The 2026 release wave 1 of Microsoft Dynamics 365 Business Central (BC28) introduces a powerful feature in the finance module — Self-Billed Invoices. This enhancement is designed to simplify vendor invoicing, reduce manual effort, and accelerate financial processes.
In this blog, we’ll explore what self-billing is, how it works in Business Central, and why it’s a game-changer for finance teams.
What are Self-Billed Invoices?
Self-billing is a process where the buyer generates the invoice on behalf of the vendor, based on a prior agreement.
Instead of waiting for suppliers to send invoices, businesses can:
- Create invoices themselves
- Ensure pricing accuracy
- Reduce dependency on vendor timelines
This approach significantly reduces delays and discrepancies in the purchase process.
Why Self-Billing Matters
The introduction of self-billed invoices in Business Central aligns with Microsoft’s vision of automation and intelligent finance operations in modern ERP systems.
Key Benefits:
⚡ Faster invoice processing – No waiting for vendor invoices
🎯 Improved accuracy – Based on agreed pricing and terms
🔄 Reduced reconciliation issues – Eliminates mismatches
📊 Better financial control – Standardized invoice generation
⏱️ Accelerated month-end closing
Let’s see how the process works in Business Central
- Enable Self-Billing Agreement on Vendor
- Create Purchase Order or Invoice
System marks document as Self-Billed and mark the “Vendor Invoice No.” as non-editable field
- Assign (optional) dedicated number series
- Post the invoice
- Generate self-billing invoice report
Real-World Use Cases
Self-billing is especially useful in industries with:
Contract-based vendors
High transaction volumes
Recurring procurement
Examples:
Logistics and transportation
Manufacturing subcontractors
Retail supplier agreements
Instead of waiting for vendor invoices, companies can:
Generate invoices instantly
Ensure agreed pricing
Speed up payments
Final Thoughts
The Self-Billed Invoice feature in Business Central BC28 is a significant step toward automation in accounts payable.
It not only reduces operational friction but also enhances:
- Accuracy
- Compliance
- Efficiency
As organizations move toward AI-driven and automated ERP systems, features like self-billing play a critical role in transforming finance operations
Stay tuned for more updates..