Upgrade from Microsoft Dynamics 365 Business Central version 13 on premise to Microsoft Dynamics 365 Business Central version 28 on Cloud

Beata Ncube 0 Reputation points
2026-10-20T14:20:56.2166667+00:00

What are the requirements and procedures to upgrade from Microsoft Dynamics 365 Business Central version 13 on premise to Microsoft Dynamics 365 Business Central version 28 on Cloud. Also ho much is the license fee per named user per month

Windows for business | Windows Server | Devices and deployment | Set up, install, or upgrade
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  1. Ronald Sabiiti 1,585 Reputation points Independent Advisor
    2026-10-20T15:02:14.7633333+00:00

    Hello @Beata Ncube

    Thank you for reaching out to Microsoft Q&A!

    Upgrading from Microsoft Dynamics 365 Business Central v13 On-Premises to v28 Cloud will require a review of the current system, including the database, customizations, and third-party integrations. The process involves upgrading through the required intermediate versions, updating customizations where necessary, migrating the data to the cloud, and thoroughly testing the system before going live.

    Microsoft's published US pricing is USD 80 per user/month for Essentials, USD 110 for Premium, and USD 8 for Team Members. Additional costs may apply for migration, customization, integrations, and user training.

    For further guidance, please refer to the following Microsoft documentation:

    Next step: I recommend engaging a Business Central implementation partner to assess the existing environment, confirm the migration approach, and provide a realistic timeline and cost estimate.

    If this information was helpful, please click Accept Answer.

    Thank you for choosing Microsoft Q&A.

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  2. AI answer

    2026-10-20T14:22:05.2766667+00:00

    A Business Central version 13 database cannot migrate directly to Business Central online; upgrade it on-premises through version 14 and version 25, convert C/AL customizations to AL extensions, and then run the cloud migration into the online tenant.

    Supported migration path

    The supported and shortest route is:

    1. Business Central v13 → v14 on-premises
    2. Business Central v14 → v25 on-premises
    3. Business Central v25 → Business Central online

    Microsoft documents the v13-to-v28 on-premises path as v13 → v14 → v25 → v28, but v25 and later can migrate directly to Business Central online. Therefore, an additional on-premises v28 installation is generally unnecessary when the destination is the cloud.^1^^2^

    Business Central online is managed by Microsoft; traditional on-premises technical upgrades are not performed against the online environment. Microsoft subsequently manages its service updates.^3^

    Requirements

    Before starting:

    • Obtain a Business Central online tenant and licenses for the users who will access it.
    • Use SQL Server 2016 or later and database compatibility level 130 or higher for cloud migration.
    • For the v25 intermediate upgrade, install SQL Server’s Full-Text and Semantic Extractions for Search feature.
    • Use the latest available compatible cumulative update for each intermediate version.
    • Inventory all modified objects, ISV solutions, reports, integrations, and custom tables.
    • Convert C/AL customizations to AL extensions. Data from customized tables migrates only when corresponding tables/extensions exist in both the on-premises and online environments.
    • Confirm that required localization and third-party apps are available online.
    • Create Microsoft Entra accounts and online permissions separately; on-premises users and permissions do not replicate.^4^

    Check the v25 full-text prerequisite in SQL Server:

    SELECT FULLTEXTSERVICEPROPERTY('IsFullTextInstalled')
       AS IsFullTextInstalled;

    A result of 1 means it is installed; 0 means it must be added through SQL Server Installation Center.^5^

    1. Assess and back up v13
      • Record the cumulative-update level, database size, companies, extensions, custom objects, integrations, and scheduled jobs.
      • Take verified SQL backups and define rollback and cutover plans.
    2. Upgrade v13 to v14
      • Upgrade the application and tenant data using the supported on-premises upgrade procedure.
      • Test posting, inventory costing, financial statements, permissions, and integrations.
    3. Convert the solution and upgrade v14 to v25
      • Convert C/AL code and data-carrying customizations into AL extensions.
      • Install matching extensions in v25 and validate the upgraded data.
      • Windows-client profile customizations are not retained; recreate them in the modern client or as AL extensions.^6^
    4. Prepare the cloud tenant
      • Install compatible AppSource and per-tenant extensions.
      • Create users, assign licenses, and configure permission sets.
      • Use a sandbox for rehearsals; do not replicate into an online company already being used because migration can overwrite target data.^7^
    5. Configure migration
      • In online Business Central, run Cloud Migration Setup.
      • Enter the SQL-authenticated connection string.
      • Install and register the self-hosted integration runtime on the machine hosting or reaching SQL Server.^8^
    6. Rehearse and cut over
      • From Cloud Migration Management, select Run Migration Now.
      • Review the migration log and reconcile record counts, balances, open documents, inventory, and custom data.
      • Perform dry runs, freeze changes, run final replication, stop transactions on-premises, and disable cloud migration before users transact online.^9^

    Named-user licensing

    Current published U.S. list prices, paid yearly, are:

    • Essentials: $80 per user/month
    • Premium: $110 per user/month
    • Team Members: $8 per user/month

    Premium includes Essentials plus manufacturing and service-management capabilities. Team Members provides limited access. Prices vary by country, currency, agreement, taxes, and partner; Business Central licenses are purchased through a Cloud Solution Provider.^10^^11^

    References

    1. Upgrading to Dynamics 365 Business Central 2026 release wave 1
    2. Migrate on-premises data to Business Central online
    3. Upgrading to Dynamics 365 Business Central Online
    4. FAQ about migrating to Business Central online from on-premises solutions
    5. Upgrading unmodified C/AL application to version 25
    6. Upgrading Customized C/AL Application to Microsoft Base Application version 25
    7. Prepare and plan for cloud migration from Business Central on-premises
    8. Run cloud migration setup
    9. Data replication overview
    10. Business Central Pricing | Microsoft Dynamics 365
    11. Licensing in Dynamics 365 Business Central
    AI-generated content may be incorrect. Read our transparency notes for more information.

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