Dynamics 365 Business Central vs Finance & Operations
Learn more about these parallel Microsoft ERP solutions
Microsoft’s Dynamics 365 Business Central and Dynamics 365 Finance and Supply Chain Management (formerly Finance & Operations) are two very similar ERP solutions with overlapping features and functions. While these solutions share a great deal, there are several key differences that may make one a better fit for your business than the other.
Deployment Options
Software Updates
Supported Industries
Features & Pricing
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Twin Histories
Microsoft Dynamics 365 Business Central and the Microsoft Dynamics 365 Finance and Supply Chain Management modules have similar origins. Both solutions are cloud-based adaptions of legacy software, built on familiar Microsoft platforms and included as part of the Dynamics 365 suite of applications.
Business Central is built on the code base of Dynamics NAV, an on-premise Microsoft ERP that the company acquired in 2002. Unlike Dynamics NAV, Business Central was built with full cloud functionality, which makes it an advanced yet familiar solution for organizations that have used NAV in the past. Business Central also comes bundled with machine learning and business intelligence capabilities, and it integrates with other Microsoft solutions like Microsoft 365 and Power BI to provide a full picture of your organization.
Finance and Supply Chain Management are two sides of the Finance & Operations coin. Dynamics 365 Finance & Ops is built on the code base of Dynamics AX, another long-standing Microsoft ERP solution. In recent years, the code base was copied and adapted to support cloud functionality. Finance and Supply Chain Management can be purchased individually or together depending on the needs of your business, and they each sync seamlessly with other Dynamics 365, Power BI, and Microsoft 365 applications.
Mid-Market vs. Enterprise
Because Business Central and Finance and Supply Chain Management were built on different code bases, their capabilities will better suit mid-market or enterprise organizations, respectively.
Business Central is a great option for mid-market organizations that want to keep their user base small without sacrificing software functionality. For manufacturing organizations with simple processes or limited needs, other ERP solutions might come with too many options or customizations. Business Central keeps things simple while remaining flexible enough to grow alongside your company.
If you’re an enterprise organization or have multiple sites on the national or international level, Finance and Supply Chain Management will provide the deep ERP functionality you need. During the implementation process, Finance and Supply Chain Management have more flexibility and customization capabilities than Business Central, which means these solutions are able to handle complex business needs. They are also better equipped to handle multi-location requirements across international borders, accommodating different tax laws and currencies.
Levels of Complexity
Business Central and Finance and Supply Chain Management are equally equipped to support product-based organizations in industries like manufacturing and distribution. However, the business sizes they best fit correlate with the level of complexity these systems can handle.
Business Central is by no means a simple solution, but it is best suited for businesses with traditional processes. For instance, manufacturing companies with step-by-step processes can easily bring Business Central into an existing software environment. From there, Business Central will plan for supply usage, track inventory, and manage financials.
Finance and Supply Chain Management will work together to streamline even the most complex processes. On the Supply Chain Management side, your organization can use IoT intelligence to view all technology involved in a given process, manage overall production, and track relevant sales and marketing data. The Finance module takes care of AP and AR, helps your teams develop and stick to budgets, and accounts for differences between public and private sector regulations.
Sum It Up
Dynamics 365 Business Central is a cloud-based ERP solution built on the familiar Dynamics NAV code base. With its broad capabilities and ease of use, Business Central is an ideal solution for mid-market organizations in product-related industries like manufacturing and retail.
Dynamics 365 Finance and Supply Chain Management are dual programs that work individually or paired together. They encompass the capabilities of Finance & Operations, and are built on the code base of Dynamics AX, which makes them highly adaptable for enterprise-level organizations with complex processes and needs.
Cargas is a Microsoft Gold Partner, and we were one of the first Business Central partners. If you’re struggling to determine which of these solutions is the best fit for your business, we’d love to help. Let’s connect to talk about your needs and what you’re looking for in a software solution.
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