Business Central 2026 release wave 1 (BC28): Quality Management module (Evaluate the quality of goods and materials)

Hi, Readers.
Dynamics 365 Business Central 2026 wave 1 (BC28) is generally available. More details: General Available: Dynamics 365 Business Central 2026 release wave 1 (BC28)

I will continue to test and share some new features that I hope will be helpful. In this post, I would like to talk about Evaluate the quality of goods and materials.
Evaluate the quality of goods and materials:

Business value:
The Quality Management extension for Business Central helps you comply with industry standards and regulatory requirements. Including quality checks in the process of receiving or producing goods improves product reliability and builds customer confidence in your products.

https://learn.microsoft.com/en-us/dynamics365/release-plan/2026wave1/smb/dynamics365-business-central/evaluate-quality-incoming-goods-materials?wt.mc_id=DX-MVP-5004336

The Quality Management extension is preinstalled for all new environments.

For existing environments, install it from the Extension Management page or get it from Microsoft Marketplace.
More details: Newly added standard extensions missing in upgraded environments (Uninstalled apps will now remain uninstalled)

Quality management is a quality inspection application for Business Central. Quality management features can help you maintain product quality standards by creating inspections at key points in your purchasing, production, assembly, and warehouse management processes. This is a completely new module with this wave (BC28), just like the Expense Management module.

Set up Quality Management

Setting up quality management involves configuring quality inspection templates, inspection generation rules, and integration with your Business Central processes. Microsoft has provided a great entry point for this. Here is a new Role (Profile), Quality Manager.

After you switch, you can see “Get started” for Quality Management on your Home page.
When you hits Show demo tours , a checklist is revealed inside the banner.

PS: The checklist provides users with an overview of their onboarding activities, while allowing them to learn and explore at their own pace. The checklist serves as a platform for surfacing page tours, guiding users in the product interface, and teaching users how to use the app in context.

Let’s take a closer look at them one by one.

Demo data

You can choose Start. (From the second time onward, this button will change to ‘Revisit’)

Explore with demo data
Use Contoso demo data to explore Quality Management with sample quality tests, templates, generation rules, and inspections. This lets you learn how quality checks work without setting up your own data.

You will need to click the back button.

Then, you can navigate to the Contoso Demo Tool to generate the Quality Management demo data.

You can click ‘Mark as completed‘ or ‘Skip for now‘ to proceed to the next step.

PS: Additionally, this is already available when creating a new company. More details: Business Central 2024 wave 2 (BC25.3): Configuration packages for setup and evaluation data has been deprecated (The method of creating demo/sample data has changed)

Inspection results

Quality inspection results represent the possible outcomes of quality inspections. Examples of typical results are Incomplete, Fail, and Pass. However, you can configure as many results as you want, and in what circumstances.

Set up quality inspection results
Define possible outcomes for quality inspections, like Pass, Fail, or In Progress. Create custom results and set priorities to match your organization’s standards. These results control how inspections are evaluated and how items are blocked or released.

You can choose Start. Or select Search (Alt+Q) in the upper-right corner, enter Quality Inspection Results, and then choose the related link.

The following are the default results for quality inspections:

• In Progress – The inspection is incomplete or in progress.
• Fail – The inspection failed to meet quality criteria.
• Pass -The inspection met quality criteria.

However, you can also create custom results:

• Create multiple passing results. For example, Excellent, Good, and Acceptable.

• Create multiple failing results. For example, Minor Defect, Major Defect, and Critical Failure.

In the Code field, enter a short name that indicates the state of the result. For example, Pass or Fail. In the Description field, enter a short description of the result.

About Inspection Results
Inspection results show the outcome of an inspection, such as In progress, Fail, or Pass. You can set up custom grades to match your process.

In the Evaluation Sequence field, enter a number that corresponds to the result. Results with a lower number in the Evaluation Sequence field are evaluated first.

Evaluation Sequence
The evaluation sequence sets the priority order for checking results. Inspection results with lower numbers are checked first, so Fail or In progress conditions are usually prioritized before Pass.

In the Result Visibility field, specify whether to promote the result, which emphasizes it on various pages and reports. Promoted results are displayed inline and are editable when you configure tests. They also display prominently when you run inspection, and are featured in reports. For example, Certificate of Analysis report shows promoted results. You typically promote pass conditions.

Result Visibility
Promote important results, typically pass conditions, so they will show on pages and reports, such as Quality Tests, Quality Inspections and Certificate of Analysis.

In the Result Category field, specify whether the result represents something good, or bad. For inconclusive results, leave the field blank.

