Dynamics 365 Business Central Vs Dynamics GP | What are the Differences?

Differences Between Business Central and Dynamics GP
19 Feb 2022


The age of digital disruption draws near, and it is transforming the way organizations operate. Microsoft, for example, continues to improve the capabilities of its accounting software products to stay up with the ever-changing business world. Dynamics NAV, Dynamics GP, and Dynamics 365 Business Central are among the company’s current offerings.

The latter is the market’s newest entry, and it’s designed to link customer involvement and corporate operations to enable real-time decision-making. Best of all, it’s completely cloud-based for unrivaled security, performance, and dependability. So that, at the end of the day, you have a system that not only increases the efficiency of numerous procedures but also boosts your company’s total productivity.

Let’s see which Microsoft Dynamics 365 ERP system, GP or Business Central, is best for your small or midsize business?

What is Microsoft Dynamics GP (Great Plains) and how does it work?

Microsoft Dynamics GP is a mid-market ERP solution that has been available for over two decades and is targeted at small and mid-sized organizations. It was designed as an on-premises solution, however, it may now be hosted on cloud servers as well.

Licensing for Dynamics GP

You can buy Dynamics GP with a perpetual license, which requires you to pay a one-time charge for the ERP solution as well as annual maintenance renewals. You can also choose the subscription option, which involves paying a monthly price for term-based Dynamics GP rights. Both of these alternatives include built-in functionality and rapid start tools to get you up and going quickly.

Deployment Options for Dynamics GP

Dynamics GP can be used as an on-premises solution, which means you install the program on your own servers. It works best in this context. Cloud hosting is another option, in which your servers are hosted using the Infrastructure-as-a-Service architecture.

Features and Functionality of Microsoft Dynamics GP

The following packs are available for Dynamics GP: For three complete users, the Starter Pack includes fundamental financials and distribution modules. It allows companies to keep track of their finances, buy and sell services and products, and pay and manage their staff. It includes conventional Payroll and Human Resources for an unlimited number of employees.

Modules for manufacturing, project management, and customer relationship management are included in the Extended Pack, along with the products from the starting pack. This pack adds to the capabilities of the Starter Pack by allowing you to manage and bill jobs for professional services, construction, and other industries, as well as control the generation of raw materials to final goods.

Dynamics GP also comes with a Customization Pack and an Extended Human Resources & Payroll Pack. The Customization Pack, as the name implies, allows you to personalize your Dynamics GP through integrations. Extended Human Resources & Payroll allows organizations in the United States to be more flexible in how they pay and manage their personnel.

Pricing in Dynamics GP

You’ll pay a one-time charge of USD 5,000 for three full users with perpetual licensing. After that, you’ll have to pay Microsoft an annual maintenance/enhancement cost of around USD 900. There is a one-time fee of USD 3000 if you need to add extra full users.

What is Microsoft Dynamics 365 Business Central, and how does it work?

Dynamics 365 Business Central is a cloud-based ERP solution aimed at mid-sized businesses. It’s Microsoft’s newest ERP solution, available as a software-as-a-service (SaaS) paradigm. Small and mid-sized organizations can benefit from Dynamics 365 Business Central as a cloud ERP solution. While Microsoft has no intentions to replace Dynamics GP with Dynamics 365 Business Central, there’s little doubt that Business Central is the company’s top priority. It is given more attention and will account for a significant portion of their future development efforts.

Licensing for Dynamics 365 Business Central

Dynamics 365 Business Central is a SaaS ERP solution. This usually entails paying a monthly charge to use the service, which is hosted on Microsoft’s Azure cloud. This implies you won’t have to spend a large amount upfront to get started with your solution. There are no upfront hardware or server fees, making this a cost-effective choice for organizations without specialized IT support.

Deployment Options for Dynamics 365 Business Central

Business Central is often hosted on Microsoft Azure as a cloud solution, and end-users access the service via a web browser from any device. You can also host Business Central in a private cloud with your preferred hosting provider if you want greater control. Finally, you can use a perpetual license to install Dynamics 365 Business Central on your local server.

