Introduction
Microsoft Dynamics 365 Business Central is a powerful ERP solution designed specifically for small to medium-sized businesses. As we approach the 2025 Wave 1 release, informally title BC26 or Business Central version 26, Business Central continues to evolve with new features and capabilities that address the changing needs of modern businesses. Dynamics 365 Business Central features include comprehensive financial management, supply chain optimization, and advanced reporting tools that help organizations streamline operations and make data-driven decisions.
As functional consultants who implement Business Central daily, we’ve seen firsthand how these features transform businesses. This guide explores the core Dynamics 365 Business Central capabilities, highlights what’s coming in the 2025 Wave 1 release, and provides honest insights from our implementation experience.
Read the complete Dynamics 365 Business Central 2025 Release Wave 1 documentation.
Insights gathered from:
Randy Villanueva – Senior Dynamics 365 Business Central Functional Consultant, 360 Visibility
Simaak Hameed – Senior Dynamics 365 Business Central Functional Consultant, 360 Visibility
Core Financial Management Features – Dynamics 365 Business Central Financial Management Tools Explained
The financial management module forms the backbone of Business Central, offering robust tools for managing your company’s finances. The core Business Central features focus on financial management, including general ledger, accounts receivable, and accounts payable.
General Ledger and Accounting
Business Central provides a comprehensive general ledger system that supports:
- Chart of accounts management with dimensional analysis
- Journal entries with validation rules to prevent errors
- Period and year-end closing processes
- Intercompany transactions for multi-entity businesses
From our consulting experience, the dimensional accounting feature is particularly valuable for businesses that need to track financial performance across multiple dimensions such as departments, projects, or regions. However, first-time users often find the year-end closing process somewhat complex and typically require guidance during their first cycle.
Cash Flow Management
Cash flow forecasting in Business Central allows businesses to:
- Project future cash positions based on receivables and payables
- Incorporate budget data into forecasts
- Visualize cash flow trends with built-in charts
The 2025 Wave 1 release enhances these capabilities with improved multicurrency support and more advanced cash flow analytics. As consultants, we’ve found that the cash flow forecasting tool provides good baseline projections, but businesses with complex cash flow needs may require additional customization.
Banking and Reconciliation
Microsoft Dynamics 365 Business Central features automated bank reconciliation tools that:
- Import bank statements directly from your financial institution
- Match transactions automatically using rules
- Reconcile accounts with guided processes
The new Copilot integration for bank reconciliation in the 2025 Wave 1 release uses AI to suggest matches and learn from your reconciliation patterns, significantly reducing manual effort. In our implementation experience, clients typically see a 40-60% reduction in reconciliation time after proper setup.
Supply Chain Capabilities – How Dynamics 365 Business Central Supply Chain Features Transform Operations
Supply chain management is one of the strongest Dynamics 365 Business Central capabilities, offering end-to-end visibility and control. The platform provides tools for managing the entire supply chain process from procurement to fulfillment.
Procurement and Purchasing
Business Central streamlines purchasing with:
- Purchase order management with approval workflows
- Vendor performance tracking and management
- Purchase planning based on inventory levels and demand
- Three-way matching of purchase orders, receipts, and invoices
The Excel integration for price list management coming in the 2025 Wave 1 release will make it much easier to manage vendor pricing. As consultants, we’ve found that the three-way matching feature significantly reduces payment errors, though it requires careful setup to work effectively.
Inventory Management
Inventory control features include:
- Item tracking with serial and lot numbers
- Multiple costing methods (FIFO, LIFO, Average, Specific)
- Inventory valuation and reporting
- Automated reordering based on minimum stock levels
The cost adjustment tools being enhanced in the 2025 Wave 1 release will make troubleshooting inventory valuation issues much easier. From our implementation experience, we’ve found that businesses often underestimate the importance of proper item setup, which can lead to inventory discrepancies if not done correctly.
Demand Planning
When evaluating ERP solutions, understanding the full range of Dynamics 365 Business Central features is essential for making an informed decision. The demand planning capabilities include:
- Sales forecasting based on historical data
- Demand calculation considering multiple factors
- Planning worksheets for supply chain managers
- What-if scenario planning
While these tools provide good baseline functionality, we’ve found that businesses with highly variable demand patterns may need to supplement with more advanced forecasting tools or custom development.
Warehouse and Distribution Capabilities – Advanced Dynamics 365 Business Central Warehouse Management Solutions
Dynamics 365 Business Central warehouse management features include bin management, pick and put-away processes, and inventory transfers. These capabilities help businesses optimize their warehouse operations and improve efficiency.