In the Finish Allowed field, specify whether to allow inspections to be completed if they contain the result.

For items with lot, serial, or package tracking, you can specify how quality inspection results affect specific document transactions. For example, you can block purchase documents while inspections are in progress and block sales documents for failed inspections. Learn more at Lot blocking and unblocking

Allow or block specific transactions
For items with lot, serial, or package tracking, you can specify how quality inspection results affect specific document transactions. For example, you can block purchase documents while inspections are in progress and block sales documents for failed inspections.

In the Override Style field, specify how to emphasize the result.

The value here is identical to the property value in the StyleExpr Property.

More details: Configure quality inspection results

Click ‘Mark as completed‘ or ‘Skip for now‘ to proceed to the next step.

Quality tests

Understand quality tests
Quality tests define what is measured. Visit the Quality Tests list to see available tests, then open a test card to review parameters, limits, and expected values used during inspections.

You can choose Start. Or select Search (Alt+Q) in the upper-right corner, enter Quality Tests, and then choose the related link.

About Quality Tests
Create and manage tests for quality inspections, including data points, questions, and measurements. Use these tests in templates to standardize quality checks.

Choose New to create a new template.

In the Description field, enter a short description of the measurement. For example, Example Measurement, Weight, or Dimension. This description is visible when recording inspections and show up on the Certificate of Analysis and other reports.

In the Test Value Type you can choose the value type collected for this test, such as entering numbers, selecting from a list of options, or choosing values from another table. The following list describes the purpose of each option.

• Decimal or Integer for tests that allow numerical values.
• Boolean if you want to record simples Yes or No.
• Text, Date, or Date and Time – The inspector enters results as free text or a date.
• Option – Inspector select one of the values from a simple list you defined in the Allowable Values field.
• Lookup – List of values is build dynamically based on Lookup Table No., Lookup Field No. with respect of Lookup Table Filter. For example if you want to show a list of available reason codes from the Reason code table, then you would use table 231 with field 1, which represents the Code field on that table. You can also use table 20408 Quality Test Lookup Value and populate it with your own values.

• Label – You can’t enter value in this field because it’s used for splitting lines when printing the report.

Test Value Type
Specifies the data type of the values you can enter or select for this test. Use Decimal for numerical measurements. Use Choice to give a list of options to choose from. If you want to choose options from an existing table, use Table Lookup.

In the Allowed Values field, you can specify what values inspection can enter. The format depends on the Test Value Type. Pass, fail, or acceptance conditions are configured separately. For integer or decimal, you might enter something like ‘5..90’ and the system accepts any value in this range. For the Test Value Type set to Lookup the Allowable Values field is ignored, though it’s convenient to use for populating values in the Quality Test Lookup Value page.

Allowable Values
Specifies an expression for the range of values you can enter or select for the Test. Depending on the Test Value Type, the expression format varies. For example if you want a measurement such as a percentage that collects between 0 and 100 you would enter 0..100. This is not the pass or acceptable condition, these are just the technically possible values that the inspector can enter. You would then enter a passing condition in your result conditions. If you had a result of Pass being 80 to 100, you would then configure 80..100 for that result.

The Result conditions part includes pairs of Condition and Description fields for each quality result where Result Visibility is set to Priority. The value in the Condition field depends on the Test Value Type. The following are examples for different types:

• For integer or decimal, it can be ’10..20′ (range), ‘>=20’ (greater than or equal), ‘<>0′ (not equal to zero), ’10|20|30’ (equals 10, 20 or 30).
• For text: ‘A*’ (starts with “A”).
• For date: ‘TODAY..TODAY+30D’ (Today through 30 days from today), ‘>=01/01/2026′(on or after specific date).

More details: Create quality test

Click ‘Mark as completed‘ or ‘Skip for now‘ to proceed to the next step.

Quality templates

Quality inspection templates define the measurements and attributes you want to collect during quality testing.

Reuse inspection templates
With templates you can group and reuse quality tests so you can apply consistent inspection standards across items, processes, or scenarios. From the list you can create a new template card to understand its structure and purpose.

You can choose Start. Or select Search (Alt+Q) in the upper-right corner, enter Quality Inspection Templates, and then choose the related link.

About Quality Inspection Templates
Quality Inspection Templates are inspection plans containing a set of tests that represent questions and data points that you want to collect.

Choose New to create a new template.

Fill in the Template Code field with a short name that indicates the purpose of the inspection. For example, enter EXAMPLE or INCOMING-PARTS.

Fill in the Description field. This field often contains an elaboration of the code. For example, Example Template or Incoming Parts Inspection.

