Microsoft Dynamics 365 vs Microsoft Business Central: What’s the Difference?

This article explores the key difference between Microsoft Dynamics 365 vs Microsoft Business Central.
There are various choices of enterprise resource planning (ERP) software available. Microsoft Dynamics 365 and Microsoft Business Central are both widely used options.
While both software packages have their strengths, there are differences between Microsoft Dynamics 365 and Microsoft Business Central that can make one more suitable for your organization than the other.
Table of Contents

What is Microsoft Dynamics 365?
Microsoft Dynamics 365 is a cloud-based software platform that offers various business solutions, such as customer relationship management (CRM), financial management, and supply chain management.
Microsoft Dynamics 365 is designed to be highly scalable, so small and large enterprises can use it.
Microsoft Dynamics 365 is developed using the Microsoft Power Platform, enabling smooth integration with other Microsoft programs such as Excel, Outlook, and SharePoint. The software offers a high degree of customization, allowing businesses to adapt it to their specific requirements.

What is Microsoft Business Central?
Microsoft Business Central, previously named Microsoft Dynamics NAV, is a comprehensive business management solution that caters to the needs of small and medium-sized enterprises.
Microsoft Business Central offers various business functionalities, such as financial management, supply chain management, sales and marketing. Like Microsoft Dynamics 365, Microsoft Business Central is built on the Microsoft Power Platform and is highly customizable.
Difference between Microsoft Dynamics 365 vs Microsoft Business Central
While Microsoft Dynamics 365 and Microsoft Business Central share many similarities, there are some significant differences between the two software packages.
- Target Market
One of the key differences between Microsoft Dynamics 365 and Microsoft Business Central is the target market. Microsoft Dynamics 365 caters to the needs of large enterprises, while Microsoft Business Central is tailored for small and medium-sized businesses.
Although businesses of any size can use both software packages, they are designed to be optimized for specific types of organizations.
- Complexity
Another key difference between the two software packages is the level of complexity. Microsoft Dynamics 365 is a highly complex software platform that requires significant customization and configuration to meet the needs of an organization.
On the other hand, Microsoft Business Central is a more streamlined solution that is easier to implement and use out of the box.
- Price
Microsoft Dynamics 365 is a more expensive solution than Microsoft Business Central. This is partly because Microsoft Dynamics 365 is designed for large enterprises and requires more customization and configuration.
Microsoft Business Central is tailored to meet the needs of smaller organizations and is priced accordingly.
- Features
While both software packages offer a range of business functionality, there are some differences in the available features. For example, Microsoft Dynamics 365 offers more advanced supply chain management capabilities, while Microsoft Business Central is better suited for financial management.
- Scalability
Microsoft Dynamics 365 and Microsoft Business Central are engineered with high scalability.
Microsoft Dynamics 365 is recommended for large enterprises with complex needs, while Microsoft Business Central is better suited for small and medium-sized businesses that require a more simplified solution.
Microsoft Dynamics 365 vs Microsoft Business Central
Category | Microsoft Business Central | Microsoft Dynamics 365 |
---|---|---|
Target Market | Small and medium-sized businesses | Large enterprises |
Complexity | Streamlined solution that is easier to implement and use out of the box | Highly complex software platform that requires significant customization and configuration |
Price | Less expensive than Microsoft Dynamics 365 | More expensive than Microsoft Business Central |
Features | Better suited for financial management | Offers more advanced supply chain management capabilities |
Scalability | Designed to be highly scalable, but better suited for small and medium-sized businesses | Designed to be highly scalable and better suited for large enterprises with complex needs |
Integration | Can be integrated with other Microsoft applications, such as Excel and Outlook | Can be integrated with other Microsoft applications, such as Excel and Outlook |
Deployment | Cloud-based or on-premise deployment options | Cloud-based deployment only |
These are some key differences between Microsoft Business Central and Microsoft Dynamics 365. When choosing between the two software packages, it is important to consider your organisation’s specific needs and which solution will best meet those needs.
Can I migrate from Microsoft Dynamics NAV to Microsoft Business Central?
It is possible to migrate from Microsoft Dynamics NAV to Microsoft Business Central. In fact, Microsoft Business Central is the successor product to Microsoft Dynamics NAV, and it was specifically designed to provide a seamless upgrade path for businesses currently using Dynamics NAV.
Migrating from Dynamics NAV to Business Central typically involves upgrading your NAV data to the latest version, and then moving that data into Business Central. Microsoft provides tools to assist with this migration process, including the Intelligent Cloud Migration tool, which can automate much of the migration process.
It is important to note that migrating from Dynamics NAV to Business Central is not always a simple process, and it’s often best to work with a Microsoft partner or consultant who can help guide you through the process and ensure that everything is properly configured and set up.
Additionally, it is important to carefully consider the potential impact that a migration to Business Central could have on your business, including potential changes to workflows and processes and any customizations or integrations that may need to be updated.
Can I integrate Microsoft Business Central and Microsoft Dynamics 365 with other Microsoft applications, such as Excel and Outlook?
Microsoft Business Central and Microsoft Dynamics 365 can be integrated with a wide range of other Microsoft applications, including Excel, Outlook, Power BI, and many others. These integrations can help to streamline your workflows and improve collaboration and communication across different teams and departments.
For example, you can use Excel to create reports and analyze data from your Business Central or Dynamics 365 system and then import that data back into the system as needed. You can also use Outlook to manage your contacts, appointments, and tasks and synchronize that data with your Business Central or Dynamics 365 system.
In addition to these standard integrations, Microsoft provides a range of tools and resources to help you build custom integrations between your Business Central or Dynamics 365 system and other applications or systems you use.
These integrations can be built using Microsoft’s Common Data Service, which provides a standardized framework for exchanging data between applications and systems.
Overall, Microsoft’s focus on integration and interoperability is one of the key strengths of Business Central and Dynamics 365. It can help ensure that your organization can work more efficiently and effectively across all of your different tools and platforms.
Microsoft Dynamics 365 vs Microsoft Business Central: Which Solution is Right for Your Business?
When choosing between Microsoft Dynamics 365 and Microsoft Business Central, it is crucial to assess your organization’s specific requirements. If you are a large enterprise with complex business requirements, Microsoft Dynamics 365 may be the better option.
However, Microsoft Business Central may be the better option if you are a small or medium-sized business with more straightforward needs.
Ultimately, the decision between Microsoft Dynamics 365 and Microsoft Business Central will depend on your business needs and budget. Both software packages are powerful solutions that help businesses streamline their operations and increase efficiency.