What is the difference between Dynamics 365 and Business Central? (2024)

It can be hard to understand the difference between Dynamics 365 and Business Central, and when each is best used for your organisation. So, what is the difference between the two?

The answer is quite simple, there is none, in order to explain this, we have to look at the definitions of both of the solutions.

Dynamics 365: A Simple Definition

Dynamics 365 is a suite of cloud-based applications both CRM and ERP designed to cater to a diverse range of business needs. Applications within the suite include but are not limited to:

  • Dynamics 365 Marketing (CRM)
  • Dynamics 365 Sales (CRM)
  • Dynamics 365 Finance (ERP)
  • Dynamics 365 Business Central (ERP)

There are many more applications that make up the suite, each targeted at streamlining operations and driving business efficiency across various areas of a business.

Dynamics 365 Business Central: Microsoft’s ERP Solution

From the definition above, you may have realised that Business Central is, in fact, part of Dynamics 365. As such, the difference between the two is technically none, as Business Central is one of many applications that make up the Dynamics 365 suite of applications.

However, organisations using just Business Central compared to all products within the stack will have a large difference in the capabilities of their solution.
What is the difference between Dynamics 365 and Business Central? (1)

When is it best to use Dynamics 365 Business Central?

Business Central is specifically targeted at small to mid-sized businesses, that need robust ERP capabilities to manage financials, manufacturing, shipping, projects, services, and more. If this is what you are looking for then this solution is a great way to seamlessly manage all these capabilities.

Does Business Central have CRM capabilities?

There are CRM capabilities within Business Central to help support your sales teams, however, this is basic and limited in comparison with the specific Dynamics 365 CRM applications – read more about this here.

What applications does Business Central integrate with?

Business Central can be used as a standalone product, perfect for organisations with simpler workflows and processes. However, the beauty of the Dynamics 365 suite is that all products seamlessly integrate with each other. This allows organisations to benefit from systems that have exactly the functionality they may need, paying only for what they need and nothing more.

For example, an organisation may need basic ERP capabilities, while also needing advanced sales and marketing functionality. Here, the organisation may choose to integrate Dynamics 365 sales, marketing and business central, to provide them with the functionality they need.

Purchasing and Licensing Considerations

It is important to note, that each application within the Dynamics 365 stack is licensed separately. Some are priced higher than others and have different tiers available for different organisational sizes and needs.

However, as part of the Microsoft ecosystem, organisations can often enjoy discounted rates when they use multiple of the applications within Dynamics 365.

Dynamics 365 vs Business Central: Final Verdict

In summary, Business Central is a part of the Dynamics 365 suite of applications. It is Microsoft’s dedicated ERP solution for small to mid-sized businesses, as such there is no real difference between Dynamics 365 and Business Central. However, organisations only using Business Central compared to organisations using multiple Dynamics 365 applications will experience a big difference in functionality.

Pragmatiq are specialists in the CRM side of Dynamics 365 and have an extensive network of established ERP partners so no matter your needs we can help. If you would like to find out more about anything within this blog, please contact one of our experts at 01908 038110 or email us at info@pragmatiq.co.uk.

What is the difference between Dynamics 365 and Business Central? (2024)

FAQs

What is the difference between Dynamics 365 and Business Central? ›

Both Dynamics 365 CRM and Business Central are robust software solutions that can be tailored to meet your unique business needs. While Business Central can help you streamline operations and tackle day-to-day ERP challenges, Dynamics CRM can help you build customer loyalty and boost revenue.

Is Microsoft Business Central the same as Dynamics 365? ›

From the definition above, you may have realised that Business Central is, in fact, part of Dynamics 365. As such, the difference between the two is technically none, as Business Central is one of many applications that make up the Dynamics 365 suite of applications.

What is the difference between Dynamics 365 Finance and Operations and Business Central? ›

Business Central is designed for small to medium size companies and is less complex, costs less, and has a shorter implementation time whereas Finance & Operations is designed for larger organizations, has a higher cost, more in-depth features and functions, and is more complicated to implement.

What is Dynamics 365 Business Central used for? ›

Dynamics 365 Business Central enables you to streamline your financial close and get real-time visibility into the performance of your business. You can easily share your information in a secure manner with an accountant and gain more control over your budgets and cashflow.

What is the difference between CRM and Business Central? ›

Dynamics CRM is designed for companies looking to improve their customer engagement and deliver better customer experiences. Business Central is a comprehensive business management solution that covers various core business processes, while Dynamics CRM is focused on improving customer engagement and relationships.

Is Business Central a CRM or ERP? ›

The supply chain and operations management features optimize inventory control, order processing, and procurement, which are crucial for operational efficiency. In addition to its robust ERP capabilities, Business Central also includes elements of CRM.

Why upgrade to Dynamics 365 Business Central? ›

The updates in Business Central are faster, easier, and less costly than the upgrades were in NAV. Leverage the full Microsoft stack. Take advantage of tools like Excel, Outlook, Power BI, and other Dynamics 365 applications, together with your ERP.

Is Business Central part of Microsoft Dynamics? ›

Dynamics 365 and Business Central are the same thing. In fact, Business Central is a part of the D365 platform. But there is a difference between Business Central and the CRM apps that are part of the Dynamics 365 “umbrella.”

What is the difference between Microsoft Dynamics and Dynamics 365? ›

As software, Dynamics CRM was required to be installed and run on a localised server. In contrast, Dynamics 365 can be run from the cloud or in-house. Various features of Microsoft's CRM system work better for it being in the cloud - not least availability for use anywhere.

Is Dynamics 365 Business Central free? ›

Can I get Dynamics 365 Business Central for free? There is a free trial available for Business Central. Once you sign up, you'll have access to many of the app's features. With the trial, you can test the app with sample data.

Who uses Dynamics 365 Business Central? ›

Companies using Microsoft Dynamics 365 Business Central for ERP Financial include: Microsoft, a United States based Professional Services organisation with 221000 employees and revenues of $211.92 billion, Ministry of Education, Saudi Arabia, a Saudi Arabia based Government organisation with 11800 employees and ...

What is the purpose of Business Central? ›

Business Central's capability to generate detailed financial reports fosters informed decision-making. As you manage finances, its seamless integration with other systems heightens control and transparency across your business operations.

Is Dynamics 365 an ERP? ›

Dynamics 365 helps unify data across your business

Streamline your everyday financials and operations with Dynamics 365—an ERP software solution that helps you collaborate effectively, optimize business tasks, and drive growth.

What is the other name for Dynamics 365? ›

Microsoft Dynamics 365 for Finance and Operations Enterprise Edition (formerly Microsoft Dynamics AX) – ERP and CRM software-as-a-service product meant for mid-sized and large enterprises.

What is Microsoft Dynamics called now? ›

Dynamics 365 is a portfolio of intelligent business applications that delivers superior operational efficiency and breakthrough customer experiences enabling businesses to become more agile and reduce complexity without increasing costs.

Top Articles
Latest Posts
Article information

Author: Corie Satterfield

Last Updated:

Views: 5601

Rating: 4.1 / 5 (62 voted)

Reviews: 93% of readers found this page helpful

Author information

Name: Corie Satterfield

Birthday: 1992-08-19

Address: 850 Benjamin Bridge, Dickinsonchester, CO 68572-0542

Phone: +26813599986666

Job: Sales Manager

Hobby: Table tennis, Soapmaking, Flower arranging, amateur radio, Rock climbing, scrapbook, Horseback riding

Introduction: My name is Corie Satterfield, I am a fancy, perfect, spotless, quaint, fantastic, funny, lucky person who loves writing and wants to share my knowledge and understanding with you.