Difference b/w D365 Business Central vs Finance and Operations

Microsoft offers various business solutions based on the industry and demand. Dynamics 365 Business Central and Microsoft Finance & Operations are two robust ERP solutions offered by Microsoft. They offer various functionalities, which drive business growth, streamline business operations, and improve financial management.

However, the question that arises here is, how to choose one for your business needs? Well, both solutions offer almost similar functionalities; however, they are designed with a distinct purpose to fulfill your unique requirements. When we see Dynamics 365 Business Central vs Finance and Operations comparison, there are various differences. Dynamics Business Central acts as an all-in-one solution and is positioned for SMBs with low-cost ownership. It also allows integration with other modules to fulfill your requirements.

Dynamics Finance and Operations is designed for enterprises that require in-depth features to manage all aspects of their finance and operations. It comes with a higher cost and needs a more comprehensive approach to implement compared to Business Central.

Table of Content

Dynamics 365 Business Central Overview:

Microsoft Dynamics 365 Business Central is a widely accepted business solution that takes care of various business requirements, right from sales and finance to supply chain.

Microsoft launched Dynamics 365 Business Central by keeping in mind that small and medium businesses don’t need complex solutions.

Small and medium-sized business requires cost-effective, accessible, and easy-to-implement ERP systems. That’s what Business Central does. SMBs can use this ERP system to streamline their various business processes even with a limited budget. They can also tailor this to their evolving needs.

You won’t face difficulty in Dynamics 365 Business Central implementation due to its straightforward setup. This reduces downtime and minimizes disruption, ensuring SMBs smoothly running with their day-to-day operations.

By using Business Central, businesses can also handle financial management, sales & customer relationship management, reporting & analytics, supply chain, and inventory management.

Dynamics Finance and Operations Overview:

So, What is Microsoft Dynamics 365 Finance and Operations used for? Well, it’s a robust ERP solution that is meant for medium and large-sized businesses. In October 2019, Microsoft split this business solution into two different licenses—Microsoft Dynamics 365 Finance and Supply Chain Management.

The reason for separating one application into two was to provide enterprises with flexibility and affordability to use a specific solution for their requirements. Enterprises can use these ERPs independently or in combination to have an all-encompassing and powerful ERP for their business.

Speaking of Dynamics 365 Finance, it includes financials, accounting for medium & large enterprises, project management, budgeting, and more. Similarly, Microsoft Dynamics 365 Supply Chain Management includes warehousing, manufacturing, engineering, and distribution.

It boasts a wide range of features, keeping in mind large enterprises to meet their unique business requirements.

Dynamics 365 for Finance and Operations is highly scalable and can be used for various purposes:

Advanced Financial Management: This CRM system includes everything, such as general ledger, budgeting, and accounts payable and receivable, to help enterprises with intricate financial structures. Enterprises can meet compliance requirements and handle complex transactions using D365 Finance. 

Supply Chain and Inventory Management: Dynamics 365 Finance and Supply Chain provides the necessary tools that help businesses with demand forecasting, inventory management, logistic optimization, and procurement. 

Human Resources and Payroll: A large enterprise must have a dedicated ERP system to manage the large workforce. It includes various features, such as payroll processing, talent management, and benefits administration, for HR management

Business Intelligence and Analytics: Dynamics 365 Finance and Operations empowers large enterprises with the business analytics and intelligence tool. This provides valuable insights, fostering data-driven decision-making. 

Compliance and Regulatory Support: Many Enterprises operate in stringently regulated industries, and they can’t afford non-compliance. ERP systems include industry-specific regulation, eliminating compliance issues. 

Benefits of Choosing a Suitable ERP System for Your Business

Before delving into the intricacies of Dynamics 365 Finance vs Business Central, we will see the benefits of choosing a suitable ERP system. Here are some of the benefits your business can avail:

Improved Efficiency: ERP can automate various tasks, reducing the risk of errors and time. This will lead to increased productivity and cost savings.

Increased Customer Experience: This system streamlines various processes and provides customer data. This helps businesses to deliver exceptional customer experience, improving customer satisfaction and fostering loyalty.

