Microsoft Business Central API Guide (In-Depth)

Microsoft Dynamics 365 Business Central is a complete, cloud-based Enterprise Resource Planning (ERP) solution designed for small to medium-sized businesses. It integrates core business functions like finance, sales, service, and operations into a single, connected system. 

Its powerful, modern API ecosystem empowers developers to automate processes, build custom applications, and create seamless bridges between Business Central and other critical business systems.

The Business Central API offers a standardized, OData-compliant, and secure framework optimized for developers building integrations and extending the platform's capabilities. 

In this blog, you’ll learn how to build, authenticate, and optimize integrations with the Microsoft Business Central API, including detailed setup steps, terminology, real-world use cases, and strategies for simplifying ERP connectivity through Knit.

What is Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central is an all-in-one business management solution that helps companies streamline their operations across financials, supply chain, project management, and sales. It serves as the digital hub for a business, replacing dozens of disparate spreadsheets and legacy systems with a unified, intelligent platform.

What Business Central Does

‍

Why Business Central Matters to Organizations

Business Central stands as a pivotal tool for contemporary business management by merging automation, real-time analytics, and effortless integration into a cohesive, AI-enhanced platform. It empowers organizations to eradicate manual tasks, enhance precision, and drive informed strategic choices effortlessly.

1. Automation: Business Central automates routine workflows across finance, sales, and operations, such as order fulfillment, invoice processing, and inventory adjustments. This frees up teams from tedious data entry, slashing processing times by up to 50% and minimizing human errors for more reliable daily operations. For instance, AI-driven features like predictive inventory forecasting proactively alert users to potential stockouts, ensuring uninterrupted supply chains.

2. Data Accuracy: By integrating with tools like Microsoft Power BI or external CRMs, Business Central ensures synchronized, consistent data across ecosystems. Real-time updates prevent silos, reducing discrepancies in financial records and boosting audit compliance. This accuracy is vital for SMEs scaling operations without proportional increases in administrative overhead.

3. Financial Visibility: Dynamic dashboards and embedded analytics provide instant views into cash flow, profitability, and key metrics. Leaders can drill down into variances or forecast trends using natural language queries via Copilot, the built-in AI assistant, enabling proactive decision-making that aligns with market dynamics.

4. Seamless Integration: With over 1,000 pre-built connectors in the Microsoft AppSource marketplace and a flexible API, Business Central bridges gaps between ERP, CRM (like Dynamics 365 Sales), and e-commerce platforms. This connectivity eliminates fragmented workflows, allowing unified data flows that enhance collaboration across departments.

5. Scalability and Flexibility: From startups to global enterprises, Business Central adapts via multi-tenant architectures, role-based access, and extensible APIs. It supports hybrid deployments and AI extensions without compromising speed or regulatory adherence, growing alongside business expansion while maintaining cost-effectiveness.

Important Terminology for Business Central API

Before integrating with the Microsoft Dynamics 365 Business Central API, it’s essential to understand key terms that define how authentication, environments, and data operations work within the Microsoft ecosystem. The following glossary covers all critical concepts in a simplified and professional way.

1. Tenant

A Tenant is a dedicated instance of Business Central allocated to a specific organization. Each tenant is isolated and contains its own set of data, configurations, and environments. All API calls are directed to a tenant-specific URL, ensuring that one company’s data remains separate from another’s.

2. Environment

An Environment is a logical container within a tenant that stores business data.
A tenant typically includes:

• A Production environment (live data)
  
• One or more Sandbox environments (for testing and development)

API requests must always target a specific environment to ensure data separation and control.

3. Company

A Company represents a distinct business entity or legal organization within a Business Central environment.
Each company maintains its own ledgers, customers, vendors, items, and setup data.
API operations are scoped to a specific company, which is identified in the endpoint.

