Quick Answer (TL;DR)
Business Central BC29, the 2026 release wave 2 update, went live in early October 2026. Switch on the features that remove manual work first: smarter Payables Agent purchase order matching, Expense Agent policy checks, Financial Report Packages, the updated Shopify connector, and recently used lookups. Test them in a sandbox before enabling them in production.
Key Takeaways
- BC29 (version 29.0) is generally available for Business Central online. The on-premises build had not been released at the time of writing.
- Most of the value sits in setup, not in the update itself. Plan time for configuration and testing, or lean on a team.
- Shopify merchants have a hard deadline. The connector in version 28 uses a Shopify API that is supported only until December 31, 2026.
- Finance teams gain Financial Report Packages, withholding tax for vendors and employees, and multiple excise duties per item.
- Agents stay supervised. The new matching and policy checks advise people and do not replace human approval.
- Some capabilities still carry a preview label, including the MCP data query tools and the new Copilot chat experience.
- Microsoft has stopped publishing release plans. New Business Central capabilities now appear on the AI at Work roadmap.
What Is Business Central BC29 and When Did It Go Live?
BC29 is the short name for Dynamics 365 Business Central 2026 release wave 2, version 29.0. Microsoft opened the public preview in the first week of September 2026 and made the update generally available in the first week of October 2026.
New customers start on version 29 automatically. Existing online customers receive an email when the update is ready for their environment, and an administrator then schedules it in the Business Central admin center.
Three practical points are worth knowing before you plan anything:
- Preview sandboxes expire. Microsoft deletes 29.0 preview sandboxes 30 days after general availability, which lands in early November 2026. Move any test notes or configuration packages out before then.
- On-premises lags behind. The on-premises build was not yet released when this article was written. Copilot and agents are also available only in Business Central online, so companies still on a local server should weigh a against waiting.
- The roadmap has moved. Microsoft stopped publishing release plans in September 2026. Upcoming capabilities are now listed on the AI at Work roadmap, and the 29.0 feature list is no longer linked to a release plan.
The update contains more than 80 line items across development, finance, supply chain, ecommerce and reporting. Most teams will use a small share of them, so the rest of this guide ranks what to enable first and explains where each setting lives.
BC29 is live. Is your Business Central ready for it?
Get your extensions, integrations and Shopify connector checked in a sandbox before you schedule the production update.
Which BC29 Features Should You Switch On First?
Start with features that remove a manual step your team repeats every week, then move to the ones that need policy decisions or testing. The table ranks the main candidates by that rule.
| Priority | Feature | Who benefits | Where to set it up |
|---|---|---|---|
| First | Updated Shopify connector | Ecommerce and order desk | Update to version 29, then review the Shopify Shop Card |
| First | Payables Agent purchase order matching | Accounts payable | Receipt on Invoice setting on the vendor, purchase order and order line |
| First | Financial Report Packages | Controllers and finance leads | Financial Reports page, Packages action |
| First | Recently used records in lookups and recent searches in Tell Me | Every user | Available after the update, with no setup step documented by Microsoft |
| Next | Expense Agent policy validation and duplicate checks | Finance and approvers | Expense Agent approval policy and expense management setup |
| Next | Direct transfers from warehouse locations | Warehouse and inventory teams | Inventory Setup and Transfer Routes pages |
| Next | Withholding tax for vendors and employees | Finance and tax | Withholding tax setup |
| Later | EDI through E-Documents (Peppol BIS 3) | Purchasing and trading partners | E-Documents service setup |
| Later | MCP data query tools (preview) | IT and integration teams | MCP Server Configuration page, Server Features tab |
The ranking is our recommendation, not a Microsoft one. A distributor with no web store can drop Shopify from the list, and a company with heavy travel spend may move the Expense Agent to the top.
AI Agents in BC29: Better Matching and Easier Supervision
BC29 does not add a headline new agent. It makes the existing ones more accurate and easier to supervise, which matters more for teams that paused their pilots after version 28. If you are new to the topic, our guide to covers the basics.
Payables Agent matches purchase orders on value and timing
The Payables Agent now reads two extra fields when it matches a vendor invoice to purchase order lines:
- Line Amount, so it can match on value. This helps most on service lines, where the quantity is often 1 and tells the agent nothing.
