In this blog, we look at several aspects of Dynamics 365 Business Central updates – what they are, the different types of standard updates and their general benefits, how the updates are released and the lifecycle for that purpose, and how to manage the updates – with particular emphasis on how awareness, planning and testing can streamline the release cycle to minimize business interruptions.
Who This is For
IT directors, Business Central administrators and finance systems owners, including teams moving from Dynamics GP, who need each release wave applied without breaking extensions, integrations or month-end close.
In Brief
- Major updates come with a five-month window and minor updates can be deferred, so applying an update is now a scheduling decision rather than a forced event.
- Most update problems come from per-tenant extensions, AppSource apps and integrations. Test every update in a sandbox that mirrors production, and use your original implementation test cases as the baseline.
- Updates now ship AI agents alongside fixes, so every release wave raises a governance question: which capabilities to turn on, for whom, and who reviews the output before anything posts.
The regular and occasional updates that Microsoft issues for Dynamics 365 Business Central make it a more productive, secure and efficient application in helping businesses plan agile and effective short- and long-term responses to their evolving operational challenges.
This information can ensure the successful implementation of the updates by the people who are directly involved with that process – primarily Microsoft 365 administrators, D365BC consultants, and end users.
There are many people with positions inside and outside of an organization who might play user roles in a Dynamics 365 environment. These include multiple types of clients, as well as a variety of stakeholders within the business who could be concerned with how D365BC releases are configured in their areas.
What Is a Dynamics 365 Business Central Update?
Dynamics 365 Business Central updates can include functional enhancements – such as additional modules, improved reporting and new automation tools – that improve the core capabilities of the enterprise resource planning (ERP) system; bug fixes, which are essential for maintaining the stability and reliability of the software; and performance improvements that can make the system run faster and more efficiently.
Other possible updates include:
- Security updates that deploy security patches to strengthen cybersecurity.
- Compliance changes to ensure conformity with new laws or regulatory standards.
- User interface enhancements to make the software more user-friendly and intuitive.
- Integration (to align with other systems and services) and application programming interfaces (API) updates for developers.
Updates now also carry Copilot features and AI agents. These arrive through the same release waves as fixes and compliance changes, so your update process is also where you decide which AI capabilities to turn on. We cover that decision in its own section below.
Because any release wave can change how finance and operations work gets done, someone in your organization should own reading the release plan before each wave arrives. Our post on the Dynamics 365 and Power Platform release planner shows how to track what’s coming.
How Are Dynamics 365 Business Central Updates Released?
Business Central online receives two major updates a year, with minor updates in between. Major updates become generally available on the first workday of April and October and bring new features, deprecations and platform changes. Minor updates usually arrive on the first Friday of each month, except in months with a major update, and carry fixes, regulatory changes and smaller improvements. Microsoft’s update rollout timeline lists the milestones for each wave.
If you’re moving from Dynamics GP, this cadence is the biggest operational change. Upgrades stop being a project you plan every few years and become a routine you run twice a year. That shift belongs in the ERP decision itself.
Since the release lifecycle is predictable, it gives businesses the opportunity to prepare for any upcoming changes. The standard process for releases usually consists of the following activities:
Early Access
Microsoft offers a preview of these major releases for users and partners so they can access and test the new features before they are deployed to the general user base. This gives businesses an opportunity to provide feedback and ensure a smooth transition to the new version.
Release Notes
Microsoft publishes release notes for each update that outline the new features, improvements, and bug fixes included in the release. These notes typically are made available in advance to help users and partners understand the changes and prepare for updates.
Automatic Updates
Microsoft manages the infrastructure and applies updates to Business Central online, but administrators control the timing. Each major update comes with a five-month update period. It ends in early September for April releases and in early March for October releases, and admins can reschedule the update to any date inside it.
Minor updates are more flexible. Admins can turn off automatic scheduling of minor updates for an environment, which keeps a monthly update from landing in the middle of a close or an audit. This setting doesn’t apply to major updates. Microsoft’s overview of flexible update management explains both options.
On-Premises Updates
Administrators have more control over the on-premises deployments of D365BC updates. They can choose when to apply updates, taking into account factors like their organization’s schedule and compatibility with customizations. However, they’ll need to follow Microsoft’s guidelines for updating the software.
Fixes applied to Business Central online also ship in the next cumulative update for on-premises. Copilot and agents, however, are available only in Business Central online.