4. OData (Open Data Protocol)

OData is an open protocol that defines how to build and consume RESTful APIs.
The Business Central API is built on OData v4, meaning it uses:

• Standard HTTP methods (GET, POST, PATCH, DELETE)
  
• JSON payloads for structured data exchange
  
• Query parameters like $filter, $select, and $orderby for flexible data retrieval

This makes the API interoperable and easy to integrate with other systems.

5. API Page

An API Page is a published Business Central page object that exposes a specific business entity (e.g., Customers, Vendors, or Items) through the API. API Pages support full CRUD operations, Create, Read, Update, and Delete, and are the primary interface for interacting with Business Central data.

6. API Query

An API Query is a read-only endpoint designed for retrieving complex datasets, aggregations, or filtered results. Unlike API Pages, API Queries cannot modify data but are optimized for reporting and analytics.

7. Authentication (Microsoft Entra ID / Azure AD)

Authentication in Business Central is handled through Microsoft Entra ID (formerly Azure Active Directory). All API requests must be authorized using a valid access token obtained via Entra ID’s OAuth 2.0 protocol. This ensures secure, enterprise-grade identity and access control for integrations.

8. OAuth 2.0

OAuth 2.0 is the authentication framework that allows secure, delegated access to Business Central APIs. It enables your app to access data without directly handling user credentials.

Common OAuth flows used:

• Authorization Code Flow – For user-based sign-ins.
  
• Client Credentials Flow – For service-to-service or background integrations.

9. Service Principal / App Registration

A Service Principal is the security identity created when you register your application in Microsoft Entra ID. This registration provides:

• A Client ID (App Identifier)
  
• A Client Secret or Certificate for secure authentication

This identity is used by your integration to authenticate and communicate with the Business Central API.

📘 App Registration Guide

10. Client ID

The Client ID is a globally unique identifier assigned to your application when it is registered in Entra ID. It identifies your app during the OAuth 2.0 token request process and must be included in authentication calls.

11. Client Secret

The Client Secret is a confidential key generated for your registered application in Entra ID.
It works in combination with the Client ID to verify your app’s identity during token acquisition.
Treat this value as a password, store it securely, and rotate it periodically.

12. Access Token (Bearer Token)

An Access Token is a short-lived credential issued by Microsoft Entra ID after successful authentication. It is a JSON Web Token (JWT) that contains encoded claims such as permissions, user identity, and expiry time. This token must be included in every API request header:

Authorization: Bearer eyJ0eXAiOiJKV1QiLCJh...

Tokens typically expire after one hour.

13. Refresh Token

A Refresh Token is a long-lived credential used to silently obtain new access tokens without requiring user re-authentication. This ensures continuous access for long-running integrations or background services.

14. Permissions / Scopes

Permissions (or Scopes) define what data and operations your app is allowed to access via the API. They are requested during authentication and approved by an admin or user.

Examples:

• Financials.ReadWrite.All → Grants read/write access to financial data
  
• user_impersonation → Allows an app to act on behalf of a user
  
• https://api.businesscentral.dynamics.com/.default → Grants full API access for the registered app.

15. Scopes

A Scope specifies the exact level of access being requested for a given API. Scopes are part of the OAuth 2.0 token request and determine whether the app can read, write, or manage specific data. They ensure granular access control across multiple Microsoft services.

16. Rate Limits (Throttling)

Rate Limits protect Business Central’s API infrastructure by restricting excessive request traffic.
Limits are typically enforced per:

• User
  
• Company
  
• Endpoint
  

Default limits include:

• 600 requests per minute per user
  
• 100 concurrent connections per environment

If these limits are exceeded, you’ll receive:

HTTP 429 Too Many Requests

Implement retry logic with exponential backoff and respect the Retry-After header to avoid disruption.

17. Webhooks (Change Notifications)

Webhooks are event-driven notifications that alert your application whenever specific data changes occur in Business Central. They’re implemented using the Change Notifications API, allowing external systems to stay synchronized in real-time.

