Dynamics NAV to Business Central Upgrade Guide [2026]

Step 1. Assess Your NAV Environment

The journey starts with a clear picture of what you are running today. This includes your NAV version, how deeply it is customized, what third party applications are connected to it, and how clean or cluttered your data is.

This assessment helps you understand whether you need a BC14 bridge, a direct move to Business Central online, or a hybrid migration. It also helps you spot unsupported customizations early, which saves time later.

Step 2. Choose the Right Upgrade Path

Your NAV version decides how straightforward or complex your path will be.

• NAV 2009 or older often requires multiple upgrade stages before reaching Business Central.
• NAV 2013 to NAV 2015 usually needs code and data updates to an interim version.
• NAV 2016 to NAV 2018 typically moves through BC14 before landing on the latest release.

You also need to choose between Business Central Online and Business Central On Premises. Most organizations today choose the cloud because it removes maintenance overhead and gives immediate access to new features, unless regulatory constraints require an on premises environment.

Step 3. Evaluate Customizations and Add Ons

Older NAV systems tend to rely on C/AL customizations that will not work in Business Central. These need to be rebuilt as AL extensions so that upgrades remain smooth in the future.

This step also includes checking third party add ons. Some are available on AppSource. Others need to be redesigned. This evaluation is where you decide what should be carried forward and what can be removed.

Step 4. Build a Data Migration Strategy

Data quality plays a major role in any upgrade. Many NAV systems store years of unused records, duplicate entries, inconsistent master data, and historical transactions that slow down migrations.

A strong strategy covers data cleanup, deduplication, validation of customers, vendors, items, and financial records, and archiving of what you no longer need. Running multiple test migrations in a sandbox environment helps catch issues early and reduces downtime during go live.

Step 5. Conduct Fit Gap Analysis and Process Mapping

This is where the real modernization happens. Your team compares existing NAV processes with Business Central capabilities and decides where to adopt standard features, where to improve workflows, and where customizations are no longer needed.

The goal is not to rebuild NAV in a new system. The goal is to use this upgrade to improve the way work gets done.

Step 6. Testing, Training, and User Readiness

Even the best upgrade falls apart if end users are not prepared for the change. This phase includes sandbox testing, multiple UAT cycles, integration testing, detailed process documentation, and structured user training.

Organizations that take training seriously see faster adoption and far fewer issues after go live.

Step 7. Go Live and Optimize

A controlled go live helps your team adjust without unnecessary disruption. Once you are live, the focus shifts to monitoring performance, optimizing reports, adjusting workflows, and planning for ongoing improvements.

Support for NAV Has Effectively Ended

Mainstream support for NAV 2018 ended in January 2023, and extended support expires by January 2028. Extended support only covers security fixes. It does not include new features, regulatory updates, or performance enhancements.

For older versions like NAV 2013, NAV 2015, and NAV 2016, all mainstream support has already ended. This leaves organizations exposed to:

• Higher security risks
• Rising technical debt
• Compliance challenges in regulated industries
• Inability to adopt newer Microsoft capabilities

AI Readiness Demands a Modern ERP Foundation

Business Central 2026 is built for an AI powered enterprise. It comes with native Copilot features, intelligent workflow automation, AI agents, and seamless integration with Microsoft 365 and Power Platform.

NAV simply cannot support this AI ecosystem. Any attempt to add AI on top of NAV results in complex, expensive, and limited workarounds.

• AI is becoming essential for efficiency and accuracy
• Modern finance, supply chain, and sales operations expect automation
• Organizations that adopt Business Central’s AI capabilities gain a productivity advantage

Microsoft Licensing and Incentives Are Shifting in 2026

Microsoft is steadily tightening incentives around on premises systems and increasing the value of cloud based deployments. This aligns with Microsoft’s long term strategy to unify ERP, AI, analytics, and collaboration tools under the cloud umbrella.

• More attractive pricing for Business Central Online
• Stronger incentives for cloud migrations
• Reduced investment in on premises upgrade paths
• Licensing changes that favor subscription models for better cost control

Heavy Customization

Many NAV systems have layers of custom C/AL code that were built over time to fix gaps, create shortcuts, or support unique processes. These customizations don’t automatically translate to Business Central’s extension-based model. Teams need to identify which customizations still matter, convert essential ones into AL extensions, and retire anything that no longer serves the business. This step shapes the overall complexity and timeline of the upgrade.

Data Migration Issues

Years of transactions, unused tables, inconsistent records, and duplicates can create major issues during migration. Clean, structured data is critical for a smooth transition. Successful upgrades typically begin with data profiling, removing obsolete data, standardizing formats, and validating master records in phases using sandbox environments. When this groundwork is done correctly, Business Central runs faster, cleaner, and more reliably from day one.

Employee Resistance

A shift from NAV’s familiar interface to Business Central’s modern workspace naturally triggers hesitation. Users worry about productivity dips or losing the workflows they’ve relied on for years. Change management becomes just as important as technical work — clear communication, early involvement of key users, role-based training, and guided testing sessions help build confidence and reduce friction during go-live.

Downtime Concerns

Every organization wants the upgrade without operational disruption. ERP downtime can delay shipments, impact customer support, or halt finance operations. Teams mitigate this by choosing low-activity periods for go-live, conducting multiple rounds of testing, validating integrations thoroughly, and preparing rollback safeguards. When done right, the transition is almost invisible to the business.

Third-Party Integration Conflicts

Older integrations with CRMs, e-commerce stores, logistics tools, or homegrown applications often break when moving to Business Central. Many of these systems rely on outdated connectors or custom-built scripts. A full integration audit is essential — identifying what needs an update, what must be rebuilt using APIs or Dataverse, and which flows require redesign. Testing each integration in a sandbox ensures clean, uninterrupted communication once the system goes live.