In the Sample Source field, specify the size of the sample the test includes. Depending on your choice, the Sample Amount or Sample % fields display, so you can add those values. The Sample quantity in the created inspection can’t exceed the Quantity (Base) and if necessary it’s changed automatically on the inspection to equal the source quantity. If you leave the Sample Source field blank, the amount or percentage fields don’t display.

Sample Source
Specifies how the Sample Size initially gets set. Values are rounded up to the nearest whole number.

For example,

Add the tests that represent what the inspection measures. These are the Quality Tests created in the previous step.

If necessary, you can override conditions from tests for specific inspection template requirements.

If there are duplicates, they will be highlighted in red.

In summary, templates serve as the foundation for all quality tests, and contain:

• A Template Code, which is the unique identifier for the template.
• A Description that provides an idea of the purpose of the template.
• Tests and measurements, which are the individual quality measurements to collect.
• Pass/fail criteria, which are the acceptable ranges for each measurement.
• Inspection Generation Rule that define when the questions in the template are asked.

More details: Create quality inspection templates

PS:
1. You can copy templates to create new templates based on their settings. Select a template, and then choose the Copy Template action to create a duplicate. You can modify the fields on the new template to suit your needs.

2.

More ways to create inspections
Use this action to create a manual inspection from the selected template. You can also create inspections directly from other pages, such as output journals, production order routing lines, consumption journals, purchase orders, sales returns, and item tracking lines.

Click ‘Mark as completed‘ or ‘Skip for now‘ to proceed to the next step.

The next step is to use the Inspection Generation Rules action to create a generation rule for your template.

Generation rules

Quality inspection generation rules define when and how to automatically create quality inspections in response to business transactions. These rules connect your quality inspection templates to specific business processes.

Set up inspection generation rules
Inspection generation rules define when quality inspections are created automatically, such as during receiving, production, or assembly.

You can choose Start. Or select Search (Alt+Q) in the upper-right corner, enter Quality Inspection Generation Rules, and then choose the related link.

About Quality Inspection Generation Rules
Use inspection generation rules to control when quality inspections are created. You can define the business context, such as receiving, production, or warehouse activities, and specify which inspection template applies.

You can create inspection generation rules for various types of source documents.

• Purchase documents create inspections based on purchase order transactions, and trigger when you post purchase receipts. They support filters for vendors and items.
• Production creates inspections based on production output or assembly orders, and trigger when you post output. They support filters for routes, work centers, and operations.
• You can also create rules for sales returns, warehouse receipts, warehouse movements, transfer orders, and assembly orders.

Let’s see more details.

Choose New.

In the Sort Order field, specify how early you want Business Central to find this template based on the rule. Lower sort order numbers are chosen first.

In the Template Code field, choose the template to use as the basis for the quality inspection.

In the Intent field, specify the type of source document that the rule applies to.

In the Table field, choose a table that’s relevant for the type of source document you chose in the Intent field. For example, if you chose Warehouse, you should probably choose the Warehouse Receipt Line table.

The table for this rule
Here you select a table for which you want to create an inspection. For example, for receiving to a purchase line, you would use table 39. You then set criteria using a table filter to control when the rule applies. When the filter criteria are met, the template is selected. If multiple templates match, the first one found by sort order is used.

In the Condition Filter, Item Filter, and Attribute Filter fields, choose one or more fields from the table you just selected to use as the filter that determines when to use this template.
Condition Filter:

Item Filter:

Attribute Filter:

In the Activation Trigger field, choose one of the following options:

• Manual or Automatic: Both the manual and automatic creation methods are enabled.
• Manual Only: Only allow manual creation of inspections.
• Automatic Only: Allow automatic creation when the corresponding event is triggered, for example, when you post a receipt or purchase transaction.
• Disabled: No automatic inspection creation.

Activation trigger
Use the activation trigger to control when inspections are created automatically. For each business intent, you define the event that triggers the inspection to start, such as posting a purchase receipt.

Depending on your selection in the Intent field, specify when to trigger the creation of inspections for assembly, production, purchase orders, sales returns, transfer orders, or warehouse receipts and movements.

You can only select an option for the trigger that corresponds to your selection in the Intent field.

In the Schedule Group field, specify a group that allows a schedule to refer to multiple inspection generation rules. The schedule group creates a job queue entry for quality management.

PS: Business Central provides assisted setup guides that can speed up the process of creating inspection generation rules. Setup guides are available for:

• Receiving goods and materials
• Moving inventory between bins
• Inspecting production

For example, Create a receiving rule (purchases): This rule is for inspecting goods for purchase receipts.

