Announcement

Microsoft's aim for better quality solutions by introducing the Universal Code initiative has been fully activated both for onPrem and cloud licenses. This means that everyone must go to full extensions (no code customized in the base application), and the code created must have the ability to work both on-premises and in the cloud (hence, “universal”).

With this initiative, selling extensions not targeted for online use to new Business Central on-premises customers could require you to license two additional modules: 

• Module “Implemented code is not in extensions” 
  When the Microsoft Business Central base application is modified, customers will need to license this module. 
• Module “Implemented code is not cloud-optimized” 
  When code is developed in extensions, but they are not cloud-optimized, customers will need to license this module 

Key Points:

• Starting from version 22.0, LS Central is Universal Code compliant. The Target property in the app.json files for LS Central and LS Central System apps has been set to Cloud. Customers with the non-cloud-optimized code in their license running versions 22 or newer can request the removal of this granule to Licensing.
• Customers on versions below 22.0 purchased/transitioned after October 3, 2022 are not Universal Code compliant. They must include UC modules in their license and pay the associated fees.
• Customers that have customizations in the (50,000 – 99,999 range) and are registered after October 3, 2022 need to license these modules, since all solutions and customizations on their license should be in Universal Code.
• Existing customers that transition to Business Central on-premises after October 3, 2022, must license non-Universal Code modules if non-universal code is implemented, if not implemented they do not require this module.
• Customers with Dual Use rights must adhere to Universal Code; modifications to the base application are not permitted.

Exemptions:

New customers licensed, and Existing customers who transitioned, to Business Central on-premises before October 3, 2022, are exempt from this fee and are not required to license non-Universal Code modules in their current configuration.

Action points to avoid fees:

• Ensure all code on the customer’s license is 'Universal Code' (cloud-optimized extensions).
• Technical enforcement from Q4 2022 onwards only allows 'Universal Code.' Follow the guidelines in your app.json, and ensure solutions meet SaaS requirements.
• If you as a partner are using a Business Central addon, make sure to publish your apps on Microsoft App Source, if you haven´t done so already, to avoid this cost being applied to your customer.

Fee charging:

LS Retail has the universal code Waiver from these Universal code fees until end of 2024 after that, if the customer is not on version 22 or later, the below fee will apply.
Fees for non-Universal Code modules will be included in the customer’s Enhancement renewal quote, charged annually, partner discount included. If the customer licenses the non-universal code modules midway through their enhancement plan period, they will be charged prorated fees on the order.

Known Issues and fixes

For customers running on different license version from the technical version and are receiving a UC non compliant error, we would like to recommend running a technical upgrade to the latest minimum CU to fix the problem.

Please note that ONLY a technical upgrade is required (no need to update the Application). Standard full upgrade is however the recommended solution.  

 
LS Retail hotfix breakdown list:  https://help.lscentral.lsretail.com/Content/Hotfixes-And-Breaking-Changes.htm

Microsoft documentations:
BC20 On prem. Universal Code requirement error after installing customer's license. - Dynamics 365 Business Central Forum Community Forum(40) Yammer : Dynamics 365 Business Central Development : View Conversation

https://community.dynamics.com/blogs/post/?postid=7cbcedf6-074c-466a-a532-db44dfd8f859

Please contact licenses@lsretail.com if you have any questions regarding the above.