When talking about production and choosing between Dynamics 365 Business Central (D365 BC) and Finance & Supply Chain Management (D365 F&SCM, formerly F&O), it is very important to assess your specific business needs. D365 F&SCM is ideal for larger enterprises with complex manufacturing and global supply chain demands, offering advanced features for production planning and quality control. Conversely, D365 BC caters to SMBs, providing essential manufacturing functionalities and inventory management in a more cost-effective package. The choice hinges on your operation’s scale, complexity, and budget, ensuring the selected ERP system aligns with your company’s growth and operational objectives.
Dynamics 365 Finance & Supply Chain Management
It stands out for its robust capabilities in handling complex manufacturing processes. It offers advanced functionalities such as:
Advanced Production Planning: D365 F&SCM provides sophisticated tools for production scheduling, capacity planning, and demand forecasting. This ensures efficient utilization of resources and timely delivery of products, crucial for manufacturers with intricate production cycles. Read more about ERP in manufacturing in this article.
Comprehensive Supply Chain Management: With D365 F&SCM, manufacturers can effectively manage their entire supply chain, from procurement and inventory management to distribution and logistics. The system offers real-time visibility into inventory levels, supplier performance, and delivery schedules, enabling proactive decision-making to minimize disruptions.
Quality Control and Compliance: D365 F&SCM includes features for quality management, enabling manufacturers to enforce quality standards, track defects, and ensure compliance with regulatory requirements. This is particularly important for industries with stringent quality control standards, such as automotive and aerospace.
Multi-site and Global Operations: D365 F&SCM is designed to support manufacturing operations spanning multiple locations and regions. It offers capabilities for intercompany transactions, multi-currency management, and localized compliance, making it suitable for large enterprises with global footprints.
Advanced automation: Various manufacturing functions can be automated using tools available in Microsoft ecosystem. In Dynamics 365 F&SCM various manufacturing processes can be automated like production planning, inventory management, shop floor operations, procurement, financials, reporting, maintenance, compliance, and IoT integration to enhance efficiency and accuracy. Read about manufacturing automation here.
Dynamics 365 Business Central
It caters to the needs of small to medium-sized manufacturers with simpler requirements. While it may not offer the same depth of functionality as D365 F&SCM, D365 BC provides essential features such as:
Basic Production Management: D365 BC supports core manufacturing processes such as multi-level bill of materials (BOM) management, routing, and basic production scheduling. It is suitable for SMBs with straightforward production workflows and limited production complexity. Manufacturing processes offer operations inside different locations with possibility to use subcontractors in the manufacturing process. All processes are available only inside one company.

Inventory and Warehouse Management: D365 BC offers basic inventory and warehouse management capabilities, allowing manufacturers to track real-time stock levels, demands, purchases, manage replenishment, and optimize warehouse operations. It is ideal for businesses with moderate inventory volumes and simplest storage requirements.


Cost-effective Solution: D365 BC is more cost-effective than D365 F&SCM, making it an attractive option for SMBs with budget constraints. It provides essential manufacturing functionalities at a lower price point, enabling smaller manufacturers to leverage ERP technology without breaking the bank. There are a lot of additional complex solutions to expand BC standard functionality, such as production planning, quality management, shop-floor, warehouse management.
Dynamics 365 F&O and Business Central Comparison Table
Here’s a comparison table of these two ERP systems for manufacturing, so you can compare them side by side
Dynamics 365 for Finance and Supply Chain Management | Business Central | |
---|---|---|
Target Audience | Enterprise-level organizations | Small to medium-sized businesses |
Production Planning | Advanced planning and scheduling (APS) | Basic to intermediate production planning |
Inventory Management | Robust and highly customizable | Standard capabilities with flexibility for smaller needs |
Bill of Materials (BOM) | Supports complex, multi-level BOMs | Supports basic and moderately complex BOMs |
Shop Floor Control | Detailed, real-time shop floor management | Basic shop floor capabilities |
Quality Management | Advanced quality management with detailed tracking | Integrates well with Microsoft 365 and third-party tools |
Integration with Other Systems | Seamless integration with enterprise tools and modules | Provides serial number, lot number, package tracking. |
Scalability | Highly scalable for global operations | Best suited for localized or smaller-scale businesses |
Cost Management | Detailed cost analysis and tracking | Basic to intermediate cost tracking capabilities |
Cloud Deployment Options | Fully cloud-based or hybrid | Fully cloud-based |
User Interface | Advanced interface for large-scale processes | Simple, user-friendly interface |
Implementation Time | Longer implementation period due to complexity | Faster implementation for quicker go-live |
License cost per user, per month | From 160 to 200$ | From 60 to 100$ |
In summary, the choice between D365 F&SCM and D365 BC or “D365 BC vs F&O” for manufacturing depends on the specific needs and scale of the business. Larger enterprises with complex manufacturing processes and global operations may benefit from the advanced features of D365 F&SCM, while SMBs with simpler requirements and limited budgets may find D365 BC to be a more suitable and cost-effective solution. Ultimately, businesses should carefully evaluate their manufacturing requirements and objectives to determine the ERP solution that best aligns with their goals. If you want to read about a detailed report of D365 F&SCM vs D365 BC read here.