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How to make a decision between Microsoft Dynamics D365FO and D365BC ?

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The business in the world changes every day, and according to that every business needs to adapt as well. Nowadays, there is no way to support the business changes without flexible and adaptive IT system.

If ten years ago you can use just some excel table or “homemade software” designed by small developers’ group, now all companies are standing in front of changes. The business digitalization is not just some modern word from a magazine or YouTube, it’s real – and it’s here. This reality means that only industrial solutions based on modern ERP system can cover all business needs not only today, but during the years to come. So, if we are thinking about this choice, we should understand why so many ERP solutions exist in the market today – especially when choosing the right ERP for your business can be such an overwhelming task.

As Microsoft partner we have a strong experience with both major ERP solutions from the worldwide software leader – Microsoft Dynamics 365 Business Central and Microsoft Dynamics Finance& Operation/Supply chain. Sometimes our potential customers ask us – “What is difference between Microsoft Dynamics D365FO and D365BC and how to make the right decision ?"

We can help you to make the right decision in your choice between Microsoft Dynamics Business Central, Dynamics 365 Finance & Operations, or Dynamics 365 Supply Chain. We don’t need to dive deep into the history for now, but we should mention that both systems have a very long story and has absorbed the best world practice.
Both solutions can be run on-premises or on the cloud as well, moreover you can use it as a service, without buying license - just pay by consumption as for any other cloud software.

The main criteria for comparison could be the functionality.
Let’s see the table below:

Spotlight On: Microsoft Dynamics 365 Business Central and Finance & Operations/Supply Chain Management

Factors for comparison Business Central Finance and Operations/Supply chain
Deployment Types 'Essentials License' =Finance and Distribution
'Premium License' = Manufacturing Company
Finance and Operations modules in one suite; separate licensing for Finance vs Operations (Including supply chain)
Inventory 1-5. Basic Inventory Management. Locations - Bins 5. Improved Inventory Management Site - Warehouse - Location 
Prod. BOMS 1 per Item BOM by Site, Warehouse, QTY, etc
Multi-Country Ops. Consolidation and Intercompany Sophisticated inter-company and cross-company inventory visibility
Variants Very Simple Costing by variant
QA Not included, requires ISV Included
WMS Basic WMS, no support for handhelds included, handheld scanning requires ISV Enterprise level WMS with handheld scanning functionality included
Manufacturing Methods Discrete only
Support for Processes Manufacturing via ISVs
Buit in support for Discrete vs. Process Manufacturing
Configuration Management Not included
Requires ISV or 3rd party solution
Product Configuration included
Commissions and Trade Management Basic Commissions, no Trade Management Typically covered via ISV Complex Comissoons and Trade Management included

 

As you can see Microsoft Dynamics Business Central (D365BC) generally has less functionalities than Dynamics 365 Finance & Operations (D365FO) and therefore can be suggested to small or mid-size companies.

But the main advantages are that Microsoft Dynamics Business Central can be deployed faster and with less cost associated to it, especially if you find the right vertical solution fitted for your needs.

On another hand you can spend more time for modifications and implementation ISV solution in Microsoft Dynamics Business Central  instead of deploying “out of the box” ready-to-use functionality in Dynamics 365 Finance & Operations.

 

For reference, please check the table below:

Compare and Contrast: Business Central and F&O

Feature Business Central F&O
Advanced Picking Strategies    
Advanced Warehouse Management    
Asset Management (Schedule Maintenance )    
Credit Management (Advanced Rules)    
Direct Delivery Support    
Fleet Management     
Freight Reconciliation     
Integration with Power BI    
Inter-Company Commerce    
Inventory Management    
Label Printing (ZPL)    
Management Report (Financial Reporting)    
Mobile Device Support    
Multi-company support    
Product Management    
Product Variants (Configurator, Color, Size)    
Production (Discrete and Process Manufacturing)    
Purchase orders    
Quality Management    
Request for Quotation (RFQ)     
Sales Orders    
Sales Quotations    
Security administration     
Shared Chart of Accounts    
Support of Multiple Inventory Costing Methods (STD, LIFO, FIFO, Wght Avg, Mov.Avg)    
Transportation Management     
Unlimited Financial Dimensions    
Vendor Collaboration    
Workflow Framework    

 

In both cases you have the modern software which is often updated by Microsoft and partners, and thanks to SaaS model, every time it happens you are at the edge of technology with no input required on your side. In case of acquiring D365FO – don’t forget that you will have deep integration with another Microsoft Software solution – in nearest future D365FO might become a part of Office.

Finally, we should discuss the very important thing – the cost and time to go live. As we mentioned above, D365BC can be set up faster that D365FO, so this directly connected to the project costs and timeline.

But in case of a huge international installation with entities from different parts of the world or high transaction load with big database and concurrent users, the implementation of D365FO looks like more convenient decision.

We will share with you some average figures that can help you make the right decision:

Spotlight On: Microsoft Dynamics 365 Business Central and Finance and Operations/Supply Chain Management

Factors for comparison Business Central Finance and Operations/Supply Chain
Company Size Small to Mid Mid to Enterprise 
Employees 25 — 500 100 — 2,000+
Minimum number of users 10 20
Industry Distribution/Trade, Manufacturing, Professional Services Distribution, Finance, Manufacturing, retail, Professional Services, Public Sector
Implementation Cost $15K — $700K $100K — $1M+
Deployment Timeframe 30 — 270 days 180 — 365 days
Multi-language Support Yes, 80+ Yes, 30+
Scalability Fit to business that process 1,000+ transactions Fit to business that process 100,000+ transactions
Integration with other Dynamics 365 Components Connects financials, sales, purchase, inventory, projects, service and operations  Designed to work out-of-the-box with other Dynamics 365 components
Types of Licenses Subscription model — Team Member, Essential, Premium, and Device Licenses Subscription model — User Licenses, Device Licenses

 

Every time when you think of ERP you should think wider.
First, no single system cannot be chosen ,,once for the lifetime’’. The second – no single ERP can cover whole company needs out of the box without any additional integration, customization and so on - check the system flexibility, adaptive possibility, and cost for the future support.  The cost is very important thing of course, but try to calculate whole lifecycle investment for your system, not only the license cost.

We are ready to support you during your journey towards Microsoft Business Solutions at any time. Just contact us! 

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