Dynamics 365 Business Central: Costs explained in detail

What does Microsoft Dynamics 365 Business Central cost?

Dynamics 365 Business Central is a comprehensive ERP system from Microsoft, part of the Microsoft Dynamics 365 family. It is built for small and mid-sized companies and centralizes finance, sales, service, and operations. It also integrates seamlessly with other Microsoft 365 applications.

Business Central is based on the Dynamics NAV (Navision) codebase and will fully replace it by the end of 2028 at the latest. It gives users modern, cloud-based capabilities and regular updates that improve flexibility and scalability.

Learn more about Dynamics 365 Business Central.

Licensing models and costs for Dynamics 365 Business Central

Microsoft offers Dynamics 365 Business Central as both a cloud solution and an on-premises option. Which version fits your company better depends on your needs. Total cost also varies by the type and scope of licensing.

Business Central Cloud (Software as a Service, SaaS)

In the cloud version, the ERP system is hosted in Microsoft’s data centers on Microsoft Azure. As a user, you pay a monthly subscription fee that covers the license plus hosting, regular updates, and maintenance. Those fees also cover ongoing product development and base support from Microsoft. Total cost varies by license type and the number of subscriptions.

Business Central On-Premises

With the on-premises version of Business Central, you decide whether to run the ERP system on your own servers or on third-party servers. Licenses are available either as a one-time purchase (perpetual licensing) or as a subscription.

As of April 1, 2025, Microsoft plans to stop offering new perpetual licenses for the on-premises version. Existing customers with active maintenance agreements are not affected.

In addition to purchasing licenses, an annual Enhancement Plan is required. That maintenance agreement covers updates, feature enhancements, and basic technical support. The cost is 19% of the license price.

License pricing

Dynamics 365 Business Central uses a monthly licensing model with pricing based on the user licenses you choose. Licenses are assigned per named user, so each person needs their own user license. License costs are available in Swiss francs, so you can budget without exchange-rate swings.

There are three license types:

1. Essentials License from CHF 64.80 per user per month: This license covers the core ERP capabilities for managing and running mid-sized companies.
2. Premium License from CHF 89.10 per user per month: The main difference between Essentials and Premium is the manufacturing and service management modules. Premium is especially relevant for manufacturing companies and service providers.
3. Team Member from CHF 6.50 per user per month: There are also lower-priced Team Member licenses for employees who only need occasional access to the system.

What does implementing Microsoft Dynamics 365 Business Central cost?

Implementing Dynamics 365 Business Central is an extensive process that covers planning, configuration, and integration of the ERP system. That is where Nexova Dynamics comes in: as an experienced partner, Nexova Dynamics handles the full implementation, from initial system setup and migration from an existing ERP system through to employee training.

Initial setup from CHF 7,900

Nexova Dynamics offers implementation, meaning the base setup of Business Central, from CHF 7,900. Initial setup includes the key elements: base configuration, VAT setup, custom invoice templates, and SwissSalary implementation.

Migration from CHF 12,900

The cost to set up Business Central including data migration and configuration starts at CHF 12,900 for a straightforward NAV migration. Prices vary widely and can exceed CHF 150,000 for complex industry solutions that need extensive software customization.

Implementation process

To give you an idea of what a Business Central implementation involves, here is a typical project flow:

1. Planning and consulting: Nexova Dynamics first works with you to determine whether Business Central meets your requirements, and if so, which deployment option (on-premises or cloud) and which license types you need.
2. Configuration and customization: The solution is set up and tailored to your company’s individual needs. Nexova Dynamics helps meet specific requirements and optimize the user interface.
3. Integration and data migration: Business Central is also integrated with existing systems such as CRM or payroll. If you already use an ERP system, existing data is migrated smoothly.
4. Testing and training: Next comes a test phase where you verify all processes and train employees.

Cost factors in implementation and migration

Implementation costs depend on the scope of customizations and integrations. Typical factors include:

• Base configuration: Setting up the standard processes and capabilities in Dynamics 365 Business Central so they reflect the company’s core requirements.
• Project management: Planning and coordinating the implementation project so timelines and budgets stay on track.
• Customizations: Depending on individual company requirements, special customizations may be needed that drive up implementation costs.
• Training: Employee training for effective use of Dynamics 365, to ensure a smooth transition to day-to-day use.

Additional cost factors when migrating from another ERP system:

• Data transfer: Moving master data, historical data, and other key information from the old system into Dynamics 365, which can require extra effort and specialized tools.
• Integrations: Integrating and customizing connections to existing systems such as CRM, e-commerce platforms, or accounting tools so Dynamics 365 and other systems communicate smoothly can also add to the cost.

Further reading: “When does investing in an ERP system pay off?”

Ongoing operating costs of Business Central

On top of the costs above, you should also budget for ongoing operating costs. They include:

License fees and subscriptions

As noted earlier, Business Central uses a monthly or annual licensing and subscription model. These costs make up the largest share of ongoing operating costs.

Support and continuous improvement

Dynamics 365 Business Central offers several support options. Base support is included in the license price. Professional Direct Support is available from CHF 8.10 per user per month with a minimum of 20 users. The Unified Enterprise support package covers all Microsoft products and provides the highest level of support; pricing is available on request only.

Technical support is usually provided by the Business Central partner you purchased the product from. Support for maintenance, security, and process optimization from Nexova Dynamics is CHF 210 per hour.

Training

Ongoing employee training is another cost factor, but it is essential for getting the most out of the system. Microsoft offers free online training for Dynamics 365 Business Central on Microsoft Learn, which you can complete at your own pace.

There are also authorized training providers in Switzerland that offer in-person courses and workshops. For example, CT Academy offers the course “Microsoft Dynamics 365 Business Central Essentials.” Another provider is PC-COLLEGE, which also runs training in Switzerland. Prices for these courses vary by provider, course content, and duration.

Extra costs and potential cost pitfalls

Even though Business Central covers the core ERP capabilities small and mid-sized companies need, your company may still require additional capabilities. You should also look ahead: where is your company headed, and which capabilities might your ERP system need then?

To avoid later surprises, include potential extra costs in your budget up front.

Add-ons and extensions

Add-ons are additional capabilities available from the Microsoft AppSource store or from partner companies. Typical add-ons include:

• Industry modules: For example, retail extensions that provide deeper inventory management or POS integration. One example is LS Central, which is tailored to retail companies and adds capabilities such as POS management and store management.
• Production modules: Manufacturing companies often need specialized modules for production planning and control that the base version of Dynamics 365 Business Central does not fully cover.
• Specialized capabilities: Companies with demanding data analysis and reporting needs often use add-ons such as Power BI extensions for dynamic reports or document automation modules to digitize manual document processes.

Company-specific requirements

If your company has highly specific requirements that standard capabilities and add-ons cannot cover, customizations are required. Those customizations can significantly drive up costs because they require substantial development and often ongoing support.

• Custom development: Custom development is often needed when connecting to third-party systems, such as an existing CRM or a specialized logistics system. That work also has to be reviewed and possibly updated with every new Dynamics version, which can create ongoing costs.
• Integration work: Connecting to external systems that are not natively supported is a common reason for customizations. Every interface has to be checked regularly for functionality and adjusted for updates.