- Expected Receipt Date, so it can choose between similar lines based on timing.
The agent also respects the Receipt on Invoice setting. It no longer blocks a draft only because a matched line is not yet marked as received, since receipt is a posting control and not a drafting one. You can now set Receipt on Invoice on the vendor, the purchase order and the individual order line, and each level can override the one above it.
Draft warnings now flag amount differences as well as quantity differences. They are informational, so your accountant still decides how to proceed.
One place to review what agents did
Supervision is spread across four changes:
- A dedicated task pane lists tasks from every agent and opens from anywhere in the application.
- Agent suggestions appear inline on the page where you work, so you can edit them before applying.
- A review bar on documents and lists shows where an agent is waiting for a person.
- Administrators can grant extra permissions when an agent requests them.
List pages can also show an avatar for the user or agent that created or last changed a record. That is a quick way to see how much of your data an agent has touched.
Expense Agent checks reports against your written policy
The Expense Agent can now evaluate a submitted report against approval policies written in plain language. Microsoft's examples include when business class is allowed and what counts as a reasonable business meal. The agent adds context for the approver, and the final approval stays with a person.
Other Expense Agent changes in this update:
- Duplicate detection now compares against expenses that are already posted, not only the current report.
- Mileage rates can vary by date range and by vehicle type.
- VAT and withholding tax can be calculated on expense reports, with an accountant review before posting.
- Travel requisitions let employees request approval before a trip, including trips with several travelers.
- The agent is now offered in all countries and regions where Business Central is available, with seven more languages.
Before you rely on any of this, read our plain review of so expectations match the product.
Finance Features Worth Enabling in BC29
Finance gets the most immediately usable changes in this update. Teams that run month-end in Business Central should look at these four areas first, and our page explains how the wider finance setup fits together.
Financial Report Packages: one PDF instead of several
A Financial Report Package combines several financial reports into a single PDF. You can print it on demand or schedule it to arrive by email or in report inboxes.
To set one up:
- Open Financial Reports and choose Packages, or search for Financial Report Packages in Tell Me.
- Name the package and add the reports you want in the Reports group.
- Set custom filters and start and end date formulas for each report where needed.
- Choose Print to download the combined PDF, or Schedules to set recipients, the next run time and a recurrence.
One detail from early testing by Microsoft MVP Yun Zhu: scheduled emails use the address in User Setup, so each recipient needs a User Setup record. Runs are recorded in a log.
Financial report auditing
Changes to row definitions, column definitions and report definitions are now always written to the change log. Report authors can also find uncategorized G/L accounts, trace how an account is used in a report and preview a definition before publishing.
Withholding tax, excise and fixed assets
- Withholding tax for vendors is now part of the standard version of Business Central.
- Withholding tax for employee transactions applies the same rules to employee payments and reimbursements.
- Multiple excise duties per item let one item carry more than one duty. Microsoft's example is a product liable for both plastic tax and sugar tax.
- Accelerated depreciation methods are available for fixed assets.
- Vendor-specific number series can be assigned to self-billing invoices.
Tax rules vary by country, so confirm the setup with your tax adviser before posting live transactions.
EDI through E-Documents
The E-Documents framework now supports EDI using the Peppol BIS 3 standard. Microsoft lists order exchange and remittance advices as supported document types, with room for more formats. If EDI is new to your team, start with this complete guide to Dynamics 365 EDI.
Shopify Connector: Update Before December 31, 2026
Shopify merchants should treat BC29 as a required update, not an optional one. The connector shipped with 2026 release wave 1 relies on Shopify API version 2026-01, which Shopify supports only until December 31, 2026. Microsoft's guidance is to move to the latest Business Central version before that date to keep the integration running.
Version 29 moves the connector to the Shopify API released in July 2026 and adds support for Shopify's expiring access tokens:
- Access tokens refresh automatically before their one-hour lifetime ends.
- Refresh tokens rotate and stay valid for up to 90 days.
- If that 90-day window lapses, an administrator must reconnect the shop from the Shopify Shop Card.
