Overview
This update replaces previously released updates. You should always install the latest update.
After you install this hotfix, you might have to update your license to gain access to new objects that are included in this or a previous update. (This applies only to customer licenses.)
For a list of updates that were released for Microsoft Dynamics 365 Business Central 2026 Release Wave 2, see released updates for Microsoft Dynamics 365 Business Central 2026 Release Wave 2. Updates are intended for new and existing customers who are running Microsoft Dynamics Released Updates for Microsoft Dynamics 365 Business Central 2026 Release Wave 2.
Important
We recommend that you contact your Microsoft Dynamics Partner before you install hotfixes or updates. It is important to verify that your environment is compatible with the hotfixes or updates that will be installed. A hotfix or update may cause interoperability issues with customizations and third-party products that work together with your Microsoft Dynamics 365 Business Central solution.
Problems that are resolved in this update
The following problems are resolved in this update.
Platform hotfixes
| ID | Title |
|---|---|
| Configuration change to update the default currency display setting in the Contoso Coffee demo dataset setup. | |
| 652922 | Aligns Zugferd compatibility with the latest standard version. |
| 653684 | The new notification bar must truncate long text and actions instead of wrapping them. |
| 654475 | Handles external references in Office documents for layout and mail merge. |
Application hotfixes
| ID | Title | Functional Area |
|---|---|---|
| Electronic VAT Declaration DK – fixes an issue with retrieving VAT return periods. | ||
| External document attachments and SharePoint reliability fixes. | Administration | |
| 650294 | VAT settlement G/L entries do not populate the source currency amount and source VAT currency amount fields after running Calculate and Post VAT Settlement. | Finance |
| 650406 | Source currency amount calculation causes discrepancies in foreign currency G/L entries with reverse-charge VAT. | Finance |
| 651027 | Fixes a duplicate Excel buffer cell error that occurs when the LCY code is empty during Financial Report export to Excel. | Finance |
| 651262 | Fixes the Sales-Explode BOM functionality for subscription billing. | Finance |
| 651509 | Close Income Statement duplicates or omits mixed LCY/USD amounts in the balance closing process, with or without global dimensions. | Finance |
| 651670 | IRS Forms upgrade fails for form-box codes containing parentheses. | Finance |
| 651783 | Variant-specific 0% line discount is ignored and the generic discount is applied instead. | Finance |
| 652069 | Fixes an infinite loop when applying a credit memo that uses unrealized VAT (APAC/GST). | Finance |
| 652312 | Ensures that the VAT Statement report in Austria prints the 4.9% VAT rate columns on the U30 form. | Finance |
| 652537 | Resolves source currency inconsistency errors that occur when posting LCY transactions with payment method balancing accounts on sales documents. | Finance |
| 652968 | Corrects the VERIFACTU XML export to populate the Destinatario (Recipient) section with the posted bill-to information of the invoice or credit memo customer instead of the issuing company's information. | Finance |
| 652981 | Improves the performance of the Default Dimensions API-related upgrade process. | Finance |
| 653139 | Re-enables usage telemetry for Master Data Management. | Finance |
| 653148 | Prevents posting general journal lines with payment discounts when the corresponding General Posting Setup combination does not exist, avoiding downstream errors with "Adjust VAT for Payment Discount." | Finance |
| 653411 | Fixes an issue that occurs when creating documents in Recurring Billing when a vendor billing proposal exists. | Finance |
| 654025 | Billing lines are not rolled back when vendor subscription contract invoice creation fails. | Finance |
| 654080 | Subscription Billing: Recurring Billing (Document Per = Contract Partner) overwrites the contract currency with the customer currency without converting the amounts. | Finance |
| 654811 | Fixes a consistent error that occurs when posting GST distribution reversals. | Finance |
| 654959 | Creates an incorrect purchase credit memo when customer and vendor subscription contracts have the same contract number. | Finance |
| 655905 | Fixes a permission error ("Your license does not grant you the following permissions on TableData 17 G/L Entry: Modify") when updating registers from the G/L Registers page for old entries with G/L Register No. = 0. | Finance |
| 655943 | The Service Connections page continues to show "Disabled" after the service integration is set up. | Finance |
| 656025 | Payment discounts on historical invoices fail G/L Register No. validation in VAT entries. | Finance |
| 656097 | Reverse-charge VAT sales posting still validates the legacy item flag when the new feature is enabled. | Finance |
| 656107 | Updating purchase order lines takes a long time when the Direct Unit Cost field is modified and the TDS section code is set to 194Q. | Finance |
| 653171 | Shopify Tax Matching stops order synchronization for ship-to regions other than the US and Canada. | Integration |
| 653341 | Prepares MCP data query tools for billing. | Integration |
