Dynamics GP VS Dynamics 365 Business central ERP | Key Differences

Dynamics GP and Microsoft Dynamics 365 Business Central are ERP solutions with overlapping functionality. The main difference between these two products is in their design. Dynamics GP is a product for legacy systems, which was designed for on-premises functionality. Now, in a recent update, GP has also started supporting some cloud functionality. On the other hand, Business Central was launched recently, which is designed with cloud functionality.

Choosing one option between Dynamics GP vs Business Central depends on various factors, as both systems come with their pros and cons. However, Business Central allows you to leverage the cloud’s power in the era of cloud computing, increasing operational functionality, integrating with other applications, and allowing scalability.

Additionally, it is paramount to understand that Microsoft has phased out the sale of Dynamics GP. Existing GP users won’t get support from Microsoft, and they need to get support from Microsoft partners, like Dynamics Square.

Let’s delve into more detail to understand the key difference between Dynamics GP and Business Central.

Table of Content

Microsoft Dynamics Business Central and GP

Read on to discover the basics of Dynamics 365 Business Central and Dynamics GP.

What is Dynamics 365 Business Central

Dynamics 365 Business Central is a software as a service (SaaS) solution and is part of a business management suite – Dynamics 365. You can host Business Central in the cloud, access it from anywhere with an internet connection.

There’s no need to support or keep your own IT infrastructure to run the software.

Microsoft manages upgrades for its products and services, and automatically rolls them out without any need for downloads or installation on your end.

This means that you can enjoy the latest features and improvements without any extra effort or interruption to your workflow. This automatic upgrade process also ensures that you are always up-to-date and protected with the latest security updates and bug fixes.

This is to help small to medium-sized businesses (SMBs) save money and streamline their operations at scale.

What is Dynamics GP

Microsoft originally designed and developed Dynamics GP as an on-premises solution that can be hosted in the cloud. This ERP application performs at its best when deployed on-premises.

But remember, whether deployed in the cloud or on-premises, no updates are automatically rolled out for Dynamics GP. You'll have to schedule upgrades with Microsoft or your software provider like Dynamics Square.

Dynamics GP is comparatively simple enterprise resource planning (ERP) software, and it also includes human resource and payment functionality, as well as general financial capabilities.

However, it doesn't support multiple languages currencies, or statutory requirements that you get for FREE with Dynamics 365 Business Central. Dynamics GP does not offer what larger organizations might need.

Dynamics GP vs Business Central

If you are deciding to migrate from Dynamics GP to Business Central, this table includes detailed differences between them.

Product/Features Dynamics 365 Business Central Dynamics GP
Licensing/Pricing  Starts at $ 95 CAD per user/month From $ 6167 (CAD) for 3 users. Subscription starts at $ 65 (CAD).
Payroll Yes, via apps. Yes.
Purchase Orders
  • No requisitions.
  • 3-way PO invoice matching.
  • PO creation.
  • Separate inventory receipt.
  • Requisitions.
  • Separate inventory receipt.
  • 3-way PO invoice matching.
  • Cloud (with no extra fee).
  • Choice of on-premises option.
On-premises or Infrastructure as a Service (IaaS, not included)
  • FREE automated updates.
  • Managed byMicrosoft.
  • FREE service pack updates for Dynamics GP 2019 Oct.
  • Release and later.
  • Manual upgrades for earlier GP versions.
Business Intelligence (BI) / Power BI Integration  Yes, with a little effort. Yes, but a bit complex and requires added help.
Dynamics CRM/Dynamics 365 Sales Integration  Yes, easy to integrate.  Yes, and requires some effort
GL Account Structure Dimensional chart of accounts. Various segments for structure.
Add-ons A large, rapidly growing pool of powerful add-ons/apps.  Numerous add-ons to suit your business needs.
Budgeting  Facilitates multiple budgets for financials, revisions, analysis, and dimensional reporting.
  • Set up and import Excel-based budgets.
  • Advanced capabilities via Cloud Solutions Partners.
Financial Reporting Uses account schedules & analysis views. Can utilize Jet Reports. Jet Reports and Management Reporter

Pricing of Business Central

There is no single base plan for this cloud ERP software, rather it has three different plans:

  • Business Central Essentials start from $95 (CAD) per user/month.
  • Business Central Premium from $128 (CAD) per user/month.
  • Business Central Team Members start from $10.20 (CAD) per user/month.

If your organization's employee size approaches over 250 but less than 300 active users (that's the maximum Business Central can handle), you can opt for its Premium license.

Benefits of Upgrading Dynamics GP to D365 BC

Considering Dynamics GP to Business Central migration can bring several benefits to your organization. Here are some of the benefits:

  • Consistent and adaptable cost structure
  • Elimination of infrastructure management
  • Access to the most up-to-date version
  • Security oversight by the Microsoft team
  • Seamless integration with other Microsoft products
  • Access to advanced features within Dynamics 365 Business Central
  • Centralized data management
  • Predictive analytics and data visualizations
  • Inbuilt generative AI capabilities
  • Preparedness for future developments 

Choose: Business Central or Dynamics GP

Let's see which one is the right one for you. But before continuing any further, I suggest you roll your eyes over the comparison table if you quickly want to know the main differences between Dynamics GP and Business Central.

Microsoft has focused on Business Central as a central component to compete with its competitors, like Oracle and SAP. While Microsoft will and still support on-premise solutions like Dynamics GP, Dynamics NAV / Navision, or say Dynamics CRM, the research and development team has put its focus on developing and enhancing cloud solutions.

Using BC over GP can be a wise option as you will get to see the new updates and features, allowing you to streamline your business. Users can access BC anywhere at any time using any device with a stable internet connection. On the other hand, Dynamics GP requires installation and a physical server, and you can’t access it from anywhere.

BC asks you to pay for what you use monthly, allowing you to manage your budget and expenses. On the other hand, GP requires a high upfront investment for leveraging its functionality.

BC also allows you to integrate with third-party and Microsoft applications to streamline your other operations. In GP, integration can be challenging, as it necessitates customization for integration.

Choosing between Dynamics GP vs Dynamics 365 Business Central highly depends on your needs. Compare BC and Microsoft Dynamics GP features, price, implementation time, and more before deciding to choose one. However, you can talk to our expert to make the best choice for your business.  


So, if you're looking for software that's up to date, there seems no other alternative than a cloud-based ERP solution like Dynamics 365 Business Central. This is Microsoft's newest cloud-ERP offering full of ERP functionality surprises and is helpful for your business.

The price point of Microsoft is committed to the cloud, and Business Central is at the core of its future strategy.

A tried-and-true ERP solution with integrated HR and payroll features is Dynamics GP. An extensive network of users, partners, and consultants does work on the cloud but performs best when deployed on-premises.

If still you have doubts or are unable to make a decision, you should consult with a Microsoft solution partner. Our team specializes in Dynamics 365, as well as other SaaS ERP solutions from Microsoft, and other software vendors. 

Ayush Jain

Ayush Jain is a seasoned Digital Marketing specialist renowned for his expertise in harnessing the power of cloud-based Software as a Service (SaaS) solutions to propel business growth. With an impressive track record spanning more than four years, he has cultivated fruitful partnerships with numerous SaaS enterprises, driving substantial brand recognition and unlocking revenue potential.


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