What type of Business central license is right for you?

Dynamics 365 Business Central is a versatile business management solution designed for growth-oriented organizations, offering agility to help them achieve their goals. As the future of Microsoft’s cloud ERP development, it provides a scalable platform with an intuitive interface and extensive customization options to meet diverse business needs. 

Business Central offers various licensing options, allowing organizations to tailor their plan to suit their specific requirements for efficiency and reliability. While it is most cost-effective and flexible as a cloud-based SaaS solution, it can also be deployed on-premises or in private Azure environments to accommodate different infrastructure and deployment preferences. 

Full Users Vs Additional Users

Full Users in Business Central, such as salespeople, controllers, and supply chain managers, are those who require the most from the application. They typically need a Full User license, which comes in either the Premium or Essentials options, to access the app’s comprehensive features and perform more complex tasks. These users benefit from full access to the app’s functionalities, including the ability to manage unlimited users and companies, as well as operate in multi-environment workspaces for various business divisions or subsidiaries. 

It’s important to note that an organization can only select one type of Full User license either Premium or Essentials and must maintain consistency with that choice. 

On the other hand, Additional Users typically handle lighter tasks and don’t need full access to the app’s extensive features. These "self-serve" users mainly require the ability to view information, update existing data (such as customer, vendor, or item records), approve or reject tasks within workflows, submit timesheets, and update HR-related records. 

For an organization to have Additional User licenses, at least one Full User license whether Premium or Essentials must first be in place. 

What are the different License Types? 

Business Central offers flexible licensing options tailored to various business needs, depending on the level of functionality required by each user. Let’s dive into the key license types and how they cater to different roles within your organization. 

Essentials [70$ per user/month]

The Essential license in Business Central is a type of paid license that provides businesses with access to the core financial and basic supply chain management features of the system. This license is designed for small and medium-sized businesses that need a basic accounting and inventory management system to support their daily operations. 

With the Essential license, businesses get access to the following features: 

1. Financial management: Features, such as general ledger, accounts payable and receivable, bank management, and cash management. 
2. Supply chain management: Features, such as sales order management, purchase order management, and inventory management. These features help businesses manage their inventory levels and ensure that they have the right products on hand to meet customer demand. 
3. Project management: Features, such as time and expense tracking, resource management, and project billing. These features allow businesses to manage their projects more effectively and stay on top of project costs and profitability. 
4. Human resources: Features, such as employee record management and time and attendance tracking. These features help businesses manage their workforce more effectively and ensure that they are in compliance with employment laws and regulations. 

Business Central Essentials provides a wide range of operational and management capabilities, including:  

• Financial Management 
• Human Resources Management
• AI-Supported Forecasting
• Customer Relationship Management
• Project Management
• Supply Chain Management
• E-Services
• Warehouse Management and Inventory

Overall, the Essential license provides small and medium-sized businesses with a cost-effective and easy-to-use accounting and inventory management solution, making it a great option for businesses that are just getting started with their digital transformation journey. 

Premium [100$ per user/month]

The Premium license in Business Central is a more comprehensive and feature-rich version of the software, offering all the features of the Essential license, as well as additional functionality for manufacturing, service management, and advanced customization. The Premium license is designed for businesses with more complex requirements that need to manage more sophisticated operations, workflows, and processes. 

The Premium license in Business Central provides businesses with a more comprehensive set of features and functionality for manufacturing, service management, and advanced customization, making it a great option for businesses with more complex requirements. 

Business Central Premium is licensed by assigned user and includes all Essentials license capabilities plus Service Order Management and Manufacturing. 

 

Team Members [8$ per user/month]

The Team Member license in Business Central is a lower-cost option designed for users who need limited access to the system's features and functionality. It provides basic read-only access to data and enables users to carry out certain tasks that are essential to their role. This license is suitable for businesses that have many users who need to access the system but do not require full access to all features and functionality. 

Each license type has a different price point and feature set, allowing businesses to choose the license that best fits their specific needs and budget. In addition, Microsoft also offers a free limited-functionality version of Business Central called the Essentials version, which businesses can use to try out the system before purchasing a license. 

