Business Central vs. Dynamics 365 Finance

At a glance: Microsoft Dynamics 365 Business Central and Finance/Supply Chain Management

Over the past few years, Microsoft Business Central and Dynamics AX have become two of the leading ERP systems. Business Central joined the Dynamics 365 family in 2018. It is an evolution of Dynamics Navision and will replace that ERP system in the near future. It is intended for small and mid-sized companies (SMEs) looking for a flexible ERP system that is easy to implement.

Microsoft Dynamics AX was renamed Dynamics 365 for Finance and Operations (F&O) when Dynamics 365 launched in 2016. This was part of Microsoft’s initiative to move various Dynamics products to an integrated cloud platform. The ERP system was aimed at large, complex organizations with extensive requirements for financial management, supply chain management, and manufacturing.

In October 2019, Microsoft split Finance and Operations into two separate applications to provide specialized solutions and promote modularity:

1. Dynamics 365 Finance for financial management.
2. Dynamics 365 Supply Chain Management for logistics and production processes.

Below, we consider Dynamics 365 Finance/Supply Chain Management together and compare it with Microsoft Dynamics 365 Business Central.

The comparison: Business Central vs. Finance/Supply Chain Management

This comparison answers the key questions you may have. What features do the ERP solutions offer? How much do they cost? What options are available for extending them? Which version is a better fit for my company? We’ll start with the heart of any ERP software: its features.

Features and modules in Microsoft Dynamics 365 ERP solutions

Microsoft Dynamics 365 Business Central (formerly Dynamics Navision) is specifically designed to efficiently manage the core processes of small and mid-sized companies. It offers a clear, easy-to-use interface that makes it easy to get started, even for companies with limited IT experience.

Dynamics 365 Finance/Supply Chain Management, on the other hand, is designed for companies that need to manage complex business processes on a large scale, from multinational corporations to industry leaders with demanding requirements.

• Sales and CRM: Integrated tools for quote and order management.

Technical architecture and deployment options

Both Business Central and Dynamics 365 Finance/Supply Chain Management take a cloud-first approach and are supported by Microsoft’s Azure cloud platform. This means they integrate seamlessly with other Microsoft services such as Power BI and Microsoft 365. Deployment is similar for both systems, but they differ in scalability.

Dynamics 365 Business Central

Business Central is a flexible ERP solution that is available as a cloud version and can also be installed locally. A hybrid solution is also possible. The software is ideal for organizations with relatively straightforward processes and moderate data volumes, and provides a solid foundation for growth. Thanks to horizontal scalability, companies can easily add users or integrate modules.

However, with more complex requirements, such as moving from regional to international business processes, Business Central may reach its limits, making Dynamics 365 Finance/Supply Chain Management a suitable alternative.

Recommended reading: “Microsoft Dynamics 365 Business Central: Cloud vs. on-premises”

Dynamics 365 Finance/Supply Chain Management

Although the ERP software is available in both cloud and on-premises versions, its focus is on the cloud, since advanced features such as AI-powered analytics can be fully used only there. The system is characterized by vertical scalability, enabling companies not only to add users and modules, but also to activate additional features and more complex processes within the existing system architecture.

The software also supports large volumes of data and thousands of users, and offers flexible options for international expansion, such as adding multiple languages, currencies, and tax regulations.

Comparing costs: licenses, maintenance, and support

Both ERP systems use a subscription model that charges a license fee per user per month. However, their cost structures differ significantly, especially for maintenance and support.

Dynamics 365 Business Central

Companies can choose from different license types, depending on whether users need full access or only specific features. The basic license starts at CHF 64.80.

Maintenance costs are relatively low because the system is less complex and generally requires fewer customizations. With the cloud solution, Microsoft handles security updates, platform optimizations, and system updates.

