Microsoft Business Central versus Microsoft Dynamics GP: Key Comparisons for a Smooth Migration
The right business management software can streamline operations, boost efficiency, and pave the way for future growth.
With so many options available, picking a new software platform that best suits your business can be challenging.
This article focuses on two widely used ERP software options: Microsoft Dynamics 365 Business Central (BC) and Microsoft Dynamics GP (Great Plains).
We'll delve into a side-by-side comparison of these platforms to help businesses like yours make a well-rounded decision when considering upgrading to Business Central.
Whether you're a small start-up gearing up for growth or a well-established enterprise looking to optimize operations, understanding the capabilities and differences of these systems is key to choosing the software that best suits your business's unique needs.
Reach out to us today to explore how Dynamics 365 Business Central can enhance your business. We specialize in Dynamics GP to Dynamics BC migrations.
Overview of Microsoft Dynamics 365 Business Central
Microsoft Dynamics 365 Business Central is a dynamic Enterprise Resource Planning (ERP) solution, particularly effective for small to medium-sized businesses.
It is a comprehensive, cloud-based ERP (Enterprise Resource Planning) system, bringing together various aspects of business operations.
Here's a breakdown of what Business Central offers:
A. Primary Function: Business Central is an all-in-one platform integrating key business functions such as finance, fixed assets, projects, purchasing, sales, inventory, manufacturing, distribution, service, and operations. It aims to streamline processes and boost efficiency, making it a go-to choice for businesses seeking an integrated approach.
B. Origin and Evolution: Originating from the Microsoft Dynamics family, Business Central has evolved from a very robust software full of history and thousands of customers: Dynamics NAV. This progression highlights Microsoft's focus on delivering cloud-based, adaptable solutions for the evolving business world.
C. Target Market: Tailored for small to medium-sized businesses, Business Central offers a solution that scales with business growth. Its cloud-based nature ensures flexibility and accessibility, essential for businesses in a fast-paced environment.
D. Key Features
Fully cloud, SaaS based software: Business Central is a fully cloud, robust SaaS software. It is hosted in the Microsoft cloud and is fully maintained and upgraded by the Microsoft team. This includes access to one production environment and three sandbox environments included with the licensing. Users have the capability to schedule and perform test upgrades in the cloud environments.
Microsoft 365 Built-In Capabilities: Built-in integrations with Microsoft 365 including licensing and security through the Microsoft 365 admin center, Entra security groups, built-in integrations with Outlook, Word, Excel, Teams, and Power BI. Extenability capabilities for free using Power Automate and Power Apps.
Built-in API Endpoints: API capabilities and endpoints are already included with Business Central, allowing it to be extended to/from any other key business system.
Dynamics 365 Sales/Customer Engagement (CRM) Connection: Business Central has a built-in connector with Dynamics 365 Sales (CRM) to sync contacts, accounts, items, sales pricing sales orders, sales invoices, quotes and more.
Financial Management: Simplify financial operations and reporting.
Supply Chain Management: Streamline inventory and logistics.
Sales and Service Management: Enhance customer interactions and sales processes.
Project Management: Manage projects efficiently from start to finish.
Purchasing Management: Robust purchasing capabilities with OCR scanning, payment approvals, vendor management, planning and more.
Manufacturing: Robust manufacturing, planning, warehousing and barcoding capabilities.
Multi-Entity, International and Consolidation: Manage multiple entities, locations, international locations, all with intercompany, inter entity and consolidation features.
E. Sample Use Cases
In retail, it's used for managing inventory and predicting sales trends with a built-in connector with Shopify and other ECommerce platforms like Sana.
In manufacturing, it helps organize production schedules and manage capacity, planning and related purchasing functions.
For service-oriented businesses, it aids in resource planning and improving customer relationships.
Healthcare organizations love Business Central for it’s built in API capabilities, allowing BC to integrate with other systems, including billing systems.
Business Central's strength lies in its ability to provide a unified solution, making it an ideal choice for businesses seeking a robust, integrated ERP system tailored to their specific operational needs.
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Overview of Microsoft Dynamics GP
Microsoft Dynamics GP, formerly known as Great Plains (GP), stands as a premier ERP solution tailored for small to medium-sized businesses.
This system simplifies critical business functions from finance to inventory management, offering a streamlined approach to enterprise resource planning (ERP).
A. Role in Business Resource Planning: Dynamics GP is renowned for its robust financial management capabilities, making it a popular choice for businesses seeking to optimize their accounting processes. It extends beyond just accounting, offering tools for human resources, inventory management, and operational control, thus covering a broad spectrum of business resource planning needs.
B. History and Development: The journey of Dynamics GP began long before cloud computing became a staple in business technology. Originally developed by Great Plains Software in the early 1990s, Microsoft later acquired it, becoming a key component of their Dynamics suite. Over the years, Dynamics GP has evolved, integrating new technologies and adapting to changing market demands while maintaining its core strengths in financial management and business operations.In 2025, Microsoft will no longer allow the sales of new GP instances and deployments.
C. Primary Audience: Dynamics GP had cemented its position as a go-to ERP solution for small to medium-sized businesses. Its user-friendly design and powerful functionality make it particularly appealing to organizations that require a robust ERP system without the complexity often associated with larger, more intricate systems.
D. Notable Features
Financial Management: Includes tools for account management, general ledger, and customizable reporting.
Supply Chain Management: Facilitates efficient inventory tracking, order processing, and procurement.
Human Resource Management: Manages employee information, payroll, and benefits.
Business Intelligence and Reporting: Provides insights and analytics for informed decision-making.
E. Common Applications
They are widely used in sectors like manufacturing, for managing supply chain and finance.
Retail businesses utilize it for inventory management and sales tracking.