Extension Compatibility
Per-tenant extensions, AppSource apps and integrations are where most update problems start. Microsoft announces breaking changes at least a year before they take effect, so the deprecation notices in each release plan give you an early warning you can act on.
Two more checks belong in your plan. First, confirm that every AppSource app you rely on has a version compatible with the next major release. Second, make sure each environment is on the last minor update of its current version, because that’s a prerequisite for scheduling the major update. Microsoft’s guidance on maintaining apps across updates covers what publishers and admins each own.
What Changes When Updates Ship AI Agents?
Business Central updates now deliver AI agents alongside fixes and features. In 2026 release wave 1, the Payables Agent and Sales Order Agent became generally available in Business Central online. That adds a decision to every update cycle: which agent capabilities to turn on, in which environments, and who reviews what they produce.
Treat each new agent capability as a change to your finance controls, not a feature toggle. Agent output also depends on data you already own. Agents work from your chart of accounts, posting groups and master records, so any gaps there surface quickly.
One limit applies: Copilot and agents run only in Business Central online, so on-premises customers won’t see these capabilities in their updates.
With all that added to the cycle, here’s how to manage the update itself.
How to Manage Dynamics 365 Business Central Updates
Effectively managing the scheduling of updates for Dynamics 365 Business Central is essential to ensure the smooth operation of your business processes and keep your system current with the latest features and security patches. Here’s a general guideline on how to do this:
Stay Informed
You can keep yourself informed about the release schedule of D365 BC updates by checking the official Microsoft documentation or subscribing to their update notifications.
For cloud-based deployments, a notification email is sent to all notification recipients that are registered in the Business Central administration center. Check out our blog, The Dynamics 365 and Microsoft Power Platform Release Planner: 4 Benefits, to see how this tool can help you manage Business Central releases.
Review Release Notes
Before scheduling an update, carefully review the release notes we mentioned earlier in this blog and assess whether the changes being introduced in the update align with your business needs and processes. If new AI capabilities keep appearing in release notes but never make it into daily finance work, the cause is usually upstream of the update.
Test Environments
It’s best practice to have test environments (i.e., Sandbox or Development environments) that mirror your production environment. Test the update in these environments to ensure that your customizations, extensions, and workflows are compatible with the new version. Users can make the test case list from their initial Business Central implementation a starting point to expedite testing and tracking of issues so that all business-critical functionality is tested.
Back Up Data
For on-premises deployments, take a full backup of production before every update. For Business Central online, make sure you know how point-in-time restore works before you need it (see Rollback Plan below).
Choose the Right Time
Use the five-month update period to sequence the work instead of reacting to it. Update your sandbox early in the period so users have time to test and you have time to fix issues. Then schedule production for a date that avoids month-end close, audits and seasonal peaks.
On the scheduled date, the update runs inside the environment’s update window, a daily time range admins set in the Business Central admin center. Set a window outside business hours for every production environment. Scheduled updates and unscheduled critical fixes both respect it.
Notify Users
Inform all relevant stakeholders – including users, administrators, and any external partners – about the timing of the scheduled update. Make sure they know that downtime may result. Be prepared for some downtime and try to keep it as short as possible.
Monitor the Update
During and after the update, monitor the system for any issues or unexpected behavior. This may involve checking logs, testing critical processes, and ensuring data integrity.
Post-Update Testing
After the update, perform thorough testing to make sure that all your customizations, extensions, and integrations are working correctly in the updated environment.
Rollback Plan
If an update causes problems you can’t resolve quickly, you need a way back to a known-good state. For Business Central online, admins can restore an environment to an earlier point in time from the admin center, within Microsoft’s retention period. Decide ahead of time who validates the restored data and how integrations and scheduled jobs get reconnected afterward.
User Training
If there are significant changes in the user interface or new features, provide training to your users so they can make the most of the updated system.
Documentation
Keep detailed records of the update process, including what worked well and what didn’t. This documentation can be valuable for future updates.
Conclusion
Dynamics 365 Business Central is a powerful and versatile software tool for maximizing the functionality of your ERP system. Knowing all about its latest features through the release of D365BC updates and how to deploy them on a timely basis is the key to deriving optimal benefits from that tool.
For additional insights, check out these Microsoft documents.
What’s New or Changed in Business Central – Business Central | Microsoft Learn
Update cycles – Business Central | Microsoft Learn
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