Business Central 2026 Wave 2: What Businesses Need to Know

Quick Summary

Business Central 2026 Wave 2 brings AI agents, e-invoicing and reporting improvements, while SOAP changes make integration readiness essential before the October rollout.

Key Takeaways

• Wave 2 enhances Copilot, AI agents, finance automation and reporting for Business Central users.
• Peppol-based e-invoicing and EDI updates support UK businesses preparing for the 2029 mandate.
• Business Central Wave 2 ends support for Microsoft UI page SOAP web services, requiring integration checks.
• Sandbox testing, ISV compatibility checks and integration audits help teams prepare for updates.
• AI automation, stronger controls and fewer add-ons can simplify finance and operational processes.

Introduction  

While Wave 1 2026 focused on providing visible and controllable AI agents, Wave 2 is expected to enhance the capabilities of these agents and the associated finance and payable processes. It also brings a unified Copilot chat experience consistent with Microsoft Copilot.  Dynamics 365 Business Central is scheduled for second release wave of the year in October 2026, which will continue through March 2027. 

Microsoft typically releases its detailed, feature-by-feature Wave 2 plan in mid-to-late July, several months prior to general availability, with early access beginning approximately one month before launch. As a result, the detailed information becomes available as small and medium-sized enterprise (SME) finance and operations teams commence autumn planning, providing an opportunity to prepare proactively rather than respond in October. 

This blog outlines confirmed features, anticipated developments, and their potential implications for organisations.

What is Business Central 2026 Release Wave 2?

Business Central 2026 release wave 2 is the second of Microsoft’s two major annual updates. It adds new AI agents, e-invoicing, stronger reporting and supply chain features. SaaS customers receive it automatically, and admins can schedule the update window in the admin centre. 

When does Business Central New Release Arrive?

One thing has changed this cycle. Microsoft has stopped publishing separate release plans. New capabilities now appear on its AI at Work roadmap instead. So, the preview sandbox and Microsoft’s “what’s new” article are now your most reliable sources.

Why this Release Matters for UK SMB Decision Makers?

You might be thinking, “It’s a twice-yearly update. Why should I care?” 

Fair question. Here’s why this one is different. 

• AI is transitioning from demonstration to daily operations. Automated agents now manage tasks in accounts payable, expenses, and sales orders, while human approval remains in place. 

• Integration timelines are tightening as Microsoft retires legacy connection methods. Upgrading to new version is the next required step. 

• The UK government will require mandatory e-invoicing for VAT invoices starting in April 2029. HMRC has designated Peppol as the core network, effective 23 June 2026. However, HMRC-commissioned research shows that only 19% of VAT-registered SMEs consider themselves “very familiar” with e-invoicing. Please note that sending a PDF by email does not qualify as e-invoicing. 

Cool, right? Let’s get into it. 

What’s New in Business Central Wave 2?

Business Central new wave delivers advanced AI-powered Copilot features, significant database updates for table extensions, and user experience improvements as part of the 2026 Release Wave 2. Microsoft’s preview highlights many updates; the following are most relevant for SMB leaders. 

1. Copilot, AI Agents and MCP

• A unified Copilot chat that reasons over your business data, web results and general knowledge.
• The Payables Agent improves purchase order matching by using line amounts and expected receipt dates.
• Advanced AI and Copilot Agents expand automation with predictive analytics, recommendations, and autonomous AI agents to support business processes.
• New MCP tools let you define, validate and run custom data queries. 

Relevant for accounts payable teams and those developing AI workflows in Business Central. 

2. Expense Agent

Expense reports now get AI-based policy checks that flag suspicious or non-compliant items. You also get better duplicate detection, even against posted documents, interim approvers, travel requisitions and automatic withholding tax calculation. It is relevant for finance controllers seeking to streamline receipt management. 

3. E-Documents and EDI

D365 Business Central can now exchange EDI documents through E-Documents using the Peppol BIS 3 standard. That’s the same network the UK’s 2029 mandate is built around. Relevant for organisations selling to the public sector or large retailers or planning to do so. 

4. Shopify

• B2B companies, catalogues and pricing.
• Order changes, exchanges and refunds.
• A Tax Matching Agent that suggests tax jurisdictions and shows its confidence level before you process a sale.

Relevant for distributors and retailers selling online. Some features depend on your Shopify plan. 

5. Financial Reporting

You can bundle multiple financial reports into one PDF and schedule delivery. Composable layouts let you brand document reports with themes. Changes to financial report definitions are now always logged. 

Relevant for finance directors seeking organised reporting and improved audit trails. 

