Understanding the Dynamics 365 Business Central Universal Code Initiative

The Dynamics 365 Business Central Universal Code initiative represents a significant step towards modernizing how businesses use and develop within the Business Central environment. By focusing on a cloud-optimized architecture, this initiative aims to streamline upgrades, increase customer satisfaction, and boost the capacity for growth and innovation. Let's dive into what this initiative entails, why it matters, and how it impacts your business.

What is the Universal Code Initiative?

At its core, the Universal Code initiative is about encouraging a shift towards using cloud-optimized extensions within Dynamics 365 Business Central. These extensions can be implemented both on-premises and online, providing greater flexibility for businesses. The initiative encourages the use of "Universal Code," which refers to partner code that is isolated in these cloud-optimized extensions. This modern approach reduces complexity and costs associated with future upgrades and makes it easier for businesses to transition to the cloud if they choose to do so.

Conversely, "Non-Universal Code" is characterized by customizations that are not optimized for the cloud. This includes solutions that rely on modifying the base application or those that depend on functionalities available only in on-premises settings. While partners can still provide non-Universal Code to their on-premises customers, doing so may come with additional costs.

Why This Initiative Matters

The Universal Code initiative is designed to bring several key benefits to both partners and customers:

1. Simplified Upgrades: By using cloud-optimized code, the friction around complex and lengthy upgrades is significantly reduced. This means less downtime and fewer disruptions when implementing updates or enhancements.
2. Flexibility in Deployment: With Universal Code, businesses have the flexibility to choose between on-premises or cloud-based implementations, making it easier to align their IT strategies with their business needs.
3. Future-Proofing Investments: Moving towards a cloud-optimized architecture ensures that your business can quickly adapt to future technological advancements, safeguarding your investment in Business Central.
4. Enhanced Partner Capacity: By reducing the need for continual (re)implementation of customizations, partners can focus on delivering higher-value services, driving customer growth, and enhancing overall customer satisfaction.

Key Changes with the Universal Code Initiative

Starting October 3, 2022, new Dynamics 365 Business Central on-premises customers, as well as those transitioning from other Microsoft ERP solutions like NAV or GP, will need to license two new modules if their implementation includes non-Universal Code. These modules are:

1. Module for Code Not in Extensions: This is required if the implemented code is not packaged in cloud-optimized extensions.
2. Module for Code Not Cloud-Ready: This is necessary if the code is in extensions but still not fully optimized for cloud deployment.

Existing Business Central on-premises implementations registered before October 3, 2022, are exempt from these new licensing requirements. However, if these customers transition to a newer on-premises version after this date, the new modules and associated fees will apply if non-Universal Code is used.

Avoiding Additional Fees

To avoid the costs associated with non-Universal Code, businesses should ensure that all code used in their implementations is cloud-optimized and structured within the guidelines of Universal Code. It's important to note that while publishing your code on Microsoft AppSource can help ensure compliance, it is not mandatory. The critical requirement is that all code must be within cloud-optimized extensions.

Impact on Existing Customers

For existing Dynamics NAV customers who transition to Business Central on-premises after October 3, 2022, the new fees will apply if non-Universal Code is used. This is also true for businesses using the "dual use rights" feature that allows them to implement on-premises versions while holding cloud licenses. Ensuring that customizations are cloud-ready is crucial to avoid these fees.

How to Ensure Compliance with Universal Code Standards

Compliance with Universal Code standards is straightforward:

• Use cloud-optimized extensions with the "target":"Cloud" setting in the app.json file.
• Utilize tools like the Txt2Al conversion tool to convert older C/AL objects to the newer .al format.
• Engage with ISV Development Centers for expert guidance in modernizing your solutions.

By adhering to these guidelines, you can align your Business Central implementations with the Universal Code standards, ensuring smooth upgrades, reducing future costs, and enhancing overall performance.

The Global Scope of the Initiative

This initiative is not limited to any specific region. The advantages of adopting cloud-optimized extensions apply universally, providing benefits such as easier scalability, improved performance, and reduced maintenance across the globe.

In conclusion, the Dynamics 365 Business Central Universal Code initiative is a pivotal shift towards a more modern, cloud-optimized environment. By embracing this change, businesses can benefit from simplified upgrades, greater flexibility, and futureproofing of their IT investments. For partners, it opens up new opportunities to deliver value-added services and support customer growth.

Are you ready to transition to Universal Code?

Contact us today at This email address is being protected from spambots. You need JavaScript enabled to view it. to learn how we can help you modernize your Business Central environment and align your business for future success. Our team is here to support your journey towards a seamless and efficient Dynamics 365 Business Central experience.