Back to Blog DYNAMICS 365

What is Dynamics 365 Business Central?

19 October 2021
Sam Peterson
Sam Peterson
What is Dynamics 365 Business Central?

Dynamics 365 Business Central (formerly known as Dynamics Navision) is an all-in-one business solution.  With Dynamics 365 Business Central, users can upgrade from their entry-level accounting software or legacy ERP system to one single platform connecting different aspects of business including sales, finance, marketing, manufacturing, inventory management and so on. Available in multiple countries, the solution is a part of Microsoft’s Dynamics 365 range of business applications.

The solution is extremely flexible and customizable to support the business needs of all. Dynamics 365 Business Central brings entire NAV functionality to a SaaS environment, offering on-cloud, on-premises, and hybrid deployment options. Stakeholders can drive efficiency when business operates without silos, as there is inter-connectivity and knowledge/data transfer between departments with Dynamics 365 Business Central.

Core Functionalities of Dynamics 365 Business Central

Reinvent and revolutionize the way you do business with the core Capabilities of Dynamics 365 Business Central. Delivering operational efficiency, Business Central affiliates smart work, faster adaptability and connects multiple dimensions of a business.

The core functionalities of Business Central include:

Finance

Enables business owners to make informed financial decisions, get real-time information, and improve forecasting.  Along with this they can also maintain security and compliances across organization globally. Dynamics 365 Business Central provides finance teams with a consistent and well-structured data.

Sales

Dynamics 365 makes managing critical customer data, sales order, sales invoices, pick list creation, drop shipments easy for users. The solution supports sales team with automation functionalities and expert assistance anywhere anytime. It also facilitates seamless connection between the Sales and Marketing teams.

Purchase

Ease the complexities of managing purchasing or procurement processes with Dynamics 365 Business Central. Vendor management, purchase invoices, electronic documents and many more functionalities are associated with Dynamics 365 Business Central’s purchase functionality.

Inventory Management

The key essential activities within inventory management include, tracking top selling items, reviewing aged inventory, item categorization, inventory transfer, item tracking, item reservation and so on. With Dynamics 365 Business Central, users can create Inventory Item Card for each item.

Warehouse Management

Manage and carry out the series of internal warehouse activities occurring between receiving and shipping of goods. The bar code scanning feature within Automated Data Capture Systems (ADCS) helps register movement of items in the warehouse.

Project Management

Dynamics 365 Business Central enables management of the processes included in the timely completion of any project undertaken by the organization. Be it project creation, resource allocation, project budget management or any other activity related to the successful completion of a project can be monitored, managed, and processed with the Project Management functionality.

Manufacturing

Microsoft Dynamics Business Central helps handle manufacturing tasks successfully by managing, customizing, and designing the various processes. Production planning, supply planning, item availability, subcontracting are the capabilities offered within Manufacturing.

Advantages of Using Dynamics 365 Business Central

Available Anywhere Anytime

Microsoft Dynamics 365 Business Central can be accessed anywhere anytime and on any device with the availability internet facilities. This makes it extremely convenient to monitor and manage organizational processes.

Business Connectivity Using a Single Solution

The ERP solution, Business Central ensures business continuity with a cloud solution connecting sales, finance, service, and operations. This enables teams to adapt faster and deliver results.

Seamless Integrations

Dynamics 365 Business Central enables seamless integrations with Microsoft solutions or third-party applications for better functioning of various teams in the organization.

360-degree Visibility

The user-friendly interface of Dynamics 365 Business Central allows stakeholders to manage their daily activities and enhances transparency in teams and processes.

Faster Implementations

Business Central users can use the solution in combination with other Microsoft products and third-party systems, without the need of too many customizations. This is because of the seamless integration features within Dynamics 365 Business Central.

Enhanced Power BI Embedded Experience

There is a seamless connection between Power BI and Dynamics 365 Business Central with the use of enhanced functionalities. The moment a user signs in, automatic deployment of Power BI reports takes place in Business Central. Users can customize and manage reports, including filtering, slicing and drilling through the data without even leaving Business Central.

What makes Business Central Different?

As aforementioned, dynamics 365 central is specially designed to meet all sorts of business needs. The following methods enable Business Central to be true to its commitments:

  • The solution has a low code developments options eliminating the need of a technology expert with years of experience.
  • Users can access third party solutions, such as Continia and Jet Reports and remove them in a hassle-free manner.
  • Users have the privilege to choose among modules including Warehousing, Manufacturing and so on, depending on their business requirement.
  • Dynamics 365 Business Central enables seamless integration with the Microsoft Stack, like, Office 365 and Power Platform.

Unlocking the Potential of Dynamics 365 Business Central: Comprehensive Features and Benefits

Customer Relationship Management (CRM)

Are you seeking a solution that strengthens your customer connections while streamlining processes? With Dynamics 365 Business Central, CRM capabilities are seamlessly integrated. Track customer interactions, manage sales pipelines, and uncover upsell or cross-sell opportunities from one central hub. Whether handling inquiries or closing deals, Business Central ensures you deliver a personalised experience by integrating with tools like Outlook for email tracking and Microsoft Teams for real-time collaboration. Imagine managing your sales process end-to-end without switching between multiple platforms. Get ready to revolutionise how you engage with your customers.

