Dynamics 365 Business Central Pricing Plan Guide | Canada

According to Forbes Advisor, Microsoft Dynamics 365 Business Central has been named the best overall ERP system in 2024, while earning a 5/5 rating in their reviews.

Business Central offers a robust business solution that can efficiently handle different business processes, including finance, manufacturing, sales, supply chain, service, and project management.

Today, Businesses are migrating from Dynamics NAV to Business Central. If you are planning for Business Central implementation, that is, moving from an older version to the new one, then this article is for you.

Understanding the business central pricing plan is a critical step before you sign off for an ERP software solution for your business.

Continue reading to narrow down your choices and choose the plan that best suits your business requirements.

Types of Business Central Licenses

Dynamics 365 Business Central offers three types of licenses to its users.

• Dynamics 365 Business Central Essentials User
• Dynamics 365 Business Central Premium User
• Dynamics 365 Business Central Team User

Business Central Pricing Update: What’s New?

Microsoft announced the first Dynamics 365 Business Central price increase in more than five years. This new Business Central pricing shift in 2025 represents the numerous advances to the platform, such as its new powerful tools, increased storage, and AI-based functionalities. The new prices and storage capacity will be effective from October 1, 2025.

Furthermore, over the years, Business Central has kept expanding and helping small and mid-sized businesses by incorporating additional value in areas such as finance, analytics, supply chain, and manufacturing. The vision is to continue to assist companies to manage their end-to-end processes on a single platform.

Key Product Updates in 2025

• Microsoft Copilot in Business Central
• AI-powered financial analysis
• AI-powered account reconciliation
• Better analytics for finance and manufacturing
• Improved integration with Microsoft Power Platform
• Sustainability module
• Master data management
• More localizations / Additional localizations

New Pricing and Storage Updates in 2025

Microsoft is going to increase the price and storage of all Business Central cloud licenses. The updates will be in effect on all new subscriptions and renewals from October 1, 2025.

Comparison of the New Pricing vs. Old Pricing of Business Central

To clearly compare the new Business Central pricing vs. old Business Central pricing and storage entitlements of the various Business Central license types, refer to the following table:

* Business central price tables 

Note: These changes will take effect globally and apply to all currencies in a consistent way.

Essentials License

The Essentials subscription is tailored for users who require complete access to most of the modules of Microsoft Business Central. As per the recent announcement made by Microsoft, the new price of the Essentials license will be CAD 109.42 per user/month, beginning on October 1, 2025. Also, all Essentials users will get 3 GB of included storage, an increase over the 2 GB that was previously included.

In simple terms, this subscription is designed for Full Users such as Sales, Purchase, Finance, project, Inventory, Warehouse, Supply Chain, and customer relations.

Essentials subscription does not restrict the number of users for this license; however, it cannot be integrated or added with the Premium in the same deployment.

With Microsoft Dynamics Business Central Essentials subscription, businesses can keep track of customer interactions. It can automatically record interactions for purchase, sales, and service documents, like when a document is posted or printed.

Dynamics Business Central Essentials subscription is based on monthly and annual plans. The annual plan often includes an attractive discount for the users.

Users may access all important financial management operations, including fixed assets, inventory levels, production orders, accounts payable, general ledger, budgets, and service management.

Dynamics 365 Business Central Essentials Functionality

• Finance Management
• Sales and Marketing
• Sales and Delivery
• Purchasing and Payables
• Inventory
• Supply Planning and Availability
• Project Management
• Warehouse Management

The Essentials version of Microsoft Dynamics 365 Business Central offers powerful business functionality across Supply Chain/Inventory Management, Project Management, Purchases, Financials, Payables, CRM, Human Resources, Warehousing, and more.

Premium License

For users looking for a comprehensive business solution, the Premium license is the most suitable option. According to the latest update from Microsoft, the Premium license will be priced at CAD 150.46 per user per month starting October 1, 2025, and will now include 5 GB of storage.

It provides access to all modules of Dynamics 365 Business Central, which includes financial management, distribution, CRM, advanced manufacturing, etc.

Dynamics 365 Business Central Premium Functionality

• Service Management
• Manufacturing
• Financial Management
• Supply Chain Management
• Customer Relationship Management
• Project Management
• Warehouse Management
• Human Resources Management

D365 Business Central Premium license comprises all the functionalities covered by the Essentials tier, in addition to two new powerful modules:

• Service Management
• Manufacturing

Refer to the below table to compare the licensing cost and functionality of Dynamics 365 Business Central Essentials vs Premium:

Team Member License

As of now, Microsoft does not communicate any changes in price regarding the Team Member license. Its price and specifications will be unchanged (CAD 10.90 per user per month) till the next update from Microsoft. This option is ideal for light users who perform basic tasks such as reporting, workflow approval, time & expense tracking, and information gathering. This plan is optimal for users who simply stick to basic or standard functionality.

This basic functionality may include reading or limited writing access for selected light users without editing permission.

By availing of this option, businesses can extend the advantages of this feature to additional users within their organizations without even breaking the bank.

Dynamics 365 Business Central Team Members user can perform the following tasks:

• Read anything within Dynamics 365 Business Central without editing access.
• Approve or reject any assigned workflows.
• Create, modify, or delete any sales quote.
• Create, modify, or delete personal data.
• Update customer ledger data.
• Modify a time sheet for Jobs.
• Update previously produced vendor, item, and customer records, among other data and entries, in Business Central.
• Users cannot use Power Apps to access Dynamics 365 data.

Like the Essentials, Premium, and Team Member license types, which address varying user roles and business requirements, the Device License provides additional flexibility to accommodate shared-use instances.

Device License in Business Central

A Device license in Microsoft Business Central new pricing enables many users to share access to the system via a single, shared device, e.g., a point-of-sale (POS) terminal, shop floor terminal, or a warehouse kiosk.

It implies that, rather than buying a user license for each employee using the same workstation or terminal, companies can license the device itself. This will be useful for unlimited users who can access the system without needing individual logins, assuming they do so one at a time.

Additionally, as per the latest announcement from Microsoft, starting October 1, 2025, a new device license with 1.5 GB storage capacity will cost CAD 61.50 per user per month.

Collectively, these license types provide that companies of any scale and any workflow could find an affordable access model that suits their business organization.

Which Dynamics 365 Business Central Subscription Should You Choose?

For manufacturing, the premium plan is the best option as it includes all the modules and advanced functionalities. But for other business operations, your choice may lie between Essentials and Team Member subscriptions depending on which modules align with your business requirements.

If you want to gain full access to most of the functionalities of Dynamics 365 Business Central, you can choose the Business Central Essentials plan. The Premium plan includes all the features offered by Essentials along with two other features such as Service Order Management and Manufacturing. However, if your users just want to do the basic tasks like reading or viewing data in Business Central, then Team Member plan is the best option for them.

In a nutshell, you can consider Team Members to perform only basic tasks. Premium is tailored for advanced and complex functionality like manufacturing and service management.

Before choosing one, it is important to take into account the unique features and limitations of each plan. Moreover, you can combine various license types according to your requirements.

In this article, we have tried to illustrate the difference between Premium, Essentials, and Team member licenses along with their plans.

So, in case you are planning for Dynamics 365 implementation, feel free to reach out to Dynamics Square. We are a trusted Microsoft Dynamics 365 partner in Canada.