6. Supply Chain and Performance

Subcontracting now includes guided setup and warehouse support. Quality inspections require less manual input, and a new data model for table extensions accelerates data loading. 

Relevant for manufacturers, particularly those working with subcontractors. For examples, refer to our support for manufacturers through the Naveksa partnership. 

7. Table Extension Data Model

Fields from table extensions are now stored in the base table rather than in companion tables, which enhances indexing and database performance. 

8. AL Extension Resource Sharing

Apps can now share embedded resources, such as JSON files, images, and templates, across a tenant without duplicating copies. 

9. Productivity Improvements

Recently used records in lookups reduce clicks and make frequently accessed information easier to find. 

10. Governance and Administration

A few quieter changes could make Business Central easier to manage behind the scenes. Administrators can now turn SIFT indexes on or off, giving teams more control over how these indexes are managed within their environment. 

11. User Experience

There are also a few smaller changes that should make everyday work a little smoother: 

• Review agent actions from lists with notifications that prompt users when an agent action needs attention.
• Preview images directly in the web client, without having to open them separately.
• Find recent searches faster with recently searched items now available in Tell Me.

Is Your Business Central Environment Ready for Wave 2? 

The October update brings more than new features. AI agents are becoming more capable, e-invoicing is moving further into the platform, and Microsoft is removing support for SOAP-based Microsoft UI page integrations. 

In our upcoming webinar, our Business Central expert breaks down what’s changing in Wave 2, what it means for your business and what you should review before the update reaches your environment. 

Here’s what we’ll cover 

Get the practical Wave 2 briefing before the update reaches your environment. 

Join the Business Central Wave 2 Webinar 

Key Business Benefits of Business Central 2026 Wave 2 for SMBs 

Strip away the feature names and you get four practical wins: 

• Less manual re-keying- Agents handle matching, checking and drafting. Your team reviews and approves.
• Tighter control- Approval steps, duplicate prevention and change logs give auditors what they need.
• Regulatory readiness- Peppol-based EDI puts you ahead of the 2029 UK deadline, not scrambling behind it.
• A simpler tech stack- More is built in, so you lean on fewer add-ons. 

Critical Change: Discontinuation of SOAP Support 

Not every update is a feature; some are deadlines. 

In Microsoft’s Business Central Wave 2, the company stops supporting the publication of Microsoft UI pages as SOAP web services. Since version 26 this support has been blocked by default, there being a feature key which allowed it to be re-enabled; this key, however, is deleted now. 

Here’s what is essential to note – If your bank portal, EDI hub, warehouse scanner or homegrown reporting tool talks to Business Central through one of those endpoints, it stops working after the update.

• What isn’t affected: Custom pages and code units you’ve built yourself. Only Microsoft’s own UI pages are in scope. 
• What to switch to: Microsoft recommends API pages or queries.

Which Situation are you in? 

Your next step depends on your setup. Find yourself below. 

• If you’re on standard SaaS with few extensions: schedule your update window in the admin centre, then review the new features.
• If you have heavy customisations or third-party apps: update a sandbox review and test your extensions there. Check that your ISV partners have compatible versions.
• If you have integrations with banks, EDI, scanners or Power BI: audit for SOAP before October. This is your priority.
• If you’re still on NAV or an old on-premises version: none of this reaches you. The gap grows with every wave. Our fixed-price NAV to Business Central upgrade starts with a free two-day assessment. We analyse your objects, report on your customisations and give you a fixed price at the end. 

Your Pre-October Checklist 

BEFORE BUSINESS CENTRAL WAVE 2 LANDS 

• Check your scheduled update date in the admin centre 
• Create or update a sandbox on the wave 2 preview
• Audit every integration for SOAP calls
• Confirm ISV and add-on compatibility
• Brief finance and AP on agent and approval changes

What’s Next for Business Central?

Look at the direction of travel. Microsoft is building towards more capable agents, tighter governance and standards-based e-invoicing. Community sources also report that OData access to Microsoft-authored pages is due to end in version 30, in the 2027 wave 1 release. If that lands as expected, API-first integrations aren’t optional for long. 

The pattern is clear. Automation goes up. Legacy shortcuts go away. Businesses that clean up early get the benefits sooner and pay less to do it.

How Mercurius IT can Help? 

We have spent 21+ years in Dynamics ERP and completed 500+ migrations. Clients stay with us: our retention rate is 98%. We deliver at a fixed price, so you know the cost before we start. See what customers say on our testimonials page, or read how we helped Sopheon upgrade from NAV on time and on budget. 

Frequently Asked Questions