Compliance and Regulatory Support

How confident are you about meeting complex regulatory requirements? Dynamics 365 Business Central makes compliance less daunting. From handling multi-currency transactions to supporting various tax jurisdictions, the system offers tools to ensure you stay compliant, no matter where you operate. Features like role-based access, data encryption, and audit trails ensure that your operations meet global standards. Plus, real-time tracking of regulations ensures you’re always ahead of changes. Need to manage industry-specific compliance challenges? Business Central has your back!

Business Intelligence and Analytics

Do you wish you had deeper insights into your business? Business Central transforms raw data into actionable insights with AI-driven analytics, customisable dashboards, and advanced reporting tools. Visualise trends, identify anomalies and track KPIs specific to your role. With built-in Power BI integration, you can explore data in real-time and make informed decisions. Why settle for guesswork when you can have clarity at your fingertips?

Mobile Accessibility

Want to run your business from anywhere? Dynamics 365 Business Central brings full functionality to mobile devices, including tablets and smartphones. Available on Android, iOS, and Windows, it empowers teams to manage finances, update sales orders, or oversee projects on the go. Whether in the office or on-site, seamless access keeps your operations moving. With Business Central, mobility means no compromises on performance.

Industry-Specific Solutions

Do your unique business needs demand tailored solutions? Business Central offers industry-specific extensions and apps via Microsoft AppSource. Whether you're in manufacturing, retail, or professional services, prebuilt applications can streamline processes unique to your field. The open architecture also supports custom integrations, ensuring the software fits your operations perfectly. Ready to simplify even the most complex workflows?

Customer Support and Training

Are you struggling with onboarding and support? Dynamics 365 Business Central ensures a smooth transition with over 200 training courses, guided tours, and role-based dashboards. Microsoft's robust customer support offers assistance whenever needed, while in-app help provides quick answers. Your team can hit the ground running, and ongoing support ensures you're always maximising the system’s capabilities.

Artificial Intelligence (AI) and Machine Learning

What if AI could enhance your decision-making? With Copilot in Dynamics 365 Business Central, AI simplifies tasks like forecasting inventory, analysing cash flow, and generating marketing content. Its conversational chat feature provides quick insights, while machine learning identifies trends to optimise business processes. Why work harder when you can work smarter?

Customisable Dashboards

Do you prefer seeing what matters most at a glance? Business Central's dashboards are fully customisable, letting you tailor views to display the data that drives your decisions. Whether you manage finances, sales, or operations, role-specific insights ensure you focus on what’s important. With dynamic, real-time updates, your dashboard evolves with your business needs.

Integration with Third-Party Applications

Are you tired of juggling multiple systems? Business Central integrates effortlessly with Microsoft 365 tools and third-party applications like payroll systems, Shopify, and CRM platforms. This seamless connectivity reduces data entry, improves accuracy, and saves time. What could you achieve with systems that truly work together?

Real-Time Data Synchronisation

How important is accuracy in your business? Business Central synchronises data across all departments in real-time, eliminating silos and ensuring everyone works with the latest information. From financial updates to inventory changes, you can trust the system to keep your data current and consistent. Can your current system promise the same?

Data Security and Backup

Are you worried about data breaches? Business Central ensures world-class security with features like encryption, role-based access, and automatic backups. Hosted on the trusted Microsoft Cloud, your data is protected against cyber threats and unexpected downtime. Feel secure knowing your critical business information is safe and accessible whenever needed.

Cost-Efficiency and ROI

Is your current solution delivering the value you need? Dynamics 365 Business Central offers a scalable platform that grows with your business. Streamlining operations and automating tasks reduce overhead costs and maximise efficiency. Its transparent pricing and measurable ROI make it a smart investment for small and mid-sized businesses looking to scale. Why pay more for less when you can get more for less?

Dynamics NAV vs Dynamics 365 Business Central

Dynamics NAV was an on-premises solution designed for small and medium-sized business.

As aforementioned, Dynamics 365 Business Central is specially designed to meet all sorts of business needs. The following methods enable Business Central to be true to its commitments:

The key differentiating features of Dynamics NAV and Dynamics 365 Business Central include:

  • Easy Upgrades- It is extremely easy to manage upgrades and updates on Business Central as there are automatic updates in the backend on a bi-annual release cadence. However, the upgrades in Dynamics NAV take months due to the complexities involved.
  • Hosting Options- As aforementioned Dynamics NAV can be hosted on a private data center or the users’ own servers, but not pure cloud. On the other hand, Dynamics 365 Business Central is available as both, a cloud-based SaaS solution or a hosted solution.
  • Licensing Options- Business Central can be accessed with a monthly subscription or users can opt for their choice of plan.

FAQ

Is Dynamics 365 Business Central a CRM or ERP?

The short answer: it’s an ERP system with CRM-like capabilities. Are you confused? Let’s break it down!

