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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Business Central On-Pr...
Small and medium business | Business Central, N...
Suggested Answer

Business Central On-Premises Enhancement Plan renewal on 28-Jun-2026: 20% or 21%?

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Posted on by HV-03060310-0 8

Hello,

I would like to clarify the official Microsoft licensing policy regarding the Enhancement Plan (EP) for Dynamics 365 Business Central On-Premises.

Our company has been using Dynamics NAV / Dynamics 365 Business Central On-Premises for several years. Our annual Enhancement Plan renewal date is fixed and occurs every year on June 28.

Current situation:

  • Renewal date: 28-Jun-2026

  • Renewal period: 28-Jun-2026 to 27-Jun-2027

  • Previous Enhancement Plan rate: 20%

  • Our partner informed us that the new renewal should be charged at 21%

I have found information indicating that Microsoft may increase the Enhancement Plan percentage from 20% to 21% effective around October 2026.

My questions are:

  1. Has Microsoft officially increased the Enhancement Plan rate for Dynamics 365 Business Central On-Premises from 20% to 21%?

  2. What is the official effective date of this change?

  3. If a customer's annual renewal date is 28-Jun-2026 and the renewal is completed before that date, should the renewal still be charged at 20% or should it already be charged at 21%?

  4. Is there any official Microsoft licensing document or announcement that explains how renewals are handled during this transition period?

I am looking for the official Microsoft licensing policy and any public documentation that can clarify this scenario.

Thank you.

 

Product: Dynamics 365 Business Central On-Premises
License type: Perpetual License with Enhancement Plan
Renewal Date: 28-Jun annually
Region: Vietnam

Categories:
Dynamics 365 Business Central
Microsoft Dynamics NAV
I have the same question (0)
  • Suggested answer
    Assisted by AI
    OussamaSabbouh Profile Picture
    OussamaSabbouh 18,299 Super User 2026 Season 1 on at
    Hello,
    I would not accept the 21% purely based on verbal confirmation. From public Microsoft Learn, I can only confirm that Business Central on-premises customers must maintain an Enhancement Plan to stay current with updates, but I could not find a public Microsoft Learn/licensing page that officially states the EP rate changed from 20% to 21% or that it applies before October 2026. For this scenario, the correct official source should be the Microsoft partner price list / Partner Center quote / licensing announcement available to your CSP or Dynamics partner. If the renewal period is 28-Jun-2026 to 27-Jun-2027 and the Microsoft effective date is really October 2026, then normally I would expect the June renewal to follow the rate valid on the renewal/ordering date, not a future rate, unless Microsoft’s transition terms explicitly say otherwise. Ask the partner to provide the Microsoft source showing: the new EP percentage, effective date, whether it applies to renewals before October 2026, and whether Vietnam has any local pricing exception.
    Regards,
    Oussama Sabbouh
  • Suggested answer
    Grigorios Mavrogeorgis Profile Picture
    Grigorios Mavrogeorgis 2,743 Super User 2026 Season 1 on at
    Hi,
    yes the increase is real, 20% to 21% is the next step in the yearly one point rise Microsoft has done a few years running now. The key detail for you is the effective date, it is October 6 2026, not June. The new rate applies as of your next renewal date that falls on or after October 6 2026.

    So with your renewal on 28 June 2026 you are before the cutoff, that whole period 28-Jun-2026 to 27-Jun-2027 should be charged at 20%, not 21%. Your partner quoting 21% for a June renewal looks wrong to me, the 21% would only catch you on the renewal after October 6 2026, which for you is June 2027. From what I seen the rule is consistent, existing contracts keep the old rate until the renewal that lands on or after the effective date, multi year plans keep their rate for the whole term.
    Worth noting alongside this there is also a roughly 10% list price increase on on-prem licenses from October 2026, separate thing from the EP percentage, so do not confuse the two when you read the invoice.

    I would go back to the partner and ask them to confirm against the official Microsoft licensing guide the exact effective date, because charging 21% three months early is money out of your pocket. Is your partner billing through the normal DPL price list, and did they show you where the 21% comes from? Could just be they applied next year rate by mistake.
     
    Glad to help - follow up if anything is unclear.  
    ►  If this solved it, marking it verified helps others too.      
    Regards,
    Grigorios Mavrogeorgis
    Business Central Consultant & AL Developer
    Work: Gmsoft Limited
    Blog:  insidebusinesscentral
    LinkedIn: linkedin.com/in/gregorymavrogeorgis
     
  • Gerardo Rentería García Profile Picture
    Gerardo Rentería Ga... 27,507 Most Valuable Professional on at

    Hi, good day
    I hope this can help you, and give you some hints.

    Price Adjustments for Business Central On-Premises and Dynamics NAV effective October 2026 – AGOLUTION

    Best Regards
    Gerardo

  • ML-13071926-0 Profile Picture
    ML-13071926-0 2 on at
    Good day,
     
    I am finding price increase announcements on partner's pages, but nothing directly from Microsoft. I have reviewed all the announcements made in the recent months, and I find nothing about On-Prem Enhancement price increase.
     
    Marie

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