brokered customers require one invoice per week regardless of the number of orders or shipments.
Accounts
Payment terms vary by customer.

The amount paid to brokers must be calculated from sales after invoice discounts.

Broker vendors must be easily identifiable from other vendors in lists

Commission paid on sales not collected within 120 days must be deducted from brokers' next compensation payment.
Reporting
Wide World Importers requires reporting on the following:
the overall profitability of each line of business at any time for any given period the cost of outbound shipping in the overall profitability of sales by business line in all related reports freight sales and cost by account in the trial balance the cost of brokers' compensation in reporting the overall profitability of sales by business line the effect of item discount promotions in financial statements.

Issues
Pricing
Spreadsheets are used to maintain special item pricing and discounts. The only source of product line discount information is a whiteboard in the warehouse. The price charged is frequently incorrect.
Customers complain when they think they have not received the best price available. Promotions are sometimes applied in error after a special pricing event ends, for example, when discounts are offered temporarily to reduce overstock.
Management cannot see original versus actual price on all sales. Discounts given by brokers requires spreadsheets and comparison between price list and price on sales invoice. Management needs to be able to quickly see the discount given on each sale.

Payment terms
Agreed-upon payment terms are frequently entered incorrectly on orders, causing cashflow issues.

Invoices already paid in full exist on the sales aging reports. The frequent cause of this issue is that sales from the cash and carry desk are not indicated as cash sales and are not posted as paid in full.
Some buying groups require that all invoices sent during a month be due on the 20th of the following month.

Invoicing
Paperwork is frequently misplaced between the warehouse, customer service, and accounting.

Invoices that are posted in the accounting system based on shipments and invoices that are sent to customers weekly do not match due to errors transferring the data from one document to another.
Users are selecting the incorrect freight type (expense versus sales) on purchase and sales transactions,

making it difficult to reconcile freight costs.
Sales placed from the cash and carry desk by customers originally acquired through a broker are not being recognized with the correct customer source. Reporting by business line is inaccurate.
Accounts
Users often forget which fields to use to enter information when they add new customers to QuickBooks.

This results in errors and inconsistencies in data and affects sales reporting. Confidence in sales reporting accuracy is low.
Adding new brokers is a different process than adding other purchase vendors. Users often forget which fields to select and how to correctly assign the vendor number to add new brokers.
Manual entries to certain G/L accounts cause reconciliation issues.

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

Best for You Organics Company is a mid-sized wholesale distributor of organic produce and other food items to national retail grocery store chains. Over half the company's revenue is from produce with an average shelf life of less than a week. The remaining revenue comes from shelf-stable canned and packaged items.

Best for You Organics experienced substantial growth in the last two years. They expanded from one location to three locations, increased the number of employees from 25 to over 100, and more than doubled their revenue. The company's business forecast predicts a steady rate of growth of at least 20 percent annually for the next five years.

As a result of their expansion, Best for You Organics is experiencing delays and bottlenecks in their processes. The company has decided to implement Dynamics 365 Business Central as a new Enterprise Resource Planning (ERP) solution to increase efficiency and automation to support their continued growth.

Current environment

Deliveries

The company receives daily truckloads of products from their vendors, warehouses the products briefly,

and then ships orders based on a weekly delivery cycle to each customer's store. Customers have regular standing orders that are revised and finished one week prior to delivery.

Best for You Organics has a fleet of trucks that make deliveries according to planned routes.

The company also has a floating route for trucks to deliver rush orders. The route is being used more often by customers and has overwhelmed the warehouse with exception processing.

Duties

The company wants to provide greater separation of duties between activities in the office and activities in the warehouse.

The accounting team enters orders for the sales team, sends pick tickets back to the warehouse, and organizes shipping documents. The accounting team invoices the orders when they receive instructions from the warehouse that an order shipped.

Employees have expressed frustration because they need to work longer hours to accommodate the increase in sales.

The company does not use the Advanced Warehousing function.

Requirements

Salespeople

Salespeople must be able to manage opportunities that are converted to quotes.

Salespeople must be able to release orders to the warehouse to be fulfilled once a quote is final.

Salespeople must be trained on how to determine if inventory is available when they are completing the quote to avoid promising inventory that is not on hand because all orders are processed one week in advance of delivery.

Team responsibilities

Deliveries must be shipped daily by employees in the warehouse. The office must be responsible for completing the invoicing process.

The current team responsibilities are shown in the following graphic:



The required team responsibilities are shown in the following graphic:



Vendor management

The company contracts with each vendor for regular discounts at the invoice level.

The company requires a pre-set discount percentage to calculate automatically when the purchaser completes a purchase order.
The company must be able to see a copy of the completed purchase order in the system when they have new contract negotiations with their vendors.

Customer and inventory management

Sales invoices must be automatically emailed by the system to customers.

A template must be used for emails sent to customers. The template must not be altered.

Customers who pre-pay their invoices must not receive a copy of their invoices.

The company warehouses all products as Case quantities. The company has difficulty recording accurate costs for product returns. The company wants to expand their capabilities for managing returns by setting up all inventory in a quantity of Each.

Reporting

The company must be able to answer two key questions when they report financial results:

Which customers are buying which items?

Which salespeople are selling in which regions?

When discussing customers, the company must refer to each Customer Group as follows:

Big Box

Franchise

Private

When discussing items, the company must refer to each Item Group as follows:

Fair Trade

Free Range

Grass Fed

Heirloom

Organic

Salesperson names that must be used are:

SalespersonA

SalespersonB

SalespersonC

SalespersonD

Region names that must be used are:

North

South

East

West

Commission

The company must be able to track salesperson performance within certain regions to calculate commission.
Each salesperson must be assigned only to a single region.

This commission data is currently recorded inconsistently, resulting in incorrect combinations that require manual correction. The company must have some level of automation to manage this.

Issues

Issue 1

The accounting team needs an improved process for reconciling inventory to the general ledger.

Posted transactions are changing financial reporting in periods that have been closed.

Unexpected changes in inventory cost for previous months are causing costing inaccuracies.

The system must restrict the adjustment of costs for closed months.

The new policy will be to restrict all users to posting in the current month only, with the exception of a few employees from the accounting team.
The calendar fiscal year for company must begin on June 1.

Issue 2

The accounting team uses a complex manual accrual process to determine the accounting impact of items received but not invoiced. The system must streamline the item accrual process.

Issue 3

The company often receives a higher quantity of produce items than what they order because vendors allow for spoilage or damage of produce in transit. The company does not want to allow over receipt on non-produce items.

Issue 4

The company has received comments from their auditors that invoices are not being properly compared to received inventory documents before they are posted. The company does not use warehouse management and always handles processes directly from the purchase order. The company always has the following documents:

purchase order from the procurement department receiving document from the warehouse electronic invoice from the vendor

Case study
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 this 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. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs.
When you are ready to answer a question, click the Question button to return to the question.
Background
Northwind Traders is an independent, family-owned business. The company distributes natural pet products in the Northwest region of the country/region. Products are purchased directly from manufacturers and distributed by using its own fleet of trucks.
When the company started, deliveries were within a three-hour radius of the warehouse. Due to regional growth, current deliveries require drivers to stay overnight on some routes. The company plans to open a second warehouse to expand the region and eliminate overnights for route drivers. The company also plans to hire a second group of employees to run operations in this new location. The finance and accounting teams will remain in the original location.
The company uses a third-party system for financials and order management. The finance department stated that the company's fiscal year begins on July 1 and ends on June 30. The mm/dd/yyyy date format is used.
As part of the expansion, the owner plans to upgrade to an ERP system and use Business Central to fulfill the company requirements and manage growth.
Current environment
Orders
Orders are emailed to customer service and manually keyed into the inventory system.