Business Central API Integration Use Cases

The Business Central API enables businesses to connect their core ERP data with a vast array of other systems, from e-commerce and CRM to custom mobile apps and IoT platforms. These integrations automate workflows, provide real-time visibility, and create a truly connected digital enterprise.

1. E-commerce Order and Inventory Synchronization

Retailers and distributors running online stores (e.g., on Shopify, WooCommerce, or Magento) need real-time sync between their webstore and their ERP. A manual process is error-prone and doesn't scale.

How It Works:

• When a customer places an order on the e-commerce platform, a server-to-server call is made to the Business Central Sales Orders API to create a new sales order.
  
• The integration can also call the Items API to check stock levels before allowing a purchase, preventing overselling.
  
• Upon shipment, the integration updates the sales order in Business Central and pushes the tracking information back to the e-commerce platform.
  
• Price and inventory level updates can be scheduled to flow from Business Central to the e-commerce site at regular intervals.

2. CRM and Sales Process Integration

Sales teams live in CRMs like Salesforce or Microsoft Dynamics 365 Sales, but the fulfillment and invoicing happen in Business Central. A disconnect here leads to inaccurate forecasting and customer service issues.

How It Works:

• When a sales opportunity is marked as "Won" in the CRM, the integration automatically creates a Sales Order in Business Central using the Sales Orders API.
  
• New contacts and accounts created in the CRM are synchronized as Customers in Business Central via the Customers API.
  
• Invoicing and payment status from Business Central can be pulled back into the CRM to give sales reps a complete view of the customer's financial relationship, using the Sales Invoices API.
  
  

3. Custom Mobile and Field Service Applications

Field service technicians, sales reps on the go, and warehouse staff need mobile access to ERP data. Building a custom mobile app connected to Business Central empowers a mobile workforce.

How It Works:

• A custom mobile app for technicians uses the Items API to check spare part inventory and the Customers API to view customer details and service history before an appointment.
  
• After a service, the technician uses the Service Tasks API to update job status and the Sales Invoices API to create and send an invoice on the spot.
  
• The app authenticates using the same Azure AD credentials, ensuring secure access.

4. Power BI and Advanced Analytics Dashboards

While Business Central has built-in reporting, many organizations need to combine ERP data with information from other sources (e.g., marketing, web analytics) in a centralized data warehouse.

How It Works:

• Instead of manual exports, a data pipeline uses the Business Central API (particularly API Queries designed for reporting) to extract financial, sales, and inventory data periodically.
  
• This data is loaded into a cloud data warehouse like Azure SQL Database or Snowflake.
  
• Power BI or other BI tools then connect to the data warehouse to create comprehensive, cross-functional dashboards showing metrics like Customer Lifetime Value, Product Profitability, and Operational Efficiency.
  
  

5. Automated Procurement and Vendor Management

Companies can automate the entire procurement lifecycle, from initial request to payment, by connecting Business Central with vendor portals or internal request systems.

How It Works:

• An employee submits a purchase request through an internal web form. Upon approval, the integration creates a Purchase Order in Business Central via the API.
  
• The PO is automatically sent to the vendor via email.
  
• When the vendor's shipping notice is received (via EDI or a portal), the integration updates the PO and creates a received-but-not-invoiced receipt in Business Central.
  
• Finally, when the vendor invoice arrives, it is matched against the PO and receipt, and a Purchase Invoice is posted.

Business Central API Architecture and Design Principles

• OData v4 RESTful API: The API adheres to OData standards, meaning it uses standard HTTP methods (GET for read, POST for create, PATCH for update, DELETE for delete) and predictable, resource-oriented URLs.
  
• JSON Payloads: All request and response bodies are in JSON format, ensuring easy parsing and compatibility with any modern programming language.
  
• API Versioning: Versions (e.g., v2.0) are embedded in URLs for stability; v2.0 introduces enhanced entities and performance.
  
• Server-Driven Paging: For large datasets, the API implements server-driven paging. Responses include an @odata.nextLink property that contains the URL to retrieve the next page of results, preventing timeouts and managing large data transfers efficiently.
  
