MB-800 · Question #80
Drag and Drop Question You work at a company that uses Dynamics 365 Business Central. You create an inventory period so that the accounting employees can post modifications to the inventory. Your…
The correct answer is Select the Adjust Cost - Item Entries action.; Select the Post Inventory to G/L action.; Access the Inventory Periods page. Closing an Inventory Period in Business Central - Explained The Core Logic The sequence follows a strict dependency chain: you cannot accurately post to the G/L until costs are adjusted, and you cannot safely close the period until the G/L is reconciled. --- Step-by-Step…
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Correct arrangement
- Select the Adjust Cost - Item Entries action.
- Select the Post Inventory to G/L action.
- Access the Inventory Periods page.
Explanation
Closing an Inventory Period in Business Central - Explained
The Core Logic
The sequence follows a strict dependency chain: you cannot accurately post to the G/L until costs are adjusted, and you cannot safely close the period until the G/L is reconciled.
Step-by-Step Breakdown
Step 1 - Select the Adjust Cost - Item Entries action
This runs the cost adjustment process across all item ledger entries in the period. Business Central may have received inventory postings (receipts, sales, transfers) whose actual costs weren't fully resolved at the time of entry - particularly relevant for average-cost or FIFO items where costs depend on subsequent transactions.
- Why first: All downstream steps depend on accurate costs. If you post to the G/L before adjusting costs, you'll post wrong values.
- Addresses the manager's request: This step also reveals which items had costs adjusted during the period - giving the manager the visibility they asked for.
Step 2 - Select the Post Inventory to G/L action
This reconciles the inventory subledger with the General Ledger by creating G/L entries for any value entries not yet posted to finance.
- Why second: Cost adjustment (Step 1) must be complete first. Running this before Step 1 leaves unadjusted costs out of the G/L, breaking financial reconciliation.
- Addresses the manager's request: This fulfills the requirement that all costs are posted to the G/L before the period closes.
Step 3 - Access the Inventory Periods page
Now you navigate to the Inventory Periods page and use the Close Period action to lock the period against further posting.
- Why last: Closing before Steps 1–2 would lock a period with incomplete or unreconciled costs, defeating the purpose of the close.
Why the Distractors Are Wrong
| Option | Why It's Excluded |
|---|---|
| Modify the Ending date field | The ending date is set when creating the period, not when closing it. Modifying it during close is not part of the standard process. |
| Modify the Date Locked field | This field is set automatically by the system when you execute the Close Period action - you don't manually edit it. Attempting to modify it directly is not the correct mechanism. |
Common Mistakes
- Reversing Steps 1 and 2 - Posting to G/L before adjusting costs is the most common error. It posts stale values.
- Closing the period first - Trying to close before reconciling means the G/L may be out of sync and the period may not close cleanly.
- Thinking "Date Locked" is a manual step - It's a system-managed field, not a user action in the closing workflow.
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