Pricing and discounts
Customer pricing is determined by the customer market type. Customer market types are Retail,

Veterinarian, and Breeder. Each customer is associated with only one market type.
Vendors offer monthly promotions to customers by item, brand, or item category.

Invoices should show each customer's base price, the discount amount, and the net price.

Accounts payable
The company wants to expand vendor payment options in the new system.

Requirement

Customers
The sales team must be able to do the following:

- Quickly set up new customers with the proper settings based on customer type.
- Identify customers by market type. Customer posting groups will be used to identify which market the customer belongs to.
Base price is determined by the customer market type.

The sales department should receive a warning when entering the order if a customer is over their credit limit.
Sales
Customer discounts are offered for specific time frames by item, brand, or product category. Discounts should be added to sales lines automatically.
Discounts must post to a unique general ledger (G/L) account.

The business needs to be able to track revenue by location, market, and product category dimensions.

Locations 100 and 200 will be set as default dimensions on the two warehouse locations. Food, treats, toys, and supplies are the required product categories, which will be set as default dimensions on the item cards.
Each customer card will have a default market dimension.
The sales manager wants to delete canceled orders and automatically archive them.

Warehouse
Orders will be fulfilled from two possible warehouse locations.

Product will be transferred between locations by using transfer orders.

Sales invoices
Invoices will be posted after delivery.

Invoices will be emailed to the customer.

The sales department must be able to quickly correct posted invoices for the following scenarios:

- Posted invoices that have not been paid.
- Posted invoices that have been paid.
- Posted invoices created from sales orders.
- Posted invoices not created from sales orders.
Accounting
The finance department requires that the company has 12 monthly accounting periods per fiscal year.

Finance department users must be able to reconcile the accounts receivable (AR) subledger to the G/L

account at month end.
AR department users need the ability to settle and close invoices when customers take payment discounts after the payment discount date has passed. AR users should be allowed to accept or reject the payment tolerance.
Accounts payable (AP) department users must be able to pay vendors by electronic funds transfer (EFT)

and use a payment journal batch named EFT to process payments.
When viewing G/L entries, the finance and accounting teams must be able to see debits and credits instead of a positive or negative amount.
The company needs to be able to track expenses by department and location. The departments are sales,

operations, and administration.
AR must be able to correct cash application entries.

Issues
Payment application
Customers may have several stores that are responsible for their own orders and payments.

Occasionally, AR clerks mistakenly apply payments to the incorrect customer invoice.

Invoicing
When items are delivered, customers refuse the items for reasons such as damaged or wrong item.

After the invoices are posted, they must be corrected, which is time-consuming.

Warehouse
The sales department and warehouse managers must have visibility into products that are in the process of being transferred between locations.
Accounts
Customer accounts are difficult to view by market type.

The finance team does not have the ability to report revenue by customer type.

Accounting
AR users often find variances between the AR subledger and G/L account.

Customers often take the payment discount after the payment discount date has passed, leaving open invoices for small amounts.
The AP department is unable to pay vendors by EFT in the current system.

Finance and accounting team members have trouble validating postings when they use only the amounts field on G/L entries.
The finance department is unable to run financial reports by market. All revenue postings must reference a market.

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.

This Exam Topic does not have a case study.

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
Wide World Importers is a family-owned importer of specialty cooking ingredients and prepackaged foods from the Mediterranean.
When first established, the company's products were sold at farmers markets, All sales were on a cash-only basis.
Products are now sold locally to restaurant owners and chefs in a family-owned building with a warehouse.
Products are no longer sold at farmers markets. Cash and carry sales generate most of the revenue for the company.
The founder of Wide World Importers is turning over control of the company to the younger generation in the family. These family members want to use Dynamics 365 Business Central to support their efforts to grow and diversify the business. They recently started to build a new line of business selling and shipping products to specialty retailers outside their local area through a network of brokers and representatives.
The company uses QuickBooks, but the family is concerned that QuickBooks is not capable of supporting their new business model.
There are 30 full-time and part-time employees who work in sales, purchasing, shipping, customer service, accounts payable, accounts receivable, and finance. The family does not plan to hire additional personnel to support the new line of business.
Current environment
Cash and carry sales
When a customer makes a purchase at the company's cash and carry desk, the sale is handwritten on a three-part form.
The cash and carry associate retrieves the items listed on the order from the warehouse.

Special prices and discounts are used to move products that will expire soon or that are overstocked.

Cash is accepted for payments.

The cash drawer is balanced at the end of every day. A deposit is created for the cash and given to the accountant.
One-line sales invoices are saved in QuickBooks for each cash and carry sale to a miscellaneous customer.

Customer details for cash and carry sales are not kept in QuickBooks.

Brokered sales orders
Brokered sales are called in to customer service by the brokers and sometimes directly by customers. The sales are entered into QuickBooks.
Because inventory is not tracked in QuickBooks, the generic item Brokered Item is used.

Two copies of the packing slip are printed from QuickBooks and sent to the warehouse.

Order picking
The warehouse manager provides a container and the two copies of the packing slip to a picker.

Items that are out of stock are marked on both copies of the packing slip.

The shipping amount is determined and written on the packing slips.

One copy of the completed packing slip is placed in a basket for customer service.

Completed orders are boxed up with a copy of the invoice and shipped to customers.

Order invoicing
Throughout the day, the customer service manager collects the packing slip copies and updates the invoices in QuickBooks.
The customer service manager adds a line for shipping with the amount provided by the packer.

The customer service manager prints a copy of the final invoice and sends it to the warehouse.

The accountant uses Microsoft Word to create weekly invoices for all shipments invoiced in QuickBooks during the week for some customers.
Deposits
The accountant receives the deposit bag from the cash and carry sales desk at the end of every day.

Receipts are recorded in QuickBooks against cash and carry and brokered sales based on the deposit slips.
Brokers commission
Brokers fees are paid as a percentage of sales.

A Sales by Product/Service Summary report is run in QuickBooks every month for Brokered Item to calculate what is owned.
Requirements
Customers
Users with permission must be able to quickly add new customers.

The original source of all customers in the accounting system must be identified to be from cash and carry or brokered sales.
The company needs to keep a record of special price promotions given to specific customers.

Customers must be identified with a unique general business posting group so that the correct freight G/L

account is used in sales transactions.
Sales
The customer source must be used to identify the business line, and the customer source must be indicated on every sales transactions.
Customer service and cash and carry desk associates must be able to enter sales into Dynamics 365

Business Central by customer.
Excess paper must be eliminated, and paper management must be reduced.

If a customer is not already listed in the system, a cash and carry associate or customer service associate must be able to quickly add the new customer in the process of recording the first sale.
A point-of-sale system is not needed, but users must be able to record which items are purchased by customers, accept and record their payment, and print receipts indicating paid in full.

