Microsoft Dynamics GP vs. Dynamics 365 Business Central – Key Differentiators
Dynamics 365 Business Central and Dynamics GP are two similar ERP solutions. They share many overlapping features and functions.
Microsoft has continuously improved both solutions to help businesses keep up with a changing business landscape. When it comes to business management solutions, the majority of the focus is on its’ cloud-first business line, Dynamics 365, while continuing support for Dynamics GP. Given this range of solutions, Microsoft has made it a priority to encourage customers to migrate to Dynamics 365 Business Central.
Dynamics GP and Business Central – An Introduction
Microsoft Dynamics GP is an ERP program that helps companies manage back-end operations and keep day-to-day business running. It offers you the flexibility that you need for your business. W have helped numerous organizations maximize this platform’s potential; for instance, see how a US craft brewery optimized operations with Dynamics GP to streamline their unique distribution and production requirements.
Dynamics 365 Business Central is a cloud-based, all-in-one solution. It helps you manage finance, operations, projects, sales, supply chain, and service. D365 integrates customer engagement and business processes to enable quick, real-time decision-making.
Both Dynamics GP and Business Central serve growing small and medium-sized businesses (SMBs). They share the same code base and offer a similar core set of features. However, there are significant differences between the two ERP solutions.
What Is the Difference Between Dynamics GP and Dynamics 365 Business Central?
Many Dynamics GP customers have already made the switch. Common reasons include rising hardware and server costs, growing resource requirements, or the desire for more modern features like mobile access and data analysis. If you are weighing these factors, our detailed breakdown of why you should migrate from Microsoft Dynamics GP to Dynamics 365 Business Central explores the long-term ROI and strategic advantages of making the move now.
Three key differences between Dynamics GP and Business Central.
1. Licensing and Hosting
Dynamics GP offers several licensing options:
Subscription licensing – pay the full licensing cost upfront
Perpetual licensing – pay monthly with more flexibility
Cloud hosting – use your own servers
On-premise hosting – hosted through Infrastructure as a Service (IaaS)
You can also extend Dynamics GP’s functionality through ISV add-ons.
Dynamics 365 Business Central is a true cloud ERP solution. Microsoft licenses it as SaaS and hosts it on Microsoft Azure. You can choose from three user license types: Team Member, Essential, or Premium.
2. Add-Ons
Dynamics GP covers core financial and distribution functions. To add manufacturing, services, customizations, or advanced payroll and HR features, you must purchase three additional packages through partners and Independent Software Vendors (ISVs). Managing Dynamics GP add-ons requires separate back-end development and separate management.
For Business Central, Microsoft has simplified the add-on process using Extensions. These extensions and business apps are available through Microsoft AppSource. You can install apps for Business Central, Power BI, or separate Azure web apps in just a few minutes.
3. Functionality and Integrations
Dynamics GP includes these core functions:
Core financials
Payroll
eBanking
Fixed Assets
Inventory Tracking
Purchase Orders
Manufacturing
Services
For financial reporting, Dynamics GP uses Management Reporter or Jet Reports (an ISV add-on). Connecting GP with Power BI or a CRM requires specialized resources, custom implementation, and added costs. Note that Dynamics GP does not include budgeting or warehousing features.
Business Central offers more flexibility with its core financials. It also includes Fixed Assets, Inventory Tracking, Multi-Currency, Multiple Entities, Purchase Orders, and Warehouse Management. With a Premium license, you unlock manufacturing, service, and payroll through apps and built-in budgeting tools. Business Central’s full cloud hosting ensures unparalleled security, performance, and reliability, enhancing efficiency and improving your organization’s overall productivity.
Quick Comparison between Dynamics GP and Business Central
Benefits you get through Microsoft Dynamics 365 Business Central.
New user interface: Unified view for Dynamics 365 products and customized with intelligent notifications, personalized feeds, and role-specific views.
Mobile application: Business Central allows you to access rich functionality across various platforms.
Seamless Integration: It is a system that integrates seamlessly with other Microsoft services.
Native intelligence: Dynamics 365 Business Central helps generate more accurate forecasts and in-depth and valuable analytical insights.
Simple customization: The extension options allow you to better customize your unique business needs.
Migrate from Dynamics GP to Business Central with LevelShift
Understanding Business Central’s features, functions, and capabilities can be complex. If you still have confusion about migrating to Business Central, let us assist you.
We have extensive experience helping companies prepare for the future. We can help you understand D365 Business Central’s capabilities, how they affect your business, and whether migrating to Business Central is the right move. At LevelShift, we provide comprehensive Dynamics GP to Business Central migration services that include data mapping, third-party integration, and user training to ensure your transition is seamless. Let us assist you in preparing your business for the future.
