Microsoft Dynamics 365 Business Central 2026 Release Wave 2, also known as Business Central version 29 or BC29, is the next major release of Microsoft’s cloud ERP platform.
The BC29 public preview is available for Business Central online sandbox environments. Microsoft currently plans to make version 29.0 generally available in October 2026, although preview features and release details remain subject to change before production availability.
For Alberta organizations, BC29 is more than a routine software update. The release continues Microsoft’s investment in Copilot, AI agents, financial automation, modern data access, supply chain management, and a more productive web-client experience.
Businesses currently using Business Central should begin evaluating the release before their production update. Companies still relying on disconnected accounting, inventory, project, or service applications can also use BC29 as an opportunity to assess a modern, integrated ERP platform.
If your company is considering an ERP implementation or upgrade, explore Microsoft Dynamics 365 Business Central consulting from KDP Solutions to understand how finance, inventory, purchasing, projects, sales, manufacturing, and reporting can be managed within one platform.
Important: BC29 is currently release software. Features described in Microsoft’s preview documentation may change, be delayed, or have restricted functionality before general availability. Preview environments should be used for testing rather than production operations.
What Is Business Central 2026 Release Wave 2 (BC29)?
Business Central 2026 Release Wave 2 is Microsoft’s second major Business Central release wave of 2026. Version 29.0 follows Microsoft’s regular cloud release cycle and is expected to become generally available in October 2026
Business Central is designed to help small and midsized organizations manage essential business functions, including:
- Financial management
- Sales and customer transactions
- Purchasing and accounts payable
- Inventory and warehouse operations
- Manufacturing and assembly
- Project management
- Service management
- Business intelligence and reporting
For Alberta businesses, the platform can provide an integrated alternative to separate accounting, purchasing, inventory, project management, and reporting applications.
Organizations looking for local expertise can also review KDP Solutions’ Dynamics 365 Business Central Alberta services and Microsoft Dynamics 365 Partner Edmonton services.
What’s New in Business Central BC29?
BC29 introduces or previews improvements across Copilot and agents, financial processes, development tools, reporting, data access, and user experience.
The most strategically important changes for Alberta companies are expected to be the continued development of AI-powered work, improved payables automation, modern access to business data, and enhancements that make Business Central easier to use.
Unified Microsoft Copilot Experience
Business Central 29.0 introduces a unified Copilot chat experience that is more consistent with the broader Microsoft Copilot ecosystem.
According to Microsoft’s preview documentation, the experience is intended to help users reason over Business Central data, web results, and general knowledge through a modern conversational interface
This direction could make Business Central information more accessible to executives, finance managers, purchasing teams, and operational users who may not know exactly which page or report contains the information they need.
Potential business questions could include:
- Which customers have overdue balances?
- Which inventory items are below their reorder points?
- Which projects are exceeding their budgets?
- Which vendors have outstanding purchase orders?
- Which sales orders are approaching their shipment dates?
The exact queries and actions available will depend on the released functionality, organizational permissions, data quality, and enabled AI capabilities.
For Alberta organizations, the value is not simply having a chatbot inside the ERP. The greater opportunity is helping employees find information, analyze business activity, and complete routine work with fewer manual navigation steps.
Smarter AI Agents
Microsoft continues to expand AI agents within Business Central. Recent release directions have focused on agents that support specific business processes such as sales order entry, accounts payable, employee expenses, and other repeatable administrative tasks.
Unlike a basic assistant that only provides instructions, an agent can help execute a defined process, evaluate information, prepare transactions, or bring exceptions to a user for review.
Potential benefits include:
- Reducing repetitive data entry
- Accelerating customer order processing
- Improving vendor invoice handling
- Identifying missing or inconsistent information
- Allowing employees to focus on exceptions
- Creating more standardized business processes
AI agents are not a replacement for strong internal controls. Alberta businesses should establish approval thresholds, role-based permissions, exception handling, and human review before allowing AI-assisted processes to affect financial or operational transactions.
Companies should also evaluate AI scenarios based on measurable value. A useful starting point is to identify processes with high transaction volumes, repetitive decisions, structured documents, and significant manual effort.
Enhanced Purchase Order Matching
One of the notable BC29 preview improvements affects the Payables Agent.
Microsoft indicates that purchase-order matching is being improved by considering line amounts and expected receipt dates. The preview also aligns draft finalization with the organization’s Receipt on Invoice settings.
This can be particularly relevant for organizations that process a high volume of vendor invoices.
