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

Business Central 365 Query

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Posted on by CU09071025-0 10
Hi Team,
 

I have a Microsoft 365 standard account license. I want to use this account to send emails from Business Central Online.

What do I need to do for this, and what are the steps?

The license I purchased can be assigned to any user in Business Central.

I want to use SMTP auth for this account.
 
Regards
Parshant
Categories:
Dynamics 365 Business Central
I have the same question (0)
  • Suggested answer
    Holly Huffman Profile Picture
    Holly Huffman 6,554 Super User 2026 Season 1 on at
    Good morning, afternoon, or evening depending on your location :)
    Hope you are well today!
    Yes, you can use your Microsoft 365 Standard account to send emails from Business Central Online using SMTP authentication. Below are the steps and requirements to set this up:
    Pre-requisites
    • A valid Microsoft 365 Standard license assigned to the user.
    • Access to the SMTP settings for the email account (e.g., smtp.office365.com).
    • The email account must allow SMTP AUTH (this is disabled by default for new tenants).
    Steps to Configure SMTP Email in Business Central
    1. Enable SMTP AUTH for the Mailbox:
      • Go to the Microsoft 365 Admin Center.
      • Navigate to Users > Active Users.
      • Select the user (e.g., youruser@domain.com).
      • Under Mail > Mail Apps, ensure SMTP AUTH is enabled.
    2. Generate an App Password (if MFA is enabled):
    3. Configure SMTP in Business Central:
      • Go to “SMTP Mail Setup” in BC.
      • Fill in the following:
      • SMTP Server: smtp.office365.com
      • Port: 587
      • Authentication: Basic
      • User ID: your Microsoft 365 email (e.g., youruser@domain.com)
      • Password: your app password (if MFA is enabled)
      • Sender Name: your display name
      • Sender Email Address: same as User ID
      • Use SSL: Yes
    4. Test the Setup:
      • Use the “Send Test Email” action to verify everything is working.
    Notes
    • SMTP AUTH must be explicitly enabled for the mailbox if your tenant was created after October 2022.
    • If you prefer modern authentication (OAuth2), Business Central also supports Microsoft 365 Email accounts via the Email Accounts page, which is more secure and recommended for long-term use.
     
    Note: I collaborated with Copilot to help craft this response for clarity and completeness.
    Hope this helps some!
  • Suggested answer
    Jeffrey Bulanadi Profile Picture
    Jeffrey Bulanadi 9,112 Super User 2026 Season 1 on at

    Hi,

    You're asking how to configure SMTP authentication in BC Online using a Microsoft 365 standard account to send emails. That’s a common setup, and yes, it’s fully supported with a few key steps.

    Here’s how to get it working:

     

    1. Enable SMTP AUTH for the Microsoft 365 account
    Before anything else, make sure SMTP AUTH is enabled for the mailbox:

    • Go to the Microsoft 365 Admin Center
    • Navigate to Users > Active Users
    • Select the user account
    • Under Mail > Manage Email Apps, check the box for Authenticated SMTP
    • Save changes
     

    2. Configure SMTP in Business Central
    In Business Central, follow these steps:

    • Search for Email Accounts
    • Choose New > Add an Email Account
    • Select SMTP as the account type
    • Enter the following details:
      • SMTP Server: smtp.office365.com
      • Port: 587
      • Sender Type: Specific User or Current User depending on your preference
      • User ID: Your Microsoft 365 email address
      • Password: The account password (or app password if MFA is enabled)
      • Click Next and complete the setup
    • Use Test Email Setup to verify it’s working
     

    3. Consider OAuth 2.0 (Recommended)
    If your tenant has disabled basic authentication, you’ll need to use OAuth 2.0:

    • Create an App Registration in Azure
    • Run the Set up Microsoft Entra ID assisted setup in Business Central
    • Use the SMTP Connector with OAuth credentials
     

    Here’s a helpful link showing how to configure SMTP email in BC with Microsoft 365 authentication:

    Set up email in Business Central – Microsoft Learn
    Enable SMTP AUTH in Microsoft 365 – Microsoft Learn
    SMTP Setup with OAuth2.0 – Dynamics 365 Lab


    If you find this helpful, feel free to mark this as the suggested or verified answer.

    Cheers
    Jeffrey

  • Suggested answer
    Jainam M. Kothari Profile Picture
    Jainam M. Kothari 15,803 Super User 2026 Season 1 on at
  • Suggested answer
    DAnny3211 Profile Picture
    DAnny3211 11,417 Super User 2026 Season 1 on at

    Hi Parshant,

    To send emails from Business Central Online using a Microsoft 365 Standard account via SMTP authentication, here are the steps you need to follow:

    1. Verify SMTP Authentication Support

    Microsoft has been disabling basic SMTP authentication for security reasons. Before proceeding, ensure that:

    • SMTP AUTH is enabled for the mailbox you intend to use.
    • You can verify this in the Microsoft 365 Admin Center or via PowerShell.

    2. Create or Use a Dedicated Mailbox

    It’s recommended to use a dedicated mailbox (e.g., noreply@yourdomain.com) for sending system emails.

    3. Enable SMTP in Microsoft 365

    • Go to Microsoft 365 Admin Center
    • Navigate to Users > Active Users
    • Select the user/mailbox
    • Under Mail > Mail Apps, ensure SMTP AUTH is enabled

    4. Configure SMTP in Business Central

    In Business Central:

    • Go to Search > SMTP Mail Setup
    • Fill in the following fields:
      • SMTP Server: smtp.office365.com
      • Port: 587
      • Authentication: Basic
      • User ID: your Microsoft 365 email address
      • Password: the app password (if MFA is enabled)
      • Enable SSL: Yes

    If MFA is enabled, you must use an App Password instead of your regular password.

    5. Test the Connection

    Use the Test Email Setup function in Business Central to verify that the configuration works.

    6. Assign the Email Account to Users

    Go to Email Accounts, and assign the configured account to the users who will send emails.

    If you encounter issues due to SMTP restrictions, consider using the Microsoft 365 Email connector instead, which uses modern authentication and is more secure.

    Please verify if this response was helpful.

    Best regards,
    Daniele

  • Suggested answer
    Sohail Ahmed Profile Picture
    Sohail Ahmed 11,169 Super User 2026 Season 1 on at

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