Get the latest perspectives on Microsoft Dynamics ERP software selection process from industry experts.

Microsoft Business Central Licensing Explained

Visit Website View Our Posts

Updated · Originally published

If your company has outgrown your existing business management system and looking to upgrade to a modern ERP solution, there are many options.  Luckily, if you are considering ERP business solutions from Microsoft, they have made it very easy.  When choosing licensing types for Microsoft Dynamics 365 Business Central, there are 2 primary options: Essentials and Premium.  Keep reading to learn about Microsoft Business Central Licensing and how to choose the correct Cloud Bussiness Management ERP Software for your company.

What is Microsoft Dynamcis 365 Business Central?

Microsoft Dynamics 365 Business Central is an all-in-one business management solution that’s easy to use and adapt, helping you connect your business and make smarter decisions.  Built on functionality within Microsoft Dynamics NAV and is adaptable to extend business applications to other Microsoft Cloud Services such as Office 365, Microsoft Automate (Flow), Power BI, and PowerApps.  The Microsoft Dynamics 365 Business Central Solution can grow as your business requirements change while taking advantage of the latest technology. As mentioned, customers who select Microsoft Dynamics 365 Business Central Versions have a choice of either “Essentials” or “Premium”.  Furthermore, this ERP system can be deployed as either a cloud or on-premises solution.  Below is a detailed explanation

Microsoft Dynamics 365 Business Central Licensing "Essentials" Pricing is $ 70/user/month.

The “Essentials” version of Microsoft Dynamics 365 Business Central is a robust set of functionalities from Microsoft Dynamics NAV: Microsoft’s most popular ERP system.  There are over 100 unique business capabilities in the Essentials Version of Business Central.  Below are some of the highlights of each Key Business Area.  This version of Business Central is $70, per licensed user, per month for the Cloud Version. There is different pricing for the On-Premises version of Microsoft Dynamics 365 Business Central.

  • Advanced Financial Management: Cost Accounting, Inter-Company Postings, Bank Account Reconciliation, Insurance, Maintenance, Fixed Assets Allocations, Advanced Dimensions, and Cash Flow Forecast.
  • Customer Relationship Management:  Contact Management, Outlook Client Integration, Dynamics 365 for Sales (CRM) Integration, Opportunity Management, Interaction/Document Management.
  • Project Management: Jobs, Time Sheet, User Tasks, Multiple Costs, Estimates.
  • Inventory and Supply Chain Management:  Requisition Management, Item Cross References, Nonstock Items, Location Transfers, Item Substitutions, Item Categories, Stock Keeping Units, Shipping Agents,
  • Sales: Pricing, Discounting, Sales Tax/VAT (depending on the country), Return Order Management, Invoices, and Order Management.
  • Human Resource Management:  Basic Human Resource Management.
  • Warehouse Management: Automated Data Capture System (ADCS), Warehouse Management Systems, Internal Picks, Put Aways, Bin Set-Up, Warehouse Receipt, Warehouse Shipment.
  • Other Business Functionality: Unlimited Companies, Multiple Currencies, Extended Text, Embedded PowerBI (Business Intelligence).
  • Mobile ERP Technology:  Gain the same ERP powerful and rich functionality experience on either your Desktop, Laptop, Tablet, or Smart Phone.

Microsoft Dynamics 365 Business Central Licensing “Premium” is $100/user/month.

The “Premium” Version, however, includes all of the functionality in the “Essentials” version of Microsoft Dynamics 365 Business Central plus 2 powerful modules of Service Management and Manufacturing.  This version of Business Central is $100, per licensed user, per month for the Cloud Version. There is different pricing for the On-Premises version of Microsoft Dynamics 365 Business Central.

Service Management

  • Dispatching
  • Planning
  • Service Contract Management
  • Service Item Management
  • Service Orders
  • Service Price Management

Manufacturing

  • Agile Manufacturing
  • Basic Supply Planning
  • Capacity Planning
  • Demand Forecasting
  • Finite Loading
  • Machine Centers
  • Production Orders
  • Version Management

Microsoft Business Central Licensing and Services:

The Microsoft Business Licensing is very straightforward; users just have to choose which version would fit the organization's needs.  The only unknown, therefore, would be what sort of services from a licensed and experienced Microsoft Partner would also be required.  When there is a move to the cloud from either a current cloud system or traditional, legacy on-premises ERP, there is typically much planning for this transition.  Careful and thorough planning must be performed to make the move to the cloud a smooth transition.  However, every business with be different, and each cloud deployment will be different.  Therefore the cost that is a variable one to get set up correctly with the Cloud Version of Microsft Dynamics 365 Business Central will almost always be variable and not fixed such as the Business Central Licensing Explained.

Microsoft Business Central Licensing Conclusion and Next Steps:

The rich functionality in Microsoft Dynamics 365 Business Central has options for most companies.  The Essentials Version should not be viewed as a “starter” ERP system. As mentioned, there are over 100 unique business functionalities within this business system.  Selection is really decided by if your business has a need for either Service Management or Manufacturing.  If either of those 2 business functional areas are required for your organization, you should choose the Premium Version of Microsoft Business Central. It is important to note that licensing is on a per “named” user basis.  If you have any additional questions, please see the different resources below and contact iCepts Technology Group who can guide you in your ERP selection process.

Microsoft Business Central Licensing Next Steps:

Learn more about Microsoft Dynamics 365 Business Central

Download the Microsoft Dynamics 365 Business Central Capabilities Guide

Get an Estimate and Use the Microsoft Dynamics 365 Business Central Pricing Calculator

Posted by iCepts Technology Group, Inc. a Microsoft Dynamics 365 Business Central Partner in Pennsylvania 

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.