Informed Decision-making: Microsoft Dynamics 365 ERP provides real-time data and detailed analytics reporting. This helps businesses to make informed decisions, offering competitive advantage and driving business growth.

Adaptable to Market: ERP systems are customizable and scalable. Businesses leverage this functionality to fulfill their requirements according to market conditions and business growth. Additionally, they can also integrate with other Microsoft offerings or third-party systems. 

Key Differences Between Dynamics 365 Business Central and Finance & Operations 

Dynamics 365 Business Central Dynamics Finance Dynamics Supply Chain Management
Minimum user 1 20 20
$95 CAD per user/month for Business Central Essential

$135.70 CAD per user/month for Business Central Premium

$10.90 CAD per user/month for Business Central Team Members
$244.20 CAD per user/month for Dynamics Finance

$407 CAD per user/month for Dynamics Finance Premium
$10.90 CAD per user/month for Supply Chain Management
Organization Size 50-250 250+ 250+
Capabilities All-in-one solution available In-depth features for Finance management In-depth features for Supply Chain Management
Additional capability Can be accessed via premium package. Already available Already available
Budget and Time Cost-effective solution and quicker deployment option. Higher upfront cost and longer implementation time. Higher upfront cost and longer implementation time.
Functionality Limited functionality and customization Broader range of functionality and customization options Broader range of functionality and customization options
Scalability Limited Scalability Offer room for growing needs of business Can Support growing business
CRM Inbuilt CRM capability (Limited) No inbuilt CRM capability No inbuilt CRM capability

How to Choose the Right ERP for Your Business?

We have started the blog with Dynamics 365 Finance and Operations vs Business Central and compared all the features. However, it might be overwhelming for a business owner to choose the perfect one for their business.

Start by assessing your needs. Consider if you are an SMB or a large enterprise. Where is your industry focus? Are you running in a specialized industry or a highly regulated industry? What is your budget?

Dynamics 365 Business Central is good for SMBs, while Dynamics 365 Finance and Operations is better for large enterprises. You can fulfill your wide range of requirements, including finance and supply chain, with one Business Central plan. However, it offers limited functionality. On the other hand, F&O offers in-depth capability to fulfill a specific requirement.

Next, check your future growth plan. Microsoft Dynamics 365 Finance and Supply Chain can be good options if you are scaling your business. Additionally, find the integration capability that your business requires and how much urgency you need for implementation.

After this, plan your implementation and migration strategies. This might be overwhelming for your business. Partner with the trusted Microsoft solution partner to implement, migrate, or other needs.

Concluding Remarks!

Microsoft Dynamics 365 offers various software solutions for different business requirements. However, business always gets confused between Dynamics 365 Business Central vs Finance and Operations. Both solutions have their advantages and can help businesses maximize ROI if utilized in the best way.

That’s where Dynamic Square, a leading Microsoft Gold partner, comes into the picture! We have over a decade of experience and have helped 250+ companies with implantation, upgradation, training, and support. We can facilitate ERP and other implementation along with integration, like Dynamics 365 Finance and Operations integration. You can also get in touch with our team for any queries and solutions.

Q1. What is the new name for D365 Finance and Operations?

Recently, Microsoft has changed the name of Finance and Operations to Finance and Supply Chain. Previously, it was also known as Dynamics AX.

Q2. Is Dynamics 365 Business Central an ERP?

Yes. It is an ERP solution that is designed for small and medium-sized businesses that have limited resources and need to cater to multiple business operations.

Q3. What is the difference between Business Central and Project Operations?

Both are powerful solutions offered by Microsoft but have different strengths and weaknesses. Project Operation offers comprehensive solutions by integrating sales, resource management, and financial capability. On the other hand, Business Central provides end-to-end solutions to SMBs. 

Vivek Gururani

Vivek is a Digital marketing expert at Dynamics Square, specializing in crafting compelling content on advanced tech topics such as ERP, CRM, cloud computing, AI, ML, BI and more. His profound passion for the digital landscape has led him to explore and master diverse fields including SEO, SEM, content strategy, and data-driven marketing.


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