How is Dynamics 365 Business Central Licensed?

How is Dynamics 365 Business Central Licensed?

When deployed from the Cloud on Microsoft Azure as a SaaS App, Dynamics 365, Business Central is priced per user, per month on a subscription basis.

Understandably, this might not suit all types of businesses. A company may need to deploy an ERP solution on its infrastructure for specific use-case scenarios. There is the option to install Business Central “on-premise”. However, this becomes subject to an additional cost of acquiring the necessary servers, installation and maintenance (we’ll cover this in another blog later on).

Let’s keep it simple and focus on cloud-based (SaaS) pricing.

Types of licenses

We mentioned different licensing options in our previous blog post, “What is Microsoft Dynamics 365 Business Central?” and promised to follow up with more detail. To keep costs down, Microsoft will let you buy a license in two flavours so that you can deliver functionality suitable for your users’ needs.

Licensing changes infrequently, but as of February 2022, the below is correct. We will aim to update the list below should it change, but visit the Business Central section on our website for current feature lists.

Option 1: Business Central Essential

  • Financial Management
  • Purchase and Payables
  • Sales and Marketing
  • Sales and Delivery
  • Job/Project Costing
  • Inventory Management
  • Supply Planning and Availability
  • Project Management
  • Warehouse Management

Option 2: Business Central Premium

Includes everything under Business Central Essential, and:

  • Manufacturing
  • Service Management

Once you’ve familiarised yourself with the features of the types of licenses available, you can get the correct type for your users.

Business Central works under a named-user basis, so you will need one per individual and not one account for many individuals to share.

Regarding the actual cost of a license – we won’t list that here. Instead, check our Business Central page for the current prices for each license type.

Buying licenses

Microsoft does not sell licenses for Dynamics 365 Business Central directly. Instead, Microsoft insists that you acquire user licenses through a Microsoft Partner. If you are unfamiliar with what is a “Partner”, TLDR, a Partner, is a vetted business that Microsoft keep a close eye on to ensure quality and professionalism of service.

While it is possible to get a trial for 30 days, out of the box, Business Central is somewhat of a rabbit hole: it looks simple and lacking, but once you lift the bonnet (if you’re American, “hood”), there is a Formula 1 engine inside. A Partner can show you how Business Central is relevant to your business and how you can make those efficiencies you need to hammer down your costs and maximise your ROI.

Most Partners will suggest this route, and we recommend you take it. A personalised demonstration will save you tonnes of time and give you a much better understanding of the capabilities of Business Central and the benefits of being part of the Microsoft technology stack.

How long until we can start using Business Central?

Well, how long is a piece of string? When we start to show how powerful Business Central is, everyone gets super-excited and want to dive straight in with all the bells and whistles!

It’s understandable, but it’s not something we recommend unless you absolutely need it. Adoption is key, and minimising disruption is important. We’ll cover implementing Business Central and how our approach differs from other Partners out there in our next article.

What’s next?

If you want to learn more about Business Central, you can discover more by visiting this page.

Alternatively, for a personalised demonstration to show how effective Business Central could be to help you scale, get in touch.

Picture of Author: Vaseem Ali

Author: Vaseem Ali

Vaseem ("Vas") is the Founder & CEO of Tecvia Ltd. He began his career as a Business Central Consultant over seven years ago.

Since, he's implemented hundreds of solutions across businesses throughout the UK, including many recognised household brands - even featuring in a video case study produced by Microsoft.

To connect with Vas, find him on LinkedIn.

latest articles