ERP (Enterprise Resource Planning) systems manage core business processes like finance, supply chain, and operations, while CRM (Customer Relationship Management) focuses on managing customer interactions and relationships. Dynamics 365 Business Central is primarily an ERP solution, connecting finance, operations, sales, and services into one seamless platform.

However, it doesn’t stop there. Business Central integrates features typically found in a CRM, such as customer tracking, marketing text suggestions, and sales process management. It bridges the gap between these two worlds, ensuring you can track customer interactions, upsell opportunities, and service agreements while handling your operational needs.

Think of it as your one-stop shop for managing your business. Whether tracking invoices or delighting a customer, Business Central allows doing both without jumping between tools.

What Does Dynamics 365 Business Central Do?

Dynamics 365 Business Central is your all-in-one business management solution, helping you connect and streamline finance, sales, service, and operations. Imagine having a tool that manages your financial data end-to-end, automates bank reconciliations, and even gives you AI-driven cash-flow projections. That’s Business Central’s finance capability in action.

For sales and service, it tracks customer interactions, identifies upsell opportunities, and handles service agreements—all from familiar tools like Outlook. Do you also want to streamline your supply chain? It forecasts inventory needs using AI and ensures your stock replenishes quickly.

With built-in tools for project management, real-time business intelligence, and global compliance, this platform adapts as your business grows. Plus, it integrates seamlessly with Microsoft 365 apps like Teams and Excel, making collaborating and staying productive easier.

Whether a small business or scaling fast, Business Central ensures you work smarter, not harder.

Is Dynamics 365 an ERP System?

Absolutely, but there’s more to the story! Dynamics 365 is a portfolio of intelligent business applications, and yes, it includes ERP (Enterprise Resource Planning) capabilities. Think of it as a powerhouse that combines ERP and CRM (Customer Relationship Management) functionalities under one roof. But let’s break it down:

An ERP system manages your business's core operations, from finance and supply chain to manufacturing and inventory. Dynamics 365 delivers these capabilities through apps like Dynamics 365 Business Central, Dynamics 365 Finance, and Dynamics 365 Supply Chain Management. These applications help businesses streamline processes, improve financial visibility, and adapt to changing market conditions—classic ERP tasks.

But wait—there’s more! Dynamics 365 doesn’t stop at just traditional ERP. It also comes with CRM applications to deliver a 360-degree view of your business operations and customer relationships. This means businesses can break down silos between departments, ensuring data flows effortlessly from sales and marketing to finance and operations.

What makes Dynamics 365 unique is its modular and cloud-based design. You can start with your needed capabilities and scale as your business grows rather than investing in an all-in-one ERP system upfront. Plus, being natively built on Microsoft Cloud, it works effortlessly with other tools like Microsoft 365, Azure, and Power BI.

So, Dynamics 365 is a future-ready platform designed to simplify complexities, reduce costs, and help businesses adapt and thrive.

Who Uses Dynamics 365 Business Central?

Over 40,000 small and midsize businesses worldwide trust it to manage their operations.

Why? Because it’s flexible, scalable, and built for businesses that need more than basic accounting software but aren’t ready for enterprise-grade complexity. Whether you’re a retailer optimising inventory, a manufacturer streamlining production, or a professional service firm tracking projects and budgets, Business Central adapts to your needs.

It’s also ideal for global businesses, supporting 47 languages, multiple currencies, and international compliance. Plus, its mobile-friendly design ensures teams can work anywhere—on desktop, tablet, or mobile devices. In short, if your business is ready to level up its processes, Business Central is the trusted partner for the journey.

What Is Microsoft Dynamics 365 Used For?

Imagine having a single solution that can handle customer engagement, streamline operations, and boost productivity. That’s Microsoft Dynamics 365 in action. But what is it really used for?

At its core, Dynamics 365 is a toolkit for digital transformation. Businesses use it to connect their operations, improve customer interactions, and make smarter decisions.

Customer Engagement: With tools like Dynamics 365 Sales, Customer Insights (previously Marketing), and Customer Service, businesses can manage leads, personalise customer experiences, and resolve issues faster. For example, it helps sales teams close deals quicker by offering insights into customer needs while marketing teams create targeted campaigns with precision.

Operational Efficiency: Apps like Dynamics 365 Business Central and Finance handle core processes like accounting, inventory, and supply chain management. These tools empower businesses to automate tasks, adapt to changes, and stay agile.

Data-Driven Insights: Dynamics 365 brings data to life by integrating with Microsoft AI and Power BI. This means actionable insights are just a click away, helping businesses make decisions based on real-time data.

Flexibility and Scalability: Whether you’re a small startup or a multinational corporation, Dynamics 365 grows with your business. Its modular design allows you to start small and add more capabilities.

In short, Dynamics 365 is used to transform and future-proof businesses. It’s not just about improving things—it’s about reimagining what’s possible. From engaging customers to optimising operations, this platform is designed to empower businesses to thrive in a digital-first world.

dynamics square
Business Central Implementation

Make the most of Dynamics 365 Business Central with the help of Dynamics Square team.

Disclaimer– “All data and information provided on this blog is for informational purposes only. Dynamics Square / MPG Business Information Systems Pvt. Ltd. makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.”

Book Demo
Grow your Business Now