• Filtering and Selecting: The API supports powerful OData query capabilities like $filter, $select, $expand, and $orderby. This allows clients to request only the data they need, in the format they need it, optimizing performance. For example, $select=number,name,balance returns only those three fields.
  
• Batch Operations: To improve performance, the API supports OData batch requests. Multiple API operations can be bundled into a single HTTP request, reducing network overhead.
  
• Two-Tiered API Structure:
  
  
  • Standard API (v2.0): Provides a stable, Microsoft-maintained set of the most common business entities, like customers, vendors, items, and sales orders. This is the recommended starting point for most integrations.
    
  • Custom API: Allows developers to expose custom tables, pages, and business logic as dedicated API endpoints. This is used when you need to integrate with data or processes unique to your Business Central customization.
    
    
• Change Tracking: For efficient data synchronization, Business Central offers a robust change tracking system. Instead of polling entire tables, an integration can request all changes (inserts, updates, deletes) to a specific table since a given point in time.

Secure Authentication with Azure Active Directory (Azure AD)

Business Central API uses the industry-standard OAuth 2.0 client credentials flow for server-to-server authentication, which is ideal for background integrations where no user is directly interacting.

Step-by-Step Authentication Flow (Client Credentials Grant):

Register Your Application in Microsoft Entra ID

Step 1: Visit the Azure Portal using an account with administrator or app registration privileges.

Step 2: In the left navigation menu, go to Microsoft Entra ID (Azure Active Directory).

Step 3: Select App registrations and then click + New registration.

Step 4: Provide Application Details

• Enter a name for your application (e.g., Business Central Integration Service).
  
• Choose the supported account type (typically Accounts in this organizational directory only).
  
• (Optional) Specify a Redirect URI if you plan to support user-based OAuth flows later.

Step 5: Click Register. This will automatically create a Service Principal, a unique identity for your app in Microsoft Entra ID.

Step 6:  After registration, make a note of the following values:

• Client ID (Application ID)
  
• Tenant ID (Directory ID)

Step 7: Generate a Client Secret or Certificate

1. Go to Certificates & Secrets → + New Client Secret.
   
2. Add a description and choose an expiration period (6, 12, or 24 months).
   
3. Save the generated Client Secret securely — it will be hidden after you leave the page.
   
4. For production environments, consider using a certificate instead of a secret for added security.

Note: These credentials (Client ID, Tenant ID, and Client Secret/Certificate) will be required later to request access tokens.

Configure API Permissions

Step 1: In your registered application, open the API Permissions tab.

‍Step 2: Click + Add a permission → APIs my organization uses → Dynamics 365 Business Central.
Step 3: Select Application Permissions (since no user will be signing in).

‍Step 4: Add the required permissions (scopes) such as:

• Financials.ReadWrite.All – Full read/write access to financial data
  
• AdminCenter.ReadWrite.All – Permission to manage Business Central environments
  

Step 5: Click Add permissions to confirm your selection.

Step 6: Choose Grant admin consent to approve these permissions for the entire tenant.

Request an Access Token

Once your application is registered and permissions are configured, you can request an Access Token from Microsoft Entra ID.

Token Endpoint

POST https://login.microsoftonline.com/{tenant_id}/oauth2/v2.0/token

Headers

Content-Type: application/x-www-form-urlencoded

Body Parameters

client_id={your_client_id}
client_secret={your_client_secret}
scope=https://api.businesscentral.dynamics.com/.default
grant_type=client_credentials

• client_id: Your registered app’s Client ID.
  
• client_secret: The secret key generated in the Azure Portal.
  
• scope: The Business Central API scope (https://api.businesscentral.dynamics.com/.default).
  
• grant_type: Defines the OAuth flow type (client_credentials).
  

When successful, Microsoft Entra ID responds with a JSON object containing your access_token.