Examples include:
- Industrial distributors
- Equipment and parts suppliers
- Manufacturers
- Construction companies
- Oilfield service providers
- Multi-location organizations
- Project-based businesses
More effective matching may help accounts payable teams identify discrepancies between invoices, purchase orders, and expected receipts. It can also reduce the time spent manually comparing documents when the underlying purchasing and receiving processes are properly configured.
Before enabling greater automation, companies should review:
- Purchase order accuracy
- Item and vendor master data
- Receiving practices
- Invoice tolerances
- Approval workflows
- Tax and posting setup
- Segregation of duties
Automating an inconsistent process can reproduce errors more quickly. Data quality and process governance should therefore be part of every AI-readiness assessment.
MCP Server and Advanced Data Queries
BC29 preview documentation includes new Model Context Protocol, or MCP, capabilities for defining, validating, and running custom data queries.
Microsoft explains that MCP applications can use these tools to query Business Central data even where an existing standard API does not address the specific requirement.
This development may create opportunities for:
- AI assistants connected to ERP information
- Operational data retrieval
- Custom reporting scenarios
- Controlled analytics
- External business applications
- Power Platform solutions
- Specialized industry workflows
For example, an Alberta distributor could potentially retrieve inventory, purchasing, sales, and fulfillment information through controlled query tools. A project-based company could make project performance information available to an approved application without creating a separate API for every question.
However, flexible data access also increases the importance of governance.
Organizations should define:
- Which applications can connect to Business Central
- Which companies and records can be queried
- Which employees can use those applications
- How credentials and connections are secured
- How sensitive financial information is protected
- How access is logged and reviewed
KDP Solutions helps Canadian organizations connect ERP and CRM processes through Microsoft technologies.
Learn more about its broader Microsoft Dynamics 365 ERP and business application services.
Supply Chain and Inventory Enhancements
Supply chain and inventory functionality remains an important investment area for Business Central. Microsoft’s broader BC29 direction includes improvements in purchasing, inventory visibility, automation, and operational decision support. [activebs.com], [zentriqsoftware.com]
For Alberta distributors, manufacturers, contractors, and industrial service companies, Business Central can support processes such as:
- Inventory availability
- Replenishment planning
- Purchase recommendations
- Sales demand
- Item reservations
- Warehouse receiving
- Order fulfillment
- Assembly and manufacturing
- Lot and serial number tracking
- Transfer orders between locations
New software features alone will not correct poor planning parameters or inaccurate inventory records. Companies preparing for BC29 should examine the quality of their operational setup, including:
- Reordering policies
- Reorder points
- Safety-stock quantities
- Lead times
- Vendor-item relationships
- Units of measure
- Item tracking rules
- Location and warehouse configuration
- Planning and reservation policies
A BC29 readiness project is a good opportunity to review these settings and determine whether Business Central is producing reliable planning recommendations.
SOAP Web Services and Integration Modernization
Microsoft has been moving Business Central integrations toward modern REST APIs and OData services. Third-party release analysis indicates that BC29 is an important milestone in the retirement of legacy SOAP web services associated with Microsoft UI pages
Organizations should therefore identify whether any current integrations depend on older SOAP endpoints.
Common integration areas include:
- E-commerce platforms
- Warehouse systems
- Payroll applications
- Expense systems
- Customer portals
- Vendor portals
- Banking solutions
- Manufacturing applications
- Transportation systems
- Custom mobile applications
A technical integration inventory should document the endpoint, authentication method, data direction, frequency, owner, failure notification, and business impact of each interface.
Where modernization is required, replacement options may include:
- Standard Business Central REST APIs
- Custom API pages
- OData v4
- Power Automate
- Azure integration services
- Dataverse
- Approved third-party connectors
Organizations should not wait until their production update to discover whether a critical interface is dependent on deprecated technology.
Improved Document and Attachment Management
The Business Central web client continues to improve how users interact with documents and attachments.
BC29 preview testing indicates that image files can be previewed directly in the web client without requiring users to download the file first. Reported supported formats include JPEG, JPG, PNG, BMP, SVG, WEBP, ICO, GIF, and AVIF. Extension developers may need to add support through the appropriate file-viewing methods.
This can be useful for Alberta businesses that attach operational evidence to ERP records, including:
- Equipment photographs
- Delivery documentation
- Quality-control images
- Damage reports
- Job-site photographs
- Product images
- Service documentation
- Customer-provided attachments
For construction, engineering, manufacturing, and field-service teams, reducing unnecessary downloads can make attachments easier to review while employees remain inside their normal workflow.
Organizations managing technicians and mobile service operations can also explore Dynamics 365 Field Service for Edmonton and Alberta.