Warehouse Configuration
Business Central offers flexible warehouse configuration options:
- Basic warehouse configurations for simpler operations
- Advanced warehouse management for complex facilities
- Zone and bin management for organized storage
- Warehouse employee management
In our consulting practice, we’ve found that many SMBs start with the basic warehouse configuration and gradually implement advanced features as their operations grow. This phased approach helps manage change and allows staff to adapt gradually.
Picking and Put-away
The system streamlines warehouse operations with:
- Directed pick and put-away suggestions
- Pick and put-away worksheets for planning
- Mobile device integration for warehouse staff
- Barcode scanning support
Companies can optimize their distribution operations using Dynamics 365 Business Central warehouse management tools. The barcode scanning functionality in Dynamics 365 Business Central warehouse management reduces errors and improves efficiency, with our clients typically reporting a 15-25% improvement in picking accuracy after implementation.
Shipping and Receiving
Business Central manages the movement of goods with:
- Warehouse receipts and shipments
- Cross-docking capabilities
- Transfer order management between locations
- Shipment consolidation
The enhanced Shopify integration in the 2025 Wave 1 release will make e-commerce order fulfillment much more streamlined. As consultants, we’ve observed that the shipping and receiving processes in Business Central are robust but require proper staff training to fully leverage their capabilities.
Reporting and Analytics Tools – Powerful Dynamics 365 Business Central Reporting and Analytics Capabilities
The Dynamics 365 Business Central capabilities extend beyond basic ERP functionality to include advanced analytics and AI-powered insights. These tools help businesses make data-driven decisions and gain valuable insights from their operational data.
Built-in Reports
Business Central includes numerous pre-built reports:
- Financial statements (balance sheet, income statement, cash flow)
- Inventory reports (stock valuation, item availability)
- Sales analysis (customer sales, item sales)
- Purchase analysis (vendor purchases, item purchases)
While these reports cover most basic needs, we’ve found that many businesses eventually require customized reports to address specific requirements. The Report Designer tool makes this customization relatively straightforward for partners and power users.
Power BI Integration
Microsoft Dynamics 365 Business Central features seamless integration with Power BI:
- Pre-built Power BI dashboards and reports
- Real-time data connection to Business Central
- Interactive visualizations and drill-down capabilities
- Custom dashboard creation
The Power BI Subscription Analysis feature coming in the 2025 Wave 1 release will provide valuable insights for subscription-based businesses. In our experience, clients who invest time in learning Power BI gain significantly more value from their Business Central data.
Excel Integration
Business Central works seamlessly with Excel:
- Export any list or report to Excel with formatting preserved
- Edit data in Excel and publish changes back to Business Central
- Create custom Excel reports connected to Business Central data
- Use Excel for ad-hoc analysis
As consultants, we regularly help clients implement Microsoft Dynamics 365 Business Central features that best suit their specific business needs. The Excel integration is particularly valuable for finance teams who are already comfortable with Excel for analysis and reporting.
Mobile App Functionality – Using the Dynamics 365 Business Central Mobile App for Business on the Go”
Many Business Central features can be accessed through the mobile app, allowing users to work from anywhere. The mobile app provides access to key business data and processes on iOS and Android devices.
Mobile Access to Data
The mobile app provides:
- Access to customers, vendors, and items
- View and edit contact information
- Check inventory levels and item details
- Review financial data and reports
The 2025 Wave 1 release includes performance improvements for the mobile app, making it more responsive even with large datasets. From our implementation experience, we’ve found that sales teams and executives particularly value the mobile access to customer and financial data.
Mobile Workflows
Business Central mobile enables key workflows:
- Approve purchase and sales documents
- Create and manage sales quotes and orders
- Capture expenses with receipt photos
- Scan barcodes for inventory operations
While the mobile app provides good functionality, we’ve observed that the user experience isn’t as polished as some dedicated mobile apps. However, for most business processes, it’s more than adequate and the convenience of having ERP data on mobile devices outweighs the occasional UX limitations.
Offline Capabilities
The mobile app includes limited offline functionality:
- Access recently viewed records when offline
- Create new records that sync when connection is restored
- View cached reports and documents
- Continue working with minimal interruption
In our consulting practice, we advise clients on the limitations of offline mode to set appropriate expectations. The offline capabilities are useful for brief connectivity interruptions but aren’t designed for extended offline work.
Customization Options – Dynamics 365 Business Central Customization Options for Your Business
Customization options allow companies to adapt Business Central features to match their unique business processes. Business Central offers various ways to tailor the system to your specific needs without requiring extensive development.
User Experience Personalization
Users can personalize their experience with:
- Role-tailored home pages and role centers
- Personalized views and filters for lists
- Custom fields and quick entry fields
- Saved and shared views
The 2025 Wave 1 release introduces profile extension objects, making it easier for developers to customize role-based experiences. As consultants, we find that proper role center configuration significantly improves user adoption and satisfaction.
