Dynamics 365 Costs for Manufacturing: Required Licenses

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If you’re a manufacturer exploring the cost of Dynamics 365 Business Central, it’s important to understand the full spectrum of costs involved. You will have a one time implementation fee and an ongoing monthly fee for licenses, training, and support.

Even so, there are a few more things to consider. Do you need essential or premium licenses? How many full users/ licenses do you need? How much will the implementation cost? Does your implementation partner charge for time and material or do they use a fixed fee?

Let’s break down the cost of Dynamics 365 for manufacturing into four key components:

    1. Essential vs Premium Licenses: The cost of an essential license for Dynamics 365 is $70/ month per full user, whereas the cost of a premium license is $100/ month per full user. That being said, as a manufacturer you should opt for premium licenses.
    2. Amount of Licenses: As stated above, you’re going to need to pay $70 to $100 per month per license that you need. Therefore, you need to figure out how many licenses you need for your business. This will depend on the number of employees you have and how many require Dynamics 365 to perform their job.
    3. Fixed Fee vs Time and Material Billing: The type of billing method that your Dynamics 365 implementation partner uses will also affect the overall cost. Fixed fee billing means you pay a fixed implementation cost and a fixed monthly fee. Time and material billing, on the other hand, depends solely on how much time your consultants spend on your project.
    4. Cost of Implementation: Dynamics 365 implementation cost will depend on the size of your business, how much customization your business requires, and which type of billing your consultants use.

In this three part series, we’ll explain everything above in even more detail to give you a breakdown of the average costs. We’ll also show some examples of costs for manufacturing with Dynamics 365 BC.

How Many Dynamics 365 Licenses Do You Need?

Determining the exact number of full user licenses for Dynamics 365 you need depends heavily on your business's specific needs, including the scale of your operations and the roles of your employees. However, to give you a rough idea:

  • Small Manufacturers (Annual Sales: Below $5 million, or Up to 50 Employees): Typically, small manufacturers might need between 5 to 15 full user licenses for employees directly involved in critical operations such as finance, supply chain management, and production planning.
  • Medium Manufacturers (Annual Sales: $10 million to $50 million or 50 to 250 Employees): Medium-sized businesses might require 15 to 50 full user licenses, considering the increased complexity of operations and the higher number of employees needing full access to the system for various functions.

These are very general guidelines. A more precise assessment could be made by evaluating the roles within your company that require full access versus those that could function well with a Team Member license, which offers read and limited access. Consulting with a Microsoft Partner, like Sabre Limited, can provide a tailored analysis to ensure you purchase the right number and mix of licenses for your needs.

Essential vs Premium License for Manufacturing with Dynamics 365

You need to decide whether you want an essential or premium license:

  • An Essential license costs $70 per full user per month.
  • A Premium license costs $100 per full user per month.

If you’re a manufacturer, we encourage you to purchase a premium license of Dynamics 365. Although the essential license has Assembly Management and Standard Cost Worksheets, it is missing all of the features below that are important to most manufacturing companies:

  • Production bill of materials
  • Basic capacity planning
  • Machine centers
  • Version management
  • Production orders
  • Finite loading

You would also miss out on the service management module. For more information as to what you would be missing between an essential or premium license, take a look at Microsoft’s page comparing the license options.

Additional Licenses for Dynamics 365

You may need some Team Members licenses, attach licenses, and Sales Professional licenses. These licenses are cheap and give your team limited usage that is still essential for their roles. Later, we’ll give full examples that you may use that include full user, team member, Sales Pro, and attach licenses. For now, let’s break down what each of these mean.

Team Members’ licenses cost $8 per month per license and give access to:

  • Create, read, update, and delete contacts, activities, and notes
  • Update their own employee information
  • Record time, materials, and expenses
  • Approve time, expenses, materials, and invoices
  • User reporting and dashboards
  • And many more

Team members licenses are low cost and essential for giving your team the insights that they need to complete their tasks. These are your employees that don’t need full access to Dynamics 365, but need limited access for their role.

Attach licenses are $20 per month and can be attached to any Premium license for advanced capabilities for that user. Some examples of attach licenses include Dynamics 365 Sales and Dynamics 365 Customer Service.

The Sales Professional licenses are $65 per month and provide sales force automation (SFA) for organizations that do not have complex sales processes.

Read more about the cost of implementing Dynamics 365 for manufacturers.

Closing Thoughts

At Sabre Limited, we are experts in manufacturing. We stand among the best Microsoft Dynamics manufacturing partners across North America. What sets us apart from our competitors is that we use fixed fees instead of time and material billing and we always put the customer first. 

Our areas of expertise include:

If you're interested in learning more about what Sabre Limited can offer, we've been dedicated to helping small to medium-sized manufacturers learn and adopt Dynamics 365. Reach out, and let's explore how we can contribute to the success of your manufacturing journey. Contact us at info@sabrelimited.com or call (519) 585-7524. We look forward to hearing from you.

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