Why Dynamics 365 Business Central

TL;DR

Who this guide is for: Companies choosing a new ERP that want to understand the costs and the decision before they commit.
What it covers: What ERP really costs and where Dynamics 365 Business Central fits. Licensing, implementation, infrastructure and hidden costs.
Why D365 BC: Runs on Azure, two major updates per year included, local compliance delivered by Microsoft directly, large developer market.
Who it fits: Companies with 10-200 users covering finance, warehouse, sales and basic manufacturing. Heavy manufacturing → D365 F&O.
Cost: Licensing and implementation depend on the number of users, modules and scope of customization. We give you concrete figures after a call.
How to start: Process mapping of your current setup and requirements. That shows how to build the solution.

What Makes Up the Cost of ERP

Most quotes show the license price. That is a fraction of the total cost. For implementation details, see our ERP integration service.

Licensing

Monthly subscription or one-time purchase. The upfront payment looks affordable until you add the rest.

Implementation

Process analysis, configuration, data migration, training. Takes 3-12 months and makes up the largest part of the budget.

Infrastructure

Server, database license, backups, OS updates. Some vendors include it, others charge separately.

Regulatory updates

Tax changes, new regulations, reporting adjustments. Some vendors include it in the price, others bill it separately as a recurring fee.

Customization and development

Every ERP needs adjustments. The question is how many developers exist for that platform and what they charge.

Hidden costs

Downtime, security incidents, audit requirements. Nobody plans for them, but they come.

How We Design the Solution

We don't start by selling a license. We start by understanding how your company actually works.

1

We meet with leadership and key stakeholders

We interview the CEO, warehouse manager, controller, and sales team. We need to understand how the company actually works.

2

We map processes by department

Sales, warehouse, manufacturing, finance, logistics. We document what works, what doesn't, and where time is wasted. This becomes the requirements list.

3

We design the solution on D365 BC

We show how Dynamics 365 Business Central covers your processes. What works out of the box and what needs customization, with cost estimates for licensing, implementation, and operations.

4

We explain the decision

You get a solution proposal with the reasoning and a cost estimate. The decision is yours.

We build the proposal around your real processes, not a price list.

Get a process analysis

What Dynamics 365 Business Central Offers

Dynamics 365 Business Central is a cloud ERP system by Microsoft for small and mid-sized companies. It covers finance, warehouse, manufacturing, procurement and sales in one platform. It runs on Azure and local compliance is handled by Microsoft (see the official Microsoft Learn documentation). For larger manufacturers with complex processes, there is Dynamics 365 Finance & Operations. For industry-specific breakdowns, see our ERP in manufacturing guide.

Cloud on Azure

Server, SQL, backups, security patches. All included in the subscription. Microsoft keeps continuous backups, so the environment can be restored to a recent state if needed.

Security

Encryption, multi-factor authentication and access control at Microsoft cloud level. Microsoft runs the infrastructure and patching, you focus on your data and processes.

Regular updates

Two major releases per year (April and October) plus monthly updates including regulatory changes. No paid upgrades.

Large developer ecosystem

D365 BC is built on widely adopted technologies. When you need customizations, you'll find no shortage of qualified partners.

Pay for what you use

Monthly or annual billing per user. No six-figure upfront license investment.

Local compliance by Microsoft

VAT, statutory reporting, Intrastat, local accounting standards. Delivered and maintained by Microsoft, not by a third party.

D365 BC Feature Overview

Areas that D365 BC handles within a single system.

Area	What D365 BC covers
Finance	Accounting, invoicing, VAT, statutory reporting, Intrastat
Warehouse	Multiple warehouses, barcodes, stock counts, batches, FIFO/FEFO
Manufacturing	Production planning, BOMs, capacity planning
Sales	Orders, quotes, CRM, customer-specific pricing
Procurement	Purchase orders, approvals, suppliers, EDI
Reporting	Power BI dashboards, financial statements, analytics
Integration	REST API, Power Automate, SharePoint, Teams, Outlook
Operations	Cloud on Azure, backups, security, regular updates

swipe to see the full table

Sound familiar?

Situations where companies move to D365 BC. For industry-specific scenarios, see our guides on ERP in manufacturing, logistics and ERP, and IT partnerships for international companies.

You're growing but losing visibility

You need better control over finances, inventory and orders. Data is scattered across multiple systems and nobody sees the full picture.

Your current ERP can't keep up

You've been using it for 10-20 years. Every change is expensive and takes too long.

You're expanding internationally

Your current system only supports one language. You need multi-language, multi-country compliance in one platform.

Infrastructure is a burden

Your own server, database licenses, backups, security. Time to offload it.

Production planning lives in spreadsheets

BOMs and capacity are in the foreman's head. You need a system that connects manufacturing, warehouse and procurement.

CRM and ERP are disconnected

Sales reps retype data manually. Nobody can track an order from quote to invoice in one place.

Companies with 10-200 users covering warehouse, finance and sales are typically where D365 BC fits best. For heavy manufacturing, D365 Finance & Operations takes over. If you have a working ERP you don't want to replace, we connect it through an API. Where you're not sure, we walk through the options on a no-obligation call.

Frequently Asked Questions

What happens to our data during migration?

We migrate historical data from your current system. Both systems run in parallel during the transition. Original data stays as a backup. D365 BC also retains environment backups for roughly the last 28 days.

Does D365 BC support local regulations?

Yes. Local compliance, including VAT, Intrastat, and statutory reporting, is delivered and updated by Microsoft.

Can we try D365 BC first?

Yes. We set up a test environment where you can try the system with your own data before you decide.

Do you have real Dynamics experience?

Yes. We deploy and connect Dynamics in production, including integration with other business systems. One example is our IBG project, where we connected Dynamics CRM, Dynamics NAV and SharePoint into a single environment.

What is the difference between D365 BC and Finance & Operations?

D365 BC is for small and mid-sized companies (5-200 users) needing finance, warehouse, sales and basic manufacturing. Finance & Operations is for larger companies with complex production planning, supply chain management and multi-level BOMs. Both run on Azure and share the Microsoft 365 ecosystem.

Can you control ERP with AI?

Yes. Through MCP (Model Context Protocol) we connect AI directly to your ERP. Instead of clicking through the system, you give instructions in natural language - by text or voice. See our AI automation guide; products are in the Products section.

Does D365 BC handle batches, expiration dates and FEFO?

Yes, natively and without add-ons. D365 BC has built-in lot tracking, expiration dates and FEFO picking (First Expired, First Out). You enable "Pick According to FEFO" on the location and set an item tracking code. The system automatically picks stock with the shortest shelf life. With "Strict Expiration Posting" enabled, it won't let you ship expired goods.

Why We Recommend Dynamics 365 Business Central