Extensions and AppSource
Business Central’s extensibility model includes:
- Microsoft-certified extensions in AppSource
- Partner-developed vertical solutions
- Custom extensions for specific business needs
- No-code and low-code customization options
The latest update introduces several new Dynamics 365 Business Central features that enhance productivity and streamline operations. The extension model is a significant improvement over the old customization approach, making upgrades much simpler and less costly.
Explore 360 Visibility’s Dynamics 365 Business Central extensions in the Microsoft AppSource, including 360 Canadian EFT, 360 Canadian PAD, 360 Quick Sign.
Development Tools
For more advanced customization, Business Central offers:
- Visual Studio Code development environment
- AL programming language
- APIs for external integrations
- Sandbox environments for testing
The 2025 Wave 1 release enhances the development experience with improved GitHub integration and debugging tools. While these are primarily used by partners and developers, they ultimately benefit end users through better quality customizations and faster development cycles.
Integration Capabilities with 3rd Party or Proprietary Apps – Seamless Dynamics 365 Business Central Integration with Third-Party Applications
Seamless Dynamics 365 Business Central integration with third-party applications extends the platform’s functionality and connects it with your existing business systems. These integration capabilities help create a unified business ecosystem.
Microsoft Ecosystem Integration
Business Central integrates natively with:
- Microsoft 365 (Outlook, Excel, Word, Teams)
- SharePoint for document management
- OneDrive for file storage
- Power Platform (Power BI, Power Automate, Power Apps)
The 2025 Wave 1 release significantly enhances Dynamics 365 Business Central capabilities in areas like sustainability management and e-commerce. As consultants, we’ve found that the Microsoft ecosystem integration is one of the strongest selling points for businesses already using Microsoft products.
E-commerce Integration
Business Central connects with e-commerce platforms:
- Enhanced Shopify integration (improved in 2025 Wave 1)
- WooCommerce connectors through partners
- Custom e-commerce integrations via APIs
- Marketplace connectors (Amazon, eBay)
The Shopify integration improvements in the 2025 Wave 1 release make this a particularly strong option for businesses selling online. In our implementation experience, proper e-commerce integration can eliminate hours of manual order entry and reduce errors significantly.
Field Service Integration
The Dynamics 365 Business Central 2025 release introduces several AI enhancements and integration improvements. One key addition is the Field Service integration, which provides:
- Direct item availability view in work orders
- Synchronized inventory across field service and ERP
- Streamlined procurement for field service needs
- Unified financial tracking of field service operations
We’re particularly excited about the Field Service integration in the Dynamics 365 Business Central 2025 release, as many of our clients have struggled with disconnected field service and ERP systems in the past.
API and Custom Integrations
For custom integration needs, Business Central offers:
- REST APIs for programmatic access
- OData web services
- Integration events for real-time data exchange
- Batch data import/export tools
While the standard integrations cover many common scenarios, we often develop custom integrations for clients with specialized systems. The API framework in Business Central makes this relatively straightforward compared to many other ERP systems.
Copilot Integration – How Dynamics 365 Business Central Copilot Enhances Productivity
Dynamics 365 Business Central Copilot uses AI to automate routine tasks and provide intelligent assistance to users. This AI-powered assistant helps streamline workflows and reduce manual effort.
AI-Powered Assistance
Copilot provides intelligent assistance for:
- Bank reconciliation automation
- Marketing text suggestions
- Item categorization and attribute filling
- Data entry and validation
Many of our clients report significant time savings after implementing Dynamics 365 Business Central Copilot features. The AI capabilities are particularly valuable for repetitive tasks that previously required manual attention.
Sales Order Agent
The new Sales Order Agent is a powerful Dynamics 365 Business Central Copilot feature that processes orders directly from email communications. This feature in the 2025 Wave 1 release:
- Extracts sales quotes and orders from emails using natural language processing
- Identifies key order information automatically
- Creates draft orders for review
- Learns from corrections to improve accuracy over time
As consultants, we see this as a game-changing feature for businesses that receive orders via email, potentially saving hours of manual data entry each week.
Custom AI Experiences
The 2025 Wave 1 release expands Microsoft Dynamics 365 Business Central features with AI-powered tools and enhanced integration capabilities. Businesses can:
- Develop custom AI experiences for specific business processes
- Extend Copilot capabilities to address unique needs
- Integrate with Azure AI services for advanced scenarios
- Create guided experiences for complex tasks
While these capabilities are powerful, we advise clients to start with the standard Copilot features before investing in custom AI development, as the out-of-box functionality addresses many common needs.
