ERP Comparison Chart Between Dynamics 365: Business Central and Finance & SCM

dynamics 365 business central vs finance and operations

When it comes to optimizing your business operations and streamlining your processes, choosing the right Enterprise Resource Planning (ERP) system is crucial. Microsoft Dynamics 365 offers two robust ERP solutions, Dynamics 365 Business Central and Dynamics 365 Finance and Supply Chain Management (Finance and Operations), formerly known as NAV and AX. Both of these solutions are designed to meet complex business needs, but they cater to different aspects of your organization. 

To facilitate your decision-making process, we have prepared an ERP comparison chart that provides a comprehensive overview of the key features and functionalities of these two Dynamics 365 solutions. Whether you’re a small to midsize enterprise or a large corporation, this comparison will assist you in determining which Dynamics 365 ERP solution best aligns with your specific business requirements and objectives. 

Microsoft Dynamics 365 Business Central

Dynamics 365 Business Central (BC) represents a significant evolution from its predecessor, NAV. While retaining all the robust functionalities that NAV offered, users have the freedom to deploy their ERP solution either on-premises or in the cloud, allowing businesses to tailor their infrastructure to their specific needs and preferences. 

Designed to accommodate a diverse range of enterprises, from small local companies to medium-sized global corporations spanning the Americas, Europe, and Asia. BC truly embodies the spirit of scalability with innovative features while addressing the complex and ever-evolving needs of modern businesses. 

One standout feature is its more user-friendly interface, which simplifies navigation and accelerates user adoption. This intuitiveness empowers organizations to make the most of their ERP investment without the need for extensive training or onboarding, ultimately boosting productivity and efficiency. 

BC introduces a wealth of new functionalities that streamline core business processes. From finance and operations to supply chain management and beyond, BC equips businesses with the tools they need to thrive in today’s competitive landscape. Whether you require powerful financial management, efficient inventory control, or seamless collaboration across global teams, BC has you covered. 

ERP Comparison bc

Benefits of Dynamics 365 Business Central:

  • Provides easy financial management by connecting data across business functionalities like accounting, sales, and purchasing, as well as including data from customer interactions. Drill down from your General Ledger to Invoice, PO, and item information.
  • Has built-in intelligence functions for PO lead time and Inventory management that can predict when a specific SKU needs to be stocked.
  • Very easy to develop the interface to integrate with other outside systems by using interface tool.
  • Better compliance; with D365 BC you can meet your accounting compliance in over 140 countries.
  • Can prioritize sales leads based on revenue potential with the built-in basic CRM functionality, therefore leading to an optimized sales cycle.
  • Schedule service calls and set up service orders, with the basic field service functionality. Additionally, provide service estimates and service invoices and assign service personnel based on skill and availability.

Microsoft Dynamics 365 Finance and Supply Chain Management

Dynamics 365 Finance and Supply Chain Management (F&SCM) represents a significant evolution from its predecessor, AX. Much like Dynamics 365 Business Central (BC), it offers the flexibility of deployment either on-premises or in the cloud. F&SCM boasts modular capabilities, enabling users to tailor their experience by selecting the specific applications and features that align with their needs. This versatility positions Finance and Supply Chain Management as a comprehensive enterprise solution suitable for medium to large companies on a global scale. 

This platform seamlessly integrates with other Microsoft Dynamics 365 solution families, including Sales (CRM), Talent, Customer Service, and Marketing platforms. Furthermore, Finance and Supply Chain Management is tightly intertwined with Microsoft’s broader application ecosystem, which encompasses Office 365 (Outlook, Teams, Excel, Word, SharePoint), Power BI, Power Apps, and more. This robust integration enhances its utility and connectivity, facilitating a cohesive and efficient business environment. 

ERP Comparison finance

Benefits of Dynamics Finance & Supply Chain Management

  • User-Friendly design, easier to learn. Allowing users to focus on their job and be more productive
  • Adapt to a rapidly changing market with agile and efficient manufacturing operation automaton capabilities 
  • Flexible and powerful accounting functionalities to allocate the cost and profits to each business unit and department/sections for enterprise business
  • Use PowerApps and Flow to optimize employee productivity as well as simple integration to Office 365 
  • Enable sales and customer service people to have real time information at their work status, inventory, invoice, disposal etc. Therefore, offer better customer service and drive more data driven sales  
  • Real time at-a-glance dashboard that gives a high-level company overview by POWERFUL Power BI

ERP System Comparison: Business Central vs. Finance and Supply Chain Management 

In the table below, we provide a comprehensive ERP comparison of two prominent Microsoft solutions: Dynamics 365 Business Central and Dynamics 365 Finance and Supply Chain Management. The comparison encompasses various aspects, including ERP software comparison, ERP pricing comparison, and cloud ERP comparison. 

