Dynamics 365 for Financials vs. Dynamics GP – Which Is Best for Your Business?

Determining which ERP solution is the best fit for your business is always a challenge.  That is even truer when a new solution enters the marketplace – which is the case with Microsoft Dynamics 365 for Financials which was introduced in November 2016. One great way to take this new solution into consideration in your ERP selection process is to compare it to one of the stalwarts in the industry, Microsoft Dynamics GP.

See our Dynamics GP vs. Dynamics 365 side-by-side comparison here!

One of the initial differences that you’ll notice between Dynamics 365 and Dynamics GP is how you obtain it.  Dynamics 365 is a full SaaS solution, meaning that you gain access to it through a licensing subscription and access it in the highly secure Microsoft Azure cloud.  While this is a great option for companies that lack the hardware or IT support for an on-premises solution or that need to frequently scale the number of users for their solution. However, companies that prefer to keep their ERP solution on their own servers will find an on-premises deployment of Dynamics GP to suit their needs.  Dynamics GP is also available hosted by partners, on Microsoft Azure, or via subscription pricing in a partner’s private cloud, like the Socius One Cloud.

When it comes to financial functionality, Dynamics 365 and Dynamics GP are pretty similar. Both offer ways to segment the General Ledger Account Structure, Budgeting, Reporting, and support for Fixed Asset management and eBanking.  In addition, Dynamics GP also offers additional functionality for allocation accounts, forecasting, and inter-company transaction processing above what Dynamics 365 makes available.  Both support multiple entities, multiple currencies, multiple languages, and localization. While Dynamics GP offers a few more reporting and analytics options, they both have reports built on SQL Server Reporting Services and direct integration with Power BI.

While you are considering integrations and add-on functionality, it’s important to consider how functionality is added to each solution. Dynamics GP is extended through a network of hundreds of ISV partners that have developed and deployed certified products to provide additional functionality.  On the flip-side, Dynamics 365 licenses include access to the new AppSource which enables developers to create add-on functionality for the solution.  Dynamics 365 for Financials offers a native integration with Customer Engagement tools (formerly known as Dynamics CRM) along with a single licensing option for all Dynamics 365 functionality.  Dynamics GP can still be seamlessly integrated with CRM solutions, including those that are part of Dynamics 365 for Customer Engagement, but the licensing will be handled separately.

For more detailed comparison between these two solutions, see our side-by-side breakdown.

Once you know the similarities and differences between Dynamics 365 and Dynamics GP, you may still need some help deciding which is the best fit for your business.  Socius is here to help with unbiased advice.  Request a complimentary comparative evaluation today!

By Socius, an Ohio ERP Partner