Microsoft Dynamics 365 is one of the world-class leading ERP solutions on the market. It is worth noting that the 365 branch of ERPs provides two solutions, Business Central and Finance and Operations. There is no secret that Business Central and Finance and Operations are two great software solutions from Microsoft Dynamics 365.
Featuring exclusive characteristics, you might be uncertain which of these programs you should choose for your business. You may be wondering what main differences between these popular ERPs are. And how can you choose the best solution for your business? We will answer your questions by objectively comparing these two programs developed for professionals.
Microsoft Dynamics 365 Business Central
Business Central is a revamped version of Nav. The solution comes with all of the functionalities of NAV; however, the good news is that now users also have the option to have their ERP solutions on-premises or hosted on the cloud, which is excellent. Business Central is Microsoft’s flagship mid-market-tier ERP, and it is suitable for small-to-midsize organizations as well as branch offices of global enterprises. Microsoft Dynamics 365 Business Central ERP is perfect for professionals who want to manage their finances and provide optimal customer service.
It also helps them analyze and increase company sales. Business Central achieves this by automating many “tasks” while simplifying certain essential decisions that businesses have to make.
An ERP Designed for SMEs with up to 500 Employees
Business Central is a great solution designed to meet the needs, preferences, and expectations of small and medium-sized businesses. Some features in the software are limited and may not suit companies with more than 500 employees. In this situation, ERP Finance and Operations will be an ideal solution as it caters to larger business organizations.
The “Finance” Module
It is worth noting that the functionalities that are available to you via the “Finance” module of Business Central are similar to the features offered by some of the most popular ERPs on the market. Designed for SMEs, this software is better than others are as it provides more accessibility and clarity of information, which is essential for your business.
You can easily understand how this software works. It will present you with a lot of information according to several categories such as the following:
1. The general ledger: chart of accounts will present information, such as:
- budgets in multiple currencies
2. Financial transactions:
- fixed assets, consolidations, bank reconciliations
3. Accounts payable:
- Supplier management, purchase orders, purchase invoices, electronic payments
4. Accounts receivable
- Customer management, invoicing, orders, bank transfers
5. Additional features, such as
- Document, payroll and project management
6. BI reports and artificial intelligence
- Cortana tools, interactive dashboard, customer and supplier statistics, and automated reports
Business Central has “Warehouse activities” functionality, and this allows you to process the information on your products. After the sale, your ERP will automatically update the records to ensure more visibility and clarity in your data. This permanent analysis is “stock reconciliation,” and it is ideal for your business.
Wondering why? It allows you to minimize the inventory you store in order to maximize the profitability of your business, which is terrific.
The “Production” Module for the Manufacturing Industry
The ERP Business Central is also ideal for the manufacturing sector as it has a module called “Production.” This module is for the manufacturing industry with several fantastic features that will meet your needs:
- Creation and management of production orders:
- Centralization of information relating to inventory, customer and after-sales service, manpower, and even any installations
- Flexible forecasts and production reports
- Inventory planning
- Monthly/annual forecasts ( this is based on recurring orders)
- Organizing production runs in order to overcome certain constraints
The Benefits of Microsoft Dynamics 365 Business Central
Central Business is ideal for your business as it can meet your needs while guaranteeing more accessibility and visibility into your operations. And that is not all; financial management with this software centralizes all aspects of your business (such as accounting, stocks, etc.). This helps promote better performance and fluid decision making in the face of competition.
The precision of the software algorithms (which uses artificial intelligence) will not fail to surprise new entrepreneurs as they make relevant predictions to improve your business performance.
Microsoft Dynamics 365 ERP Finance and Operations
Just like Microsoft Business Central, ERP Finance and Operations has the amazing capability to be hosted either on-premises or on the cloud. Keep in mind that Finance and Operations is an integrated and seamless enterprise solution for many businesses. You can easily connect it with other Microsoft apps, such as their CRM, Customer Service, Talent, and Marketing platforms. Formerly named AX, Microsoft recently restructured the ERP Finance and Operations.
The software now has two separate applications: Dynamics 365 Finance and Dynamics 365 Supply Chain Management to streamline your business functions. Finance and Operations has several functionalities that are similar to Business Central. However, keep in mind that it also has various exclusive features.
An Ideal Solution for “Large” Companies
As you can understand, Finance and Operations is an ERP perfect for companies with more than 500 employees.
Retail Analysis Features
Companies that are in the retail sector will find the “Retail” module of this ERP ideal for their business. In order to maximize your turnover, you can leverage numerous monitoring options as they will allow you to streamline various services, such as the following:
- The back office
- The store (s) concerned
- Digital portals (websites and applications)
- The call centers
Regardless of your payment solutions and your delivery solutions, your ERP will handle the real-time execution of sales order information, which is fantastic.
You can also manage your customer loyalty programs and ensure compliance with Finance and Operations, which is another bonus. In addition, this ERP offers many features to strategically organize your advertising campaigns (both physical and digital). As you can see, Finance and Operations is a great and comprehensive solution for your business.
If you use this program, you will not have to combine multiple expensive software solutions to effectively manage your business.
Finance and Operations is Ideal for the Manufacturing Industry
It is also worth noting that Microsoft Dynamics 365 ERP Finance and Operations also meets the specific requirements of the manufacturing industry, which is excellent. You will find all the features present in the Business Central program by accessing the “Mixed mode production” module. With this solution, you can analyze several processes automatically. Some of them are as follows:
- Manufacturing orders
- The order lots
- Monitoring a specific project
As the software has a large variety of functionalities, you can use Finance and Operations for more complex analysis. However, to make the most of this software, training and guidance will be essential. Still, many entrepreneurs prefer this software because of its unmatched efficiency. However, keep in mind that the costs of deploying of Finance and Operations are significantly higher as compared to the cost of using Business Central.
The Benefits of Finance and Operations from Microsoft Dynamics 365
The solution has many benefits. Managing retail sales is probably one of the main strengths of Finance and Operations. Likewise, the possibility of efficiently automating each production operation enables professionals to plan operations while ensuring precise cost administration.
With such amazing advantages, there is no doubt that this ERP is very popular with businesses, especially “large companies.”
Other Significant Differences
Geolocation of Products
Keep in mind that Business Central tracks your products using serial or batch numbers. This functionality will be ideal in some cases. If you cannot meet your requirements with this functionality, Finance and Operations offer additional monitoring via an identification number assigned to your pallets. Your choice depends on your expectations.
Higher Number of Transactions
If your company processes several hundred thousand transactions annually, or monthly, then Finance and Operations will perfectly meet your expectations. This is because of its great analytical capacity. On the other hand, Business Central will handle a limited number (several thousand) of transactions.
Importance of Tax Compliance
Certainly, these two Microsoft software solutions will help you manage financial transactions in various currencies and regions to ease tax compliance. However, Business Central is limited to 16 separate countries (while Finance and Operations can handle 30).
Despite some similarities, the Business Central and Finance and Operations solutions offered by Microsoft Dynamics 365 have some exclusive characteristics that you can use to optimize your business. The information in this article will allow you to make a better choice and centralize your data, automate processing, and benefit from relevant forecasts. Ultimately, your choice will depend on your business needs, requirements, goals, and future vision.