The New Business Central Quality Management Module: Features, Benefits, and Setup

Quality issues in manufacturing and distribution can be expensive. Whether it’s product recalls, customer complaints, or delays caused by failed inspections, poor quality control affects both your bottom line and your reputation.

That’s exactly why Microsoft has introduced a brand new Quality Management module in Business Central. It gives users a more structured, auditable, and efficient way to manage product quality across the entire supply chain.

What is the Quality Management Module in Business Central?

The Quality Management module is a new capability that helps businesses automate, track, and enforce quality control procedures inside Business Central.

It’s built natively into the system, so you can use it alongside existing inventory, warehouse, and manufacturing processes without needing any third-party add-ons.

At its core, this module lets you:

• Create quality tests and inspections for purchased, produced, or returned items
• Trigger quality checks based on rules you define (such as item, vendor, lot, or location)
• Record results of inspections and take action on pass or fail outcomes
• Manage quality holds and quarantines before stock is made available

The goal is to make quality assurance part of your day-to-day operations, not an afterthought.

Why Quality Management Matters and Why It Was Missing Before

Before this module existed, quality control in Business Central required workarounds. Many companies had to rely on custom fields, Power Automate flows, or third-party apps to manage even simple checks.

That sort of setup gets the job done, but it’s clunky and inconsistent. With the native module now available, you get:

• Structured testing that follows your defined criteria
• Integrated workflows for inspection, approval, and quarantine
• Traceable results linked directly to items and lots
• Built-in support for regulatory and compliance requirements

Key Features of Business Central Quality Management

The first release of the module is streamlined, but it covers the essential needs most companies have when it comes to quality.

Here are the main features included:

• Test Definitions: Define test types like weight, dimensions, temperature, or visual inspection. You can set specific thresholds or acceptable ranges.
• Test Plans: Combine multiple test definitions into reusable plans that can be applied to different items, vendors, or workflows.
• Test Orders: These are automatically or manually generated when goods are received, produced, or returned. They guide teams through inspections and capture results.
• Test Results Logging: Users enter test results directly in Business Central. These are saved and linked to the item or transaction for traceability.
• Blocking and Quarantine Actions: Inventory can be blocked until it passes inspection. If it fails, the system can move the stock to a quarantine location for review.
• Exception Management: Failed tests can trigger follow-up actions like notifying a manager, flagging the vendor, or removing the items from available inventory.

Considering Business Central for your business but unsure on how much it costs? Check out our Business Central pricing calculator below to get a personalised quote for your business! Or for a deeper dive, give our Business Central Pricing guide a read.

When and Where Do Quality Tests Happen?

One of the strongest aspects of the module is its flexibility. You’re not limited to checking quality only on inbound receipts.

You can configure tests for different stages in your workflows, including:

• After purchase receipts
• After production output
• During return handling or rework processes

You can also define test conditions based on:

• Specific items or item categories
• Vendors or suppliers
• Lot or serial numbers
• Locations or warehouses

How the Module Fits Into Your Existing Workflows

Because it’s built into Business Central, you don’t need to overhaul your current processes to start using it.

It integrates directly with these standard processes:

• Warehouse receipts
• Production orders
• Item journals
• Return orders

When a triggering event happens, the system creates a test order. Depending on your setup, that test order can block stock from being used until it passes.

Once results are logged, inventory status is automatically updated. Items can be released for use, held for further review, or placed into a restricted location.

Benefits of Using Business Central Quality Management

For companies already using Business Central, this new module is an easy win. It lets you bring quality control inside the system, instead of managing it off to the side.

Here are some of the key benefits:

• Improved Product Consistency: Standardised testing helps reduce variation and defects across your products.
• Fewer Customer Complaints and Returns: Catching quality issues earlier helps prevent faulty items from reaching customers.
• Better Supplier Accountability: Track failure rates by vendor and use the data to negotiate or refine sourcing.
• Audit Readiness: A complete digital record of test plans and results helps you stay compliant.
• Data-Driven Decisions: See patterns and trends over time to improve processes and product quality.

Important Considerations Before You Start Using It

The module is included in standard Business Central licensing, but it does require careful setup to work effectively.

Here are a few things to be aware of:

• There’s no prebuilt reporting, so if you need dashboards or trend data, Power BI will be your best friend.
• Some features like sampling plans, equipment calibration, and multi-level approvals are not included in this release.
• Your team will need training. Especially warehouse and QA staff who will be entering results and interpreting outcomes.

Also, if you’re using advanced warehouse or automated processes, take the time to test how test orders interact with your existing workflows. We can help you with every aspect of getting set up with this module, from configuration to training. Whether you're an existing client or new to Business Central, get in touch and our experienced consultants will help plan your implementation.

Best Practices for Implementing Quality Management in Business Central

Getting started doesn’t have to be complicated. Here are a few smart ways to roll it out:

• Start Small: Focus on high-risk or high-value items first. You can expand later once the process is running smoothly.
• Be Clear About Test Criteria: Make sure your pass and fail conditions are well defined and easy to follow.
• Use Quarantine Locations: These make it easier to manage failed items and ensure they don’t get picked or sold.
• Visualise Your Data: Pair the module with Power BI to track trends and spot problem areas over time.
• Invest in Training: Spend time upfront teaching staff how to handle test orders and record results properly. It’ll pay off in accuracy and adoption.

Final Thoughts

The Business Central Quality Management module gives companies the built-in tools they need to enforce quality standards from within the ERP system. If quality has ever been a weak spot for your business, this is your chance to fix it in a scalable, repeatable way.

It’s part of your system already. All that’s left is to configure it to your needs and make it work for you.