Dynamics 365 is a platform that provides businesses with intelligent applications, that allow to connect, control and closely monitor all of your business operations. It includes CRM, ERP, Office, analytics and other tools that work together to create a unified, intelligent and adaptable solution. However, within Dynamics 365, you have two options for ERP systems:
- Microsoft Dynamics 365 Finance & Supply Chain Management (D365 F&SCM) – formerly F&O (AX) now two separate apps
- Microsoft Dynamics 365 Business Central (D365 BC) – formerly NAV.
Although, without a deep understanding of Microsoft products and ERP knowledge, the best fit for your business may not be obvious. This article will help you make this choice, as we will make a Dynamics 365 F&SCM and D365 BC comparison in detail, highlighting their key differences, that are the core factors when considering a new ERP for your company.
What are the Key Differences Between These Systems?
- Target market: F&SCM is designed for medium and large businesses that need a powerful ERP solution that can handle complex and global operations. BC is more fit for small to medium-sized enterprises that need a flexible and scalable ERP solution that can support various business processes.
- Deployment options: Both D365 F&SCM and D365 BC offer cloud and on-premises deployment options, giving you the freedom to choose the best option for your infrastructure and preferences.
- User interface: BC has a simple and intuitive interface that makes it easy to navigate and adapt. You can read more here about using Business Central in practice. While F&SCM offers a more sophisticated and complex interface, that offers advanced features and functionalities. In our experience, the system looks complex only when you view all the functions it has, but when the separate functions are performed by different people, they are concentrated and easier to navigate. Both F&SCM and BC integrate with other Microsoft products, such as Office 365, Power BI, Teams and others.
- Functionality and modules: BC covers the core business functions, such as finance, sales, purchasing, inventory, warehousing, manufacturing, as well as distribution, and project management. Additionally, to core functions, F&SCM has more extensive and in-depth approach to functionalities mentioned above and additionally lets you control asset management, human resources, and commerce. It also has more industry-specific capabilities, such as automotive, public sector, healthcare, and education.
- AI capabilities: BC cloud deployment has the possibility to use several AI powered solutions such as cash flow forecast, sales and inventory forecast, late payment prediction, image recognition, generation of product descriptions for marketing, bank account reconciliations and more. F&SCM provides intelligent insights that generalize multiple data points in the system and predictive analysis for finances inventory, and more. Additionally, both F&SCM and BC have access to the newest Copilot integration if you’re using Cloud-based version.
Dynamics 365 F&SCM and Business Central Comparison Table
In the table below, we present a concise analysis of the main difference of these two ERP systems.
Dynamics 365 for Finance and Supply Chain Management | Business Central | |
|---|---|---|
Positioning | Integrated enterprise business platform for mature, growing, ERP-educated companies | The next level for organizations that have outgrown their entry-level accounting software |
Type of companies | Medium to large organizations. Fit for international business development. | Fit for small to midsize enterprises. |
Manufacturing Industry | Supports approx. 95% of manufacturing management functionalities. A great option for lean and process manufacturing. | Recommended for discrete manufacturing industry. |
Capabilities | Fully covers traditional back office processes, as well as integrates with CRM, HR, Talent, Customer Service, Marketing and other Dynamics 365 apps. | Connects financials, sales, purchase, inventory, projects, service and operations. Additional capability available in service management and manufacturing with the Premium package. |
Minimum # of users | 20 | 1 |
Number of Transactions | Recommended for businesses processing hundreds of thousands of transactions | Recommended for businesses processing thousands of transactions |
Inventory Traceability | Recommended for manufacturers that require a high level of traceability. Offers additional functionality in the form of pallet number and license plate tracking functionality. | Provides serial number, lot number, package tracking. |
Business Analytics | Embedded Power BI – rich analytical and reporting functionality. | BI tools include reporting, dashboards and ad-hoc analysis. |
Localization (read more about localization here) | Localized for 53 countries, however, most standard localizations do not cover all legal requirements. Most localizations have to be supported or done by a MS Partner. | Localized by Microsoft and Partners in 172 countries of which 24 are provided by Microsoft and others by MS Partners. |
License cost per user, per month | From 160 to 200$ | From 60 to 100$ |
So, what do you choose: Dynamics 365 Finance & Supply Chain Management or Business Central?
Both Dynamics 365 Finance & Supply Chain Management (F&SCM) and Business Central (BC) are reliable and effective ERP solutions, designed to optimize your business operations and help you achieve your goals. They aren’t inherently better or worse than one another, but rather suited to different types of businesses based on specific needs. The table below outlines some of the key differences, but it may not answer all your questions. The best approach is to discuss your business needs, goals, and ERP vision with a Dynamics 365 partner.
Ultimately, the answer depends on your unique requirements and future vision. Different businesses have different needs, and there’s no one-size-fits-all solution. The essential difference is that Dynamics 365 F&SCM offers more built-in “enterprise functionality” compared to Business Central. This makes it a better fit for companies that require a deep, comprehensive ERP system. If you’re still unsure which system is right for you even after reading our comparison of Dynamics 365 F&SCM and BC, contact us for more detailed discussion.
