Self-Billed Invoices in Business Central (BC28): A Complete Guide

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.

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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

  1. Enable Self-Billing Agreement on Vendor
  2. Create Purchase Order or Invoice 
  3.  System marks document as Self-Billed and mark the “Vendor Invoice No.” as non-editable field

  4. Assign (optional) dedicated number series
  5. Post the invoice
  6. 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..

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