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What’s New in Dynamics 365 Business Central - October 2025 Update Highlights

Microsoft’s 2025 Release Wave 2 for Business Central, effective from October 2025 through March 2026, brings significant enhancements across AI automation, financials, compliance, and user experience. 
Below is your guide to what’s new:

1. Smarter AI Agents & Copilot Enhancements

  • Sales Order Agent takes a leap forward
    This wave deepens the autonomous role of the Sales Order Agent. It can parse unstructured emails or attachments (PDFs, images) to create quotes or orders.  It now supports multiple ship-to addresses, and can generate “capable-to-promise” responses based on real-time inventory/planning logic. 
    For trusted customers, parts of the process can run automatically, reducing manual approval steps. 
  • Copilot gets broader context & faster insights
    Copilot in Business Central becomes more deeply integrated and context-aware. It can summarise records, analyse data, suggest next steps, and assist tasks like bank reconciliation. 
    The improved performance and more intelligent context handling mean users spend less time navigating and more time acting. 
  • Custom AI extensions and oversight
    Developers and makers can create or extend agents or Copilot functionality to suit specific business needs using the broader AI/agent framework. 
    Agents include oversight and review capabilities to maintain control over automated operations. 

2. Enhanced Financial & Reporting Capabilities

  • Automatic multiple fixed-asset cards
    When a purchase invoice involves multiple units (e.g. buying 100 devices), Business Central can now automatically generate individual fixed asset cards per unit — no more manual splitting. 
  • New Audit Trail & traceability reporting
    A stronger, more transparent audit trail report helps finance teams trace transactional history across G/L registers and entries, aiding compliance and internal controls. 
  • Improved financial report building & flexibility
    Report authors get UI improvements: autofill of Number/Description fields in definitions, dynamic naming in columns, inline editing via Excel, and notifications when G/L changes affect report definitions. 
    Viewers benefit from scheduling, cross-dimension reporting, and multi-currency support. 

3. Compliance, Localisation & e-Document Updates

  • Excise tax framework
    A new excise tax feature helps automate excise tax computations based on regional rules, reducing manual effort and risk. 
  • Electronic invoice / sustainability & ESG support
    Business Central enhances e-document capabilities and sustainability features. You’ll see more support for e-invoicing, capturing carbon/emissions data, and embedding environmental disclosures (e.g. on invoices) to comply with ESG requirements. 
  • Localization updates
    Foundational updates across multiple countries to align with evolving fiscal, tax, and data governance rules. 

4. User Experience, Usability & Admin Controls

  • Improved list actions & summaries
    Better support when acting on selections in lists (bulk actions) and refined summaries to help users spot errors or missing data quickly. 
  • Environment-level controls & partner access
    Admins can assign partner access to specific environments (rather than globally), improving governance and security. 
    Also, extended update windows let administrators delay or stage major updates more flexibly. 
  • Customer-managed encryption keys
    To bolster data protection, customers may manage their own encryption keys for added control over sensitive data. 

Why These Updates Matter

  • Reduced manual workload & faster operations - By automating order intake, data extraction, and routine reconciliation, your teams can focus on higher-value tasks.
  • Tighter compliance & audit readiness - Better traceability, advanced taxation logic, and localized legal updates help reduce risk in regulated environments.
  • Scalable AI adoption - With built-in agents, Copilot context gains, and customizable extensions, even smaller organizations can tap AI without building complex systems.
  • Better governance & control - Admin tools for environment access, encryption, and update scheduling help ensure that innovation doesn’t come at the cost of oversight.
  • Improved decision support - Enhanced reporting, analytics, and insight capabilities ensure leaders see clearer trends and spot issues earlier.

Next Steps

Check out our blog about preparing for your updates here and don't hesitate to reach out to us should you have any queries about the updates.