| 654432 | Shopify shop card is missing the shop-filtered payment transactions and payouts actions. | Integration |
| 656643 | Ensures that the Service Connections entry shows "Enabled" when the IdealPostcodes integration is enabled. | Integration |
| 650992 | Reserved lot cannot be re-picked after warehouse reclassification and shipment deletion. | Inventory |
| 651612 | Fixes an issue where creating an inventory movement from the Movement Worksheet after using Get Bin Content ignores the reduced Quantity/Qty. to Handle, causing the movement to use the full untracked quantity instead. | Inventory |
| 653994 | Order planning's Calculate Plan now skips blocked items instead of stopping with an error, allowing the remaining valid demand to be processed. | Inventory |
| 635852 | Ensure session-scoped GL account mappings are re-populated when skipped dependency modules have already been generated in prior sessions. | Manufacturing |
| 648697 | Resolve an error when creating a Purchase Order from a Sales Order that includes Drop Shipment with lot tracking. | Manufacturing |
| 654418 | Cost adjustment used the incorrect G/L Setup rounding precision (Amount instead of Unit-Amount), resulting in an unexpected variance amount. | Manufacturing |
| 652908 | The posted purchase invoice Order No. is blank when invoice rounding creates a generated line. | Purchase |
| 654125 | Fixes an issue where the quantity is incorrectly reset on G/L Account lines in purchase invoices and credit memos. | Purchase |
| 649906 | Correct the "Document Type" assigned to attachments transferred to posted sales, purchase, and service documents (previously always cleared, resulting in incorrect "Quote" display). | Sales |
| 653251 | Fixes an item charge assignment update error on sales orders when no price is specified. | Sales |
| 655854 | Fixes a change in behavior related to the VAT Prod. Posting Group when creating sales orders with the Allow Line Disc. and prices including VAT options enabled for the customer. | Sales |
| 656729 | The discount is not applied to the renewal offer when using the Sales Quote report layout for Subscription Billing. | Sales |
| 652547 | Corrects incorrect LCY and foreign currency project ledger costs when non-deductible VAT is posted to a project in a foreign currency. | VAT/Sales Tax/Intrastat |
| 656753 | Non-deductible reverse-charge VAT corrections are posted to the purchase VAT account instead of the payment discount account. | VAT/Sales Tax/Intrastat |
Local Application hotfixes
CH - Switzerland
| ID | Title | Functional Area |
|---|---|---|
| (SR G/L Acc Sheet Foreign Curr) incorrectly excludes foreign currency opening balances for G/L accounts with a blank source currency code or multiple source currencies. | Finance | |
| 652678 | Employee payments were missing from the Outgoing (DTA) Payment Journal report, which previously only processed vendor accounts. |
CZ - Czechia
| ID | Title | Functional Area |
|---|---|---|
| Statutory Reporting Setup – adds a new field for the official name. | Finance | |
| 652313 | Integrates Approvals Management into compensation, cash document, and payment order processing to ensure that approval entries are properly archived when posting or issuing. | Finance |
| 653533 | Corrects the posting logic for expected cost reversals as corrections for production orders in the Czech localization. |
ES - Spain
| ID | Title | Functional Area |
|---|---|---|
| Payment Orders and Bill Groups posted in foreign currency did not populate Source Currency Code and Source Currency Amount on G/L Entries in the Spanish (ES) localization. | Finance | |
| 652233 | Corrects incorrect posted G/L entries when allocation accounts are combined with invoice discounts on sales and purchase documents in the Spanish localization. |
IN - India
| ID | Title | Functional Area |
|---|---|---|
| Online: An issue occurs when creating an import purchase invoice. | Finance | |
| 651716 | Fixes incorrect TDS amount calculation in the Tax Information FactBox when using Applies-to ID in the Indian version by updating a use case mapping value. |
NO - Norway
| ID | Title | Functional Area |
|---|---|---|
| Corrects the SAF-T 1.3 export to ensure that the TotalDebit and TotalCredit control totals in the XML header match the actual exported debit and credit amounts, especially after reversal entries. |
US - United States
| ID | Title | Functional Area |
|---|---|---|
| Check Remittance – cuts off the vendor invoice number. | Finance | |
| 654319 | Fixes an issue in the Picking List by Order report where only the first comment entered on order lines was retained instead of all comments. |
Resolution
Which hotfix package to download
This update has multiple hotfix packages. Select and download one of the following packages depending on the country/region version of your Microsoft Dynamics 365 Business Central 2025 database.
How to install a Microsoft Dynamics 365 Business Central on-premises 2026 Release Wave 2 update
See How to install a Microsoft Dynamics 365 Business Central 2026 Release Wave 2 update.
Prerequisites
You must have Microsoft Dynamics 365 Business Central 2026 Release Wave 2 installed to apply this hotfix.
More information
See more information about software update terminology and Microsoft Dynamics 365 Business Central 2026 Release Wave 2.
Status
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.