Once you are on version 29, these settings on the Shopify Shop Card are worth reviewing:
- Process Returns as lets refunds create either sales credit memos or sales return orders. Choose return orders if your warehouse needs to receive the goods.
- Use Shopify Order No. uses the Shopify order number as the sales document number. Your number series must allow manual numbers.
- Sync HS Code and Country/Region of Origin keeps tariff numbers and origin values aligned for customs.
Exchanges are handled better too. The returned item and the replacement arrive together on one document, and Move Negative Lines splits the replacement onto its own invoice or order.
For B2B sellers, company synchronization, B2B order processing and market catalogs now work on all Shopify plans. Basic, Grow and Advanced plans allow up to three active market catalog assignments, and Plus is unlimited. Direct company catalogs and staff member mapping still need Advanced or Plus.
Troubleshooting is easier as well. The Shopify Activities page shows Skipped Records and API Errors cues, and the Shopify Log has a With errors view. If items still refuse to sync after the update, this checklist of common Shopify mapping issues covers the usual causes. For a managed setup, see our service.
MCP Server: Let AI Tools Query Data Without a Custom API
The Business Central MCP server now includes data query tools, so an external AI client can ask questions of tables that have no published API. MCP stands for Model Context Protocol, the standard that lets AI assistants and agents connect to business systems.
The setting lives on the Model Context Protocol (MCP) Server Configuration page, under a new Server Features tab, as Data Query Tools (Preview). Turning it on adds four system tools:
| Tool | What it does |
|---|---|
| bc_data_find_tables | Finds tables by name or meaning |
| bc_data_get_table_relations | Returns the relations to and from a table |
| bc_data_get_table_schema | Returns the fields of a table |
| bc_data_query | Compiles and validates a query, and returns rows when asked |
Two cautions apply before you enable it:
- It is a preview feature. Treat it as something to evaluate in a sandbox, not a production dependency.
- It is read-only, but it is broad. The tools cannot create, change or delete data. They can read whatever the configuration allows, so review permissions and decide which users and agents get this configuration.
BC29 also adds a switch under Copilot and agent capabilities to turn the MCP server on or off. If you want AI tools wired into ordering, inventory or finance data with proper controls, our team can scope it. For background, see the wider list of .
Supply Chain, Warehouse and Manufacturing Changes
Operations teams get fewer headline features and more removed friction. Three changes are worth a look in the first month.
Direct transfers from warehouse-enabled locations
Direct transfers move stock between locations without an in-transit location. Until now, one setting on Inventory Setup controlled how every direct transfer posted. In BC29 you can choose the method per route:
- Default Direct Transfer Posting on Inventory Setup sets the company default.
- Direct Transfer Posting on the Transfer Routes page overrides it for a specific route.
- The same field can be changed on an open transfer order.
Direct transfers also work when the source location requires picks or shipments. The catch is on the receiving side: with the Shipment and Receipt method, the destination cannot require warehouse receipt or put-away. Distributors running several sites can read more on our page.
Quality inspections with less typing
Finishing an inspection now fills in the passed or failed quantity automatically, based on the sample size or the base quantity. When an inspection blocks a sale or a consumption posting, the error message links straight to the inspection that caused it.
Faster planning and subcontracting
- Planners can create released production orders directly from the Planning Worksheet through Carry Out Action Message.
- Work Center and Machine Center cards show Calendar Entries Available Until, with a warning style when the calendar has run out.
- Errors about an uncertified production BOM or routing include a link that opens the document.
- Subcontracting comments and attachments flow from the routing into the purchase order.
- Locations that use inventory put-aways and picks can now process subcontracted output.
- A Subcontracting Setup guide walks administrators through the initial configuration.
Manufacturers planning a broader rollout can compare these against our approach.
Everyday Usability, Document Layouts and Admin Controls
These changes need little or no project work, which makes them good early wins for user adoption.
Small changes every user will notice
- Recently used records in lookups. Lookup dialogs show the customers, vendors, items and dimensions each user picked recently. The suggestions are personal to the user.
- Recent searches in Tell Me. Press Alt+Q to see your recent searches for pages and reports.
- Image preview in the web client. Image attachments open in a viewer without a download. Thumbnails for images and the first page of PDFs are clickable.
