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      —Dynamics 365 Business Central 2026 Wave 1: AI agents, tax updates and more

      Dynamics 365 Business Central 2026 Wave 1: AI agents, tax updates and more

      Awara IT shares key updates on the recent Microsoft Dynamics 365 Business Central 2026 Wave 1.

      Please check our QA below and find answers to find out what new features to expect. 

      1. What is the most important new feature in Dynamics 365 BC 2026 Wave 1?

      Answer: AI Agents that run end-to-end processes. Unlike Copilot which answers questions, the new Payables Agent reads invoices, matches vendors to GL accounts, and prepares them for approval all without human data entry. Microsoft is moving from "AI as an assistant" to "AI as an autonomous worker."

      2. Are these AI agents included in my existing license?

      Answer: Yes, for core agents. With your Business Central license, everyone gets a copilot at no extra cost. Advanced or custom agents built via Copilot Studio may require additional licensing, but the built-in Payables Agent is part of the standard cloud subscription.

      3. What is changing in tax accounting?

      Answer: Three major updates:

      • AI-assisted bookkeeping. The system learns your typical vendor-to-GL patterns and automates journal suggestions.
      • E-document expansion. Now supports not just e-invoices but also shipments, transfer shipments, and operational documents.
      • Regulatory compliance. Automatic updates for local tax schemas and electronic invoicing mandates across key markets.

      Pay special attention to the e-document framework, as it eliminates manual VAT reconciliation

      4. Will these updates affect my manufacturing or supply chain teams?

      Answer: Yes, directly. Microsoft invested heavily in two areas: subcontracting will have better tools to manage external production partners. Quality management will contain enforced checks at receipt and during production. The Shopify integration is also refined for faster data sync and fewer errors.

      5. Can my external partners access only specific parts of the system?

      Answer: Yes, and this is a security breakthrough. Administrators can now assign partner access to specific environments. E.g., give your implementation partner access to the sandbox but not production. Also new: customer-managed encryption keys and extended update windows.

      6. Is my data safe with AI agents?

      Answer: Microsoft commits to world-class security. The release plan explicitly states: "World-class security, privacy, and compliance controls protect your data. The application follows Microsoft's Responsible AI principles." All AI processing happens inside your BC tenant.

      7. When exactly will these features be available?

      Answer: Rollout window: April 2026 – September 2026. Some features come automatically (tagged "Users, automatically"). Others must be enabled by administrators (tagged "Users by admins, makers, or analysts").

      8. Will these Microsoft Dynamics 365 BC updates work with my existing Power Platform investments?

      Answer: Yes, and better than before. You can now use Microsoft Copilot Studio to build custom AI agents connected to Business Central using natural language instructions. Power Automate templates are also updated to work with the new e-document framework.

      9. Should I upgrade now or wait?

      Answer: Start planning now, but don't panic-upgrade. For most mid-sized companies:

      • Immediate action: Review the "Users, automatically" features – they will turn on whether you're ready or not.
      • Q2 2026 action: Enable the Payables Agent on a trial basis (start with one vendor category).
      • If you are on version 7, 8, or 9: You are missing all of this. Plan an upgrade to Business Central online before September 2026.

      Should you have any other questions on Microsoft Dynamics 365 BC, please contact Awara IT team.

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