Why BC29 Matters for Alberta Businesses
Alberta businesses frequently operate across wide geographic areas, complex supply chains, project-based contracts, field-service environments, and asset-intensive industries.
BC29’s focus on automation, AI-assisted work, modern integrations, and data access can help organizations address common operational challenges such as:
- Repetitive administrative work
- Disconnected systems
- Limited financial visibility
- Delayed operational reporting
- Manual invoice processing
- Inventory shortages or overstocking
- Integration maintenance
- Inconsistent business processes
The business value will depend on how effectively the platform is configured and adopted.
Manufacturing Companies
Manufacturing organizations can use Business Central to connect:
- Demand planning
- Bills of materials
- Routings
- Production orders
- Capacity planning
- Purchasing
- Inventory consumption
- Finished goods
- Production costing
- Financial reporting
BC29 provides manufacturers with an opportunity to review whether planning parameters, item costs, capacities, production policies, and operational reporting align with current business requirements.
AI capabilities may also help employees retrieve information and reduce administrative effort, but accurate production and inventory data must remain the foundation.
Wholesale Distribution Businesses
Wholesale distributors can benefit from connected sales, purchasing, inventory, warehouse, receivables, and payables processes.
Potential improvement areas include:
- Stock availability
- Replenishment
- Vendor lead times
- Customer order commitments
- Warehouse receiving
- Pick and shipment processes
- Margin visibility
- Multi-location inventory
- Accounts receivable
- Sales and inventory reporting
BC29’s AI, purchasing, and data-query capabilities may further improve these processes when combined with disciplined master-data management and clear operational policies.
Construction and Project-Based Organizations
Construction, engineering, and professional project organizations need visibility into budgets, commitments, time, materials, billing, profitability, and project progress.
Business Central project functionality can help organizations manage:
- Project budgets
- Planning lines
- Resource usage
- Item consumption
- Purchase activity
- Project journals
- Time entry
- Customer invoicing
- Work in process
- Project profitability
During BC29 planning, project-based businesses should evaluate how estimates, baseline budgets, change orders, actual costs, progress billing, and forecasting are currently controlled.
Professional Service Firms
Professional service organizations can use Business Central to connect project delivery with financial management.
Examples include:
- Consulting firms
- Engineering companies
- IT service providers
- Business advisory firms
- Technical service organizations
Relevant capabilities include resource planning, time entry, reimbursable expenses, project billing, revenue recognition, profitability reporting, cash-flow visibility, and integration with Microsoft 365.
A BC29 review can help these firms determine which administrative activities may be streamlined through workflow automation, Copilot, or AI agents.
How Alberta Organizations Should Prepare for BC29
Preparation should involve more than reviewing a feature list. Alberta businesses should conduct a structured assessment across technology, processes, data, security, and user readiness.
Review Current Integrations
Create an inventory of every application connected to Business Central.
For each integration, document:
- Business owner
- Technical owner
- Integration method
- Authentication method
- Data exchanged
- Frequency
- Error-handling process
- Business criticality
- Dependency on SOAP or older web services
- Available replacement approach
Prioritize integrations that affect invoicing, shipping, inventory, payroll, banking, compliance, or financial reporting.
Test in a BC29 Sandbox Environment
Microsoft allows Business Central online customers and partners to evaluate version 29.0 in a preview sandbox. The preview applies to sandbox environments rather than production environments, and Microsoft warns that preview capabilities may have restricted functionality or change before release.
A structured test plan should cover:
- Sign-in and security roles
- Financial posting
- Sales and purchasing
- Inventory transactions
- Warehouse processes
- Manufacturing or assembly
- Project transactions
- Reports and document layouts
- Approval workflows
- Power Automate flows
- APIs and integrations
- Custom extensions
- Month-end procedures
- Critical user scenarios
Record each issue with its expected result, actual result, severity, owner, and resolution.
Assess Custom Extensions
Review every per-tenant and AppSource extension installed in the production environment.
Confirm:
- BC29 compatibility
- Publisher support
- Update availability
- Dependency compatibility
- Obsolete AL objects or methods
- Permission-set changes
- API dependencies
- Report and layout compatibility
- Upgrade code requirements
Customizations that duplicate newer standard capabilities should also be reviewed. Removing unnecessary custom code can reduce maintenance effort and future upgrade risk.
Train Users on Copilot and AI Features
AI adoption requires more than enabling a feature.
Training should cover:
- Appropriate business use cases
- How to verify AI-generated results
- User permissions
- Sensitive-data handling
- Human approval requirements
- Exception management
- Limitations of preview capabilities
- Escalation procedures
Start with low-risk, high-volume activities where users can easily validate the outcome.
