Quality management in Business Central: functions, benefits, and implementation
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With Business Central release wave 1/2026, Microsoft is making the quality management module generally available. What initially appeared to be a strategic announcement is now documented in concrete terms and is evolving into a key component for companies wishing to manage quality assurance directly within their ERP system.
The module’s objective remains unchanged: quality inspections are to be structured, traceable, and directly integrated into the ERP workflow — not as an isolated, standalone function, but as an integral part of your value chain. Quality management is thus now available as a standard feature in Business Central, alongside established third-party solutions.
- Significance of the module: why structured quality management is indispensable today.
- Core functions: what the module specifically does and how to use it.
- Benefits: how SMEs benefit directly.
- Best practices: tips for successful practical implementation.
- Context and outlook: current release status, realistic limitations, and expansion scenarios.
1. Why quality management is crucial in the standard system
Quality management is no longer merely a ‘nice-to-have’. In many companies, the quality of products and processes directly determines customer satisfaction and complaint rates — and, ultimately, economic success. At the same time, demands are rising: stricter regulatory requirements, higher customer expectations, and greater transparency throughout the supply chain.
In practice, quality management in Business Central was handled outside the standard functionality for a long time — for instance, via manual checklists, Excel spreadsheets, Power Automate flows, or third-party solutions.
While this worked, it came with limitations:
Quality checks were not fully integrated into operational processes.
Results were often not documented in an audit-compliant manner.
Disruptions to the workflow led to additional manual effort and a higher risk of errors.
Data analysis required extra manual effort, and results were often not available in a timely manner.
This is precisely where the new quality management module comes in: thanks to its integration into the standard system, quality management is no longer handled as an afterthought but is directly embedded in your ERP process.
The crucial difference from the past is that quality inspections are no longer viewed as isolated processes outside your ERP system, but as an integral part of your entire value chain. You can trigger inspections within the system, document results in a structured manner, and manage everything directly via the ERP system. This increases transparency and helps you establish a clean, audit-ready data foundation.
For many companies, implementing this module is the optimal path to standardised, maintainable, and audit-compliant quality management directly within their own ERP system.
2. What the quality management module in Business Central does
With the new quality management module, Microsoft provides — for the first time — standardised functions for quality inspections directly within your ERP system. The core concept remains pragmatic: you trigger quality inspections precisely where they make operational sense and link them to follow-up processes that react automatically.
Here is an overview of the key capabilities and functions of the quality management module:
2.1 Quality checks at key process points
You perform quality checks following goods receipts from purchasing, production confirmations, and assembly outputs, as well as manually or on a scheduled basis at regular intervals. The module thus enables quality inspections across many key processes.
2.2 Granular configuration of checks
You can define in great detail which items, item groups, batches, or serial numbers are subject to inspections; when an inspection is triggered (e.g., upon posting, after output, or based on a schedule); which parameters are checked (such as weight, dimensions, density, or visual inspection); and whether you wish to include random sampling or external analyses. The module thus enables highly flexible and targeted quality controls.
2.3 Automated quality checks in the value chain
Microsoft has significantly enhanced its automation capabilities. Quality checks can now be triggered automatically at defined points in the process — such as upon goods receipt, following production reports, during assembly, or even during inventory movements. Furthermore, periodic inspections can be scheduled via job queues. This enables companies to ensure that quality controls are carried out systematically rather than merely reactively. It significantly reduces manual effort and eliminates the risk of inspections being inadvertently overlooked.
2.4 Quality results drive operational follow-up processes
Quality management does not end with the inspection itself. This is where the true strength of integration becomes apparent: failed inspections can automatically trigger follow-up processes. Items can be blocked (lot blocking), moved to quarantine storage locations, marked for rework, or scrapped. This transforms quality assurance from an isolated activity into an active component of your operational process control. Blocked items cannot be inadvertently processed further or shipped — control is managed by the system rather than relying solely on personnel.
2.5 Workflows and automated follow-up actions
Quality inspections can be directly linked to workflows. You can define which follow-up actions are automatically triggered upon passing or failing an inspection — such as warehouse notifications, automatic returns to suppliers, or release for the next processing stage. This establishes quality assurance as an integral part of your operational business processes, significantly increasing process reliability.
2.6 Structured status overviews and compliance documentation
You gain access to overviews of the quality status of items, quality orders, and certificates of analysis, as well as quality certificates that are particularly relevant for compliance and audit purposes. The module thus provides structured overviews and establishes the foundation for documentation required during audits and certifications.
3. How companies benefit from the quality management module
With the quality management module, Microsoft brings quality assurance right where it belongs: directly into the operational processes of Dynamics 365 Business Central. This results in several tangible benefits.
3.1 Greater product and process reliability
Thanks to clearly defined inspections and inspection plans, quality is not left to chance. Errors or deviations are detected early — before your products undergo further processing, are shipped, or are installed. This reduces scrap, rework, and consequential costs.
3.2 Fewer complaints and returns
You identify quality issues as early as goods receipt, production, or assembly. Defective goods never reach your customers in the first place. This has a direct positive impact on complaint rates, customer relationships, and service overhead.
3.3 Enhanced transparency and traceability
You document all inspection results in a structured manner within the system and link them directly to items, batches, or processes. This simplifies internal analysis as well as preparation for audits or certifications. Inspection results are stored in an audit-compliant manner — a clear advantage over previous Excel- or paper-based solutions.
