Dynamics 365 Business Central replaces Dynamics NAV as Microsoft’s integrated ERP solution for small and medium-sized enterprises. Dynamics 365 for Finance and Operations, in turn, replaces Dynamics AX as the highest-end Microsoft’s ERP solution.
Microsoft presents Dynamics 365 as a modular solution allowing you to choose the modules your company needs – Sales, Marketing, Finance and Operations, Customer Service, Retail, Talent and more.
Dynamics 365 Business Central, on the other hand, is a complete solution allowing for integration with more extended modules. However, it is intended as a standalone solution.
Differences between Dynamics 365 Business Central and Finance and Operations
Here are 4 more ways to distinguish between the two solutions:
Number of users
The number of users with full rights in the organization affects not only access rights but also the scale of the system. Dynamics 365 for Finance and Operations requires 20 licenses with full rights, while Dynamics 365 Business Central does not have a requirement for a minimum of licenses, so it is an appropriate solution for smaller organizations. According to Microsoft data, the average number of users noted in Business Central installations is around 10-15, with the largest Business deployments being around 60 full right users.
Integration is again an important distinguishing element between Business Central and Finance and Operations. Business Central is intended as an all-in-one business solution. Microsoft provides for out-of-the-box integration of Dynamics 365 for Sales.
For Dynamics 365 for Finance and Operations, the option for integration is embedded in the modular approach to Dynamics 365 solutions and is therefore easily integrated with Talent and Retail as part of the Unified operations plan. Using the Common Data Model, it’s easy to integrate Finance and Operations with other Dynamics 365 applications.
Different tax locations
For companies operating in several countries, taxes may represent a significant challenge. Both solutions, Dynamics 365 Business Central and Dynamics 365 Finance and Operations, have the necessary functionality to help you handle different currencies and tax regions. But the more the countries in which the company operates, the more you will need the functionality of Dynamics 365 for Finance and Operations. Dynamics 365 Business Central is available in 16 countries, while Dynamics 365 for Finance and Operations is available in 30 countries and has better customization settings according to the tax rules of each region.
Number of transactions
The number of transactions processed in the ERP system is another important thing to keep in mind. If you process thousands or tens of thousands of transactions, Dynamics 365 Business Central is the right solution to provide the resources you need. When you reach hundreds of thousands of transactions, Dynamics 365 for Finance and Operations is the right solution for your company.
The main conclusion is that for large-scale companies, the choice must be for Dynamics 365 for Finance and Operations. For small and medium-sized enterprises, Dynamics 365 Business Central is a good alternative. Both solutions come with the integration of Office 365, power platform and AI opportunities to transform your organization.