BC29 Upgrade Checklist
Use the following checklist to begin planning:
Technical readiness
- Create a BC29 preview sandbox.
- Review installed apps and extensions.
- Identify deprecated functionality.
- Inventory SOAP integrations.
- Test REST APIs and OData connections.
- Validate Power Automate flows.
- Test custom reports and layouts.
- Review authentication and connection accounts.
Functional readiness
- Test finance and posting routines.
- Test purchasing and sales transactions.
- Validate inventory and warehouse processes.
- Test manufacturing, assembly, or project functions.
- Review approval workflows.
- Validate Canadian tax configuration.
- Test month-end and year-end scenarios.
- Confirm audit and reconciliation procedures.
AI readiness
- Identify appropriate Copilot use cases.
- Evaluate candidate processes for AI agents.
- Review data quality.
- Confirm employee permissions.
- Define human-review requirements.
- Establish acceptable-use policies.
- Measure productivity before and after adoption.
Change management
- Identify key users.
- Assign process owners.
- Develop training materials.
- Communicate expected changes.
- Document updated procedures.
- Schedule user acceptance testing.
- Plan post-update support.
How KDP Solutions Can Help Alberta Businesses Prepare for BC29
KDP Solutions helps small and midsized organizations across Edmonton, Alberta, and Canada implement, customize, integrate, and support Microsoft Dynamics 365 solutions.
KDP Solutions can assist with:
- BC29 readiness assessments
- Preview sandbox planning
- Upgrade testing
- Extension compatibility reviews
- Integration modernization
- Business Central implementation
- AI and Copilot readiness
- Power Platform automation
- Process optimization
- User training
- Reporting and analytics
- Ongoing Business Central support
KDP Solutions combines Business Central knowledge with experience across ERP, CRM, field service, Power Platform, and Canadian business requirements.
Explore the following services:
- Microsoft Dynamics 365 Business Central
- Dynamics 365 Business Central Alberta
- Microsoft Dynamics 365 Partner Edmonton
- Microsoft Dynamics 365 Partner Canada
- Dynamics 365 Field Service Edmonton
- KDP Solutions services and resources
Prepare Before Your BC29 Production Update
A proactive review can help your company identify incompatible extensions, aging integrations, process gaps, and training requirements before BC29 reaches the production environment.
Contact KDP Solutions to schedule a Business Central BC29 readiness assessment for your Alberta organization.
Frequently Asked Questions About Business Central BC29
When will Business Central 2026 Release Wave 2 be available?
Microsoft plans to make Business Central version 29.0 generally available in October 2026. As of September 2026, BC29 is available as a public preview for Business Central online sandbox environments.
Is BC29 available for production use?
The current 29.0 public preview is not intended for production use. Preview features may have restricted functionality and remain subject to change before general availability.
What are the main BC29 features?
Important preview areas include a unified Copilot chat experience, improvements to purchase-order matching in the Payables Agent, MCP-based custom data queries, country-specific enhancements, developer capabilities, and user-experience improvements.
What should Alberta businesses test before upgrading?
Organizations should test financial posting, sales, purchasing, inventory, warehousing, projects, manufacturing, reports, extensions, APIs, workflows, integrations, permissions, and critical month-end procedures.
Should companies review their SOAP integrations?
Yes. Organizations using older SOAP-based integrations should identify those dependencies and evaluate supported REST APIs, custom API pages, OData v4, Power Automate, Dataverse, or Azure-based alternatives. BC29 is an important point in Microsoft’s continued transition away from legacy SOAP services.
Can Alberta businesses test BC29 before the production rollout?
Yes. Business Central online customers and partners can use a preview sandbox to evaluate version 29.0. Microsoft recommends preview environments for review and testing, not for production operations.
Can KDP Solutions help with a BC29 upgrade?
Yes. KDP Solutions can assist with readiness assessments, sandbox testing, extension reviews, integration modernization, business-process validation, AI readiness, training, and ongoing Business Central support.
Final Thoughts
Business Central 2026 Release Wave 2 represents another important step toward a more intelligent, connected, and automated ERP experience.
For Alberta businesses, the most valuable opportunities may come from combining BC29’s new capabilities with better data, stronger processes, modern integrations, clear security controls, and practical user training.
Organizations should not wait until the production update begins. Creating a test environment, reviewing extensions, identifying SOAP dependencies, validating core processes, and training key users can substantially reduce upgrade risk.
With the right preparation, BC29 can become more than a technical update. It can provide a practical foundation for improving financial control, operational visibility, employee productivity, and business automation across the organization. Learn More from Microsoft