Response Example

{
  "token_type": "Bearer",
  "expires_in": 3599,
  "ext_expires_in": 3599,
  "access_token": "eyJ0eXAiOiJKV1QiLCJh..."
}

Use the Access Token in API Requests

Once you receive the access token, use it to authenticate all API calls to Business Central.

Authorization Header

Authorization: Bearer {access_token}

Example API Request

GET https://api.businesscentral.dynamics.com/v2.0/{tenant_id}/Production/api/v2.0/companies
Authorization: Bearer eyJ0eXAiOiJKV1QiLCJh...
Accept: application/json

Each request made with a valid Bearer Token will be authorized based on the permissions (scopes) assigned to your registered app.

Handle Token Expiry

Access tokens are short-lived and usually valid for one hour. When a token expires, Business Central will return an HTTP 401 Unauthorized response.

To maintain uninterrupted access:

• Implement an automatic token renewal mechanism in your integration.
  
• Use the expires_in value from the token response to track expiration time.
  
• Refresh the token proactively before it expires.
  
• For user-based integrations, you can use Refresh Tokens to obtain new access tokens silently.

For User-Based Integrations (Authorization Code Flow)

If your application requires interactive user sign-in, use the OAuth 2.0 Authorization Code Flow instead of Client Credentials.

In this flow:

• Users authenticate via Microsoft Entra ID and consent to the permissions your app requests.
  
• The system issues an access token tied to that user’s permissions and roles within Business Central.
  
• This approach is ideal for custom web or mobile applications that require user-specific access control.

For more information about the Authorization Code Flow, refer to the “Explore Authentication Flows”.

Business Central API Documentation Overview

The Business Central API is a comprehensive set of OData endpoints that allow you to programmatically interact with almost every aspect of the ERP system. The API is versioned, and the current standard version is v2.0.

Base URL Structure:

https://api.businesscentral.dynamics.com/v2.0/{environmentName}/api/{publisher}/{apiGroup}/{apiVersion}/

For the standard Microsoft API, this simplifies to:

https://api.businesscentral.dynamics.com/v2.0/{environmentName}/api/v2.0/

1. Business Central API Categories and Key Endpoints

Authenticating to Business Central's API

Let's walk through the practical steps of obtaining credentials and making your first authenticated API call.

Step 1: App Registration in the Azure Portal

1. Navigate to the Azure Portal.
   
2. Go to Azure Active Directory > App registrations and click "New registration".
   
3. Provide a name for your app (e.g., "BC E-commerce Integration").
   
4. Select account type (usually "Accounts in this organizational directory only").
   
5. Leave the redirect URI blank for a server-side application using client credentials.
   
6. Click "Register".

Step 2: Configure API Permissions

1. In your newly created app, go to the "API permissions" blade.
2. Click "Add a permission", then "APIs my organization uses".
   
3. Search for and select "Dynamics 365 Business Central".
   
4. Choose "Application permissions".
   
5. Expand the "Financials" node and select the permissions you need, such as Financials.ReadWrite.All.
   
6. Click "Add permissions".
   

Step 3: Grant Admin Consent

1. Back on the API permissions blade, click "Grant admin consent for {your tenant}".
   
2. Confirm the action. The status for your permissions should now show as "Granted for ...".

Step 4: Create a Client Secret

1. In your app, go to the "Certificates & secrets" blade.
   
2. Click "New client secret".
   
3. Provide a description and choose an expiry period.
   
4. Click "Add".
   
5. Crucial: Immediately copy the "Value" of the client secret. It will not be shown again.

You now have your Client ID (from the "Overview" blade) and your Client Secret.

Step 5: Acquire an Access Token

Use a tool like Postman or write code to make a POST request to the Azure AD token endpoint.

