Self-Billed Invoices in Business Central

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Khushbu Rajvi.

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With Dynamics 365 Business Central 2026 release wave 1 (BC28) now generally available, Microsoft has introduced full support for Self-Billed Invoices in the purchase process.
In this blog, let’s explore this feature in detail and understand how it improves procurement efficiency.

What is Self-Billing?

Self-billing is a process where the buyer generates the invoice on behalf of the vendor, based on a mutual agreement.
Instead of waiting for the supplier to send an invoice, the purchasing organization creates it directly.
Benefits:

Reduces operational delays
Improves invoice accuracy
Eliminates dependency on vendor invoices
Ensures standardized invoice formats

What’s New in BC28?

Business Central now provides end-to-end support for self-billed invoices.
Buyers can generate invoices directly when a self-billing agreement is enabled.

Vendor-Level Configuration

A new Boolean field is introduced on the Vendor Card: Self-Billing Agreement - Enables self-billing for that vendor

Dedicated Number Series

Search Purchase & Payables Setup.

Create a No. Series. Assign it to the field: Posted Self-Billing Invoice Nos.

Important Clarification:

This is NOT the posted purchase invoice number
It is used for: Vendor Invoice No. (External Document No.)

Creating a Self-Billed Purchase Invoice

Search Purchase Invoices. Select a vendor with Self-Billing enabled
In the Page Inspection: The Self-Billing Invoice field will be automatically checked (This flows directly from the Vendor Card)