Looking to expand its footprint in the world of cloud ERPs, Microsoft launched Dynamics 365 Business Central in 2018. The enterprise resource planning (ERP) solution primarily targets small to medium-sized businesses (SMBs). One point of confusion for many is that Microsoft already had other ERP solutions in the market that had become very popular.
Business Central was initially known as Dynamics NAV, the on-premises version. You also had Dynamic AX, whose functionality is now spread across Dynamics 365 Finance, Project Operations, and Human Resources. There’s also Dynamics GP, another popular small business ERP.
If you’re considering moving from your on-premises Dynamics installation to the cloud, it helps to understand the benefits of such a move. That’s why we’ve prepared an overview of Business Central vs. Dynamics 365 popular ERPs.
Dynamics Business Central vs. Dynamics 365 NAV
If you’re already happy with Microsoft Dynamics NAV, you may wonder why you should switch to Business Central. One major thing to remember is that Microsoft is gradually phasing out support for different versions.
If you’re working in a 2018 or earlier version of NAV, Microsoft has already ended mainstream support, though you can still get extended support for versions 2015-2018. Check the support timeline for further information. That should be an important consideration when comparing Business Central to Dynamics 365 NAV.
The Business Central ERP is a software-as-a-service suite of cloud applications. It’s designed to help smaller companies manage work related to financials, project support, and manufacturing. As we said, it’s built on the backbone of what used to be Dynamics NAV.
One benefit of switching to Business Central is that it’s accessible from anywhere you have access to a web browser and the internet. That’s important for businesses that offer remote working options to employees.
Users can view all business functions through a desktop or mobile device interface. Business Central lets you build automated workflows that eliminate a lot of time-consuming manual tasks. Let’s look at an overview of Dynamics 365 Business Central essential functions.
Finance
You can use the general ledger to create new companies and perform the following functions:
• Post general ledger entries
• Manage sales tax
• Update journals and VAT
• Create reports using Power BI
Business Central lets you track your budgets and review all costs related to different projects. Thanks to the expanded analysis and reported capabilities, you can look at various budget scenarios as you review the general ledger actuals.
Sales
Salespeople can create a centralized view of contacts and organize them into categories. This makes it easier to develop a personalized approach to boost conversions. Users can also record updates on various transactions and keep track of potential duplicate contacts.
Business Central lets you track phone calls, letters, and other communication with contacts. In addition, salespeople can attach documents and automatically log other interactions like orders and sales quotes.
Project Management
You can keep up with your resources and related project costs. Business Central also offers functions to help with planning capacity for various projects. This module also supports timesheet tracking and task management.
Comparison to Dynamics NAV
There’s a reason Microsoft chose NAV as the framework for Business Central. It covers many of the same functions and integrates with other Microsoft products. There are modules for Sales and Marketing, Finance, Project Management, and Supply Chain operations. There’s also reporting available so that users can provide feedback to relevant parties on sales, budgets, salaries, operational expenses, sales, and purchases.
One reason to consider the move is the flexibility offered by Business Central. Instead of continuing to pay maintenance costs for your on-premises servers, you can pay a monthly fee and let Microsoft handle everything from software updates to security management. You can integrate your reporting with Power BI to create interactive dashboards with your data.
Microsoft Business Central vs. Dynamics 365 GP
Microsoft Dynamics Great Plains (GP) software helps users support accounting and other essential business management functions. It’s typically found in industries like manufacturing, eCommerce, and construction. You can use it to manage lockbox processing, cash flow management, and check refunds.
You must work with a licensed provider like Internet eBusiness Solutions (IES) to purchase a license. One distinction of GP is that it’s also available as an Infrastructure-as-a-Service (IaaS) platform. Companies typically use GP to:
• Manage supply chain functions like monitoring inventory and setting product prices
• Track the product processing cycle and keep up with available resources
• Monitor financial data throughout the organization
• Maintain company benefits for workers
Benefits of Upgrading to Business Central
While GP can also be purchased as a cloud solution, Business Central integrates with Azure Cloud. Your business data gets housed in secure servers with added protections like data encryption. That means customers can easily purchase additional resources to support their growing business. Because Business Central was built as a cloud-first solution, you can get up and running immediately after setting up your account.
Business Central also receives direct updates for new features, security patches, and other improvements without requiring much IT support. GP doesn’t receive updates as frequently. In addition, there are no plans to make new improvements to Dynamics GP. All of Microsoft’s ERP efforts are focused on improving Business Central.
Business Central also integrates directly with other Dynamics applications like Office 365, Power Platform, Power Automate, and Power BI. If you already work with these products, you can build a unified ecosystem and share information throughout your enterprise.
There’s less support for integrations with GP. If you want to work with a solution like Power Automate, you'll need to build customizations to achieve what you can do more quickly with Business Central.
In addition, Business Central uses Microsoft’s Unified Interface and adapts to different screen sizes for optimal viewing. That also gives users a seamless experience when working in different Microsoft environments. GP uses an older interface that might not feel as fresh.
Find the Right ERP Solution With IES
IES works with companies to find tools that fit their business goals. We can streamline the process of moving from an older on-premises Dynamics 365 solution to a modern cloud platform. Contact one of our representatives to learn how we can transition you to a modern business environment.
