Take control of your Business Central
With Business Central as a Cloud solution, you have new responsibilities and tasks as an ERP manager. Read the guide to get prepared for your role.
“I highly recommend reading the easy-to-understand guide for ERP managers to manage their Business Central online, written by Anders Faurholt. I love that system change management has a very prominent place in the guide, highlighting the importance of planning for business impact as the system changes.” (full post on Linkedin)
Søren Friis Alexandersen
Principal Product Manager @ Microsoft
Your role as ERP Manager
Practical guidance for anyone responsible for Business Central in their organization. The guide covers environments, updates, AI agents, apps, security, permissions, licenses, automated processes, data, performance, process optimization, and the partner relationship.
In brief
Managing Microsoft Dynamics 365 Business Central is more than keeping the system running. As the person responsible for ERP in your organization, you carry four ongoing responsibilities: stable daily operations, role and permission management, system support as workflows change, and proactive process optimization. This guide walks through the practical knowledge you need to do that work, structured in 13 self-contained chapters. Each chapter covers one area in depth and can be read on its own. Whether your title is “ERP manager”, “Business Central administrator”, “ERP super user”, or something else entirely, the guide is written for the person who owns Business Central in their company.
What this guide covers
The guide combines two things: a clear view of what the ERP manager role looks like in a cloud-based ERP world, and concrete advice on each topic that matters for the role. The cloud edition of Business Central works differently from older on-premise ERP systems. Updates arrive continuously and cannot be postponed indefinitely. Apps are added through Microsoft Marketplace. AI agents are starting to perform actual work inside the system. Permission management has moved from internal user groups to Microsoft Entra ID security groups. Licenses can be optimized in ways that didn’t exist a few years ago.
Every chapter is self-contained, so you can read the topics that matter to you right now and return to the others later. The guide is also designed to be useful as a reference: when you face a specific question about updates, agents, GDPR, performance, or any other topic, you can go directly to the relevant chapter.
What is an ERP manager?
An ERP manager is the person in an organization responsible for the ongoing management of an ERP system, in this case Microsoft Dynamics 365 Business Central. The role is distinct from an ERP project manager, who runs implementation projects. The ERP manager focuses on the system in operation: keeping it running smoothly, adapting it as the business evolves, ensuring data quality and security, managing licenses and costs, and capturing value from new functionality as it becomes available.
The role exists in most companies that run Business Central, but it is often unnamed. One company calls the role “Business Central administrator”, another calls it “ERP super user”, a third places the responsibility with the CFO or IT manager. What matters is that someone owns the ongoing responsibility for the solution. Without that ownership, problems accumulate, value is lost, and the solution slowly drifts out of step with the business.
The ERP manager doesn’t need to be a developer or a Microsoft specialist. The role is about understanding business processes, knowing how Business Central supports them, and being able to ask the right questions of the right people. Technical skill is useful but not required.
The four core responsibilities of an ERP manager
The role has four core responsibilities. They are not separate jobs done at different times. They overlap continuously in everyday work.
| Responsibility | What it covers |
|---|---|
| Trouble-free daily operations | Job queues run, integrations move data, invoices are sent, periods close on time. Business processes don’t grind to a halt. |
| Roles, permissions, and data security | The right people have access to the right data and functions. Sensitive data is protected. Audit requirements are met. |
| System support when workflows change | When the business reorganizes, adds a new product line, or enters a new market, the system supports the change. |
| Proactive process optimization | New features arrive from Microsoft continuously. The ERP manager spots opportunities to improve processes, save time, and reduce errors. |
The first two responsibilities keep the lights on. The second two move the business forward. A common mistake is to focus only on the operational side and neglect proactive optimization, which is where most of the value over time comes from.
The three preparation steps before you start
Before you take on the four responsibilities, you have three preparation steps that should be in place. These are foundational. Skipping them makes everything else harder.
1. Know your business processes
Map your company’s processes and how Business Central supports them. This means walking through the work in every function with the employees who do it. What actually happens during a workday? The mapping has to reflect reality, not theory. You don’t need to do all the work yourself. Your role is to start the mapping, ensure it gets done, and consolidate the result into an overall picture.
The overview is never finished. Processes change, new employees find new ways of working, and the way Business Central is used today is rarely the way it was used at go-live. The overview must be maintained continuously.
2. Know your technical solution
You need to know which parts of the Business Central solution are in use and how they fit together. This means having an overview of standard functionality, apps from Microsoft Marketplace, Per Tenant Extensions (PTEs), API integrations, web services, job queues, and approval workflows. For every app and PTE you should be able to answer in plain language: what does it do, who uses it, how critical is it.
This becomes urgent at every major update. A PTE or app that is not compatible can block the update entirely. You should know what each PTE does, whether you still need it, and which standard functionality might have superseded it.
3. Clarify your mandate with management
You need clear answers from management on a few questions. Is there an IT strategy that sets the direction? Is there appetite for AI, automation, and new apps? Should the solution prioritize stability over change? How much can you decide on your own?
A clear mandate makes it easier to prioritize, easier to say no to things that don’t fit, and easier to argue for the resources you need.
Key Business Central concepts you need to know
A short glossary of the terms that appear throughout the guide.
| Term | What it means |
|---|---|
| Tenant | The top level in Microsoft Cloud. Holds all Microsoft services (Business Central, Dynamics 365, Power Platform, Microsoft 365). Licenses are assigned at this level. |
| Environment | A Business Central environment inside the tenant. Bound to one country localization. Each subscription includes one production environment and three sandboxes by default. |
| Company | A legal entity or business unit inside an environment, with its own posting, transactions, and master data. |
| Production environment | The environment where the business runs day-to-day. |
| Sandbox | A non-production environment for testing apps, updates, and experiments. Integrations and outgoing emails are disabled. |
| App | A ready-made extension from Microsoft Marketplace, developed by a Microsoft partner. The vendor maintains compatibility. |
| PTE (Per Tenant Extension) | A custom extension built specifically for your company. You own the technical debt. |
| Role Center | The user’s start page in Business Central. Determines what shortcuts and overviews appear, not what the user can do. |
| Permission set | The technical definition of what a user can do (read, insert, modify, delete) in specific tables. |
| Security group | A group in Microsoft Entra ID. Used to assign permission sets to multiple users at once. |
| Copilot | Built-in AI in Business Central. Helps users with lookups, summaries, and analysis. Does not change data. Included at no extra cost. |
| Agent | An AI agent that performs actions in Business Central within boundaries you define. Examples: Sales Order Agent, Payables Agent. Consumes credits. |
| MCP server | Model Context Protocol server. Lets agents built in Copilot Studio read and write in Business Central via configured APIs. |
| GDAP | Granular Delegated Admin Privileges. The model for giving partners time-limited, role-based access to your tenant. |
| Feature Management | The page where you opt into optional new features before they become mandatory in a future release. |
| Wave 1 / Wave 2 | Microsoft’s twice-yearly major releases. Wave 1 in April, Wave 2 in October. |
The 13 chapters of the guide
The guide is structured in 13 chapters. Each one stands alone and can be read independently.
Chapter 1: Your preparation as ERP manager
The starting point. Covers the three homework assignments (know your processes, know your solution, know your mandate) in depth. Includes practical advice on using AI to document PTEs and apps. Read chapter 1 »
Chapter 2: Environments in Business Central
Covers the structure of tenant, environments, and companies. How to access and use the Business Central admin center. Why each environment is bound to one country localization, and what that means for international operations. When and how to use sandboxes for testing and development. Read chapter 2 »
Chapter 3: Updating and testing Business Central
Microsoft’s update cadence (major releases, minor updates, hotfixes), how to plan updates, what Feature Management is, how to test before an update, and how to handle apps and PTEs that need to stay compatible. Includes the realistic fallback when full testing isn’t possible. Read chapter 3 »
Chapter 4: AI and agents in Business Central
The difference between Copilot and AI agents. The two ready-made agents (Sales Order Agent, Payables Agent). How to build your own agents in Agent Playground or Copilot Studio with MCP. The principle of human-in-the-loop. Where responsibility sits when an agent makes a mistake. Read chapter 4 »
Chapter 5: Apps and PTEs in Business Central
How extensions work technically without modifying Microsoft’s standard code. The three-step strategy for functional needs: standard first, then Marketplace apps, then PTEs as a last resort. How to choose the right app, how updates work, and how to clean up apps you no longer need. Read chapter 5 »
Chapter 6: Security in Business Central and Microsoft 365
Eleven security areas every ERP manager should know: multi-factor authentication, passwords, phishing and social engineering, Microsoft’s Security Defaults, backup, incident response planning, Windows updates, mobile devices, remote work and VPN, antivirus, and Privileged Identity Management. Read chapter 6 »
Chapter 7: Roles and permissions in Business Central
Role Centers, profile customization, permission sets, security groups, the Change Log, Field Monitoring, and approval workflows. Why the predefined Microsoft permission sets should be your foundation. How license configuration interacts with permission management. Read chapter 7 »
Chapter 8: Licenses and subscriptions for Business Central
The license types (Essentials, Premium, Team Member, Device). Commitment periods (monthly, annual, multi-year). Why you should conduct a license review every year. Attach licenses for companies that also use other Dynamics 365 products. How AI agents are licensed separately. Read chapter 8 »
Chapter 9: Automated processes and job queues
What a job queue is, how to plan job queues with care, the new FIFO architecture from 2024, why monitoring is essential, and how to set up notifications when something fails. Read chapter 9 »
Chapter 10: Data in Business Central
Backup and restore in the admin center. Data volumes and capacity usage. Retention policies for automatic deletion. GDPR and personal data: classification, access management, masking, monitoring, and subject access requests. Master data quality and the importance of templates. How to get data out of Business Central via Excel, Analysis mode, Financial Reporting, and Power BI. Read chapter 10 »
Chapter 11: Performance optimization in Business Central
What actually makes Business Central slow (rarely the platform itself), how to identify the cause, what users can do, and how to use the Performance Profiler and Azure telemetry to diagnose problems. Who to contact for which type of problem. Read chapter 11 »
Chapter 12: Process optimization and change management
How to spot optimization opportunities reactively (from new Microsoft features) and proactively (from observing your users). Why you should define gains in advance. Testing and approval before changes go live. The human side of change management and why it matters more than the technology. Read chapter 12 »
Chapter 13: Working with your ERP partner
The two vendors you have (Microsoft and your delivery partner) and what each is responsible for. GDAP and partner access control. Why consultants are no longer all-knowing. What to expect from your contact person. The case for proactive collaboration. How to take control of the relationship. Read chapter 13 »
Cross-cutting principles in the guide
A few principles run through every chapter. They are worth highlighting because they shape how you should approach the ERP manager role.
The cloud is continuous, not episodic
Updates arrive every month and every six months, whether you are ready or not. The cloud edition cannot be put on hold for years and then upgraded in one big project. Your job is to absorb continuous change without disruption to the business. That requires planning, testing, and an overview of what you have.
Responsibility doesn’t move with the technology
Microsoft handles infrastructure. Your partner handles delivery. AI agents perform actions. But the responsibility for what happens in your Business Central stays with you. An agent that posts an invoice incorrectly doesn’t carry the responsibility. A partner who gives bad advice doesn’t carry the responsibility either. You do.
Initiative comes from you
Your ERP partner is often reactive by default. They respond to tickets, deliver requested work, and answer questions when asked. They rarely propose to retire a PTE they built, to review your license setup, or to test the combined solution before an update. You have to ask. The proactive parts of the relationship need to be defined and agreed.
Default settings deserve attention
Several areas in Business Central have defaults that may not match what you want. Email view policies default to “view if access to all related records”, so users can see each other’s emails. License configuration assigns rights that may conflict with security groups. Sandbox copies preserve email setup. Going through the defaults explicitly is part of taking control.
Standard first, app second, PTE last
For every functional need, check standard functionality first, then look for a Marketplace app, and only consider a PTE if neither works. Standard is maintained by Microsoft. Apps are maintained by the vendor. PTEs are maintained by you. Every PTE is technical debt you carry indefinitely.