Dynamics 365 Finance/Supply Chain Management

A Dynamics 365 Finance/Supply Chain Management license costs CHF 376.20 per user per month. Each module costs CHF 188.10. With the cloud version of this ERP solution, updates and system upgrades are included, but maintenance costs are generally still higher than for Business Central.

This is because the system is more complex and often requires customizations. These customizations may require additional IT resources or external experts.

Companies with an on-premises installation incur additional hardware maintenance and IT management costs. This applies to both systems.

Support options for Dynamics 365 products

• Basic support: Included in the license price for both ERP solutions.
• Professional Direct: Enhanced support is available starting at CHF 8.10 per user per month, with a minimum of 20 users.
• Unified Enterprise: Comprehensive support package for all Microsoft products. Pricing is available by request only.

Users of Dynamics 365 Finance/Supply Chain Management generally need Enterprise support because their requirements and processes are more complex. For this reason, support costs are higher for this ERP solution than for Business Central.

Implementation

Microsoft Business Central and Dynamics 365 Finance/Supply Chain Management differ in the resources, timelines, and costs involved in implementation. Here’s what to expect when implementing either system.

Dynamics 365 Business Central

Business Central is designed to be ready for use quickly. Projects can be completed within two to six months. Integrating Business Central into your existing environment is straightforward, especially if you already use Microsoft products such as Microsoft 365, Power BI, Azure, or Teams. Business Central also offers numerous APIs and web services for exchanging data with other systems.

Standard features reduce the need for customization, and integration with Microsoft 365 and the intuitive user interface allow users to get up to speed quickly without extensive training.

If you don’t have internal IT resources available, you can turn to external implementation partners such as Nexova Dynamics, which can manage the system’s implementation at your company.

Dynamics 365 Finance/Supply Chain Management

Implementing Dynamics 365 Finance/Supply Chain Management is complex and can take between six and 18 months. If you already use Microsoft products, integration is usually smoother because Dynamics 365 is optimized to work seamlessly with these tools and offers prebuilt integrations.

However, more resources and more intensive training are usually needed to prepare employees to work with complex modules. Support from experienced implementation partners is essential to ensure a smooth, error-free implementation, especially with complex system environments or international requirements.

Recommended reading: “Why ERP projects regularly fail and how to improve their chances”

Ease of use

Business Central stands out for its simple, user-friendly interface, which is modeled closely on Microsoft Office. As a result, users find their way around quickly, and training requirements remain low. The software can be customized without requiring extensive technical expertise, which is particularly important for SMEs.

Dynamics 365 Finance/Supply Chain Management offers a more powerful but also more complex user interface. The learning curve is steeper because its modules and features are designed for large companies with specialized teams. Customizations are also possible, but often require deeper IT expertise.

Security and compliance

Business Central offers basic security measures, such as data encryption and role-based access controls. Integration with Azure provides automatic updates and strong protection against security vulnerabilities. It complies with international data protection laws such as the EU’s GDPR and the Swiss Data Protection Act (FADP), and is ideal for SMEs with less complex compliance needs.

Dynamics 365 Finance/Supply Chain Management extends security standards with AI-powered threat detection, global data encryption, and detailed role-based access controls. It supports international regulations such as IFRS and GAAP and is designed for companies with global and industry-specific compliance requirements.

Which ERP system is better suited to my company?

Microsoft Dynamics Business Central is ideal for SMEs looking for a powerful yet straightforward solution. Its ease of use, affordable license costs, and simple implementation make it particularly suitable for companies with limited resources. The ERP system offers an all-in-one solution for accounting, finance, sales, purchasing, inventory management, and manufacturing that can be integrated flexibly with other Microsoft products.

Dynamics 365 Finance/Supply Chain Management, on the other hand, is designed for large multinational companies. The software focuses on finance and supply chain processes and offers comprehensive features for financial management, global compliance, and complex manufacturing processes. Its ability to process large volumes of data and meet international requirements makes it the preferred choice for companies with multiple locations and complex workflows.

Here is a summary of the key points: