Business Central 2026 Release Wave 1 (Version 28): Key Features for Business Leaders
Microsoft has started rolling out Dynamics 365 Business Central 2026 release wave 1 – version 28. If version 27 was about making Copilot practical, version 28 is about making AI agents manageable and opening Business Central to the wider AI ecosystem. It also brings many practical improvements in purchasing, quality, reporting and governance. Here is what matters for business leaders.
Key takeaways for leaders
- The Business Central MCP server is now generally available, so AI tools can work securely with your ERP data.
- A single task pane, inline review and avatars make it much easier to supervise AI agents.
- Quality management for incoming goods and materials is now part of Business Central.
- Purchasing gets important improvements, such as matching invoices to multiple orders and receipts and better drop shipment handling.
- Online customers can schedule the update until 31 August 2026.
AI Agents You Can Supervise
As more agents take on work in Business Central, leaders need to know what they do. Version 28 adds:
- A dedicated task pane that shows the tasks of all agents in one place.
- Inline review of agent-generated content directly on the pages where people work.
- Avatars in lists showing whether a record was created or changed by a person or by an agent.
- The ability to stop all active tasks for an agent with a single action.
- For the Payables Agent, a view of which mailbox emails it has processed.
Business Central Opens Up to AI: The MCP Server
The Model Context Protocol (MCP) is an open standard that lets AI assistants and agents connect to business systems. With version 28, the Business Central MCP server is generally available and works with Visual Studio Code and other MCP-compliant clients, as well as Copilot Studio. An MCP server for the Business Central admin center is also available in preview. For companies, this means custom AI agents can use Business Central data and business logic in a controlled way.
Operations: Quality, Purchasing and Supply Chain
- Quality management: evaluate the quality of incoming goods and materials directly in Business Central.
- Purchase invoices can be matched to multiple order and receipt lines.
- Drop shipments are more flexible: create purchase orders from them, post purchase invoices independently and reverse them when they haven’t been invoiced.
- Approvals for requisition worksheets and item journals add control over purchasing and inventory changes.
- Item variants can have pictures and attributes.
- Date formulas control allowed posting periods, so you no longer need to update them by hand every month.
Reporting, Governance and Migration
- Financial reporting enhancements, modernised inventory reports and an enhanced Power BI app for subscription billing.
- New APIs for auditors to analyse permissions and approval workflows, which is useful for internal control and external audits.
- External storage for document attachments, which reduces database storage costs.
- Migrate to the cloud from any SQL database, which makes it easier to move from older systems to Business Central online.
- An updated Outlook integration that keeps users in the flow of their work.
Finance and Compliance
E-documents can now be linked to purchase invoices, and service participants can be set up at company level. In preview, Business Central also adds self-billed invoices, withholding tax for vendors, and plastic and sugar tax calculations. For Germany, e-invoice formats for service invoices are in preview, and sales documents can now show the product’s carbon footprint.
How to Prepare
- Test version 28 in a sandbox, focusing on extensions and integrations.
- Decide which agent and AI capabilities to pilot, and who will supervise them.
- Review the new governance APIs with your auditors and IT team.
- Schedule the production update before 31 August 2026.
Frequently Asked Questions
When is Business Central version 28 available?
Version 28 (2026 release wave 1) started rolling out in April 2026. Online customers can schedule the update at any time until 31 August 2026.
What is the Business Central MCP server?
It is a server built into Business Central that uses the open Model Context Protocol, so AI assistants and agents, for example those built in Copilot Studio or used in Visual Studio Code, can securely access Business Central data and actions.
Do on-premises customers get version 28?
Yes. On-premises customers can upgrade to version 28, but deployments on version 24 or earlier must first upgrade to version 25.
Version 28 shows where Business Central is heading: an ERP where people and AI agents work side by side, with the transparency and controls leaders need.
Would you like to know which version 28 features matter most for your business? Contact us or book a call with one of our experts.
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