Blog August 29, 2024

Extensions in Microsoft Business Central: What Are They and How Do They Work?

By Romain Pietkowicz & Jeremy Rotenberg

August 29, 2024 | 5 min read

Extensions: Adaptable Solutions That Power Your Business

With business technology, one size rarely fits all. The ability to adapt and tailor your ERP system to your unique processes and requirements is crucial for staying ahead. This is where extensions in Microsoft Dynamics 365 Business Central come into play. Extensions provide a powerful way to enhance the functionality of Business Central without directly modifying its core code, ensuring a smooth upgrade path and maintaining system integrity.

The introduction of extensions marks a significant evolution in the Business Central platform. In pre-2018 versions of NAV, partners often had to modify the source code directly to implement customizations, leading to potential upgrade complications. With the advent of Business Central and its extension model, all updates and apps now follow this approach.

What are Extensions?

Think of extensions feature-sets that seamlessly integrate with Business Central. They enable you to customize the system to meet your specific needs without altering the underlying source code. Extensions can range from small-scale additions that address specific functionalities, such as providing real-time visibility into order fulfillment, to large-scale solutions that cater to broad requirements, like the comprehensive retail management capabilities offered by LS Retail. Additionally, extensions can act as integrators or connectors, facilitating data exchange with other applications, much like the middleware solutions discussed in our previous post.

The Mechanics of Extensions

Extensions are developed using AL code, a programming language specifically designed for Business Central. This represents a significant shift from the older CAL language used in previous versions of NAV (Navision), offering a more streamlined and efficient development experience. Extensions interact with the core application through predefined events, allowing you to inject custom logic and behavior without directly modifying the system’s core code.

The implications of this approach are huge! By keeping the core code untouched, extensions ensure smoother upgrades. When Microsoft releases updates to Business Central, your extensions can be easily reapplied, minimizing disruptions and ensuring compatibility. Furthermore, the modular nature of extensions makes it easy to add or remove functionalities as your business evolves. You gain the flexibility to tailor solutions without compromising the core system’s stability.

Best Practices for a Successful Extension Strategy

To harness the full potential of extensions, it’s essential to adopt a strategic approach. Begin by thoroughly assessing your needs and identifying any gaps in Business Central’s out-of-the-box functionality. If possible, leverage existing extensions from reputable vendors to avoid reinventing the wheel. Strike a balance between customization and standardization, carefully weighing the benefits of custom development against the advantages of readily available solutions.

When developing custom extensions, adhere to best practices such as segregating customer-specific customizations within their own extensions for easier management and maintenance:

  • Plan for the future by designing extensions with lifecycle management in mind, ensuring they can adapt to changing business needs.
  • Regularly test and update your extensions, ideally every six months, to align with Microsoft’s update cycle.

And remember, the earlier you identify required extensions in the proposal stage, the smoother the implementation process will be.

Extensions in Practice

Let’s explore a couple of examples to illustrate the power of extensions. Consider a wholesale distributor grappling with the complexities of inventory management across multiple warehouses. They might implement a custom extension like LIDD Connect that integrates Business Central with their Warehouse Management System (WMS). This extension could provide real-time visibility into inventory levels across all locations, enabling efficient order fulfillment and reducing stockouts. It could also help automate processes such as inventory transfers and replenishment, minimizing manual intervention and improving accuracy. The extension could even incorporate advanced features like demand forecasting and intelligent slotting optimization, further enhancing warehouse efficiency.

Another example involves a food distributor dealing with catchweight items, which have varying weights per unit. A specialized catchweight extension could be developed to address this unique business need, allowing for accurate inventory management and pricing.

Exploring the Extension Ecosystem

When it comes to finding extensions, you have two primary options. Microsoft AppSource serves as a marketplace for certified extensions, offering a curated selection of vetted solutions that ensure compatibility and reliability. You can check out LIDD’s published extensions on our AppSource page here. Alternatively, you can develop custom extensions tailored to your unique business needs. Whether you choose a marketplace extension or opt for custom development, the underlying principles remain the same, ensuring a cohesive and well-functioning system.

Conclusion

Extensions in Microsoft Dynamics 365 Business Central empowers you to create a robust and flexible solution that meets your unique needs. By embracing a strategic approach to extension development and deployment, you can enhance functionality, improve efficiency, and ensure the long-term sustainability of your Business Central solution.

If you’re not sure where to start, reach out to LIDD’s Microsoft Dynamics team for more information. We’re experts in planning and executing the long-term improvement of Business Central.


Keywords: Extensions, Integrations, Middleware, API (Application Programming Interface), EDI (Electronic Data Interchange), Data Exchange, Business Central, Microsoft, Enterprise Technology, Data Management, Business Systems, Software Integration, Development

Learning to leverage extensions in the Microsoft ecosystem is essential to unlocking the full potential of the platform. Find out how by reaching out to the LIDD team today. 

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