Items
The sales manager and warehouse manager must be able to set a specific timeframe for special promotion discounts on items.
For special promotions, discounts must be consistent for all items in a product line using a single discount calculation.
Special pricing may be given to a retail chain or buying group. This pricing must be automatically applied when an order is taken for any of these customers. The original price must be recorded with each sale.
Customers must always be charged the lowest amount for an item at the time of the sale. For example, an overstocked olive oil has a regular price of $20 per unit. Customers in a buying group for restaurants can buy it for $18 per unit. There is an autumn promotion price for the item at $19 per unit. However, on a specific day only, there is an overstock special at a 15 percent discount off the regular price.
Sales invoices
Warehouse workers must be able to indicate the following in the system for each order:

1. the items picked
2. the shipping charges
3. notifications, if any, that customer service needs to provide to the customer Items sold at a discount must show the original price, discount, and net amount on each line of the invoice.

Invoices must be posted at the cash and carry desk at the time of sale. For orders, accounting must post invoices and send them to customers.
Warehouse employees must be able to indicate what has been shipped on an order. They will use the G/L

account for shipping charges. They need to use the correct G/L account for sales versus cost through proper assignment of sales and purchase accounts in the general posting setup.
Some of the brokered customers require one invoice per week regardless of the number of orders or shipments.
Accounts
Payment terms vary by customer.

The amount paid to brokers must be calculated from sales after invoice discounts.

Broker vendors must be easily identifiable from other vendors in lists

Commission paid on sales not collected within 120 days must be deducted from brokers' next compensation payment.
Reporting
Wide World Importers requires reporting on the following:
the overall profitability of each line of business at any time for any given period the cost of outbound shipping in the overall profitability of sales by business line in all related reports freight sales and cost by account in the trial balance the cost of brokers' compensation in reporting the overall profitability of sales by business line the effect of item discount promotions in financial statements.

Issues
Pricing
Spreadsheets are used to maintain special item pricing and discounts. The only source of product line discount information is a whiteboard in the warehouse. The price charged is frequently incorrect.
Customers complain when they think they have not received the best price available. Promotions are sometimes applied in error after a special pricing event ends, for example, when discounts are offered temporarily to reduce overstock.
Management cannot see original versus actual price on all sales. Discounts given by brokers requires spreadsheets and comparison between price list and price on sales invoice. Management needs to be able to quickly see the discount given on each sale.
Payment terms

Agreed-upon payment terms are frequently entered incorrectly on orders, causing cashflow issues.

Invoices already paid in full exist on the sales aging reports. The frequent cause of this issue is that sales from the cash and carry desk are not indicated as cash sales and are not posted as paid in full.
Some buying groups require that all invoices sent during a month be due on the 20th of the following month.

Invoicing
Paperwork is frequently misplaced between the warehouse, customer service, and accounting.

Invoices that are posted in the accounting system based on shipments and invoices that are sent to customers weekly do not match due to errors transferring the data from one document to another.
Users are selecting the incorrect freight type (expense versus sales) on purchase and sales transactions,

making it difficult to reconcile freight costs.
Sales placed from the cash and carry desk by customers originally acquired through a broker are not being recognized with the correct customer source. Reporting by business line is inaccurate.
Accounts
Users often forget which fields to use to enter information when they add new customers to QuickBooks.

This results in errors and inconsistencies in data and affects sales reporting. Confidence in sales reporting accuracy is low.
Adding new brokers is a different process than adding other purchase vendors. Users often forget which fields to select and how to correctly assign the vendor number to add new brokers.
Manual entries to certain G/L accounts cause reconciliation issues.

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
Best for You Organics Company is a mid-sized wholesale distributor of organic produce and other food items to national retail grocery store chains. Over half the company's revenue is from produce with an average shelf life of less than a week. The remaining revenue comes from shelf-stable canned and packaged items.
Best for You Organics experienced substantial growth in the last two years. They expanded from one location to three locations, increased the number of employees from 25 to over 100, and more than doubled their revenue. The company's business forecast predicts a steady rate of growth of at least 20 percent annually for the next five years.
As a result of their expansion, Best for You Organics is experiencing delays and bottlenecks in their processes.
The company has decided to implement Dynamics 365 Business Central as a new Enterprise Resource Planning (ERP) solution to increase efficiency and automation to support their continued growth.
Current environment
Deliveries
The company receives daily truckloads of products from their vendors, warehouses the products briefly,

and then ships orders based on a weekly delivery cycle to each customer's store.
Customers have regular standing orders that are revised and finished one week prior to delivery.

Best for You Organics has a fleet of trucks that make deliveries according to planned routes.

The company also has a floating route for trucks to deliver rush orders. The route is being used more often by customers and has overwhelmed the warehouse with exception processing.
Duties
The company wants to provide greater separation of duties between activities in the office and activities in the warehouse.
The accounting team enters orders for the sales team, sends pick tickets back to the warehouse, and organizes shipping documents. The accounting team invoices the orders when they receive instructions from the warehouse that an order shipped.

Employees have expressed frustration because they need to work longer hours to accommodate the increase in sales.
The company does not use the Advanced Warehousing function.
Requirements
Salespeople
Salespeople must be able to manage opportunities that are converted to quotes.

Salespeople must be able to release orders to the warehouse to be fulfilled once a quote is final.

Salespeople must be trained on how to determine if inventory is available when they are completing the quote to avoid promising inventory that is not on hand because all orders are processed one week in advance of delivery.
Team responsibilities
Deliveries must be shipped daily by employees in the warehouse. The office must be responsible for completing the invoicing process.
The current team responsibilities are shown in the following graphic:



The required team responsibilities are shown in the following graphic:



Vendor management
The company contracts with each vendor for regular discounts at the invoice level.

The company requires a pre-set discount percentage to calculate automatically when the purchaser completes a purchase order.
The company must be able to see a copy of the completed purchase order in the system when they have new contract negotiations with their vendors.
Customer and inventory management
Sales invoices must be automatically emailed by the system to customers.

A template must be used for emails sent to customers. The template must not be altered.

Customers who pre-pay their invoices must not receive a copy of their invoices.

The company warehouses all products as Case quantities. The company has difficulty recording accurate costs for product returns. The company wants to expand their capabilities for managing returns by setting up all inventory in a quantity of Each.
Reporting
The company must be able to answer two key questions when they report financial results:
Which customers are buying which items?

Which salespeople are selling in which regions?

When discussing customers, the company must refer to each Customer Group as follows:
Big Box

Franchise

Private

When discussing items, the company must refer to each Item Group as follows:
Fair Trade

Free Range

Grass Fed

Heirloom

Organic

Salesperson names that must be used are:
SalespersonA

SalespersonB

SalespersonC

SalespersonD

Region names that must be used are:
North

South

East

West

Commission
The company must be able to track salesperson performance within certain regions to calculate commission.
Each salesperson must be assigned only to a single region.

This commission data is currently recorded inconsistently, resulting in incorrect combinations that require manual correction. The company must have some level of automation to manage this.

Issues
Issue 1
The accounting team needs an improved process for reconciling inventory to the general ledger.
Posted transactions are changing financial reporting in periods that have been closed.

Unexpected changes in inventory cost for previous months are causing costing inaccuracies.