Features & Functionality of Dynamics 365 Business Central

The two primary subscription license choices for Business Central are Essentials and Premium, which cater to slightly different business needs. The Essentials membership, as the name implies, includes key components for any organization, regardless of industry—financial management, CRM, human resources, and more. The Premium membership contains everything in the Essentials package, plus service management and manufacturing modules.

The Microsoft AppSource, a marketplace for custom-made applications that readily interact with Business Central and extend its functionality, can also be used to augment Dynamics 365 Business Central.

Pricing for Dynamics 365 Business Central

Customers pay a monthly subscription fee to access Dynamics 365 Business Central, which is based on a SaaS model. The Essentials plan costs USD 70 per user per month, while the Premium plan costs USD 100 per user per month.

Read more at Microsoft 365 Business Central Licensing and Pricing

What are the Differences Between Business Central and Dynamics GP? 

Let’s compare these Business Central and Dynamics GP now that you’ve grasped their concepts. Both Business Central and Dynamics GP appear to be identical on the surface, as they are both mid-market ERP platforms with similar capabilities. However, there are a few significant distinctions to be aware of.

Deployment Types and Integrations

While both Business Central and Dynamics GP offer a variety of deployment options, Dynamics 365 Business Central was built primarily for cloud deployment, whereas Dynamics GP was built for on-premises deployment.

This implies you won’t have to spend money on hardware or pay to upgrade or set up your servers if you use Dynamics 365 Business Central. There are no recurring annual fees to pay. You won’t need specialist IT assistance to upgrade your solution because Microsoft handles it seamlessly, with no requirement for end-user downloads or installations. As an on-premises solution, Dynamics GP necessitates hardware investment. Upgrades are not automated, even if you want to deploy in the cloud, and must be planned with your Microsoft Partner or managed by your internal IT personnel.

Finally, let’s say you want to connect your ERP system to other Microsoft applications, such as Dynamics 365 Sales or CRM. In this scenario, compared to GP, Business Central makes it easier to do so.

Cost of Ownership & Pricing

The price plan for Dynamics 365 Business Central is mostly based on subscriptions. It has a cheaper starting cost than Dynamics GP, which is often purchased as a perpetual license. Cloud ERP systems often have a lower total cost of ownership (TCOs) than on-premises ERP solutions. This is because cloud platforms eliminate the need for pricey updates, annual maintenance fees, and hardware and component investment and upkeep. Not to mention the dedicated IT staff.

Innovation & Functionality

Business Central’s Essential Plan, which contains modules for Customer Relationship Management, Project Management, and Warehouse Management, has more functionality than Dynamics GP’s Starter Pack. It also provides more complex distribution features including multi-warehouse functionality and inventory planning. GP, on the other hand, comes with built-in payroll capabilities for the United States and Canada, whereas Business Central users will need to purchase an add-on application from Microsoft AppSource.

Microsoft’s latest offering, Business Central, was released in 2018. Business Central receives the lion’s share of Microsoft’s research and development dollars as the company continues to focus extensively on the cloud. They will keep adding cutting-edge features and fresh capabilities. GP, on the other hand, was created in the 1990s and is still in use today. While Microsoft continues to maintain it, it is not its major emphasis.

Should You Switch from Microsoft Dynamics GP to Microsoft Dynamics 365 Business Central?

If you’re still using Dynamics GP, you might be considering migrating to Dynamics 365 Business Central. Here are some of the reasons why a company could opt to migrate:

Every year, Dynamics GP gets excessively expensive. You want to take advantage of cloud ERP’s advantages, such as lower total cost of ownership, increased agility, and greater security, among others. You discover that third-party programs you employ for specific important business activities have the capability in Business Central out of the box or as a Microsoft AppSource app.

Deciding on the right Microsoft solution for your business

Contact the experts at Veelead Solutions if you use GP and are reviewing your alternatives, or if you are deciding between Business Central and Dynamics GP for your company. We specialize in Dynamics 365 Business Central and Power Platform solutions and are happy to assist you. Contact us and get a free estimation!

Categories: Dynamics 365, Microsoft 365