Everything you need to know about Microsoft Dynamics 365 Business Central

Researching ERP software? Discover Microsoft Dynamics 365 Business Central, its features, security and set-up and why it’s a good choice for manufacturers and distributors. 

What is Microsoft Dynamics 365 Business Central? 

Dynamics 365 Business Central is Microsoft’s all-in-one ERP software – and a popular choice for manufacturers and distributors looking to boost efficiency. 

With Business Central, you can manage your finance, sales, purchasing, inventory and operations together in one place. This helps streamline processes (and eliminate a reliance on paper!) and gives greater visibility into operations, all to support your efforts to deliver on time and in full, every time. 

Why choose Business Central? 

There are lots of reasons why manufacturers and distributors choose Microsoft Dynamics 365 Business Central as their ERP solution. 

End-to-end visibility of finance, inventory, production and supply chain data in one system makes planning and decision making quicker and easier. Not only that, but industry-relevant features support manufacturing, warehousing, MRP and order management straight out of the box. 

Business Central is built to be scalable, too, which means it can easily adapt to support your business as it grows. 

How much does Business Central cost? 

There isn’t a single fixed cost for Dynamics 365 Business Central. The overall price depends on factors such as the size of your organisation, the complexity of your processes, the number and type of users, any apps or integrations and the implementation and support partner you choose. 

Implementation is a one-off cost, while licence fees, support costs and app subscriptions will be billed monthly or annually. 

Business Central licences are typically sold on a per user, per month subscription, with different licence types (for example, Essentials, Premium and Team Members) offering different levels of functionality. You’ll need a premium licence if you want manufacturing capability. 

With Business Central licencing, contract length can vary. Paying for licencing annually gives you access to a more cost-effective monthly fee, while flexible, pay-per-month licencing comes at a higher cost, but with the flexibility to scale up and down as needed. Seasonal peaks in manufacturing and distribution are common, so it often makes sense to have the bulk of your licences billed annually, with a few added monthly licences that can be scaled back to match demand. 

For up-to-date list prices and licence details, visit our Business Central pricing page. 

How long does Business Central take to implement? 

The time it takes to implement Dynamics 365 Business Central varies. A traditional implementation is usually driven by business size, process complexity, data migration needs, customisation and the partner you work with, so exact timelines are tricky to pinpoint. Between six and nine months is considered a realistic expectation for small to medium-sized businesses – but this is a ballpark figure. 

Is there a quick way to implement Business Central? 

Some partners offer fixed-cost, fixed-scope implementation packages. For example, Delivered! from Tecman is a fast, fixed-price implementation approach designed specifically for distribution businesses. It uses a standardised scope to minimise risk, deliver more predictable outcomes and get your system live within four months of kick-off, all while giving you functionality that’s tailored to industry needs. 

How safe is my Business Central data? 

Business Central is highly secure. It’s built on Microsoft Azure, uses Microsoft Entra ID for identity management, supports multifactor authentication, provides role-based access control and encrypts data in transit and at rest. 

Microsoft continuously monitors, tests and updates the platform, and it aligns with major compliance and security standards. 

Find out more about Business Central security from Microsoft themselves. 

Is Business Central cloud-based or on-premises? 

Dynamics 365 Business Central can be deployed either in the cloud (SaaS) or on-premises. Microsoft supports both models, but customers are encouraged to consider the benefits of moving to the cloud, if they haven’t already. 

The SaaS version is hosted on Microsoft Azure, with automatic updates, built-in backups and enterprise grade security managed by Microsoft. As a result, most organisations choose cloud deployment for Business Central because it’s more secure, easier to maintain and always up to date. 

Is Dynamics NAV and Business Central the same? 

Not quite. Dynamics NAV (Navision) is Microsoft’s legacy ERP, mainly on-premises and fully exiting support in 2028.  

Business Central is NAV’s next-generation evolution – built on the same foundation but redesigned for the cloud, with a web interface, automatic updates, tighter Microsoft 365 integration and ongoing innovation. 

If you’re currently looking to make the move from NAV to Business Central, you might like to find out more about Tecman’s upgrade services. 

How does Business Central compare to Dynamics 365 Finance? 

Generally speaking, Business Central is Microsoft’s ERP software for small- to mid-sized businesses, while Dynamics 365 Finance and Supply Change Management (previously known as Dynamics 365 Finance and Operations or Dynamics AX) is Microsoft’s ERP solution for large enterprises. 

However, it’s not always that black and white. Depending on your strategic requirements, your business size probably won’t be the only factor in deciding which Microsoft Dynamics 365 ERP software solution is right for you – for example, we often find global organisations favour Business Central as a ‘domestic’ solution. 

Take a look at our full comparison of the two different options. 

Does Business Central integrate well with other Microsoft solutions? 

Yes, that’s part of the beauty of it! Business Central connects effortlessly with Microsoft 365 (Outlook, Excel, Teams), Power BI for reporting and Power Platform for automation and apps. Data flows seamlessly between tools, so users can work in familiar Microsoft apps while staying connected to live ERP data. 

If your business is already heavily reliant on Microsoft technology, it makes sense to consider Business Central as your ERP. 

Do I need a Microsoft partner to implement Business Central? 

While it’s not impossible to set up Business Central yourself, Microsoft typically expect customers to choose a certified partner to handle their implementation, licensing and support. 

Your Microsoft partner can handle configuration, data migration and training, and some partners have industry relevant expertise that makes their involvement twice as beneficial, as they can quickly understand your needs and adapt your system to suit. 

Listen to S2 Ep4 of our Tecman Talks Dynamics podcast for things to look for when you’re choosing a Microsoft Dynamics 365 partner. 

Do I need system support after Business Central implementation? 

Yes, ongoing support is strongly recommended after a Dynamics 365 Business Central implementation. Support helps resolve issues, manage updates, optimise performance and adapt the system as your business evolves. 

Microsoft partners like Tecman provide dedicated Dynamics 365 Business Central support. We offer a UK based helpdesk, proactive system health checks and industry focused expertise to keep your ERP running smoothly long term. 

If Business Central is already on your ERP shortlist and you’re looking to take the next steps, we’re here to help. Get in touch today and we’ll set up an initial call to understand what you’re hoping to get out of Business Central – and whether Tecman is the right partner for you.