Ultimate Guide to Business Central Integration

Barbara Cook
By Barbara Cook
Barbara Cook

Barbara Cook

Barbara is a financial writer for Tipalti and other successful B2B businesses, including SaaS and financial companies. She is a former CFO for fast-growing tech companies with Deloitte audit experience. Barbara has an MBA from The University of Texas and an active CPA license. When she’s not writing, Barbara likes to research public companies and play Pickleball, Texas Hold ‘em poker, bridge, and Mah Jongg.

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Updated December 3, 2024
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Bridging the gap between ERPs and AP processes can be tedious and confusing. Cut out the confusion and streamline processes today.

Microsoft Dynamics 365 Business Central now has over 15,000 customers on its SaaS platform and is seeing 200 percent annual growth in users,” MSDynamics World reported in April 2021. The news site received these stats from Mike Morton, Microsoft’s general manager, at a software partners event. This report indicates strong and rapid adoption of Business Central software. 

Microsoft Dynamics 365 Business Central, a cloud-based ERP, integrates with other software to increase its functionality, streamline efficiency, and better manage business processes. Business Central integrates with additional Microsoft software and different kinds of third-party software, including AP automation

Business Central integrations are available through the Microsoft AppSource marketplace or directly from software vendors. 

Increase the efficiency of your Microsoft Dynamics 365 Business Central enterprise resource planning (ERP) system by using Business Central integrations. Learn about your Business Central integration options and how to make the best choice.

What is Microsoft Dynamics 365 Business Central?

Microsoft Dynamics 365 Business Central is a unified cloud-based ERP system that upgrades the on-premises NAV software (Microsoft Dynamics NAV) with cloud deployment, a newer user interface, and some other changes. Microsoft acquired Navision (NAV) in 2002. Small businesses and medium-sized companies use Business Central to manage end-to-end business processes throughout their organization. 

The Business Central cloud deployment is managed by Microsoft on its advanced Azure cloud services platform. 

Understanding Microsoft Dynamics 365 Business Central 

Microsoft began offering users the choice of migrating from its Dynamics NAV ERP software (formerly Navision) to SaaS software Microsoft Dynamics 365 Business Central when it moved it to the cloud in April 2018 and updated the user interface (UI) for a better user experience.  Business Central can instead be deployed on-premises. 

The Business Central ERP manages business processes throughout the organization as a single system with a unified database. It handles multi-company accounting. 

NAV Dynamics, the legacy on-premises software product, is still available from Microsoft as one of several Microsoft ERPs. Like Microsoft Dynamics 365 Business Central and Microsoft Dynamics GP, NAV Dynamics works with many integrations, including Tipalti AP automation and global payments software. 

The Microsoft Dynamics 365 Business Central ERP Essentials plan handles: 

  • Accounting and finance management 
  • Basic sales and marketing
  • Basic purchasing and payables
  • Inventory management 
  • Warehouse management
  • Fulfillment and delivery
  • Project management 
  • Supply chain management

With a Microsoft Dynamics 365 Business Central ERP Premium plan, your business will also receive:

  • Service management
  • Manufacturing

Business Central Integration Options

Software integration options for Microsoft Dynamics 365 Business Central include other Microsoft software products and third-party software. With software integration, data is synced between the ERP system and add-on apps and the systems have interoperability to work together seamlessly. Some applications use data integration instead of synchronization. 

Business Central software alone doesn’t provide an optimized solution for your business needs. Add-on automation software integrations are essential choices that elevate the value of your Business Central investment by substantially increasing efficiency and reducing business costs. These Business Central integrations bridge the gap for missing functionality and may strengthen financial controls and visibility into business operations. 

Types of Microsoft Dynamics 365 Business Central integrations include:

  • AP automation and global payments 
  • Customer relationship management (CRM) software
  • E-commerce and POS (point-of-sale) retail systems
  • Business intelligence and analytics 
  • Fintech
  • Collaboration and communications software

This Business Central integrations categories list isn’t all-inclusive. Entrepreneurship drives the creation of new value-added software solutions in all product categories that enhance usability and provide other user benefits through integrations. 

Business Central Pricing and Microsoft Software Integrations 

To increase the functionality of Business Central through Microsoft integrations, you can add its CRM (customer resource management) software called Dynamics 365 Sales Professional, Office 365, including Excel, Microsoft Power BI for business intelligence and visualization, Microsoft Power Apps, Microsoft Dataverse, and other Microsoft software. Microsoft provides integration table mappings for Dataverse and Business Central tables and fields to synchronize. 

The Business Central Essentials Plan has subscription pricing of $70/month per user, whereas the Premium plan is $100/month per user. Some of these integrations like Power BI and Power Apps are as low as $10/month per user or $20/month per user. Adding the Dynamics 365 Sales Professional CRM for sales force automation is $65/month per user. 

Perks of Integrating with Business Central 

The perks of integrating with Business Central are:

  • Adds functionality for various business processes
  • Bridges the gaps in older Business Central ERP features and time-consuming set-up requirements
  • Accesses automation for much greater efficiency, cost savings, and stronger financial controls
  • Adds visibility and business intelligence
  • Improves spend management and cash flow
  • Lets your business close the books faster

How can your business make payables work better with Microsoft Dynamics 365 Business Central integration?

Download our “The Last Mile of Microsoft: Payables Transformation Strategies”
to learn about bridging the ERP gap with payables improvements and less staff hiring needs through Business Central integration. 

Use AP automation software with self-service supplier onboarding to streamline end-to-end payables, eliminate paper and manual processes in invoice processing, make efficient electronic global payments for streamlined payables processes, reduce fraud risk and errors, and simplify global regulatory and tax compliance.

How to Set Up Business Central Integration

Three ways to achieve Business Central software Integration are:

  1. API integration
  2. Flat-file integration
  3. Middleware integration platforms

Third-party add-on software can be integrated through Business Central API or flat-file integration or middleware integration. Business Central APIs called Connect apps used for integration are described in the following section.

Flat file integration maps fields between the software applications and uses CSV or other data-type files. Flat-file integration is better for use cases that include batch processing like automated supplier payments for accounts payable. 

Middleware apps serve as integration platforms to integrate more software apps into Business Central. Examples of middleware integration apps are Zapier, Celigo, and Pipedream. 

Understanding APIs in Business Central

An API (application programming interface) sets up rules enabling software applications to communicate, connect, and interoperate seamlessly. Microsoft Dynamics 365 Business Central API (V 2.0) creates Connect apps between Business Central and third-party software solutions or services, generally using standard Rest APIs to interchange data. 

Third-party software vendors using APIs to connect to Business Central to their software applications must adhere to the Microsoft APIs Terms of Use

For users of Business Central on-premises software, Microsoft provides steps for Enabling the APIs for Dynamics 365 Business Central as a connection setup.

With the integration of Microsoft Power Apps into Business Central, you can also establish Power Apps connectors to connect other applications, as shown in this list of Power Apps connectors. Microsoft defines its Power Platform connectors:

A connector is a proxy or a wrapper around an API that allows the underlying service to talk to Microsoft Power Automate, Microsoft Power Apps, and Azure Logic Apps. It provides a way for users to connect their accounts and leverage a set of prebuilt actions and triggers to build their apps and workflows.

Our large ecosystem of software as a service (SaaS) connectors enables you to connect apps, data, and devices in the cloud. Examples of popular connectors include Salesforce, Office 365, Twitter, Dropbox, Google services, and more.”

Top-Rated Integrations with Business Central

The following top-rated integrations with Business Central include software for different types of applications by category:

Tipalti – AP Automation, Procurement, Expenses, and Global Payments software 

Tipalti provides scalable AP automation, Procurement, Expenses, and Global Payments software that integrates with Microsoft Dynamics 365 Business Central using direct API-to-API integration. Through this Microsoft ERP Business Central integration with Tipalti AP automation software, Tipalti modernizes Business Central by adding functionality and eliminating paper invoices and manual data entry in the accounts payable and payment processes. Data integration and synchronization in real-time provides better insights. 

How Tipalti Integrates with Microsoft Dynamics Business Central

A diagram illustrating the flow of a business process with business central integration.

Tipalti automation software uses AI-driven technology to capture invoice data through OCR scanning, email, or upload to a self-service supplier portal. The self-service supplier portal provides a workflow for tax compliance simplification, vendor management, and automated payment status communications. Tipalti validates suppliers and performs automated invoice processing, including matching, approvals, and global regulatory compliance. 

Tipalti’s global finance automation software pays global suppliers using a choice of payment methods in 196 countries and 120 currencies. It creates an automated payment reconciliation for mass payments in real-time. Tipalti Expenses automates employee expense reimbursement and spend management. 

Tipalti results in 80% time savings in payables processes and cost savings, including reduced hiring needs. Tipalti reduces errors by 66% and fraud risk. Using Tipalti can help your business close its books 25% faster. 

Shopify – eCommerce software integration

Business Central has a Shopify Connector app to connect online stores with Business Central ERP. The requirements and steps to integrate Shopify with Business Central are provided in the Shopify Connector link. 

Adobe Commerce (formerly Magento) – eCommerce software integration

Business Central has a Magento integration connector for a personalized shopping experience with customer engagement called eShop Connect for Magento in the Microsoft Appsource. This connector app is from Dynamics eShop Inc. 

Salesforce Integration for Dynamics 365 Business Central – CRM software

Although Microsoft Dynamics 365 Business Central can be integrated with Microsoft Dynamics 365 Sales Professional, if your company already uses Salesforce or prefers it for customer relationship management (CRM) software, Celigo can easily provide CRM integration with Salesforce instead.

Celigo is an award-winning integration platform that offers an AppSource app for integrating Salesforce for Business Central. Celigo also works for other software integrations. It adds enterprise-grade security and provides a very high percentage of uptime. 

Microsoft also provides a Salesforce integration solution through a Power Platform Connector. 

Twilio – Cloud communications software integration

Twilio, integrated with Business Central, gives your business access to a cloud-based customer communications platform. Twilio is a cloud communications platform using automated SMS, voice & messaging applications to efficiently keep in touch with customers. Pipedream, a middleware integration platform, integrates the Twilio API with the Business Central API. Pipedream is highly rated by users on the ProductHunt review site as an integration platform. 

Conclusion

Many Microsoft and third-party software integrations are available to work with Business Central. These Business Central integrations can provide efficiency through automation and cost savings opportunities. Some integrations also strengthen financial controls and help reduce fraud risk and errors. Before choosing a third-party integration provider, perform due diligence on the middleware integration platform or software vendor and fully test your integrations. Download our eBook, “The Last Mile of Microsoft: Payables Transformation Strategies.”

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