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Files exchange in between systems is not the best way to integrate. However, when API is unavailable or cannot be used, SFTP (SSH/Secure File Transfer Protocol) can be one of the options to consider
For Business Central on-premises you can use WinSCP dotnet libraries and successfully read/write/delete files directly on SFTP server. However, you can't use this approach for SaaS Business Central. What can be done in that case? The answers are provided in the article below.
Dedicated to Basic authorization deprecation.
Do you like developing integrations like we do in Siberus?
For the last few months we did quite a few of them: bank sFTP connectors, webhook subscriptions etc. They all were totally different but with one thing in common: OAuth 2.0. Below you can find detailed instruction on how to set it up.
We'll use service-to-service connection to avoid using user account for this, so you don't need to have an extra license for your integration - the connector itself will be your "user".
OAuth 2.0 requires intermediate App Registration in the Azure portal to obtain authentication bearer token. It is valid for about 1 hour, but refreshes automatically.