Test before you trust
Sandbox testing, feature switch testing in non-production, agent testing with variations, license review before renewal, restore testing before you need it. Trust comes from verification, and verification comes from testing in advance.
Documentation is part of every change
The biggest barrier to a well-managed Business Central is outdated documentation. The best practice is to make documentation part of every change rather than treating it as a separate project. AI tools have made this much more manageable.
Frequently asked questions
What does an ERP manager do?
An ERP manager is responsible for the ongoing management of an ERP system in operation. The role has four core responsibilities: ensuring trouble-free daily operations, managing roles and permissions, supporting the business as workflows change, and proactively optimizing processes. The role is distinct from an ERP project manager, who runs implementations rather than ongoing operations.
Does an ERP manager need to be in IT?
No. The role exists in many functions: IT, finance, operations, and others. Many ERP managers are super users who grew into the responsibility. Technical skill is useful but not required. The role is more about understanding business processes, knowing how Business Central supports them, and asking the right questions of the right people.
What is the difference between Copilot and an AI agent in Business Central?
Copilot is built-in AI that helps users with lookups, summaries, and analysis. It does not change data and is included in the Business Central license at no extra cost. An AI agent performs actions in Business Central within boundaries you define. Agents include the Sales Order Agent and the Payables Agent. Agents consume credits and are subject to “human-in-the-loop” controls.
Can I postpone a Business Central update?
Yes, but not indefinitely. The update period for a major release is five months, followed by a one-month grace period. After that, Microsoft forces the update through. If incompatible apps or PTEs block the update, they may be uninstalled to allow the update to complete. Monthly minor updates can be skipped, but you then miss hotfixes and bug fixes.
What is the difference between Business Central Essentials and Premium?
Essentials covers finance, sales, purchasing, inventory, and projects. Premium adds Manufacturing and Service Management. Within one environment, all full users must be the same type. If you need Premium for a few users in one environment, all full users in that environment must be Premium. You can run Essentials in one environment and Premium in another within the same tenant.
What is GDAP and why does it matter?
GDAP stands for Granular Delegated Admin Privileges. It is Microsoft’s model for giving partners time-limited, role-based access to your tenant. It replaces the older model where partners had full administrator access. With GDAP you control which services a partner can administer, for how long, and at what level. Partner access should not be active permanently.
Who is responsible when an AI agent posts something incorrectly?
You are. The agent operates on your behalf within boundaries you defined. If the boundaries were too loose, that is your responsibility. If the configuration was wrong, that is your responsibility. The principle is “human-led, agent-operated”: humans set direction and bear responsibility, agents perform the work.
How often does Business Central get updated?
Microsoft releases two major releases per year (Wave 1 in April, Wave 2 in October), monthly minor updates, and hotfixes as needed. Major releases contain new functionality and possible breaking changes. Minor updates contain bug fixes and regulatory adjustments and are typically safe for operations.
What is a sandbox environment?
A sandbox is a non-production Business Central environment used for testing apps, updates, and configurations. Each subscription includes three sandboxes by default. When you create a sandbox as a copy of production, certain processes are automatically disabled (job queues, integrations, outgoing emails) to prevent unintended actions toward customers or external systems.
Should I always test updates in a sandbox?
Yes, that is the proper practice. In reality, few companies test every update consistently. If you don’t have a full testing setup, the fallback is to know your business processes well enough to react quickly if something breaks. Knowing which apps and PTEs are critical, and who to contact for each, lets you respond fast.
How to use this guide
Start with the chapter that addresses the question on your mind right now. The chapters are self-contained, so you don’t need to read them in order. If you are new to the ERP manager role, chapters 2, 3, and 14 are a useful starting set: they cover your preparation, the structure of Business Central, and the relationship with your partner. If you are dealing with a specific situation (an update is coming, a security audit is approaching, AI agents are on the agenda), go straight to the relevant chapter.
The guide is designed to be returned to as needs change. Bookmark the chapters that match your current focus, and come back when something new comes up.