Is Microsoft Business Central an ERP or CRM?

What Type of Software Is Business Central?

Microsoft Dynamics 365 Business Central is an Enterprise Resource Planning (ERP) solution designed for small and medium-sized businesses (SMBs). It integrates core business processes, including finance, supply chain management, sales, purchasing, inventory, project management, and service operations.

Business Central is a cloud-based solution, though it also offers on-premises deployment, making it a flexible choice for businesses with varying IT infrastructure needs.

Unlike standalone CRM systems that focus primarily on customer relationship management, Business Central provides a holistic view of business operations, offering a comprehensive financial management system alongside other business functionalities.

How Much Does Business Central Cost?

Microsoft Dynamics 365 Business Central is available in different licensing plans to suit business needs. The pricing structure varies based on user access levels and required functionalities.

Business Central Licensing Options (2025):

1. Business Central Essentials – £52.80 per user/month
2. Includes financial management, sales & marketing, supply chain, HR, project management, and warehousing.
3. Business Central Premium – £75.40 per user/month
4. Includes everything in Essentials plus service management and manufacturing.
5. Business Central Team Members – £6 per user/month
6. Read-only access with basic write capabilities for certain functions.

There may also be implementation and customisation costs, depending on business needs and the partner chosen for deployment.

What Is the Difference Between Dynamics NAV and Dynamics 365 Business Central?

Microsoft Dynamics NAV (formerly known as Navision) was the predecessor of Business Central. The key differences between the two are:

• Deployment: Dynamics NAV was primarily an on-premises solution, whereas Business Central is cloud-first but still offers on-premises options.
• Licensing: Dynamics NAV used a one-time perpetual licensing model, whereas Business Central operates on a subscription-based model with monthly or yearly payments.
• Interface: Dynamics NAV had a traditional Windows-based UI, while Business Central features a modern web-based UI.
• Updates: Updates in Dynamics NAV had to be managed manually, whereas Business Central provides automatic updates with continuous improvements.
• Integration: Business Central seamlessly integrates with Microsoft 365, Power BI, Power Apps, and Azure, while Dynamics NAV had more limited integration capabilities.

Business Central is essentially the cloud evolution of Dynamics NAV, offering modern UI, scalability, and better integration with Microsoft’s ecosystem.

Is Microsoft Dynamics 365 the Same as Business Central?

No, Microsoft Dynamics 365 is a suite of business applications, whereas Business Central is one specific ERP product within that suite.

Microsoft Dynamics 365 includes multiple applications designed for various business functions, such as:

• Dynamics 365 Business Central – ERP for SMBs
• Dynamics 365 Finance & Supply Chain Management – ERP for large enterprises
• Dynamics 365 Sales, Marketing & Customer Service – Primarily CRM solutions
• Dynamics 365 Commerce – Retail-focused ERP and eCommerce platform
• Dynamics 365 Project Operations – For service-based businesses

While Business Central has some CRM-like features (such as contact management and sales tracking), it is primarily an ERP system.

Is Business Central Part of Office 365?

No, Business Central is not a part of Microsoft 365 (formerly Office 365), but it integrates seamlessly with it.

Integration with Microsoft 365:

• Microsoft Outlook – Create quotes, invoices, and orders directly from Outlook.
• Microsoft Excel – Import/export financial data for advanced analysis.
• Microsoft Teams – Collaborate on financial reports, sales orders, and customer interactions.
• Power BI – Real-time business analytics and reporting.
• Power Apps & Power Automate – Automate workflows and enhance productivity.

While Business Central and Microsoft 365 are separate products, businesses that use both benefit from enhanced efficiency and collaboration.

Who Uses Dynamics 365 Business Central?

Microsoft Dynamics 365 Business Central is designed for small and medium-sized enterprises (SMEs) across various industries, including:

1. Manufacturing – Managing production orders, supply chain, and inventory.
2. Retail & eCommerce – Inventory tracking, sales, and customer management.
3. Professional Services – Project accounting, billing, and time tracking.
4. Wholesale & Distribution – Procurement, logistics, and warehouse management.
5. Financial Services – Accounting, budgeting, and compliance.
6. Construction – Managing contracts, invoicing, and procurement.

Business Size & Industry Fit:

• Ideal for companies with 10-500 employees.
• Works well for organisations requiring integrated financial management, supply chain, and customer service.

Conclusion: Is Microsoft Business Central an ERP or CRM?

Microsoft Dynamics 365 Business Central is primarily an ERP system. While it includes some basic CRM functionalities like customer contact management and sales tracking, it is designed to manage finance, operations, supply chain, and business processes rather than customer relationships alone.

For businesses that require both ERP and advanced CRM capabilities, Business Central can be used alongside Dynamics 365 Sales, Marketing, or Customer Service to create a fully integrated solution.

Key Takeaways:

• Business Central is an ERP, not a full-fledged CRM.
• It replaces Dynamics NAV as a cloud-first solution.
• It is not part of Microsoft 365 but integrates seamlessly.
• Used by SMEs across multiple industries.

If your business needs a comprehensive ERP with some CRM-like features, Business Central is an excellent choice. However, for businesses that prioritise sales, marketing, and customer engagement, a dedicated Dynamics 365 CRM solution may be more suitable.