It’s important to note that the choice between Dynamics 365 Business Central vs. Dynamics 365 Finance and Operations depends on your business’s size, complexity, industry, and specific needs. Smaller businesses with simpler requirements may find Business Central more cost-effective and easier to implement, while larger enterprises with complex operations may benefit from the advanced capabilities of Finance and Supply Chain Management (Finance and Operations). 

Software Business Central Finance / SCM
Company Size Small to Mid Mid to Enterprise
Multi-Company Yes Yes
Multi-Language 80+ (English, Spanish, Japanese, Chinese, etc.) 30+ (English, Spanish, Japanese, Chinese, etc.)
Employees 1 – 500+ 50 – 2,000+
Minimum Number of Users 1 20
Implementation Cost $10K – $700K $100K – $1M+
Time Frame 1-6 months 6-12+ months
Deployment Cloud or On-premise Cloud or On-premise
Industry Distribution/Trade, Manufacturing, Professional Services Distribution, Manufacturing, Retail, Professional Services, Public Sector
Depth of Manufacturing Functionality
With the Premium package, additional capability in service management and powerful out-of-the-box manufacturing is available.
Supports approx. 90% of manufacturing functionalities. A great option for discrete, lean and process manufacturing lightly. Other core functions, such as ATP, WMS with mobile solutions, etc. are included.
Compliance and Reporting Provides essential compliance and reporting features. Offers advanced compliance, reporting, and analytics features, suitable for industries with stringent regulatory requirements. 
Global Reach Suitable for businesses operating in a single country or region. Ideal for multinational enterprises with global operations. Offers multi-language and multi-currency support. 
Capabilities and integration with other Dynamics 365 ComponentsCore capabilities: connects financials, sales, purchase, inventory, projects, service and operations.Designed to work out-of-the-box with other Dynamics 365 components. Offers comprehensive financials, advanced supply chain management, manufacturing, and industry-specific capabilities. Deep integrations with CRM, HR, Talent, Customer Service, Marketing and others. Fully covers traditional back-office processes. Highly customizable.
ScalabilitySuitable for businesses with up to a few hundred users.
Recommended for businesses who process a thousand+ transactions.
Scalable to support thousands of users and complex business processes. 
Recommended for businesses who process hundred-thousands of transactions.
Ease of Use4.9 out of 54.5 out of 5

Read more: Dynamics 365 Benefits: 5 Advantages of Having ERP from Microsoft 

Quick Summary: Which Microsoft Dynamics 365 ERP is Right for You?

Dynamics 365 Business Central ERP is perfectly suited for small to medium sized businesses. If your organization has 50 – 200 employees, then BC is the right option. It has the capability to process thousands of transactions accurately each day. Chances are, if you meet these two criteria, you have outgrown your entry level ERP solution and should strongly consider upgrading. Business Central has built in capabilities that help unify your business across your finance, operations, supply chain, and project management.  

Microsoft Dynamics 365 Finance / Operations is a full enterprise solution, perfect for multinational and multi-domestic companies. It enables you to unify your business operations in one central hub. It also comes with Dynamics 365 for Sales if you opt for the full Dynamics 365 purchase plan. In addition, if you’re operating internationally, Finance and Operations is available in 30 countries with the ability to customize tax rules per region. Its advanced functions make it perfect for organizations with a deep manufacturing division. 

Next Steps: Finding a ERP Partner 

If you’re ready to harness the power of Microsoft Dynamics for your business, you’re on the right track. You have now reviewed the ERP comparison chart and understand the difference between Business Central and Finance and SCM.  

Before you take the leap, there’s a crucial step you mustn’t overlook – finding a trusted CSP partner, as Microsoft Dynamics ERP solutions aren’t available for direct purchase from Microsoft. 

Your next move? Partner with a knowledgeable ERP implementation expert you can depend on. 

The most important part of implementing a new system is the technology partner you choose. 

We have been working with ERPs, integrations, customization’s and everything business software since the 90s, we know every business is unique and has specific needs. Finding out what those needs are and how to address them is how we have managed to keep a 95%+ retention rate. We are a Microsoft Gold Partner that works to deliver solutions that make your business better.

Microsoft Dynamics 365 keeps evolving with new features and capabilities year after year, making it challenging to stay up-to-date. 

If you’re seeking guidance on business applications, don’t hesitate to get in touch with us. We’re here to guide you every step of the way and help your business thrive.  

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