The system must restrict the adjustment of costs for closed months.

The new policy will be to restrict all users to posting in the current month only, with the exception of a few employees from the accounting team.
The calendar fiscal year for company must begin on June 1.

Issue 2
The accounting team uses a complex manual accrual process to determine the accounting impact of items received but not invoiced. The system must streamline the item accrual process.
Issue 3
The company often receives a higher quantity of produce items than what they order because vendors allow for spoilage or damage of produce in transit. The company does not want to allow over receipt on non-produce items.
Issue 4
The company has received comments from their auditors that invoices are not being properly compared to received inventory documents before they are posted. The company does not use warehouse management and always handles processes directly from the purchase order. The company always has the following documents:
purchase order from the procurement department receiving document from the warehouse electronic invoice from the vendor

Case study
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 this 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. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs.
When you are ready to answer a question, click the Question button to return to the question.
Background
Northwind Traders is an independent, family-owned business. The company distributes natural pet products in the Northwest region of the country/region. Products are purchased directly from manufacturers and distributed by using its own fleet of trucks.
When the company started, deliveries were within a three-hour radius of the warehouse. Due to regional growth, current deliveries require drivers to stay overnight on some routes. The company plans to open a second warehouse to expand the region and eliminate overnights for route drivers. The company also plans to hire a second group of employees to run operations in this new location. The finance and accounting teams will remain in the original location.
The company uses a third-party system for financials and order management. The finance department stated that the company's fiscal year begins on July 1 and ends on June 30. The mm/dd/yyyy date format is used.
As part of the expansion, the owner plans to upgrade to an ERP system and use Business Central to fulfill the company requirements and manage growth.
Current environment
Orders
Orders are emailed to customer service and manually keyed into the inventory system.

Pricing and discounts
Customer pricing is determined by the customer market type. Customer market types are Retail,

Veterinarian, and Breeder. Each customer is associated with only one market type.
Vendors offer monthly promotions to customers by item, brand, or item category.

Invoices should show each customer's base price, the discount amount, and the net price.

Accounts payable
The company wants to expand vendor payment options in the new system.

Requirement

Customers
The sales team must be able to do the following:

- Quickly set up new customers with the proper settings based on customer type.
- Identify customers by market type. Customer posting groups will be used to identify which market the customer belongs to.
Base price is determined by the customer market type.

The sales department should receive a warning when entering the order if a customer is over their credit limit.
Sales
Customer discounts are offered for specific time frames by item, brand, or product category. Discounts should be added to sales lines automatically.
Discounts must post to a unique general ledger (G/L) account.

The business needs to be able to track revenue by location, market, and product category dimensions.

Locations 100 and 200 will be set as default dimensions on the two warehouse locations. Food, treats, toys, and supplies are the required product categories, which will be set as default dimensions on the item cards.
Each customer card will have a default market dimension.
The sales manager wants to delete canceled orders and automatically archive them.

Warehouse
Orders will be fulfilled from two possible warehouse locations.

Product will be transferred between locations by using transfer orders.

Sales invoices
Invoices will be posted after delivery.

Invoices will be emailed to the customer.

The sales department must be able to quickly correct posted invoices for the following scenarios:

- Posted invoices that have not been paid.
- Posted invoices that have been paid.
- Posted invoices created from sales orders.
- Posted invoices not created from sales orders.
Accounting
The finance department requires that the company has 12 monthly accounting periods per fiscal year.

Finance department users must be able to reconcile the accounts receivable (AR) subledger to the G/L

account at month end.
AR department users need the ability to settle and close invoices when customers take payment discounts after the payment discount date has passed. AR users should be allowed to accept or reject the payment tolerance.
Accounts payable (AP) department users must be able to pay vendors by electronic funds transfer (EFT)

and use a payment journal batch named EFT to process payments.
When viewing G/L entries, the finance and accounting teams must be able to see debits and credits instead of a positive or negative amount.
The company needs to be able to track expenses by department and location. The departments are sales,

operations, and administration.
AR must be able to correct cash application entries.

Issues
Payment application
Customers may have several stores that are responsible for their own orders and payments.

Occasionally, AR clerks mistakenly apply payments to the incorrect customer invoice.

Invoicing
When items are delivered, customers refuse the items for reasons such as damaged or wrong item.

After the invoices are posted, they must be corrected, which is time-consuming.

Warehouse
The sales department and warehouse managers must have visibility into products that are in the process of being transferred between locations.
Accounts
Customer accounts are difficult to view by market type.

The finance team does not have the ability to report revenue by customer type.

Accounting
AR users often find variances between the AR subledger and G/L account.

Customers often take the payment discount after the payment discount date has passed, leaving open invoices for small amounts.
The AP department is unable to pay vendors by EFT in the current system.

Finance and accounting team members have trouble validating postings when they use only the amounts field on G/L entries.
The finance department is unable to run financial reports by market. All revenue postings must reference a market.

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.

This Exam Topic does not have a case study.

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

Wide World Importers is a family-owned importer of specialty cooking ingredients and prepackaged foods from the Mediterranean.
When first established, the company's products were sold at farmers markets, All sales were on a cash-only basis.

Products are now sold locally to restaurant owners and chefs in a family-owned building with a warehouse. Products are no longer sold at farmers markets. Cash and carry sales generate most of the revenue for the company.

The founder of Wide World Importers is turning over control of the company to the younger generation in the family. These family members want to use Dynamics 365 Business Central to support their efforts to grow and diversify the business. They recently started to build a new line of business selling and shipping products to specialty retailers outside their local area through a network of brokers and representatives.

The company uses QuickBooks, but the family is concerned that QuickBooks is not capable of supporting their new business model.

There are 30 full-time and part-time employees who work in sales, purchasing, shipping, customer service, accounts payable, accounts receivable, and finance. The family does not plan to hire additional personnel to support the new line of business.

Current environment

Cash and carry sales

When a customer makes a purchase at the company's cash and carry desk, the sale is handwritten on a three-part form.
The cash and carry associate retrieves the items listed on the order from the warehouse.

Special prices and discounts are used to move products that will expire soon or that are overstocked.

Cash is accepted for payments.

The cash drawer is balanced at the end of every day. A deposit is created for the cash and given to the accountant.
One-line sales invoices are saved in QuickBooks for each cash and carry sale to a miscellaneous customer.

Customer details for cash and carry sales are not kept in QuickBooks.

Brokered sales orders

Brokered sales are called in to customer service by the brokers and sometimes directly by customers. The sales are entered into QuickBooks.
Because inventory is not tracked in QuickBooks, the generic item Brokered Item is used.

Two copies of the packing slip are printed from QuickBooks and sent to the warehouse.

Order picking

The warehouse manager provides a container and the two copies of the packing slip to a picker.

Items that are out of stock are marked on both copies of the packing slip.

The shipping amount is determined and written on the packing slips.

One copy of the completed packing slip is placed in a basket for customer service.

Completed orders are boxed up with a copy of the invoice and shipped to customers.

Order invoicing

Throughout the day, the customer service manager collects the packing slip copies and updates the invoices in QuickBooks.
The customer service manager adds a line for shipping with the amount provided by the packer.

The customer service manager prints a copy of the final invoice and sends it to the warehouse.