What’s in the Team Members license (Permissions)? 

The Team Members license gives access to certain operations on a subset of tables in the system. The access is defined by the permissions within the Team Members license, which are contained in the following Permission Sets:  

In addition to the above, the Team Members license also includes permissions to the full object range for extensions and customizations (per-tenant extensions), as well as to Power BI, PowerApps and Microsoft Flow. See also “Can Team Members users work with Power BI, PowerApps, and Microsoft Flow?”  

To make it easier to create a Team Members user, we have created a user D365 SECURITY and D365 TROUBLESHOOT. This makes it easy to set up a Team Members user.

Other things to know about the Team Members license/user  

1. The first (paid) user logging into Business Central cannot be a Team Members user. Because at least one full user (Essential or Premium) is required on the tenant before a Team Members user can join, it is required that a full user signs in first. The first user signing in gets the SUPER permission set assigned, and that is probably not what the Team Members user should have. 
2. Team Members users cannot create new companies. This is a task that falls outside of their scope of work. When a Team Members user chooses the Create New Company or Copy Company actions on the Companies page, the following error message appears: Note: This issue cannot be resolved by adding the SUPER permission set to the user, as the Team Members license will restrict the user’s permissions.
   
   

3. When you change the user setup by assigning different plans to users in Office Portal, the “user admin” user must go into the user list and choose the Refresh all User Groups action to update the changes in Business Central. 

 

How do you choose? 

Choosing the right Business Central license for your business depends on your specific needs and budget. While the Essentials license is suitable for most small to medium-sized businesses, if you have more complex accounting needs or require advanced customization options, you may want to consider the Premium license. If you only need limited access to the system, the Team Member license may be a better fit. 

Don't overlook scalability and future growth. If your business is in a phase of expansion, it’s crucial to choose a license that not only meets your current needs but also supports future growth. Opting for a scalable solution now can save time and costs down the line as your operations and user base expands. 

In conclusion, it's important to carefully evaluate your business needs and choose the right Business Central license that meets your requirements. If you're still unsure which license type is right for your business, it may be helpful to consult with a Microsoft partner or a business consultant to help guide you in making the best decision for your business. 

FAQ 

What is the main difference between the Essentials and Premium licenses? 

The main difference between the Essentials and Premium licenses is that the Premium license includes additional functionality, such as manufacturing and service management, and offers more advanced customization options. 

Can I switch from an Essentials license to a Premium license later? 

Yes, you can upgrade your license at any time by contacting your Microsoft partner or reseller. 

Can I add more users to my license? 

Yes, you can add more users to your license by contacting your Microsoft partner or reseller and purchasing additional user licenses. 

Do all Business Central licenses include access to Microsoft Power Platform apps? 

No, only the Essentials and Premium licenses include access to a standard set of Microsoft Power Platform apps, such as Power BI, Power Apps, and Power Automate. 

Can I customize my Business Central license to fit my specific business needs? 

Yes, both the Essentials and Premium licenses offer customization options to fit your specific business needs. However, the Premium license offers more advanced customization options. 

Can I purchase a trial license to test out Business Central? 

Yes, Microsoft offers a 30-day trial license for Business Central. You can sign up for the trial on the Microsoft Dynamics 365 website. 

How do I choose the right Business Central license for my business? 

To choose the right license for your business, it's important to carefully evaluate your specific business needs and budget. Consider factors such as the size of your business, your accounting requirements, and the level of customization you need. If you're still unsure, consult with a Microsoft partner or business consultant to help guide you in making the best decision for your business. 

Can I transfer my license to another company? 

No, Business Central licenses are non-transferable. The license is granted to a specific company or entity and cannot be transferred to another company or entity. 

Can I get support for Business Central with my license? 

Yes, Microsoft provides technical support for Business Central licenses. The level of support may vary depending on your licensing agreement and support plan. 

Is there a minimum number of users required for Business Central licenses? 

No, there's no minimum number of users required for Business Central licenses. However, the cost per user may be lower for larger user numbers.