BUSINESS CENTRAL | 6 MIN READ

What is Microsoft Dynamics 365 Business Central?

What does Microsoft’s landmark ERP offer your business?

Microsoft Dynamics 365 Business Central Software Interface

TABLE OF CONTENTS

Microsoft Dynamics 365 Business Central is an Enterprise Resource Planning (ERP) software developed by Microsoft. Business Central is a comprehensive finance and operations management software that acts as your central data hub.

Streamline processes and connect your entire business ecosystem, from finance and inventory to sales and customer service, gaining real-time insights that fuel smarter decisions. Unify your operations under one powerful platform, designed to seamlessly scale alongside your business. This is why countless businesses choose Microsoft Dynamics 365 Business Central

Overview

Business Central is Microsoft’s cloud-based Enterprise Resource Planning (ERP) solution. Released in 2018 as part of the Dynamics 365 suite of business applications, Business Central breaks down departmental silos and gives teams from across the business the insights they need for success.

Business Central may be young software, but it’s built on the codebase of Dynamics NAV, a legacy ERP solution from Microsoft. This means you get all the finance, sales, inventory, and purchasing features of NAV, plus all the benefits of a cloud solution—including real-time information, easy integration through web APIs, and reduced hardware costs.

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Benefits of Business Central

  • Cloud platform. While Microsoft’s legacy ERPs were built for on-premises deployment, Business Central boasts a true cloud structure.

  • Powerful forecasting. Predict future demand with AI-powered forecasting, helping you optimize inventory levels and stay ahead of customer needs.

  • Microsoft platform. Business Central seamlessly integrates with other solutions from Microsoft, including apps in the Dynamics 365 suite, productivity tools from Microsoft 365, Microsoft Dynamics 365 CRM, and the Power Platform’s modules for business intelligence and workflow automation.

  • Data centralization. Despite Business Central’s wide range of features, the software organizes data into easy-to-access dashboards that present relevant business insights for all stakeholders.

  • Financial reporting. As part of its broad capabilities, Business Central offers customizable financial management features to help organizations track and evaluate business expenses.

  • Inventory & Warehousing. Business Central streamlines distribution and warehousing with real-time inventory tracking, optimized picking strategies, and seamless integration with shipping solutions, boosting efficiency and reducing order fulfillment times.

  • 24/7 access to business data. Work from anywhere, anytime with Business Central’s cloud-based accessibility, empowering your team to manage operations and access real-time data 24/7.

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Essentials vs Premium Licensing

Before we dive into the features of Microsoft Dynamics 365 Business Central it is important to understand what is included in the different licensing options from Microsoft. Licenses come in two tiers, Essentials and Premium each with different levels of features and functionality.

Business Central’s Essentials license grants features across eight categories:

  • Finance Management
  • Sales & Marketing
  • Sales & Delivery
  • Purchasing Payables
  • Inventory
  • Supply Planning & Availability
  • Project Management
  • Warehouse Management

Business Central’s Premium license includes all features covered by the Essentials tier, plus two new areas of functionality:

  • Service Management
  • Manufacturing

Features & Functionality

Business Central’s base feature set is available in its Essentials package, which includes features spanning eight categories.

Financial Management

Control your cash flow with ease—automate finances, track everything in real-time, and manage multiple currencies. All in Business Central:

  • GL, AR, & AP

  • Multi-Currency

  • Budgets

  • Fixed Assets

  • Consolidations

  • Cost Accounting 

  • Customer Payments

Sales & Delivery

From quote to delivery, manage your entire sales cycle seamlessly with Business Central:

  • Sales Invoicing

  • Sales Order Management

  • Sales Line Pricing & Discounting

  • Promotional Pricing

  • Alternative Shipping Addresses

  • Return Order Management

  • Bulk Invoicing

Warehouse Management

Manage your warehouses with ease with these features:

  • Bins and Bin Management

  • Warehouse Transfers

  • Multi-Warehouse Shipments

  • Inventory Picks & Put-Aways 

  • Internal Picks & Put-Aways 

  • Warehouse Receipts

Supply Planning & Availability

Anticipate customer needs seamlessly with supply planning and availability:

  • Supply Planning 

  • Demand Forecasting 

  • Inventory Forecasting 

  • Order Promising 

  • Order Promising 

  • Drop Shipment Availability

  • Large Order Planning 

Sales & Marketing

Turn prospects into loyal customers with Business Central’s integrated sales and marketing management:

  • Contact Management

  • Campaign Management 

  • Shopify Integration

  • Interaction & Document Management

  • Email Logging

  • Opportunity Management

Purchasing & Payables

Streamline your expenses and optimize supplier relationships:

  • Purchase Invoicing 

  • Purchase Order Management

  • Purchase Return Order Management

  • Purchase Invoice Discounts

  • Multi-Vendor Management 

  • Vendor Catalog Items

Inventory Management

Gain complete control over your stock with Business Central’s robust inventory management features:

  • Item Categories 

  • Item Attributes

  • Item Tracking 

  • Multiple Locations 

  • Location Transfers

  • Cycle Counting

  • Shipping Agents 

  • Item Charges

  • Item Cross-References

  • Item Substitutions 

  • Inventory Analysis Reports

Project Management

Manage projects efficiently with these features:

  • Basic Resource Planning 

  • Capacity Management 

  • Multiple Costs

  • Jobs 

  • Timesheets 

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Business Central vs. The Competition

In the crowded ERP space, Business Central stands out. Compared to leading competitors like Microsoft Dynamics Finance & Operations, Sage Intacct, Oracle NetSuite, QuickBooks, and Acumatica, Business Central is a good choice for businesses that need a robust, scalable, affordable ERP solution.

Microsoft Dynamics 365 Business Central offers a unified platform for your entire business, from finances to sales. But with diverse options, choose wisely. Identify your must-have features, like cloud access or multi-currency support. Consider your software strategy: a comprehensive suite like Business Central, best-in-class integrations, or industry-specific solutions. By understanding your needs, you’ll find the ERP that empowers your business to thrive. And Business Central stands out as a powerful contender, offering flexibility and customization to match your unique industry and operational needs.

Best Industry Fits

Microsoft Dynamics 365 Business Central is a popular ERP for various organizations, particularly those that have already invested in Microsoft tools. Business Central is especially useful for businesses that offer professional services such as IT, accounting firms, and nonprofits. Its advanced modules offer warehouse and distribution features that make it a great fit for retail, distribution, industrial, and wholesale distribution organizations.

In addition, Business Central is transformative software for growing businesses where teams have had to build clunky workarounds. Because Business Central is so customizable and scalable, it can be tailored to the unique needs of a business—even as those needs change.

How Much Does Business Central Cost?

Business Central follows the same pricing structure as other Microsoft cloud solutions, with pricing based on license tiers and functionality.

The Software

Pricing begins at $70 per user per month for the Essentials package ($840 per user annually) and $100 per user per month for the Premium package ($1200 per user annually). The cost of Business Central varies depending on the number of users who access the software.

A pricing calculator can estimate what Business Central might cost your business. Pricing follows a software as a service (SaaS) model, with businesses paying a monthly fee per user.

The Implementation

Implementation pricing is based on several factors, including necessary functionality, customizations, and integrations with other tools in the software environment. On average, our customers spend between $40,000 and $100,000 on the implementation, with an average cost of $75,000. Use our pricing calculator to estimate what Business Central might cost your business.

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Implementation Process 

The average Business Central implementation takes 3–6 months, which includes time to build out customizations, finalize integrations, and test-drive the software. Comparable ERPs from Acumatica and Oracle NetSuite can take just as long—if not longer. But with an active and communicative partner, Business Central implementations don’t have to take your team away from work.

Cargas’ tried-and-true implementation process for Business Central keeps the implementation as smooth as possible.

Is Business Central Right for Your Company?

If you’re looking to improve productivity and profitability, streamline processes, centralize data, and more effectively manage or evaluate your administration and operations, an ERP solution can help. Business Central is particularly well-equipped for distribution and manufacturing companies, but ERP software can bring value to businesses of all shapes and sizes.

It’s crucial to find the solution that best fits your needs and a reliable partner who will guide you in implementing and using the software. Here are some things to consider:

  • What processes do you need the ERP software to manage?
  • How scalable do you need the software to be?
  • Can the software be configured or customized to meet your organization’s needs?
  • What are you looking for in a software implementation partner?
  • What is your budget?

Microsoft AI Cloud Partner Program

The Microsoft AI Cloud Partner Program, known previously as the Microsoft Partner Network, is a collection of software experts, implementation specialists, and developers equipped to customize solutions like Business Central. Microsoft partners ensure that solutions like Business Central scale alongside of businesses to serve them in the long term.

As one of the largest and most experienced Microsoft Dynamics partners in Pennsylvania, we’ve been implementing ERP solutions for organizations of all sizes, in various industries, for more than 25 years. If you’re looking for a partner to assess your needs and help you understand what an ERP solution might offer you, we’re here to help.

Learn More about Dynamics 365 Business Central

Whether you want to know more about the cost of Business Central or are curious about how it might fit into your current tech stack, Cargas is here to answer your questions. If you want to learn more check out our 6 Reasons to Choose Cargas as Your Business Central Partner or contact us to learn how Microsoft ERP software like Business Central can elevate your operations.

Julie Fuller Sales Development Representative

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