3.4 Better control of supplier quality
Systematic recording of inspection results allows you to quickly spot quality anomalies among suppliers. Furthermore, you gain reliable data to conduct fact-based discussions with suppliers or to adjust purchasing decisions.
3.5 Standard functionality instead of custom solutions
As previously mentioned, a major advantage lies in the integrated standard functionality: quality management is no longer handled via Excel or similar tools. This reduces maintenance effort and minimises errors.
3.6 Reduced reliance on third-party solutions
For many companies, quality management previously relied on Excel files, custom in-house developments, or separate add-on solutions. The new standard module significantly reduces the number of additional systems required. This reduces integration effort, maintenance costs, and reliance on third-party providers. This is particularly valuable for small and medium-sized enterprises that prefer to focus their IT resources on core processes.
3.7 Support for compliance and audits
Quality certificates, certificates of analysis, and status overviews are available to you centrally within the ERP system. This makes it easier to demonstrate adherence to quality standards and supports you in meeting regulatory requirements and undergoing audits.
4. Best practices for implementing the quality management module
Getting started with the quality management module is straightforward. Here are some proven practical tips to help you launch quickly and confidently.
4.1 Start small and expand strategically
Instead of immediately including every item and process in your quality management system, begin with critical or particularly relevant items. This allows you to test workflows, give your team practical experience, and demonstrably increase acceptance. You can then expand the system step by step.
4.2 Define inspections clearly and transparently
You should define quality inspections unequivocally. This includes establishing understandable inspection parameters as well as clear pass/fail criteria. The simpler and more precise this preparatory work is, the less room there will be for ambiguity during day-to-day operations.
4.3 Consistently use quarantine storage locations
You should set up separate quarantine storage locations for items that fail inspection and specify these locations in your inspection plans. This ensures that blocked items are not accidentally processed further or shipped — a crucial measure, especially when warehouse staff are working under time pressure.
4.4 Test processes before going live
Especially for warehouse and production operations, you should run through quality processes in a test environment using real-world scenarios. This allows you to identify early on how quality inspections affect lead times, system entries, and downstream processes — enabling you to make necessary adjustments before encountering surprises in the live environment.
4.5 Do not underestimate training and responsibilities
The module is only effective if your employees use it correctly and record results accurately. Therefore, it is essential to clarify roles and responsibilities and provide staff training — particularly for employees in warehouse, production, and quality assurance roles.
4.6 Consider reporting requirements early on
While the module provides status overviews, it does not replace comprehensive reporting. You should therefore decide early on which quality metrics are relevant to your business (such as scrap rate, complaint rate, or supplier quality) and how you wish to analyse them — for example, via Power BI dashboards or regular management reports.
5. Release status, realistic limits, and expansion scenarios
While the quality management module represents a significant step forward for Dynamics 365 Business Central, it is worth viewing it realistically — particularly regarding availability, functional scope, and operational limitations.
5.1 Release status and availability
Microsoft announced the quality management module as part of Business Central 2025 release wave 2 and rolled it out for general availability with 2026 release wave 1.
- Public preview: since November 2025
- General availability: since April 2026
Note: The module is delivered as a Microsoft-published extension. The extension is automatically installed in newly provisioned Business Central environments. In existing environments, you can install the extension via the Extension Management page. As the rollout is phased, the timing and functional scope may vary depending on the environment, version, and region.
5.2 What the module does not (yet) do
Important: While the quality management module covers key requirements within the standard application, it does not replace specialised QM systems. You should therefore consider the following points:
- The module does not yet include comprehensive standard reporting. We recommend connecting Power BI for metrics, trends, or dashboards.
- Advanced QM functions — such as complex sampling plans, equipment and measuring instrument calibration, or multi-stage approval processes — are not yet part of the module.
5.3 When the standard solution suffices — and when extensions make sense
The new module offers an excellent foundation — especially for small and medium-sized enterprises — to implement quality management within the ERP system in a structured and audit-compliant manner.
Extensions or specialised solutions are advisable only if you:
- operate in highly regulated industries,
- require extensive statistical analysis, or need to map
- complex inspection and approval structures.
Conclusion: Quality management as a strategic standard
With the quality management module, Microsoft closes a functional gap in Business Central that many companies previously addressed through add-on solutions or custom workarounds. The integration of quality inspections, quarantine processes, workflow control, and automated follow-up actions demonstrates that quality assurance is now viewed as an integral part of the operational process landscape — rather than as an isolated, specialised function.
This creates new opportunities for small and medium-sized enterprises: they can establish a structured, audit-ready quality management system directly within the standard ERP environment, without having to rely on Excel spreadsheets or external add-on solutions. This saves costs, reduces complexity, and makes processes more transparent and reliable. With its general availability from April 2026, this module becomes a genuine option for companies looking to professionalise their quality assurance while simultaneously simplifying their ERP landscape.
Would you like to know whether the new quality management module meets your requirements?
Whether the integrated quality management module in Dynamics 365 Business Central meets your needs depends on your processes and regulatory requirements. We would be happy to assist you in implementing the module, evaluating potential use cases, and developing a suitable overall strategy for your quality management. Please feel free to contact us via our contact form.
