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Dynamics GP vs Dynamics 365 Business Central | The Ultimate Guide

Updated: Jun 23, 2022


Dynamics GP vs Dynamics 365 Business Central Comparison Table

If you are a small to medium sized business (SMB) that has looked into implementing Enterprise Resource Planning (ERP) software you've surely come across Microsoft Dynamics GP and Microsoft Dynamics 365 Business Central. These are two of the more popular choices for SMBs depending upon what your needs are. Dynamics GP's main strength is handling your organization's financials where Dynamics 365 Business Central's main strength lies on being an ERP software with advanced functionality. What does this mean? Let's dive deeper.


Click on any of the links below to skip to that section.


Overview of Dynamics GP

GP Hosting Options

On-premise

On-premise hosted software requires you to deploy the software on to a server. In-house servers generally require maintenance, configuration, security measures, backups, and much more that can quickly escalate costs.

Cloud

Cloud hosted software has less upfront costs because everything is included with your monthly costs. The software is hosted on Microsoft's servers, Microsoft handles the server's maintenance, Microsoft implements the server's security, and Microsoft handles the backups.


GP Licensing Options

Perpetual Licensing: The licensing is owned by you

The cost for the licenses and annual enhancement plan are paid upfront. Staying current on the annual enhancement plan gives you price protection, limited support, free upgrades, and a few other small benefits.

Subscription Licensing: Month to month flexibility

Costs are paid monthly which gives you the flexibility to quickly add or remove licenses as needed. Taxes are included in the price and there is no required annual enhancement plan.


GP Extendibility

Dynamics GP is not limited to it's out of the box functionality and has the option to be extended into a more robust software. You can add the extended pack or work with different ISVs to add very capable and functional add-ons.


Is Dynamics GP Being Discontinued?

No, Dynamics GP is not being discontinued. In fact, the current GP roadmap is for 2028 and beyond.


Dynamics GP Roadmap


Overview of Dynamics 365 Business Central


Dynamics GP vs Dynamics 365 Business Central Comparison Table

Feature

Dynamics GP

Dynamics 365 Business Central

Add-ons / Extensions

Yes

Yes

Automatic Save Feature

No

Yes

CRM

Yes, with add-on

Yes

Dynamics 365 Sales Integration

Yes, requires time to integrate

Yes, requires minimal time to integrate

Electronic Bank Reconciliation

Yes

Yes

Field Service Management

Yes, with extended pack | Limited functionality

Yes, with premium licenses

Financial Reporting

Users Management Reporter

Built-in flexible report writing

GL Account Structure

Uses multiple segments for structure

Uses Dimensional Chart of Accounts

Hosting

On-premise or Infrastructure as a Service

Cloud or On-premise

Manufacturing

Yes, with extended pack | Limited functionality

Yes, with premium licenses

Master Records Import

Yes, requires an add-on

Yes

Microsoft 365 (Office 365) Integration

Yes

Yes

Multi-Entity Management

Yes, requires an add-on

Yes

Payroll

Yes

Yes, with apps

Power BI Integration

Yes, requires time to integrate

Yes, requires minimal time to integrate

Preview Posting

Yes

Yes

Project Management

Yes, with extended pack | Limited functionality

Yes

Purchasing and Payables

Yes | Requisitions, PO creation, separate inventory receipt, and 3-way Purchase Order matching

Yes | Requisitions, PO creation, separate inventory receipt, and 3-way Purchase Order matching

SaaS

No

Yes

Search Feature

Yes

Yes

Supply Chain Management

Yes, with extended pack | Limited functionality

Yes

Upgrades & Updates

Manual install

Automatically applied for the Cloud | Manual install required for on-premise

Warehouse Management

Yes, requires an add-on

Yes

Should You Upgrade from Dynamics GP to Business Central?


The short answer is yes, you most likely should upgrade from Dynamics GP to Business Central. Business Central has a cloud offering that is second to no other Financial or ERP software. Microsoft has been adamite that the cloud is the way of the future and has continually improved Business Central's cloud offering. Check out other reasons why you should upgrade to Business Central in our article, It's Time to Upgrade your Dynamics GP to Business Central.


In conclusion, Dynamics GP offers basic functionality where as Business Central offers advanced functionality.


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