Know Everything About Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central is all-in-one business management software for small and medium-sized businesses that help in connecting operations, finance, project management, and sales.

Microsoft Dynamics 365 Business Central delivers all-in-one business management for small and medium-sized enterprises. It connects finance, operations, sales, and projects into a unified platform. You’ll streamline processes, enhance customer relationships, and drive smarter decisions with real-time insights.

This cloud-powered solution evolved from Dynamics NAV, often called “NAV in the cloud.” Businesses choose it for scalability, flexibility, and seamless integration across Microsoft tools.

Business Central vs. Dynamics NAV: Key Differences

Dynamics NAV powered over 160,000 companies worldwide, but its on-premises nature limited agility. Microsoft shifted to a cloud-first strategy with Business Central.

Core similarities remain: Both share NAV’s proven functionality for finance, inventory, and operations.
Major upgrades include: Native cloud access, AI-driven insights in Power BI, and automatic updates without downtime.

On-premise options still exist through Microsoft Dynamics 365 Business Central on-premise deployment. However, SaaS delivers faster ROI through predictable costs and zero infrastructure management.

Flexible Business Central Deployment Options for Every Business

Dynamics 365 Business Central can be deployed in two ways – On-Premise (formerly Microsoft Dynamics NAV) and Software-as-a-Service (SaaS).

On-premise means that Business Central can be deployed on your server, in a data center, or on Azure while SaaS is in the cloud and will be accessed via a web browser.

In On-premise deployment, you need to buy a perpetual license (a one-time cost) and deploy it on a physical server that is managed by you or your IT provider. You can also deploy it in a data center or on Azure.

In SAAS Deployment Model, which is in the cloud, a monthly fee per user will be charged and the back end Infrastructure is managed by Microsoft while the software is accessed through a browser.

SAAS deployments have licenses and hosting included in one monthly subscription but it is slightly more limited in terms of scope for customization, however, you can still utilize Extensions 2.0 to enhance your solution.

Choose between two deployment models based on your needs:

On-Premise Deployment

• Install on your servers, data centers, or Azure

• Perpetual license (one-time purchase)

• Full customization control

• Ideal for regulated industries needing data sovereignty

SaaS (Cloud) Deployment

• Monthly per-user subscription

• Microsoft manages infrastructure and updates

• Access via web browser anywhere

• Extensions 2.0 enable customization without code changes

SaaS grows effortlessly as your team expands. No hardware upgrades. No migration headaches.

Seamless Integration: Business Central + Dynamics 365 Sales

Microsoft Dynamics 365 for Sales can be seamlessly integrated with Dynamics 365 Business Central for the lead-to-cash process.

With Dynamics 365 for sales, you can use Business Central for order processing and finances. The order processors in Business Central have the ability to handle special characteristics of sales orders transferred automatically or manually from Sales.

With in-built connectors, Microsoft has made it easy for businesses to leverage the power of both systems, enabling you to work with the synchronized data types that are common to both services to keep the data up-to-date in both locations.

When Business Central integrates with Sales, you have access to Sales data from Business Central and the other way around in some cases. This enables you to work with common data types such as customers, contacts, and sales information.

Unlock lead-to-cash efficiency by connecting Dynamics 365 Business Central with Dynamics 365 Sales.

How it works:

• Sales teams manage leads and opportunities in Sales

• Orders flow automatically to Business Central for fulfillment

• Finance processes invoices and payments

• Real-time inventory sync prevents stockouts

Built-in connectors keep customer data, contacts, and pricing synchronized. Order processors handle complex requirements like special pricing or delivery schedules effortlessly.

Result: Shorter sales cycles. Happier customers. Unified revenue visibility.

Top Benefits Driving Business Growth

Business Central eliminates data silos across applications. Outlook, Excel, and Word integrate natively for familiar workflows.

Scalability stands out: Add users, modules, or complexity without rebuilding systems. Azure intelligence and Power BI deliver predictive forecasts through Cortana.

Real business impact:

• Manufacturers reduce inventory costs by 20-30%

• Retailers achieve real-time multi-location visibility

• Service firms streamline project billing and profitability tracking

Core Functionalities Across Business Areas

Financial Management

Advanced general ledger, cash flow forecasting, multi-currency support, and automated reconciliations.

Supply Chain & Inventory

Real-time stock tracking, purchase order automation, and demand planning across warehouses.

Sales & CRM

Opportunity management, quote generation, and customer 360-degree views.

Project Management

Resource allocation, time tracking, and profitability analysis by project.

Manufacturing (Premium Only)

Bill of materials, production planning, and capacity management.

HR & Service Management

Employee self-service, service scheduling, and contract billing.

Power BI dashboards and Power Apps extend capabilities without custom coding.

Dynamics 365 Business Central Licensing Made Simple

Dynamics 365 Business Central is very easy to use and can be customized as per the needs of your business. Built on the functionality from Dynamics NAV, Business Central can be customized through other Microsoft Cloud Services.

Full User License

Access across finance, sales, service, and supply chain. Available in Essentials or Premium editions.

Team Member License

Basic reporting, time/expense entry, and data access for support staff.

Essentials Edition covers: Invoicing, purchasing, inventory, basic manufacturing, and financials.

Premium adds: Service management and advanced manufacturing.

The possibilities for licensing Business Central are described below

Full User License:- Full User License is perfect for those employees who require access across sales, customer service, finance or supply chain management.

Full users are licensed per named user base through a Business Central subscription and may be either on the Essentials or Premium version of Business Central.

Team Member License:- With this license, users may need to consume data or reports from the business system, complete less demanding tasks such as time or expense imports and HR updates.

Is Business Central same as Dynamics NAV?

Yes and no both. Business Central shares the same base code as Dynamics NAV 2018 with core functionality in NAV. However, there are some new features added up to boost your organizational efficiency.

Dynamics 365 Business Central is Understanding Service Level Agreements in Microsoft Dynamics CRM, in fact, the new NAV as no more releases under the NAV name going forward. Dynamics NAV on-premise version will be called Dynamics NAV Business Central on-premise.

Business Central builds directly on Dynamics NAV 2018 codebase. Microsoft retired the NAV brand—future releases live under Business Central.

NAV users get: Same familiar interface with cloud advantages.
New users gain: Modern extensibility, AI features, and mobile access from day one.

inoday’s certified consultants guide seamless transitions. We’ve deployed Business Central for manufacturers achieving 25% faster month-end closes and retailers eliminating stock discrepancies.

Why Indian Businesses Choose Business Central

GST compliance, multi-branch operations, and e-invoicing integrate natively. Scale from single location to national presence without system limits.

Common challenges solved:

• Manual Excel reconciliations → Automated Power BI reports

• Fragmented sales data → Unified customer views

• Slow month-end closes → Real-time financial dashboards

• Legacy system constraints → Cloud scalability

Get Started with Confidence

Ready to connect your operations? inoday delivers end-to-end Business Central implementations with 24×7 support.

Next steps:

• Schedule a free Business Central demo

• Explore cloud vs. on-premise comparison

• Contact our experts for personalized guidance

Transform operations without complexity. Business Central scales with your ambition.