The accountant uses Microsoft Word to create weekly invoices for all shipments invoiced in QuickBooks during the week for some customers.

Deposits

The accountant receives the deposit bag from the cash and carry sales desk at the end of every day.

Receipts are recorded in QuickBooks against cash and carry and brokered sales based on the deposit slips.

Brokers commission

Brokers fees are paid as a percentage of sales.

A Sales by Product/Service Summary report is run in QuickBooks every month for Brokered Item to calculate what is owned.

Requirements

Customers

Users with permission must be able to quickly add new customers.

The original source of all customers in the accounting system must be identified to be from cash and carry or brokered sales.
The company needs to keep a record of special price promotions given to specific customers.

Customers must be identified with a unique general business posting group so that the correct freight G/L

account is used in sales transactions.

Sales

The customer source must be used to identify the business line, and the customer source must be indicated on every sales transactions.
Customer service and cash and carry desk associates must be able to enter sales into Dynamics 365

Business Central by customer.
Excess paper must be eliminated, and paper management must be reduced.

If a customer is not already listed in the system, a cash and carry associate or customer service associate must be able to quickly add the new customer in the process of recording the first sale. A point-of-sale system is not needed, but users must be able to record which items are purchased by customers, accept and record their payment, and print receipts indicating paid in full.

Items

The sales manager and warehouse manager must be able to set a specific timeframe for special promotion discounts on items.
For special promotions, discounts must be consistent for all items in a product line using a single discount calculation.
Special pricing may be given to a retail chain or buying group. This pricing must be automatically applied when an order is taken for any of these customers. The original price must be recorded with each sale. Customers must always be charged the lowest amount for an item at the time of the sale. For example, an overstocked olive oil has a regular price of $20 per unit. Customers in a buying group for restaurants can buy it for $18 per unit. There is an autumn promotion price for the item at $19 per unit. However, on a specific day only, there is an overstock special at a 15 percent discount off the regular price.

Sales invoices

Warehouse workers must be able to indicate the following in the system for each order:

1. the items picked
2. the shipping charges
3. notifications, if any, that customer service needs to provide to the customer Items sold at a discount must show the original price, discount, and net amount on each line of the invoice.

Invoices must be posted at the cash and carry desk at the time of sale. For orders, accounting must post invoices and send them to customers.
Warehouse employees must be able to indicate what has been shipped on an order. They will use the G/L

account for shipping charges. They need to use the correct G/L account for sales versus cost through proper assignment of sales and purchase accounts in the general posting setup. Some of the brokered customers require one invoice per week regardless of the number of orders or shipments.

Accounts

Payment terms vary by customer.

The amount paid to brokers must be calculated from sales after invoice discounts.

Broker vendors must be easily identifiable from other vendors in lists

Commission paid on sales not collected within 120 days must be deducted from brokers' next compensation payment.

Reporting

Wide World Importers requires reporting on the following:

the overall profitability of each line of business at any time for any given period the cost of outbound shipping in the overall profitability of sales by business line in all related reports freight sales and cost by account in the trial balance the cost of brokers' compensation in reporting the overall profitability of sales by business line the effect of item discount promotions in financial statements.

Issues

Pricing

Spreadsheets are used to maintain special item pricing and discounts. The only source of product line discount information is a whiteboard in the warehouse. The price charged is frequently incorrect. Customers complain when they think they have not received the best price available. Promotions are sometimes applied in error after a special pricing event ends, for example, when discounts are offered temporarily to reduce overstock.
Management cannot see original versus actual price on all sales. Discounts given by brokers requires spreadsheets and comparison between price list and price on sales invoice. Management needs to be able to quickly see the discount given on each sale.

Payment terms

Agreed-upon payment terms are frequently entered incorrectly on orders, causing cashflow issues.

Invoices already paid in full exist on the sales aging reports. The frequent cause of this issue is that sales from the cash and carry desk are not indicated as cash sales and are not posted as paid in full. Some buying groups require that all invoices sent during a month be due on the 20th of the following month.

Invoicing

Paperwork is frequently misplaced between the warehouse, customer service, and accounting.

Invoices that are posted in the accounting system based on shipments and invoices that are sent to customers weekly do not match due to errors transferring the data from one document to another. Users are selecting the incorrect freight type (expense versus sales) on purchase and sales transactions,

making it difficult to reconcile freight costs.
Sales placed from the cash and carry desk by customers originally acquired through a broker are not being recognized with the correct customer source. Reporting by business line is inaccurate.

Accounts

Users often forget which fields to use to enter information when they add new customers to QuickBooks.

This results in errors and inconsistencies in data and affects sales reporting. Confidence in sales reporting accuracy is low.
Adding new brokers is a different process than adding other purchase vendors. Users often forget which fields to select and how to correctly assign the vendor number to add new brokers. Manual entries to certain G/L accounts cause reconciliation issues.

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
Best for You Organics Company is a mid-sized wholesale distributor of organic produce and other food items to national retail grocery store chains. Over half the company's revenue is from produce with an average shelf life of less than a week. The remaining revenue comes from shelf-stable canned and packaged items.
Best for You Organics experienced substantial growth in the last two years. They expanded from one location to three locations, increased the number of employees from 25 to over 100, and more than doubled their revenue. The company's business forecast predicts a steady rate of growth of at least 20 percent annually for the next five years.
As a result of their expansion, Best for You Organics is experiencing delays and bottlenecks in their processes.
The company has decided to implement Dynamics 365 Business Central as a new Enterprise Resource Planning (ERP) solution to increase efficiency and automation to support their continued growth.
Current environment
Deliveries
The company receives daily truckloads of products from their vendors, warehouses the products briefly,

and then ships orders based on a weekly delivery cycle to each customer's store.
Customers have regular standing orders that are revised and finished one week prior to delivery.

Best for You Organics has a fleet of trucks that make deliveries according to planned routes.

The company also has a floating route for trucks to deliver rush orders. The route is being used more often by customers and has overwhelmed the warehouse with exception processing.
Duties
The company wants to provide greater separation of duties between activities in the office and activities in the warehouse.
The accounting team enters orders for the sales team, sends pick tickets back to the warehouse, and organizes shipping documents. The accounting team invoices the orders when they receive instructions from the warehouse that an order shipped.
Employees have expressed frustration because they need to work longer hours to accommodate the increase in sales.
The company does not use the Advanced Warehousing function.
Requirements
Salespeople
Salespeople must be able to manage opportunities that are converted to quotes.

Salespeople must be able to release orders to the warehouse to be fulfilled once a quote is final.

Salespeople must be trained on how to determine if inventory is available when they are completing the quote to avoid promising inventory that is not on hand because all orders are processed one week in advance of delivery.
Team responsibilities
Deliveries must be shipped daily by employees in the warehouse. The office must be responsible for completing the invoicing process.
The current team responsibilities are shown in the following graphic:



The required team responsibilities are shown in the following graphic:



Vendor management
The company contracts with each vendor for regular discounts at the invoice level.

The company requires a pre-set discount percentage to calculate automatically when the purchaser completes a purchase order.
The company must be able to see a copy of the completed purchase order in the system when they have new contract negotiations with their vendors.
Customer and inventory management
Sales invoices must be automatically emailed by the system to customers.

A template must be used for emails sent to customers. The template must not be altered.