- Bookmarks for list views and analysis tabs. Users can pin a saved view or analysis tab to their role center, and administrators can include them in profiles.
- New Copilot chat experience (preview). The chat panel now follows the same design as Microsoft Copilot in other Microsoft 365 apps.
Consistent branding on document reports
Report themes and reusable header and footer layouts let you apply one look across invoices, pick lists and other document reports. Defaults can be set globally, per company, per report or per layout.
The updated Word add-in adds design controls for addresses, amounts, signature lines and notes, plus a HideIf control for conditional content. Administrators can also set a status on every layout, including those from AppSource apps, to control what end users can pick. If your documents carry custom fields or logic, our team can rebuild them on the new layout model.
Controls for administrators and developers
- SIFT indexes on or off. Administrators can now switch SIFT indexes on and off inside the application. Read up on SQL indexing best practices for Business Central before changing them.
- Open in Excel telemetry. Exports through Open in Excel are logged to telemetry, which gives security and compliance teams an audit trail.
- Faster table extensions. All fields of a table, including extension fields, are now stored in one database table. Microsoft says this speeds up every database operation that involves table extensions.
- Page scripting is generally available. Consultants and testers can record and replay user acceptance tests in the web client without writing code.
Developers get the longest list in this update, including default interface methods, data-driven tests, command-line test runs and AI-assisted profiling. Those belong in a separate technical review with your partner.
How to Roll Out BC29 Safely
A major update changes platform behavior as well as features, so test before production. These seven steps keep the risk low.
- Create or update a sandbox on version 29. Use a copy of production so your extensions, data and setup are included.
- Check every extension. Confirm that per-tenant extensions and AppSource apps compile and run. The new table extension data model makes this check more important than usual.
- Test integrations. Run your Shopify, EDI, Power BI and API connections end to end, including error handling.
- Pick three to five features. Use the priority table above and assign one owner to each feature.
- Write down the settings. Record every value you change, such as Receipt on Invoice or Direct Transfer Posting, so production matches the sandbox.
- Schedule the production update. Choose a date outside month-end and outside your peak order period.
- Train and review. Give users a short walkthrough, then review agent tasks, logs and error cues after two weeks.
Since version 25, administrators can schedule a major update within a window of up to five months. Shopify merchants should not use the full window because of the December 31, 2026 API deadline.
For the cutover itself, our lists the checks we would not skip.
Frequently Asked Questions
What is Business Central BC29?
BC29 is Dynamics 365 Business Central 2026 release wave 2, version 29.0. It is the major update Microsoft made generally available for Business Central online in early October 2026.
When will my environment be updated to BC29?
Microsoft emails existing online customers when the update is available for their environment. An administrator then picks the date in the Business Central admin center, within the update window Microsoft allows.
Is BC29 available for on-premises?
Not at the time of writing. The on-premises build had not been released in the first week of October 2026. Copilot and agents are available only in Business Central online.
Does BC29 cost extra?
The update is part of the Business Central online service, so there is no separate charge for version 29. Agent usage is a different matter, because Microsoft uses Copilot Credits as the consumption model for agents. Check your agreement first, and see our summary of .
Do I have to switch on the new agent features?
No. Agents and their new review features are configured by administrators, and the MCP server can now be turned off under Copilot and agent capabilities. Start with one process, measure the review workload, and expand from there.
Which BC29 features are still in preview?
Microsoft labels the MCP Data Query Tools and the new Copilot chat experience as preview. Preview features can change and are not meant for production use, so keep them in a sandbox for now.
Where do I find upcoming Business Central features now that release plans are gone?
On Microsoft's AI at Work roadmap. Release plans stopped in September 2026, existing plans stay online for reference, and Release Planner retires on November 15, 2026.
Final Word: Enable Less, Finish More
BC29 rewards a short list. Update the Shopify connector if you sell online, tighten Payables Agent matching, build one Financial Report Package, and let users enjoy the faster lookups. Then move to the features that need policy decisions, such as Expense Agent approvals, withholding tax and EDI.
If you want a second pair of eyes on the plan, Trango Tech works with companies on Business Central as a . We can review your sandbox results, extensions and integrations before you schedule production. to book a BC29 readiness review.