Microsoft Dynamics 365 Business Central is cloud ERP software that gives mid-market organizations robust features to manage their businesses more efficiently and profitably. Dynamics 365 Business Central empowers users with Microsoft’s cloud strategy and allows companies to integrate their business processes with the Microsoft 365 productivity suite.
Microsoft offers the choice of two subscription license types and requires that a company’s users all have the same type of license.
- Dynamics 365 Business Central Essentials – $70 per user per month
- Dynamics 365 Business Central Premium – $100 per user per month
What’s the difference, and which licensing is right for your business? Let’s take a look at the functionality of each and then discuss when making the jump from Essentials to Premium is a smart move.
Dynamics 365 Business Central Essentials Functionality
The Essentials license gives your users:
- Finance Management – Basic general ledger, dimensions, multiple currencies, budgets, accounts schedules, cash flow forecasts, fixed assets, cost accounting, bank account management, electronic payments and direct debits, customer payment processes, and more
- Sales and Marketing – Contact management, campaign management, interaction and document management, email logging, opportunity management, and Dynamics 365 Sales integration
- Sales and Delivery – Sales invoicing, sales order management, sales line pricing and discounting, campaign pricing, sales invoice discounts, alternative shipping addresses, sales return order management, and bulk invoicing from Microsoft bookings
- Purchasing and Payables – Purchase invoicing, purchase order management, purchase return order management, alternative order addresses, purchase invoice discounts, alternative vendors, and vendor catalog items
- Inventory – Basic inventory, item categories, item attributes, item tracking, multiple locations, location transfers, shipping agents, item charges, item cross-references, item substitutions, item budgets, analysis reports, and cycle counting
- Supply Planning and Availability – Supply planning, demand forecasting, sales and inventory forecasting, order promising, calendars, drop shipments, and order planning
- Project Management – Basic resources, capacity management, multiple costs, jobs, and timesheets
- Warehouse Management – Bins, bin setup, inventory picks and put-aways, warehouse receipts, warehouse shipments, internal picks and put-aways, and warehouse management systems
Dynamics 365 Business Central Premium Functionality
In addition to the features you get with Essentials, Premium offers Service Order Management and Manufacturing capabilities with a subscription of $100 per user per month.
- Service Management – Planning and dispatching, service contract management, service item management, service order management, and service price management
- Manufacturing – Assembly management*, standard cost worksheets, production bill of materials, basic capacity planning, machine centers, version management, production orders, and finite loading
*Assembly management is also included in the Business Central Essentials License.
Essentials or Premium?
Ultimately, the decision between Essentials and Premium depends on your business needs.
Organizations with various needs in areas like financial management, sales and marketing, delivery, project management, and warehouse management will be happy with all that Essentials has to offer. However, companies with service management and manufacturing workflows will want to consider Premium.