Choose the Create Receiving Rule action.

In the Choose template field, select the template you’re creating the rule for.

Turn on the toggle for the type of receiving rule to create. You can only choose one type. Then choose Next.

In the Location, Vendor No., and Purchasing Code, fields specify the location, vendor, or purchasing code can create inspections according to the rule.

Optionally, you can choose the Click here to choose advanced fields link to add more filters. Then choose Next.

Optionally, specify a specific item, category, or inventory posting group that creates inspections according to the rule.

Optionally, you can choose the Click here to choose advanced fields link to add more filters. Then choose Next.

Review the filters you set, and add more if needed.

In the Automatically Create Test field, specify a trigger to automatically create an inspection when you receive a product for a purchase order.

After choosing Finish, the new rule will be added.

More details: Set up quality inspection generation rules

Click ‘Mark as completed‘ or ‘Skip for now‘ to proceed to the next step.

Default setup

Let’s skip the Quality Inspections and go to Default Setup.

Choose Start, or select Search (Alt+Q) in the upper-right corner, enter Quality Management Setup, and then choose the related link.

Quality management default settings
Manage default settings for when inspections are created. Set up test generation rule triggers for production, inventory, and warehouse scenarios.

About Quality Management Setup
Manage default settings for when and how inspections are created. Set up test generation rule triggers for production, inventory, and warehouse scenarios.

On the General FastTab, configure settings as described in the following table.

On the Generation Rule Trigger Defaults FastTab, configure default trigger values for different types of documents, as described in the following table.

On the Bin Movements and Reclassifications FastTab, specify the batches to use when you move inventory from one bin to another or change item tracking information. Your choice depends on whether your warehouse is set up to use directed put-away and pick. Hover over a field to read a short description.

On the Inventory Adjustments FastTab, specify the item journal batch or warehouse item journal batch to use to reduce inventory quantities. Your choice depends on whether your warehouse is set up to use directed put-away and pick. Hover over a field to read a short description.

1. On the Item Tracking FastTab, in the Tracking Before Finishing field, specify whether to require item tracking before finishing an inspection:
   • Allow without item tracking: Use this option if you don’t use lot or serial numbers, or if you have processes where inspections won’t have known lot or serial numbers. For example, inspections created during production that prevent the product from being produced might not have a lot or serial number yet. Inspections without lot or serial numbers are permitted.
   • Allow only posted item tracking: Use this option if all lot or serial numbers must be posted before you can finish an inspection. For example, if you inspect finished goods the lot or serial number should exist. If you inspect lots when they’re moved to a bin, the lot or serial number must exist.
   • Allow reserved or posted item tracking: Use this option if lot or serial numbers need to be in the system but might not yet be posted. For example, lots that are being received or produced might not yet be received or produced, but do exist on your item tracking lines.
   • Allow any non-empty value: Use this option if you want to track lot or serial numbers that don’t enter the system but need inspections to document why they didn’t. For example, if you reject a lot during the receiving process and the failed lot is never put away. Or, if you’re producing and know the intended lot or serial number but the in-progress item is discarded before it’s posted to inventory. Inspections with lot or serial numbers that aren’t in your inventory are permitted.

1. In the Quality inspection selection criteria field, specify the inspections to consider when evaluating whether to block a document-specific transaction.
   • Any inspection that matches considers any inspection.
   • Only the most recently modified inspection uses the most recently modified inspection.
   • Only the newest inspection/reinspection uses the inspection with the highest reinspection number.
   • Any finished inspection that matches considers any finished inspection.
   • Only the most recently modified finished inspection uses the most recently modified finished inspection.
   • Only the newest finished inspection/reinspection uses the finished inspection with the highest reinspection number.

More details: Quality management setup and configuration

Click ‘Mark as completed‘ or ‘Skip for now‘ to proceed to the next step.

Microsoft Learn

This is very simple. Microsoft provides a link to Microsoft Learn. You can click Start to directly access the website below.

Quality management overview

Discover more capabilities
Discover what else you can do in your role. Explore Business Central’s quality capabilities to reach your needs, from manual or automated inspections on Microsoft Learn.

Quality management notifications

Select Search (Alt+Q) in the upper-right corner, enter My Notifications, and then choose the related link.

1. The following notifications are available for quality management:
   • Quality Inspection created notifies you when an inspection is created either manually or automatically.

1. Assign Quality Inspection to yourself does the same, but gives you the chance to assign the inspection to yourself.

Each user can decide whether they want to be notified every time an inspection is created. Their selections apply only to themselves.

