Security in Microsoft Dynamics 365 Business Central: A complete guide to protect your business data

Why ERP security is more important than ever 

Today, businesses depend on ERP systems for managing financials, customers, operations, and confidential information. With the rising number of cyber threats, compliance issues, and data privacy laws, ERP security is no longer a choice. 

Microsoft Dynamics 365 Business Central is designed with robust security capabilities that safeguard your environment, manage access, track changes, and support compliance without impacting usability. 

In this blog, we will walk you through how Business Central assists businesses in protecting their data and building trust. 

1. Role-Based Permissions in Business Central 

Another major foundation of the security framework of Microsoft Dynamics 365 Business Central is the permission-based access control system. 

Using Business Central, businesses can: 

• Determine what data and functionality a user can access 

• Determine if users can read, edit, or create data 

• Use permissions at the database or environment level 

• Coordinate permissions with the user license and role 

Microsoft Entra ID helps businesses implement group-based access control, allowing only authorized users to access certain resources and applications. 

2. Microsoft Purview Auditing for Business Central 
   

   

Auditing is an important aspect of compliance, investigations, and security monitoring. 

Business Central automatically publishes auditable events to Microsoft Purview, which is Microsoft’s comprehensive auditing platform. 

This includes: 

• Create, Update, and Delete operations 

• Administrative-level operations 

• Audit logs that are centralized across Microsoft services 

Using Microsoft Purview auditing, organizations can effectively address: 

• Security incidents 

• Legal and forensic investigations 

• Internal audits and compliance requirements 

• Sensitive Data Management & Classification 

3. Knowledge of where personal and sensitive data is located is critical to privacy compliance. 

Business Central enables users to: 

• Classify database fields that contain sensitive or personal data 

• Assign sensitivity levels to standard and custom fields 

• Mass-classify data using the Data Classification Worksheet 

• Refine classifications for fields 

This systematic process enables organizations to effectively address: 

• Data portability 

• Data correction/deletion requests 

• Compliance requirements 

4. Change Log & Data Monitoring 

In order to ensure transparency and accountability, Microsoft Dynamics Business Central offers a Change Log function that monitors changes made to data. 

The main functionalities of this feature include: 

• Data change visibility for users 

• Monitoring of data fields for sensitive data 

• Activity logs for data import and export 

• Retention policies to automatically remove outdated logs 

These features help organizations detect unauthorized changes, investigate issues, and maintain audit readiness. 

5. Multi-Factor Authentication (MFA) & Conditional Access 

Passwords are no longer a reliable means of securing business applications. 

Business Central relies on Microsoft Entra ID authentication, which supports Multi-Factor Authentication (MFA), including: 

• One-time passwords 

• Notifications from the mobile app 

• Phone or SMS verification 

• Single sign-on for Microsoft services 

Using Microsoft Entra Conditional Access, IT administrators can set up Business Central-specific security policies, such as requiring MFA for ERP logins. 

6. Security Groups & Policy Management 

Security Groups help administrators manage permissions easily. 

Advantages: 

• Permissions can be reused in Business Central, Dynamics 365, and SharePoint 

• Faster user onboarding and role changes 

• Standardized access control across applications 

Examples: 

• Sales groups can be assigned permissions to create and post sales orders 

• Purchasing groups can handle purchase orders securely 

Conclusion: built-in ERP security you can trust 

Microsoft Dynamics 365 Business Central’s security is not just a feature, but an entire framework. 

Starting from permissions and sensitive data, to auditing, MFA, and Microsoft Purview, Business Central enables businesses to conduct business operations securely, confidently, and compliantly. 

A secure ERP system is more than just security. 

It is a system that provides business continuity, trust, and control. 

strengthen Your Business Central Security 

Your ERP security should grow with your business—not become a risk over time. 

Whether you want to: 

• Review user permissions and access controls 

• Enable Microsoft Purview auditing 

• Classify and manage sensitive data 

• Set up MFA and Conditional Access 

• Ensure compliance and audit readiness 

Our team can help you assess, optimize, and secure your Microsoft Dynamics 365 Business Central environment. 

👉 Book a security review or consultation to understand 🔍 

• Where your current risks are 

• What can be improved immediately 

• How to align security with compliance and scalability 

Secure your data. Protect your operations. Build trust with confidence.