Nonprofits and service-based companies benefit from its human resource and financial management tools.
Dynamics GP was about offering a comprehensive, user-friendly solution for managing all aspects of a business.
Comprehensive Feature Comparison – Business Central vs. Microsoft Dynamics GP
Understanding the differences in their core features is crucial when choosing between Microsoft Dynamics 365 Business Central and Dynamics GP.
This comparison covers key areas like finance management, supply chain management, project management, and more to help you decide which best suits your business needs.
1. Finance Management
Business Central: Offers robust financial tracking and reporting capabilities, automated financial processes, and easy integration with other Dynamics 365 application. BC offers a built-in financial report writer, cash flow forecasting, multiple budgets, integrated and automated banking and more.
Microsoft Dynamics GP: Known for its strong accounting features, Microsoft Dynamics GP provides detailed financial reporting and streamlined account management, though it has less integration flexibility than Business Central.
2. Supply Chain Management
Business Central: Excels in real-time inventory management and has advanced supply chain automation, making it ideal for businesses requiring a dynamic supply chain solution.
Microsoft Dynamics GP: Offers solid supply chain management tools, but lacks Business Central's real-time capabilities. It's more suited for businesses with less complex supply chain needs.
3. Project Management
Business Central: Integrates project management closely with other business functions, allowing for efficient resource allocation and budget tracking.
Microsoft Dynamics GP: Provides fundamental project management tools, but with less integration compared to Business Central.
4. User Experience
Business Central: Known for its intuitive interface and ease of use with the platform being accessible from anywhere, especially for those familiar with other Microsoft products. Smooth and very fast web interface allows users to personalize and easily access their data in the cloud.
Microsoft Dynamics GP: Has a more traditional interface, hosted on servers with RDP and VPN access, which can causes struggles with accessing data from anywhere. GP has to be maintained and upgraded and the user interfaces are outdated and not easy to customize.
5. Customization and Mobile Support
Business Central: Offers extensive customization options and strong mobile support, allowing users to work from anywhere.
Microsoft Dynamics GP: Customization is possible, but might require more technical expertise; mobile support is very limited compared to Business Central.
6. Integration and Scalability
Business Central: Seamlessly integrates with other Microsoft products and many third-party tools, and scales well with business growth. Integrations are made easy using the Microsoft Power Platform.
Microsoft Dynamics GP: Supports basic integrations using integration tools, but is less flexible in scaling and integrating with a wide range of modern tools.
7. Performance
Business Central: Delivers high performance, especially in cloud-based environments, with continuous updates and enhancements.
Microsoft Dynamics GP: Offers reliable performance, but lags in cloud-based advancements and frequent updates. GP must be upgraded by the end user client or partner company, causing companies to spend thousands per year in upgrades alone.
While both Business Central and Microsoft Dynamics GP are competent in their rights, Business Central generally offers a more modern, integrated, and scalable solution, especially suitable for businesses looking for cloud-based ERP.
In contrast, Dynamics GP is quickly becoming an outdated software in terms of AI and cloud advancement, leading companies to seek an alternative cloud software.
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Cost Analysis and Return on Investment
Understanding Business Central's pricing and potential return on investment (ROI) is crucial when weighing it against Microsoft Dynamics GP.
Here’s a breakdown of their costs, including factors affecting total ownership cost, and assesses the ROI for each:
1. Pricing Overview
Business Central uses a subscription model (includes environment hosting, three sandbox environments and upgrades provided by Microsoft), pricing starts at $70.00 per user per month for Essentials and $100 per user, per month for premium.
Clients currently using GP can benefit using the Bridge to Cloud promotions, which offer a three year discounted licensing of 40% off MSRP license costs.
A notable addition is its built-in connectivity with Dynamics 365 Sales (CRM) and Dynamics 365 Field Service, which offers an extra $20 per month of CRM or Field Service capabilities.
Microsoft Dynamics GP generally follows a traditional licensing model with an annual renewal due per month. This does not include the server costs, upgrade costs or any other related hardware and software costs.
The price varies, especially between on-premise and hosted options, with the former often requiring more upfront investment.
2. Total Cost of Ownership (TCO)
The TCO for Business Central encompasses subscription fees, customization, training, and any added cloud services.
Its cloud-based nature typically means no hardware and very low IT costs.
Microsoft Dynamics GP's TCO includes licensing fees, hardware costs (for on-premise setups), ongoing maintenance, and customization.
On-premise solutions can lead to higher initial IT and hardware expenses and a higher exposure to server hacking.
3. Implementation and Maintenance Costs
Thanks to its cloud-based, user-friendly design, Business Central tends to have a quicker, more affordable setup.
Microsoft Dynamics GP might require a more involved and potentially pricier setup, especially for on-premise systems.
Ongoing IT support and infrastructure maintenance can also add to the cost.
4. Return on Investment (ROI)
With its integrated, scalable approach and added CRM functionality, Business Central can deliver significant ROI.
This is seen in reduced operational costs, higher efficiency, and the ability to scale easily.
Microsoft Dynamics GP can offer a strong ROI for those needing a robust, on-premise ERP system, especially in financial management.
The ROI is reflected in better financial control, streamlined operations, and a lesser need for external systems.
Conclusion – Business Central vs. Microsoft Dynamics GP (Great Plains)
Upgrading Dynamics GP to Dynamics 365 Business Central hinges on your business's specific needs.
It is advisable to consult experts and try demos to ensure Business Central supports both your current operations and future growth.
We offer a low cost discovery project, called Why Not Dynamics 365 BC, which includes requirements gathering, a more personalized demo and a tailored implementation proposal.
Reach out today to see how Business Central can streamline your operations and empower your team for better results.
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