Work with Quality management

Quality inspections

At this point, the setup is complete, and we are ready to start using the module.

Track and create inspections
Browse the Quality Inspections list to see inspections created by rules or manually. Process items that fail inspection by relocating, quarantining, or returning them to suppliers.

Let’s see more details.
I created a simple purchase order and released it. ()

2 Quality inspections have bee created.

If only one purchase line meets the criteria, the following message will be displayed directly.

PS:
1. I set When Purchase Order is released in Purchase Order Trigger

2. I only tested it using Purchase Order, and it supports all the Tables (Objects) that can be set in the standard.

You can open it directly, or select Search (Alt+Q) in the upper-right corner, enter Quality inspections, and then choose the related link.

You need to enter the Test Value, and the system will determine the result based on the Pass Description you set. For example,

PS: In Quality Inspection Template

You can also manually create a Quality Inspection by selecting Purchase Line.

After clicking Finish on Quality Inspection, the Result will be automatically updated based on the line details.

If the item is managed by Item Tracking Lines and “Block” is configured in the Qualify Inspection Results, an error will occur during posting.

This transaction was blocked because the quality inspection QI00000004 has the result of FAIL for item 1900-S LOT with tracking LOT0001, which is configured to disallow the transaction “Purchase”. You can change whether this transaction is allowed by navigating to Quality Inspection Results.

More details: Manual inspection creation

If you’re automating the process of creating quality inspections, the next step is to set up quality management workflows. Workflows can automatically run business actions when quality inspections are created, finished, or when specific conditions are met. Learn more at Quality management workflows.

Quality management workflows

Quality Management integrates with workflows in Business Central to automate responses to quality inspection events. Workflows can automatically run business actions when quality inspections are created, finished, or when specific conditions are met. For example, quality management workflows can:

• Block and unblock lots.
• Move inventory.
• Create negative adjustments.

First, it should be noted that Microsoft has not added any new Workflow Templates for this module, they have only added new workflow events, conditions and response actions.

Choose New on the Workflows page.

Then choose a value for When Event.

When events:

When a Quality Inspection is Created:

• This event triggers automatically when inspection generation rules create new inspections.
• Use the event for immediate actions, such as blocking lots when you create inspections for them.
• The event is available for all inspection creation methods. For example, purchase receipts, production output, and manual creation.

When a Quality Inspection is Finished:

• This event triggers when inspections are completed and finalized.
• Use the event for disposal actions based on inspection results.
• This event is the most popular for quality workflows.

Workflow conditions:

Result code conditions:

• Result code equals “PASS” for successful inspection completion.
• Result code equals “FAIL” for failed inspection processing.
• Result code equals “INPROGRESS” for inspections in progress.
• Custom Result codes you configure.

Additional conditions:

• Location codes for site-specific workflows.
• Item numbers for product-specific processing.
• Inspection template codes for template-specific responses.

Workflow response actions:

Lot, serial, and package number blocking actions:
Block the Lot (Serial, Package) in the Inspection:

• Creates a Lot No. Information Card page with the status Blocked. The status prevents all transactions for the lot until you manually unblock it.
• The standard lot blocking functionality in Business Central applies. To learn more, go to Block items or item variants from use in sales, purchasing, service, and production

Unblock the Lot (Serial, Package) in the Inspection:

• Removes lot blocking from previously blocked lots, and restores normal transaction abilities.
• This action is typically used with passing inspection results.

Inventory movement actions:
Move Inventory to Different Bin:

• Automatically relocates inventory based on inspection results.
• Uses movement worksheets, movement documents, or reclassification journals.
• Supports directed put-away and pick locations.

Create Transfer Order:

• Moves inventory between locations.
• Useful for quarantine or rework locations.
• You can configure the action for automatic or manual posting.

Create Internal Put-away:

• Generates a warehouse put-away for inventory staging.
• Supports quality inspection workflows in warehouse environments.

Inventory adjustment actions:
Create Negative Adjustment:

• Removes inventory for disposal or destructive testing.
• Uses item journals or warehouse item journals.
• Supports reason codes for audit trails.
• Can process full lots, specific quantities, or failed quantities only.

Inspection creation actions:
Create Reinspection:

• Automatically generates follow-up inspections.
• Useful for corrective action processes.
• Can use the same or different inspection templates.

All Workflow Responses related to Quality Management in the current version

This is a fantastic new module with a very high level of completeness. Go ahead and try it out!😁

PS:
1. Quality management workflows

2. Introducing: Quality Management

END

Hope this will help.

Thanks for reading.

ZHU