Business Central upgrade: a practical guide for UK teams
Planning a Business Central upgrade from Dynamics NAV or an older version? The routes Microsoft documents, what happens to customisations, Making Tax Digital for VAT, and how to plan the work.
If you run Microsoft Dynamics NAV or an older version of Business Central, an upgrade moves you onto Microsoft's current ERP for small and mid-sized businesses. This guide sets out the routes Microsoft documents, what happens to customisations, and what UK finance teams should check.
Key PointFrom Dynamics NAV the route runs through Business Central on-premises before you can move online.
Know your route
Microsoft's guide to migrating data to Business Central online sets the path by starting point. If you are on Dynamics NAV, you must upgrade to Business Central on-premises first, and then switch to Business Central online.
The same page also describes a reimplementation route, which brings across only essential data such as master data and opening balances, for businesses that want a fresh start without legacy customisations and history.
What happens to customisations
From Business Central 2019 release wave 2 (version 15), Microsoft's upgrade overview explains that the old C/AL code was replaced by AL and the application became extension-based. Microsoft recommends moving code customisations into add-on extensions.
So older C/AL customisations have to be converted to AL extensions rather than copied across as they are. That makes the upgrade a good moment to drop customisations nobody uses.
Pro TipList every customisation and ask who still uses it. Each one you drop is one less thing to rebuild.
UK VAT and Making Tax Digital
The UK version of Business Central includes Making Tax Digital for VAT features. You can retrieve VAT obligations from HMRC, submit VAT returns, and view VAT liabilities and payments.
Two points to plan for. For VAT groups, Microsoft says group scenarios are not in scope of the built-in MTD feature, but it also documents a separate VAT Group Management extension for the United Kingdom; our group VAT article explains both. And HMRC does not allow test submissions, so you can only send real VAT returns.
Plan the work
- list your customisations, reports and integrations, and decide which you still need;
- decide how much transaction history comes across, and where older records will live; GOV.UK says a company must keep records for 6 years from the end of the last financial year they relate to;
- agree who signs off finance, VAT and reporting before go-live;
- plan for Microsoft's update cycle once you are online: two major updates a year, in April and October.
Watch OutHMRC does not accept test VAT submissions. Your first MTD return from Business Central is a real one, so check it carefully.
Next steps
Our Business Central migration guide and data migration process guide go further. For independent guidance, see the ICAEW technology resources.
To scope your own upgrade, see our Business Central services or contact us.