What’s New in the 2025 Wave 1 Release – What’s New in the Dynamics 365 Business Central 2025 Release Wave 1
The Dynamics 365 Business Central 2025 release introduces several AI enhancements and integration improvements scheduled for deployment between April 2025 and September 2025. Here are the key highlights:
AI and Copilot Enhancements
The 2025 Wave 1 release focuses heavily on AI:
- Intelligent AI agents for SMBs, including the Sales Order Agent
- Enhanced natural language processing for email communications
- Automated report generation capabilities
- Expanded Copilot functionality across more business processes
As consultants who implement Business Central, we’re particularly excited about these AI enhancements as they address many of the manual, time-consuming tasks our clients struggle with.
Integration Improvements
Key integration enhancements include:
- Enhanced Shopify integration for e-commerce
- New Dynamics 365 Field Service integration
- Improved Excel integration for price list management
- Expanded API capabilities for third-party connections
Sustainability management is a key focus area in the Dynamics 365 Business Central 2025 release, helping businesses track and report emissions data. This new module allows organizations to:
- Collect and track emissions data
- Monitor sustainability KPIs on a dedicated role center
- Generate reports for regulatory compliance
- Customize sustainability tracking to business needs
Development and Administration
For developers and administrators, the release includes:
- Profile extension objects for better role customization
- Improved Visual Studio Code integration with GitHub
- Enhanced security options including customer-managed encryption keys
- Extended update windows for more flexible maintenance
These improvements will make customization and maintenance easier for partners and internal IT teams, ultimately resulting in better experiences for end users.
Consultant Insights: Real-World Implementation Experience
As Senior Dynamics 365 Business Central functional consultants at 360 Visibility, Randy Villanueva and Simaak Hameed share their thoughts on the most exciting and impactful features of the 2025 Release wave 1:
- AI-Powered Sales Order Agent: This feature is a game-changer for businesses struggling with manual order entry. We’ve seen clients reduce order processing time by up to 70% in pilot tests.
- Enhanced Shopify Integration: For e-commerce businesses, this improvement streamlines operations significantly. One client reported a 40% reduction in order sync issues after implementation.
- Sustainability Management Module: This addition is timely and crucial. It’s not just about compliance; we’ve observed increased customer loyalty for businesses transparently tracking and reporting emissions.
- Field Service Integration: This bridges a long-standing gap between ERP and field operations. Early adopters report improved inventory accuracy and faster billing cycles.
- Copilot Enhancements: The expanded AI capabilities, especially in bank reconciliation and item categorization, are proving to be major time-savers. We’ve seen finance teams cut reconciliation time by half.
- Profile Extension Objects: This development feature will allow for more tailored user experiences, which we anticipate will boost user adoption rates.
While these features are exciting, we advise clients to approach implementation strategically. Start with features that address your most pressing pain points and gradually expand usage. Proper change management and training are crucial for realizing the full potential of these new capabilities.
Remember, the true value of these features lies in how well they’re integrated into your specific business processes. We recommend working closely with your implementation partner to customize and optimize these features for your unique needs.
Unlock Your Business Central Potential: Next Steps
As we’ve explored throughout this guide, Dynamics 365 Business Central offers powerful features that can transform your business operations. From AI-powered automation to enhanced integrations, the 2025 Wave 1 release brings exciting opportunities to streamline processes and drive efficiency. However, many organizations only scratch the surface of what Business Central can do.
In our years of implementing Business Central, we’ve consistently seen that the difference between good and great results comes down to proper configuration, strategic feature adoption, and alignment with business processes. Even companies using Business Central for years often discover untapped capabilities that could significantly improve their operations.
Are you wondering if your Business Central implementation is optimized for your business? Are you curious about which of the new 2025 features could have the biggest impact on your specific operations? Or perhaps you’re considering a move to Business Central and want to understand how it would fit your unique needs?
Schedule Your Free 30-Minute Systems Review
Randy and Simaak from 360 Visibility are offering a complimentary 30-minute systems review consultation to help you:
- Assess your current Business Central setup against industry best practices
- Identify opportunities to leverage new 2025 Wave 1 features
- Discover potential efficiency gains through better system configuration
- Address specific challenges you’re facing with your ERP system
- Create a roadmap for optimizing your Business Central implementation
This no-obligation consultation is designed to provide you with actionable insights you can implement right away. Whether you’re a long-time Business Central user or just exploring your options, our team can help you navigate the possibilities.
Request your free systems review on our Dynamics 365 Business Central page or call us (905) 907-3600 to speak with our Business Central consulting team.
Don’t let powerful features go unused. Take this opportunity to ensure you’re getting the maximum value from your Business Central investment.
