Dynamics GP vs Dynamics 365 Business Central | The Ultimate Guide
Updated: Jun 23, 2022
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.
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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.
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.