Customers who pre-pay their invoices must not receive a copy of their invoices.

The company warehouses all products as Case quantities. The company has difficulty recording accurate costs for product returns. The company wants to expand their capabilities for managing returns by setting up all inventory in a quantity of Each.
Reporting
The company must be able to answer two key questions when they report financial results:
Which customers are buying which items?

Which salespeople are selling in which regions?

When discussing customers, the company must refer to each Customer Group as follows:
Big Box

Franchise

Private

When discussing items, the company must refer to each Item Group as follows:
Fair Trade

Free Range

Grass Fed

Heirloom

Organic

Salesperson names that must be used are:
SalespersonA

SalespersonB

SalespersonC

SalespersonD

Region names that must be used are:
North

South

East

West

Commission
The company must be able to track salesperson performance within certain regions to calculate commission.
Each salesperson must be assigned only to a single region.

This commission data is currently recorded inconsistently, resulting in incorrect combinations that require manual correction. The company must have some level of automation to manage this.

Issues
Issue 1
The accounting team needs an improved process for reconciling inventory to the general ledger.
Posted transactions are changing financial reporting in periods that have been closed.

Unexpected changes in inventory cost for previous months are causing costing inaccuracies.

The system must restrict the adjustment of costs for closed months.

The new policy will be to restrict all users to posting in the current month only, with the exception of a few employees from the accounting team.
The calendar fiscal year for company must begin on June 1.

Issue 2
The accounting team uses a complex manual accrual process to determine the accounting impact of items received but not invoiced. The system must streamline the item accrual process.
Issue 3
The company often receives a higher quantity of produce items than what they order because vendors allow for spoilage or damage of produce in transit. The company does not want to allow over receipt on non-produce items.
Issue 4
The company has received comments from their auditors that invoices are not being properly compared to received inventory documents before they are posted. The company does not use warehouse management and always handles processes directly from the purchase order. The company always has the following documents:
purchase order from the procurement department receiving document from the warehouse electronic invoice from the vendor

Case study
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 this 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. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs.
When you are ready to answer a question, click the Question button to return to the question.
Background
Northwind Traders is an independent, family-owned business. The company distributes natural pet products in the Northwest region of the country/region. Products are purchased directly from manufacturers and distributed by using its own fleet of trucks.
When the company started, deliveries were within a three-hour radius of the warehouse. Due to regional growth, current deliveries require drivers to stay overnight on some routes. The company plans to open a second warehouse to expand the region and eliminate overnights for route drivers. The company also plans to hire a second group of employees to run operations in this new location. The finance and accounting teams will remain in the original location.
The company uses a third-party system for financials and order management. The finance department stated that the company's fiscal year begins on July 1 and ends on June 30. The mm/dd/yyyy date format is used.
As part of the expansion, the owner plans to upgrade to an ERP system and use Business Central to fulfill the company requirements and manage growth.
Current environment
Orders
Orders are emailed to customer service and manually keyed into the inventory system.

Pricing and discounts
Customer pricing is determined by the customer market type. Customer market types are Retail,

Veterinarian, and Breeder. Each customer is associated with only one market type.
Vendors offer monthly promotions to customers by item, brand, or item category.

Invoices should show each customer's base price, the discount amount, and the net price.

Accounts payable
The company wants to expand vendor payment options in the new system.

Requirement

Customers
The sales team must be able to do the following:

- Quickly set up new customers with the proper settings based on customer type.
- Identify customers by market type. Customer posting groups will be used to identify which market the customer belongs to.
Base price is determined by the customer market type.

The sales department should receive a warning when entering the order if a customer is over their credit limit.
Sales
Customer discounts are offered for specific time frames by item, brand, or product category. Discounts should be added to sales lines automatically.
Discounts must post to a unique general ledger (G/L) account.

The business needs to be able to track revenue by location, market, and product category dimensions.

Locations 100 and 200 will be set as default dimensions on the two warehouse locations. Food, treats, toys, and supplies are the required product categories, which will be set as default dimensions on the item cards.
Each customer card will have a default market dimension.
The sales manager wants to delete canceled orders and automatically archive them.

Warehouse
Orders will be fulfilled from two possible warehouse locations.

Product will be transferred between locations by using transfer orders.

Sales invoices
Invoices will be posted after delivery.

Invoices will be emailed to the customer.

The sales department must be able to quickly correct posted invoices for the following scenarios:

- Posted invoices that have not been paid.
- Posted invoices that have been paid.
- Posted invoices created from sales orders.
- Posted invoices not created from sales orders.
Accounting
The finance department requires that the company has 12 monthly accounting periods per fiscal year.

Finance department users must be able to reconcile the accounts receivable (AR) subledger to the G/L

account at month end.
AR department users need the ability to settle and close invoices when customers take payment discounts after the payment discount date has passed. AR users should be allowed to accept or reject the payment tolerance.
Accounts payable (AP) department users must be able to pay vendors by electronic funds transfer (EFT)

and use a payment journal batch named EFT to process payments.
When viewing G/L entries, the finance and accounting teams must be able to see debits and credits instead of a positive or negative amount.
The company needs to be able to track expenses by department and location. The departments are sales,

operations, and administration.
AR must be able to correct cash application entries.

Issues
Payment application
Customers may have several stores that are responsible for their own orders and payments.

Occasionally, AR clerks mistakenly apply payments to the incorrect customer invoice.

Invoicing
When items are delivered, customers refuse the items for reasons such as damaged or wrong item.

After the invoices are posted, they must be corrected, which is time-consuming.

Warehouse
The sales department and warehouse managers must have visibility into products that are in the process of being transferred between locations.
Accounts
Customer accounts are difficult to view by market type.

The finance team does not have the ability to report revenue by customer type.

Accounting
AR users often find variances between the AR subledger and G/L account.

Customers often take the payment discount after the payment discount date has passed, leaving open invoices for small amounts.
The AP department is unable to pay vendors by EFT in the current system.

Finance and accounting team members have trouble validating postings when they use only the amounts field on G/L entries.
The finance department is unable to run financial reports by market. All revenue postings must reference a market.

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.

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
Best for You Organics Company is a mid-sized wholesale distributor of organic produce and other food items to national retail grocery store chains. Over half the company's revenue is from produce with an average shelf life of less than a week. The remaining revenue comes from shelf-stable canned and packaged items.
Best for You Organics experienced substantial growth in the last two years. They expanded from one location to three locations, increased the number of employees from 25 to over 100, and more than doubled their revenue. The company's business forecast predicts a steady rate of growth of at least 20 percent annually for the next five years.
As a result of their expansion, Best for You Organics is experiencing delays and bottlenecks in their processes.
The company has decided to implement Dynamics 365 Business Central as a new Enterprise Resource Planning (ERP) solution to increase efficiency and automation to support their continued growth.
Current environment
Deliveries
The company receives daily truckloads of products from their vendors, warehouses the products briefly,

and then ships orders based on a weekly delivery cycle to each customer's store.
Customers have regular standing orders that are revised and finished one week prior to delivery.

Best for You Organics has a fleet of trucks that make deliveries according to planned routes.

