BC Tip #18 - Copy Company vs. Creating Sandbox in Business Central
- Ben Cole
- Apr 22
- 8 min read
If you have ever stopped and asked, Should I just copy this company, or do I actually need a sandbox? you are definitely not alone.
This is one of the most common points of confusion for Business Central users and it has a larger impact than you would think.
On the surface, both options can feel like a way to safely test things. However, they are not the same, and treating them like they are can create real production headaches.
The short version is this:
Copy Company creates a duplicate company inside the same environment.
Create Sandbox creates a copy of the entire environment, into a new standalone Sandbox Environment.
For step by step instructions on how to compelte each - jump to the bottom
Table of Contents
Copy Company - What is it?
When you use Copy Company in Business Central, you are creating a duplicate of a company inside the same environment, which is most often your production environment.
That means the copied company brings over the company’s data and setup, but it does not create isolation at the environment level.
Here is the important part people miss: even though you now have what looks like a separate test company, it is still living inside the same environment as production.
So the copied company still shares things like:
Users
Extensions
Integrations
Job queues
Other environment-level settings and processes
This is where the risk starts to show up.
Copy Company - Why it can be misleading
A copied company often feels safe because it looks separate. It has a different company name, it contains copied data, and it gives the impression that you are working in a test area.
But you are still in the production environment.
That means actions tied to the environment can still happen.
Integrations may still run.
Emails may still send.
Automations may still fire.
If something is configured at the environment level, your copied company does not magically shield you from it.
The biggest issue I see here is with extensions (both PTEs and AppSource Downloads).
If someone thinks, “I’ll just install or change this extension in my test company,” that change is not isolated to that one copied company. Because extensions are shared at the environment level, that change will impact every company in that environment, including live production companies.
So if your production environment has 10 companies and you copied one of them for testing, an extension change does not stay inside that copied company. It affects the environment and all 10 companies in that environment.
That is why a “test company” inside production can quickly turn into a production problem.
Copy Company - When is it useful?
None of this means Copy Company is bad. It just means it needs to be used for the right kind of work.
Copy Company is great for:
Quick troubleshooting
Testing setup changes
Validating data scenarios
If you need a fast duplicate of a company for light testing, Copy Company can be a very practical option.
You just need to go into it knowing:
It is still inside production.
It still shares environment-level components.
It is not the right place for risky extension testing/changes.
Ultimately - the biggest driver for me is the extensions. If you want to test extensions, keep reading, and I highly advise using a new sandbox to do so.
Creating a Sandbox - How is this different?
When you create a sandbox environment by copying from production, you are not just copying one company. You are copying the entire environment.
That means if your production instance has 10 companies, your sandbox copy includes all 10 companies, their data, their configuration, and the extensions present in that environment at that moment.
It is essentially a snapshot in time of the environment you selected.
That is a much bigger copy than Copy Company, but the real value is not just the size of the copy. It is the isolation.
Creating a Sandbox - Why isolation matters
A sandbox environment is separate from production. That separation is what makes it the safer choice for more involved testing.
Some of the practical differences include:
Separate URLs
Job queues automatically stopped
Agents turned off by default
No real risk to live operations
That isolation is the whole point. You are no longer pretending to test safely inside production. You are actually working in a space designed for testing.
Some people call these Sandbox, QA, DEV, Staging. You name it, they are typically all referring to a sandbox environment, in D365 Business Central.
Creating a Sandbox - When is it the right choice?
If the change you want to make could impact the environment, a sandbox is usually the right answer.
That includes things like:
Extension testing and debugging
Installing preview or development versions of extensions
Testing AppSource apps
Upgrading to the latest version
General testing
End-user training
Integration validation
If you are building a per-tenant extension, working with a dev version of an app, or testing a new AppSource solution, please do it in a sandbox first.
If you are validating an integration with another platform or SaaS product, do it in a sandbox.
If you want users to practice without touching production, do it in a sandbox.
And if something goes sideways, the beauty of a sandbox is that resetting it is expected and perfectly fine.
Copy Company or Sandbox - How to decide?
If you need a fast copy of company data for light, low-risk checks, use Copy Company.
If you need true testing isolation, especially for anything involving extensions, upgrades, integrations, or user training, use a Sandbox.
A good rule of thumb is this:
Copy Company = shared risk
Sandbox = isolated risk
Copy Company
Duplicates a company inside the same environment
Copies company data and setup
Shares users, extensions, integrations, and job queues
Still tied to production
Best for quick troubleshooting, setup checks, and data validation
Create Sandbox
Copies the entire environment
Includes all companies, data, configuration, and extensions
Provides isolation from production
Uses a separate URL
Stops job queues and turns agents off by default
Best for extensions, upgrades, integrations, testing, and training
Both are useful. They just solve different problems.
