Dynamics GP vs. Dynamics 365 Business Central – Reasons to Upgrade

Dynamics GP vs. Dynamics 365 Business Central

Worldwide Digital disruptions are modifying the way businesses operate. To keep up with the ever-evolving business landscape, Microsoft, for instance, continues to enhance the features of its wide range of accounting software, including Dynamics NAV, Dynamics GP, and the most recent and advanced Dynamics 365 Business Central (or D365 BC). These ERP solutions comprise a core set of functionalities that assist growing small and medium-sized businesses (or SMBs) manage finances, customer service, sales, operations, projects, and the supply chain.

Enterprises worldwide trust Dynamics GP as a consistent ERP (Enterprise Resource Planning) system that Microsoft continues supporting. However, Microsoft’s cloud-first, ultra-connected business solution, Dynamics 365, encourages businesses to upgrade to Business Central. D365BC integrates business processes and customer engagements that allow quick decisions in real-time while delivering unmatched security and performance features through cloud hosting that helps organizations enhance operational and production capabilities.

Therefore, most existing Dynamics GP customers have already started transitioning to Dynamics 365 Business Central. The reasons for the upgrade are numerous – rising expenses for Dynamics GP’s Hardware and Server maintenance; increasing resource requirements of the system; and growing need for productivity-enhancing features, including mobile access and data analysis. The write-up will help compare and contrast both ERP solutions for a business need-based decision.

Licensing and Hosting

Dynamics GP is primarily available through perpetual licensing and includes upfront software costs and yearly maintenance fees, while upgrades are not included in the application costs. Dynamics GP on-premise upgrades include significant services and resources that add to the budget. Dynamics GP limits how many users logged into the system, not how many are licensed are there in total. Besides, the available monthly licensing subscription is not as popular.

Dynamics GP users may choose to deploy the ERP on their servers or host it in the cloud through an infrastructure as a service (or IaaS) provider. However, Dynamics GP deployment on IaaS does not make it a true cloud ERP, as the application is not purpose-built for web accessibility, while upgrades are not automatic as available in Business Central.

Pros

Flexible one time or monthly licensing options

Total infrastructure control

Multiple users access

Cons

Expensive, complicated upgrades

Additional infrastructure maintenance and upgrade costs

No true SaaS supported option

Business Central is a true cloud ERP, hosted on Microsoft Azure and licensed as SaaS, thus supporting automated, budget-friendly updates to the latest features and tools. D365BC includes two subscription options, Premium and Essential, named users that are the same across the license. Compared to Dynamics GP, named users require individual user licenses to access the system at any given time. Business Central also has an on-premises model for enterprises that prefer to host and manage the system internally on the local infrastructure.

Pros

Automatic enhancements and cost-effective upgrades

Seamless accessibility and the cloud capabilities

No infrastructure (hardware, server, IT) costs

Cons

License is a must for named users

License types must be the same across the organization

Functionality and Integrations

Dynamics GP offers segmented account structures with core financial capabilities, including Payroll, eBanking, Fixed Assets, Inventory Tracking, Multi-Currency, Multiple Entities, and Purchase Orders (including requisitions) with Manufacturing and Services but excluding Warehousing.

Dynamics GP manages financial reporting through Management Reporter, Independent Software Vendor (ISV) tools, and Jet Reports. The ERP also includes Jet Basics as free. Users, however, would need a paid version to use additional features. Users can leverage the Budgeting feature through manual spreadsheets or a purchased tool.

Power BI integrations are possible in Dynamics GP with specialized resources and additional costs, specifically in data modeling, while integrating Dynamics CRM involves customized implementations.

Pros

US and Canadian Payrolls included

Cons

Integrations with Power BI and CRM involve efforts and costs

Budgeting and Warehousing features not included

Business Central delivers flexible, reporting-friendly dimensional account structures with core financials tools, including Fixed Assets, eBanking, Inventory Tracking, Multi-Currency, Multiple Entities, Purchase Orders, Warehouse Management, and with the Premium licensing – Manufacturing, and Services. Basic Budgeting functionality is in-built, while Payroll is possible through additional applications. Business Central also enables automated and scheduled reconciliations, cash flow projects, and seamless integrations for warehousing capabilities with barcoding, handheld scanners, and shipping for simplified business operations.

Business Central ensures quick and seamless integration with Power BI for interactive, visual dashboards. Built-in Customer Relationship Management or CRM aspects allow users to extend those features with additional sales, customer service, field service, and support tools in AppSource for minimal effort.

Pros

Seamless and user-friendly Power BI and Dynamics CRM integrations

Includes standard Budgeting and Warehouse Management features

Automated reconciliations and cash flow projections

Cons

Payroll needs an additional application

Accessories and Tools

Since its existence around 1993, Dynamics GP has developed an extensive network of partners and ISVs who offer tools for Dynamics GP. These highly integrated add- ons cover specific business needs, including barcoding, business intelligence, credit card processing, advanced manufacturing, and more. The add- ons, however, require different backend development and are managed separately. The starter or base Dynamics GP module includes core financial and distribution functionality, while users can purchase additional packages for manufacturing, customizations, and advanced payroll/ HR.

Pros

Starter Pack includes core financial functionality

Flexible and robust supplement tools

Large network of ISVs

Cons

No consistent platform to access add- ons

New add- on market for GP is slowing down with most providers switched to Dynamics 365 already

Business Central’s extended functionality and tools are seamless to integrate with existing systems. Handy Extensions help build Business Central add- ons easily, while these business applications are available for trial and purchase Microsoft AppSource. This centralized app platform allows users to install apps for Business Central, Power BI, and more. Emerging SMBs, therefore, are fast switching to Microsoft Dynamics 365.

Pros

Consistency of two functionality types across the organization

A fast-growing range of add- ons

A steady platform for third-party apps through AppSource

Add- ons update seamlessly with Business Central

Cons

Some tools are available and found separately but not on AppSource

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