The company also has a floating route for trucks to deliver rush orders. The route is being used more often by customers and has overwhelmed the warehouse with exception processing.
Duties
The company wants to provide greater separation of duties between activities in the office and activities in the warehouse.
The accounting team enters orders for the sales team, sends pick tickets back to the warehouse, and organizes shipping documents. The accounting team invoices the orders when they receive instructions from the warehouse that an order shipped.

Employees have expressed frustration because they need to work longer hours to accommodate the increase in sales.
The company does not use the Advanced Warehousing function.
Requirements
Salespeople
Salespeople must be able to manage opportunities that are converted to quotes.

Salespeople must be able to release orders to the warehouse to be fulfilled once a quote is final.

Salespeople must be trained on how to determine if inventory is available when they are completing the quote to avoid promising inventory that is not on hand because all orders are processed one week in advance of delivery.
Team responsibilities
Deliveries must be shipped daily by employees in the warehouse. The office must be responsible for completing the invoicing process.
The current team responsibilities are shown in the following graphic:



The required team responsibilities are shown in the following graphic:



Vendor management
The company contracts with each vendor for regular discounts at the invoice level.

The company requires a pre-set discount percentage to calculate automatically when the purchaser completes a purchase order.
The company must be able to see a copy of the completed purchase order in the system when they have new contract negotiations with their vendors.
Customer and inventory management
Sales invoices must be automatically emailed by the system to customers.

A template must be used for emails sent to customers. The template must not be altered.

Customers who pre-pay their invoices must not receive a copy of their invoices.

The company warehouses all products as Case quantities. The company has difficulty recording accurate costs for product returns. The company wants to expand their capabilities for managing returns by setting up all inventory in a quantity of Each.
Reporting
The company must be able to answer two key questions when they report financial results:
Which customers are buying which items?

Which salespeople are selling in which regions?

When discussing customers, the company must refer to each Customer Group as follows:
Big Box

Franchise

Private

When discussing items, the company must refer to each Item Group as follows:
Fair Trade

Free Range

Grass Fed

Heirloom

Organic

Salesperson names that must be used are:
SalespersonA

SalespersonB

SalespersonC

SalespersonD

Region names that must be used are:
North

South

East

West

Commission
The company must be able to track salesperson performance within certain regions to calculate commission.
Each salesperson must be assigned only to a single region.

This commission data is currently recorded inconsistently, resulting in incorrect combinations that require manual correction. The company must have some level of automation to manage this.

Issues
Issue 1
The accounting team needs an improved process for reconciling inventory to the general ledger.
Posted transactions are changing financial reporting in periods that have been closed.

Unexpected changes in inventory cost for previous months are causing costing inaccuracies.

The system must restrict the adjustment of costs for closed months.

The new policy will be to restrict all users to posting in the current month only, with the exception of a few employees from the accounting team.
The calendar fiscal year for company must begin on June 1.

Issue 2
The accounting team uses a complex manual accrual process to determine the accounting impact of items received but not invoiced. The system must streamline the item accrual process.
Issue 3
The company often receives a higher quantity of produce items than what they order because vendors allow for spoilage or damage of produce in transit. The company does not want to allow over receipt on non-produce items.
Issue 4
The company has received comments from their auditors that invoices are not being properly compared to received inventory documents before they are posted. The company does not use warehouse management and always handles processes directly from the purchase order. The company always has the following documents:
purchase order from the procurement department receiving document from the warehouse electronic invoice from the vendor

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

Wide World Importers is a family-owned importer of specialty cooking ingredients and prepackaged foods from the Mediterranean.
When first established, the company's products were sold at farmers markets, all sales were on a cash-only basis.

Products are now sold locally to restaurant owners and chefs in a family-owned building with a warehouse. Products are no longer sold at farmers markets. Cash and carry sales generate most of the revenue for the company.

The founder of Wide World Importers is turning over control of the company to the younger generation in the family. These family members want to use Dynamics 365 Business Central to support their efforts to grow and diversify the business. They recently started to build a new line of business selling and shipping products to specialty retailers outside their local area through a network of brokers and representatives.

The company uses QuickBooks, but the family is concerned that QuickBooks is not capable of supporting their new business model.

There are 30 full-time and part-time employees who work in sales, purchasing, shipping, customer service, accounts payable, accounts receivable, and finance. The family does not plan to hire additional personnel to support the new line of business.

Current environment

Cash and carry sales

When a customer makes a purchase at the company's cash and carry desk, the sale is handwritten on a three-part form.
The cash and carry associate retrieves the items listed on the order from the warehouse.

Special prices and discounts are used to move products that will expire soon or that are overstocked.

Cash is accepted for payments.

The cash drawer is balanced at the end of every day. A deposit is created for the cash and given to the accountant.
One-line sales invoices are saved in QuickBooks for each cash and carry sale to a miscellaneous customer.

Customer details for cash and carry sales are not kept in QuickBooks.

Brokered sales orders

Brokered sales are called in to customer service by the brokers and sometimes directly by customers. The sales are entered into QuickBooks.
Because inventory is not tracked in QuickBooks, the generic item Brokered Item is used.

Two copies of the packing slip are printed from QuickBooks and sent to the warehouse.

Order picking

The warehouse manager provides a container and the two copies of the packing slip to a picker.

Items that are out of stock are marked on both copies of the packing slip.

The shipping amount is determined and written on the packing slips.

One copy of the completed packing slip is placed in a basket for customer service.

Completed orders are boxed up with a copy of the invoice and shipped to customers.

Order invoicing

Throughout the day, the customer service manager collects the packing slip copies and updates the invoices in QuickBooks.
The customer service manager adds a line for shipping with the amount provided by the packer.

The customer service manager prints a copy of the final invoice and sends it to the warehouse.

The accountant uses Microsoft Word to create weekly invoices for all shipments invoiced in QuickBooks during the week for some customers.

Deposits

The accountant receives the deposit bag from the cash and carry sales desk at the end of every day.

Receipts are recorded in QuickBooks against cash and carry and brokered sales based on the deposit slips.

Brokers commission

Brokers fees are paid as a percentage of sales.

A Sales by Product/Service Summary report is run in QuickBooks every month for Brokered Item to calculate what is owned.

Requirements

Customers

Users with permission must be able to quickly add new customers.

The original source of all customers in the accounting system must be identified to be from cash and carry or brokered sales.
The company needs to keep a record of special price promotions given to specific customers.

Customers must be identified with a unique general business posting group so that the correct freight G/L

account is used in sales transactions.

Sales

The customer source must be used to identify the business line, and the customer source must be indicated on every sales transaction.
Customer service and cash and carry desk associates must be able to enter sales into Dynamics 365

Business Central by customer.
Excess paper must be eliminated, and paper management must be reduced.

If a customer is not already listed in the system, a cash and carry associate or customer service associate must be able to quickly add the new customer in the process of recording the first sale. A point-of-sale system is not needed, but users must be able to record which items are purchased by customers, accept and record their payment, and print receipts indicating paid in full.

Items

The sales manager and warehouse manager must be able to set a specific timeframe for special promotion discounts on items.
For special promotions, discounts must be consistent for all items in a product line using a single discount calculation.
Special pricing may be given to a retail chain or buying group. This pricing must be automatically applied when an order is taken for any of these customers. The original price must be recorded with each sale. Customers must always be charged the lowest amount for an item at the time of the sale. For example, an overstocked olive oil has a regular price of $20 per unit. Customers in a buying group for restaurants can buy it for $18 per unit. There is an autumn promotion price for the item at $19 per unit. However, on a specific day only, there is an overstock special at a 15 percent discount off the regular price.