Request Example:

http
POST https://login.microsoftonline.com/{tenant_id}/oauth2/v2.0/token
Content-Type: application/x-www-form-urlencoded
client_id={your_client_id}
&client_secret={your_client_secret}
&scope=https://api.businesscentral.dynamics.com/.default
&grant_type=client_credentials

Response Example:

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{
    "token_type": "Bearer",
    "expires_in": 3599,
    "ext_expires_in": 3599,
    "access_token": "eyJ0eXAiOiJKV1QiLCJhbGciOiJSUzI1NiIsIng1dCI6Ik5HVEZ2ZEstZnl0aEV1Q..."
}

Step 6: Call the Business Central API

Use the extracted access_token to call any Business Central API endpoint.

Example: Get the list of companies

GET https://api.businesscentral.dynamics.com/v2.0/{environmentName}/api/v2.0/companies
Authorization: Bearer {your_access_token}

Business Central API Integrations: Real Use Cases

Automate E-commerce Fulfillment with Business Central and Shopify

A growing retailer uses Shopify for its online store but struggles with manual order entry and inventory updates. By integrating Shopify with Business Central via its API, they achieve full automation.

A middleware application (e.g., an Azure Logic App or custom service) listens for the orders/create webhook from Shopify. When triggered, it uses the Business Central Sales Orders API to create a new sales order. It also sets up a periodic job to call the Business Central Items API to update Shopify's inventory levels, ensuring the online store always reflects accurate stock counts.

Sync Project Data for a Services Company with Business Central and Power Apps

A consulting firm needs a simple time-tracking application for its consultants. Building a custom Power App is the ideal solution, but the data must reside in Business Central for project accounting and billing.

The Power App is built with a custom UI for time entry. When a consultant submits their timesheet, the app uses a Power Automate flow to call the Business Central Journal API, posting the hours directly to the correct project in the general ledger. This eliminates double entry and provides real-time project profitability.

Streamline Warehouse Operations with Business Central and a Mobile Barcode System

A distribution company's warehouse still relies on paper pick lists, leading to errors and slow fulfillment times.

A lightweight mobile web app is developed for warehouse scanners. When a worker scans a sales order number, the app calls the Business Central Sales Orders API to retrieve the line items. As items are picked and scanned, the app uses the Warehouse Shipment API to register the pick and post the shipment, updating inventory in real-time and dramatically improving accuracy and speed.

Business Central API Best Practices

1. Handle Pagination Gracefully: Always assume datasets are large. After a GET request, check the response for an @odata.nextLink and be prepared to follow it until all data is retrieved.

2. Use Filtering to Reduce Payloads: Never call a top-level endpoint without filters if you only need a subset of data. Use $filter to get records modified after a certain time (lastModifiedDateTime gt 2024-01-01T00:00:00Z) and $select to retrieve only the necessary fields.

3. Respect Rate Limits: Implement retry logic with exponential backoff when you encounter a 429 Too Many Requests response. Do not simply retry immediately in a tight loop.

4. Prefer Batch Requests for Bulk Operations: When creating or updating multiple records (e.g., 100 new items), bundle them into a single batch request to significantly reduce HTTP overhead and improve performance.

5. Leverage Webhooks for Real-Time Sync: Instead of constantly polling the API for changes, use the change tracking and notification features to have Business Central push change events to your application. This is far more efficient and responsive.

6. Use Sandbox Environments for Development: Never develop and test your integration against a production environment. Use a dedicated Sandbox environment to avoid corrupting live business data.

7. Secure Your Credentials: Your Client Secret is a password. Never hardcode it in your application source code. Use secure secret management services like Azure Key Vault.

How Knit Simplifies the Business Central Integration

Building and maintaining a direct integration with the Business Central API is a significant undertaking. You must manage Azure AD authentication, handle pagination and rate limits, map data schemas, and maintain the integration through API updates. 

Knit acts as a unified API platform that abstracts this complexity, allowing you to connect to Business Central and dozens of other ERP, HR, and CRM systems through a single, standardized interface.

