What Is Business Central API V2 – Everything You Need to Know

Business Central API V2 sounds incredibly confusing and complex if you do not know what it is to begin with. In this article we go through what Business Central API V2 is, how it works, and what you can use it for in your company.

Sounds good?

Let’s go.

What is an API

In order to understand exactly what Business Central API V2 is, we need to zoom in a little on the API part of the name.

API is the key word for this tool. An API, put briefly, is a bridge between different applications. As an example, you can think of an API as the shop assistant in a shoe shop. You walk into the shoe shop and ask the assistant for a size 44. The assistant then looks in the system and in the stock room and talks to colleagues.

So you could say that an API is a middleman between different systems. An actor that gives one system (you as the customer) access to work with the other system (the shoe shop’s stock and systems).

Now we have that in place — let’s move on.

What is Business Central API V2, and what can it be used for?

The question you have certainly come here to get an answer to. Business Central API V2 is a tool that helps developers build tailored applications and integrations in Dynamics 365 Business Central.

The API helps developers build integrations that make use of your data from Business

Central. With this tool you can create integrations that give you competitive advantages, save you a lot of time and help you increase your revenue.

Here is a short list of things you can do with Business Central API V2:

Data

With Business Central API V2 you can access the data you have in your ERP. You can extract and use data such as customer data, vendors, orders and much more.

Work with CRUD

The API allows CRUD approaches in your ERP. CRUD stands for create, read, update and delete. That means that with the API you can create new data, access existing data, update existing data and delete existing data.

Authentication and authorization

Business Central API V2 supports OAuth 2.0 authentication and authorization. For you that means that users of Business Central can access the system with nothing more than this authorization process.

Work in batches

To ease the load on the network and the system, Business Central API V2 lets you perform batch operations.

Filtering and sorting

With the API you can sort and filter your data so it makes the most sense. This can help developers get hold of the data they need without having to dig up the entire gold mine.

Webhooks

You can create webhooks that set various flows and automations in motion when a specific event happens in Business Central. The automation possibilities here are substantial, and can earn you both time and money.

Integrations with other systems

This is probably our favorite benefit. With the API you can integrate and create dashboards with other systems that can use your Business Central data. For example, you can integrate with Power Automate, Power BI, and Azure Logic Apps.

How does Business Central API V2 work?

The API uses REST (Representational State Transfer) principles and uses HTTP(S) as its communication protocol.

Read a few quick points about how Business Central API V2 works here.

Authentication

Before you access the API you must be authenticated and get hold of an Access Token. Business Central API V2 supports OAuth 2.0, which can authenticate users without them having to give up their credentials.

API Endpoints

Business Central API V2 uses different API Endpoints. These Endpoints represent different values such as items, customers and vendors.

HTTP Verbs

The API can use HTTP Verbs that allow you to work with your Business Central data in different ways. Use GET to retrieve data, use PUT to update existing records, use POST to create new records and use DELETE to remove records.

Request Parameters

You can retrieve very specific and precise data with your API Requests. For example, you can filter and sort and ask for data from specific fields, with very particular criteria.

Response Data

The data you retrieve from Business Central through the API is delivered in JSON format, which allows developers to use the data for integrations involving Business Central data.

Error handling

If an error occurs during an API request, the API responds with an error message as well as an error code that can help you go on to resolve the error.

Best practice with Business Central API V2 in 10 steps.

Understand the API documentation

Before you start using the API you should read the documentation, so that you understand, and can use, the different endpoints and features

Plan how you will use the API

Plan how you intend to use the API, what you need to get out of it and what the goal is.

Use OAuth 2.0 for authentication of the users in the API

Do not store personal data.

Use HTTPS for communication

HTTPS ensures secure data transfer. Make sure this is your communication protocol.

Handle error messages properly

When errors and error messages occur, you should always handle them as the system prescribes.

Limit the number of API requests

Use Batch Requests to limit the number of regular requests, in order to reduce the workload on the system.

