Product naming
In the late 90s, the world of ERP solutions was introduced to two unique products: Navision and Axapta. These were developed by different software vendors but both were acquired by Microsoft in 2002. Microsoft took a significant step by integrating all of its business applications, including both CRM and ERP, under the Dynamics 365 umbrella. However, Navision and Axapta, although part of the Dynamics 365 family, continue to operate on entirely distinct platforms.
Once known as Axapta, Dynamics 365 Finance & Operations (F&O) has evolved into tailored licensing options like D365 SCM, D365 Finance, and D365 HR, becoming the market’s leading ERP offer. On the other hand, the Business Central platform, previously Navision, is sold in two licensing options – Essential and Premium. While Premium offers additional features such as manufacturing functionality, it generally has fewer capabilities than the Finance & Operations platform.
Solution for every business size
As a flagship ERP solution, Finance & Operations is not just designed for enterprise-level business processes. It’s also tailored to meet the needs of small and medium-sized businesses.
Whether you’re a growing startup or an established medium enterprise, Finance & Operations offers everything that’s available in the Business Central platform and more. You can use the wide range of features and capabilities that make Finance & Operations a suitable and scalable option for businesses of all sizes.
Licensing cost: Business Central
In Business Central you can start with as little as one user license, with no minimum requirement. Essentials licenses are $70/user per month, and Premium licenses, including manufacturing functionality, are $100/user per month. For example, 10 Essentials and 10 Premium licenses for 20 users would total $1700/month.
Activity user licensing options are not available for user-based subscriptions in Business Central.
Licensing cost: Finance & Operations
Finance & Operations starts with a minimum of 20 full-user licenses, with costs ranging from $180-$210 per user, depending on features required. For 20 users needing both Supply Chain Management and Finance add-ons, the total comes to $3900/month.
While initially appearing twice as costly as Business Central for 20 full users, Finance & Operations offers “Activity user” licenses at $50 per user/month for team members performing specific roles. This option often reduces the price difference between the two platforms in real-world implementations, especially when more than 20 users are needed.
Whether you need broad functionality or just a few specific features, Finance & Operations provides scalable and cost-effective options for businesses of all sizes.
Package comparison:
Finance & Operations
Core ERP
- Available out-of-box
Warehouse Manufacturing execution
- 50$ per user/month
- Capabilities and integration provided out-of-box
Asset management
- Capabilities and integration provided out-of-box
External user portals (customers / vendors)
- Vendor portal available out-of-box
- For customers Microsoft offers a B2B E-commerce portal. It’s sold seperately, but It’s already fully integrated with the F&O platform
Global ERP
- Shared chart of accounts
- Multi-currency consolidation
- Shared exchange rates
- Shared vendor / customer information
- If required, Tax accounting localizations for several LE supported in the same instance
New micro-services availability
- Available out-of-box
Process manufacturing industry
- Batch balancing
- Potency and Batch attributes management
- Quality management
- Multi-site master planning
- Engineering change management
Retail industry
- POS apps
- Advanced pricing and commerce
- Assortments and HQ management etc.
Distribution industry
- Rich WMS and TMS functionality
Business Central
Core ERP
- Available out-of-box
Warehouse Manufacturing execution
- 100$ per user/month
- No out-of-box optimized applications to support the process
- Requires ISV solution and integration development cost
Asset management
- Not available out-of-box
- Requires ISV solution and integration development cost
External user portals (customers / vendors)
- Not available out-of-box
- You need to buy a separate E-commerce product or develop it yourself
Global ERP
- Multiple instances will be required for each localization
- Require workaround and manual data processing to consolidate accounts
- Chart accounts, business accounts information (vendor / customer) are not shared across legal entities
New micro-services availability
- Not planned in a short-term
Process manufacturing industry
- Not planned in a short-term
Retail industry
- Not planned in a short-term
Distribution industry
- Only basic WMS features
- No pallet tracking supported
- No RF gun app included
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Implementation cost
When considering implementing Dynamics 365 Finance & Operations or Dynamics 365 Business Central, the cost is mainly defined by the “scope” or specific processes you want to automate. Dynamics 365 Finance & Operations may have a larger scope due to its extensive features, thus affecting the cost. However, if the scope is similar, costs should align between both systems, possibly slightly less for F&O. Experienced Dynamics 365 consultants can tailor the system to your needs, with consulting rates influenced more by the company’s brand and industry experience than the product itself.
Digital innovation
Embracing digital innovation is essential for any company poised for growth. If your company is aiming for digital maturity and expects growth, Dynamics 365 Finance & Operations is likely the right choice. Unlike Business Central, it offers more comprehensive features for growing businesses, and the license cost difference is minimal. While some may try to push “independent solutions” for Business Central, Finance & Operations provides these features out-of-box.
Discover which one will empower your business