One Unified API for Business Central and Other ERPs

Knit provides a single Unified API for accounting and ERP systems. Instead of learning the specific endpoints and data models for Business Central, QuickBooks, NetSuite, and others, you integrate once with Knit. Knit's API automatically normalizes the data, so your application works with all supported platforms without writing additional code.

Simplified Authentication and Secure Data Access

Knit manages the entire OAuth 2.0 and Azure AD flow for Business Central. Your users authenticate through Knit's pre-built connector UI, and Knit securely handles the token acquisition, refresh, and storage. Your application only ever interacts with Knit's secure API, simplifying your security model and reducing your compliance burden.

Automatic Data Normalization and Field Mapping

Business Central represents a "Customer" differently than Sage Intacct or Xero. Knit's Unified Data Model translates the provider-specific schemas into a consistent, predictable format. Your application sends and receives data in one schema, and Knit handles the transformation to and from Business Central's specific format, saving countless hours of development and mapping logic.

Real-Time Sync with Webhooks

Knit's robust webhook system notifies your application the moment data changes in Business Central. This event-driven architecture ensures your application's data is always fresh without the need for inefficient polling, helping you stay well within Business Central's API rate limits.

Faster Integration and Time to Market

By using Knit, you can bypass weeks of development and maintenance work. With Knit's SDKs, detailed documentation, and sandbox environments, you can build, test, and launch a production-ready Business Central integration in days, not months, allowing you to focus on your core product features.

Business Central API Integration FAQs

Q1. What are the API rate limits for Business Central?

Rate limits in Microsoft Dynamics 365 Business Central are dynamic and based on a resource consumption model rather than a fixed request count. To ensure reliability, you should design your integration to be efficient and resilient.

If your requests exceed the defined limits, the API will respond with an HTTP 429 – Too Many Requests status code.
In such cases:

• Implement retry logic with exponential backoff.
  
• Use webhooks instead of frequent polling to reduce unnecessary calls.
  
• Review Microsoft’s official Service and Capacity Limits documentation for detailed guidance.
  

Q2. Can I create custom API endpoints in Business Central?

Yes. You can create custom API endpoints in Business Central using the AL language.
By defining the following attributes, APIPublisher, APIGroup, and APIVersion, developers can expose custom tables, pages, and codeunits as fully functional OData v4 endpoints.

This feature is essential for integrating external systems with bespoke functionality or extensions.

Learn more in Microsoft’s official guide: Developing Custom APIs in Business Central.

Q3. How do I handle errors from the Business Central API?

The Business Central API follows standard HTTP status codes to communicate success and error responses.

For example:

• 200 OK — Request successful
  
• 400 Bad Request — Validation or input error
  
• 401 Unauthorized — Invalid or expired token
  
• 429 Too Many Requests — Rate limit exceeded
  

A 400 Bad Request response often includes a detailed JSON error body describing the issue, such as:

"error": { "message": "Customer Name cannot be blank" }

Always implement structured error handling and logging within your integration to capture and act on these responses.

For more information, visit Business Central API Error Handling.

Q4. Is there a sandbox environment for testing?

Yes. Each Business Central tenant can host one or more Sandbox environments, which are designed for testing, development, and training.

A sandbox is a fully functional copy of your production environment, or can be initialized empty, allowing developers to safely test integrations and extensions without affecting live data.

Q5. What is the difference between the Standard API and the Beta API?

The v2.0 API is the stable, production-ready version of the Business Central API.
Microsoft occasionally releases a Beta API that introduces new or experimental features ahead of their official release.

While the beta version is useful for testing upcoming functionality, it is subject to change and should not be used in production environments.

You can view available versions and their differences here:  Business Central API Versions (Standard & Beta).

Q6. Where can I find the full API reference for Business Central?

The complete and up-to-date API documentation is available on Microsoft Learn, which provides:

• Full endpoint references
  
• Supported entities
  
• Data structures and parameters
  
• Authentication requirements
  
• Usage examples
  

You can explore it here: Microsoft Dynamics 365 Business Central API Reference.

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