Filter and sort

Make sure to be specific when you pull data out of Business Central. That way you avoid overloading the system.

Use Caching

Use Caching to store data locally instead of having to retrieve it through the API every time. That way you reduce the strain on the system.

Use versioning

Use API versioning to ensure compatibility with future updates in Business Central API V2.

Test and monitor the API

Keep an eye on your API and run tests to make sure it runs as it should and can perform the way you want. Follow these steps to ensure stable performance and reduce errors when you use Business Central API V2.

What are the benefits of using Business Central API V2?

Automate processes

With Business Central API V2 you can create integrations that save you time and earn you more money. This happens through automation of otherwise tedious and frustrating manual processes.

Read more:

Examples of how companies use the 365 Business Central V2 API for automation

Increased efficiency

Following on from point 1; integrations can make you far more efficient, since you can more easily retrieve, distribute, correct and delete data.

Razor-sharp data

An API does not make mistakes if you have set it up properly. People unfortunately do. That is why an API is a fantastic way to make sure the data you have in your hands is correct and accurate.

Tailored applications

With Business Central API V2, developers can create tailored applications that use Business Central data.

Access Business Central data on the go

The API can help you access Business Central data no matter where you are — as long as you have an internet connection. This can help you communicate better and make remote work possible.

Better reporting

Because the API can access all your data, you can create dashboards and reports that accurately give you and management a picture of how things stand.

Frequently asked questions about Business Central API V2

Here is a series of questions relating to a basic understanding of how the Dynamics 365 Business Central API works, and how it can be enabled and used for automation and integrations.

Does Microsoft Business Central have an API?

Yes, Microsoft Dynamics 365 Business Central has an API that makes it possible to connect the system with other platforms and applications. With the API you can read, update and send data between Business Central and external systems in real time. This makes it possible to automate workflows and ensure more efficient data handling across different systems.

Typical uses of the Business Central API include integration with webshops, CRM systems, accounting systems and reporting tools such as Power BI.

How do you enable the API in Business Central?

To use the API in Business Central, it must first be enabled correctly. Here are the general steps:

1. Check user permissions: Make sure you have a user role with access to APIs. This is often “D365 API User” or similar.
2. Turn on web services: In the settings in Business Central you must make sure that “Web Services” and “OData Services” are enabled.
3. Set up API keys or OAuth 2.0: Choose an authentication method for connecting to the API – either an API key or an OAuth approval via Azure AD.

Once the API is enabled, you can start calling the standard APIs to retrieve or send data.

Does Dynamics 365 have an open API?

Yes, Dynamics 365 has an open API structure that makes it possible to build customisations and integrations. This means that developers can use standard APIs to access data without having to build the solution from scratch.

The open APIs cover modules such as sales, finance, customer service and inventory management, which makes it possible to create integrations to, for example:

• Webshops (e.g. Shopify or WooCommerce)
• CRM systems such as Dynamics 365 Sales and HubSpot
• Automation tools such as Power Automate

The open API structure makes Dynamics 365 a flexible choice for companies that need tailored solutions.

How do you use standard APIs in Business Central?

To use the standard APIs in Business Central, you should follow these steps:

1. Find the API documentation: Microsoft offers detailed documentation of the standard APIs, which can help you understand which data endpoints are available (e.g. customers, sales orders and stock status).
2. Create API requests: Use tools such as Postman or direct REST calls to test the APIs. The standard API uses the URL structure https://api.businesscentral.dynamics.com/v2.0/{tenant}/ODataV4/Company('CompanyName')/customers.
3. Use the integration in your system: Once the API works correctly, you can implement it in your application to automate tasks such as customer synchronisation or order handling.

Standard APIs are well suited to the most common integrations, but can also be extended with custom endpoints if you need specific functionality.

Do reach out to us.

Read a selection of other articles here.

Good advice for migrating from C5 to Business Central

Checklist for a successful ERP project

Read more about the V2 API on Microsoft’s site here!