Step by Step: Copy Company in D365 Business Central
Step 1: Search for Companies
Step 2: Highlight the company you want to copy, and click Copy.
Step 3: Give your new Test Company a name (Tip 18 Test Company in this case), click "I understand". Then click OK.
Please note - the disclaimer is essentially warning you that if you do this during business hours, it could impact performance.
Step 4: You will then see the screen below. It could take 5 to 10 minutes depending on how large the company you are copying is. Grab another cup of coffee or sit back and relax while you wait for your new copied company to be created.
Step 5: You will receive a notification that the company has been successfully copied.
Step 6: The final step is to navigate to your environment/company list. This new company will exist in the same environment as the one you copied from (in this case, Production). Select the company that was just created, and click Switch.
Congratulations - you have now successfully created and navigated to your newly created company.
Step by Step: Create a Sandbox in D365 Business Central
Step 1: Navigate to the Business Central Admin Center.
Step 2: Decide if you want to create a brand new sandbox from scratch, or if you would like to create a sandbox environment that is a copy of another environment that you currently have.
Sandbox Option 1: Create a new Sandbox from scratch
If you would like to create a brand new (blank) sandbox from scratch - click + NEW. Then follow the promps to complete.
Give the new environment a name, select the type (Production/Sandbox), the country/localization you want to deploy for, and the version number you want to deploy.
Then click Create.
Your new sandbox may take a few minutes to create. You will see it in a state called Prepaing while it is created. When it is complete, this State will update to Active.
Sandbox Option 2: Create a new Sandbox Copy of an existing Environment
If you would like to create a copy of an existing environment - you will first need to click into the given environment. In this case, let's copy production down to a sandbox.
Next - Click Copy.
Give the new sandbox environment a name (in this case BensTip18Test). You will then select the environment type.
Please note that you can only have 1 production environment. Since we are copying a Production environment down to a sandbox, it is warning us that we cannot have more than 1 production environment. Switch the environment type to Sandbox.
Click Yes.
Similar to what we saw before, it will sit in a state of Preparing before it becomes active. You cannot use the environment quite yet. Sit back and relax for a few minutes until it becomes Active, at which point you will be ready to utilize your new environment.
Final takeaway
If your goal is to keep testing from impacting production, the safest move is to stop thinking of a copied company as a sandbox. It is not.
A copied company is still production-adjacent because it still sits in the production environment.
A sandbox is where isolated testing belongs (especially when it comes to extensions).
So before making changes - pause and ask one simple question: Do I need a quick company copy, or do I need sandbox isolation?
That one decision can save you a lot of cleanup (and headaches) down the road.
FAQ
What is the main difference between Copy Company and Create Sandbox in Business Central?
Copy Company duplicates a single company inside the same environment. Create Sandbox copies the entire environment into a separate, isolated sandbox instance.
Is a copied company isolated from production?
No. A copied company still shares environment-level components such as users, extensions, integrations, and job queues. It may look separate, but it is still part of the same environment.
Can extensions installed in a copied company affect production?
Yes. Because extensions are shared at the environment level, installing or changing an extension in a copied company inside production will impact all companies in that production environment.
When should I use Copy Company?
Use Copy Company for quick troubleshooting, testing setup changes, or validating data scenarios where you do not need full isolation.
When should I create a sandbox environment?
Create a sandbox when testing extensions, debugging, validating integrations, performing upgrades, or training users. It is also the right place to install preview or development versions of apps.
Does a sandbox copy all companies or just one?
A sandbox created from production copies the entire environment, which includes all companies in that environment along with their data, configuration, and extensions.
Why are sandboxes safer for testing integrations and automations?
Sandboxes are isolated from production, have separate URLs, and typically have job queues and agents turned off by default. That reduces the risk of live processes running unexpectedly during testing.
Ready to optimize your Business Central environment with guidance from a BC expert?
Contact Ben Cole at Ben@BenColeBC.com or (214) 433-0923.
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Ben Cole is passionate about making Microsoft Dynamics 365 Business Central work smarter for real people—users and partners alike. With roots in public accounting, Ben’s seen firsthand how automation and clever solutions can transform the Business Central experience. He’s known for breaking down complex topics with a dash of wit and plenty of practical advice. If you want to get more out of Business Central (and maybe even enjoy the process), Ben’s your go-to guide.
(214) 433-0923
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