Sales invoices

Warehouse workers must be able to indicate the following in the system for each order:

1. the items picked
2. the shipping charges
3. notifications, if any, that customer service needs to provide to the customer Items sold at a discount must show the original price, discount, and net amount on each line of the invoice.

Invoices must be posted at the cash and carry desk at the time of sale. For orders, accounting must post invoices and send them to customers.
Warehouse employees must be able to indicate what has been shipped on an order. They will use the G/L

account for shipping charges. They need to use the correct G/L account for sales versus cost through proper assignment of sales and purchase accounts in the general posting setup. Some of the brokered customers require one invoice per week regardless of the number of orders or shipments.

Accounts

Payment terms vary by customer.

The amount paid to brokers must be calculated from sales after invoice discounts.

Broker vendors must be easily identifiable from other vendors in lists

Commission paid on sales not collected within 120 days must be deducted from brokers' next compensation payment.

Reporting

Wide World Importers requires reporting on the following:

the overall profitability of each line of business at any time for any given period the cost of outbound shipping in the overall profitability of sales by business line in all related reports freight sales and cost by account in the trial balance the cost of brokers' compensation in reporting the overall profitability of sales by business line the effect of item discount promotions in financial statements.

Issues

Pricing

Spreadsheets are used to maintain special item pricing and discounts. The only source of product line discount information is a whiteboard in the warehouse. The price charged is frequently incorrect. Customers complain when they think they have not received the best price available. Promotions are sometimes applied in error after a special pricing event ends, for example, when discounts are offered temporarily to reduce overstock.
Management cannot see original versus actual price on all sales. Discounts given by brokers requires spreadsheets and comparison between price list and price on sales invoice. Management needs to be able to quickly see the discount given on each sale.

Payment terms

Agreed-upon payment terms are frequently entered incorrectly on orders, causing cashflow issues.

Invoices already paid in full exist on the sales aging reports. The frequent cause of this issue is that sales from the cash and carry desk are not indicated as cash sales and are not posted as paid in full. Some buying groups require that all invoices sent during a month be due on the 20th of the following month.

Invoicing

Paperwork is frequently misplaced between the warehouse, customer service, and accounting.

Invoices that are posted in the accounting system based on shipments and invoices that are sent to customers weekly do not match due to errors transferring the data from one document to another. Users are selecting the incorrect freight type (expense versus sales) on purchase and sales transactions,

making it difficult to reconcile freight costs.
Sales placed from the cash and carry desk by customers originally acquired through a broker are not being recognized with the correct customer source. Reporting by business line is inaccurate.

Accounts

Users often forget which fields to use to enter information when they add new customers to QuickBooks.

This results in errors and inconsistencies in data and affects sales reporting. Confidence in sales reporting accuracy is low.
Adding new brokers is a different process than adding other purchase vendors. Users often forget which fields to select and how to correctly assign the vendor number to add new brokers. Manual entries to certain G/L accounts cause reconciliation issues.

Case study
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 this 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. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs.
When you are ready to answer a question, click the Question button to return to the question.
Background
Northwind Traders is an independent, family-owned business. The company distributes natural pet products in the Northwest region of the country/region. Products are purchased directly from manufacturers and distributed by using its own fleet of trucks.
When the company started, deliveries were within a three-hour radius of the warehouse. Due to regional growth, current deliveries require drivers to stay overnight on some routes. The company plans to open a second warehouse to expand the region and eliminate overnights for route drivers. The company also plans to hire a second group of employees to run operations in this new location. The finance and accounting teams will remain in the original location.
The company uses a third-party system for financials and order management. The finance department stated that the company's fiscal year begins on July 1 and ends on June 30. The mm/dd/yyyy date format is used.
As part of the expansion, the owner plans to upgrade to an ERP system and use Business Central to fulfill the company requirements and manage growth.
Current environment
Orders
Orders are emailed to customer service and manually keyed into the inventory system.

Pricing and discounts
Customer pricing is determined by the customer market type. Customer market types are Retail,

Veterinarian, and Breeder. Each customer is associated with only one market type.
Vendors offer monthly promotions to customers by item, brand, or item category.

Invoices should show each customer's base price, the discount amount, and the net price.

Accounts payable
The company wants to expand vendor payment options in the new system.

Requirement

Customers
The sales team must be able to do the following:

- Quickly set up new customers with the proper settings based on customer type.
- Identify customers by market type. Customer posting groups will be used to identify which market the customer belongs to.
Base price is determined by the customer market type.

The sales department should receive a warning when entering the order if a customer is over their credit limit.
Sales
Customer discounts are offered for specific time frames by item, brand, or product category. Discounts should be added to sales lines automatically.
Discounts must post to a unique general ledger (G/L) account.

The business needs to be able to track revenue by location, market, and product category dimensions.

Locations 100 and 200 will be set as default dimensions on the two warehouse locations. Food, treats, toys, and supplies are the required product categories, which will be set as default dimensions on the item cards.
Each customer card will have a default market dimension.
The sales manager wants to delete canceled orders and automatically archive them.

Warehouse
Orders will be fulfilled from two possible warehouse locations.

Product will be transferred between locations by using transfer orders.

Sales invoices
Invoices will be posted after delivery.

Invoices will be emailed to the customer.

The sales department must be able to quickly correct posted invoices for the following scenarios:

- Posted invoices that have not been paid.
- Posted invoices that have been paid.
- Posted invoices created from sales orders.
- Posted invoices not created from sales orders.
Accounting
The finance department requires that the company has 12 monthly accounting periods per fiscal year.

Finance department users must be able to reconcile the accounts receivable (AR) subledger to the G/L

account at month end.
AR department users need the ability to settle and close invoices when customers take payment discounts after the payment discount date has passed. AR users should be allowed to accept or reject the payment tolerance.
Accounts payable (AP) department users must be able to pay vendors by electronic funds transfer (EFT)

and use a payment journal batch named EFT to process payments.
When viewing G/L entries, the finance and accounting teams must be able to see debits and credits instead of a positive or negative amount.
The company needs to be able to track expenses by department and location. The departments are sales,

operations, and administration.
AR must be able to correct cash application entries.

Issues
Payment application
Customers may have several stores that are responsible for their own orders and payments.

Occasionally, AR clerks mistakenly apply payments to the incorrect customer invoice.

Invoicing
When items are delivered, customers refuse the items for reasons such as damaged or wrong item.

After the invoices are posted, they must be corrected, which is time-consuming.

Warehouse
The sales department and warehouse managers must have visibility into products that are in the process of being transferred between locations.
Accounts
Customer accounts are difficult to view by market type.

The finance team does not have the ability to report revenue by customer type.

Accounting
AR users often find variances between the AR subledger and G/L account.

Customers often take the payment discount after the payment discount date has passed, leaving open invoices for small amounts.
The AP department is unable to pay vendors by EFT in the current system.

Finance and accounting team members have trouble validating postings when they use only the amounts field on G/L entries.
The finance department is unable to run financial reports by market. All revenue postings must reference a market.