About the author: Stephanie Saculles is a Functional Consultant at GraVoc specializing in Microsoft Dynamics 365 Business Central implementations. She has led 20+ implementations from discovery to go-live across warehousing, inventory, sales, purchasing, and security. She has also presented at major conferences like Community Summit North America.
Since 2003, when Microsoft acquired Great Plains Software, Dynamics GP has been one of the most treasured ERP systems because it was reliable, functional out of the box, and offered solid reporting. So, when Microsoft announced it is sunsetting Dynamics GP after 2029 in favor of its modern, cloud-based ERP, Dynamics 365 Business Central, most users naturally wondered, “Do I really have to move?”
The short answer is yes. Staying on a legacy platform is not ideal for compliance, security, and efficiency. But Dynamics 365 Business Central is by no means a downgrade. It delivers the core functionality GP users rely on, plus cloud advantages like built-in AI, automatic updates, and native Microsoft 365 integration.
Still, users have many questions about Business Central, especially when trying to understand how it differs from Dynamics GP. Will you get the same functionality? How do customizations work now? Are manufacturing and warehouse capabilities still there?
To break down what changes, we asked our Functional Consultant, Stephanie Saculles, to write this article and explain the key functional and technical differences between Dynamics GP and Business Central in the same way she does for clients.
Key takeaways
- The biggest change is the shift from on-premises to cloud, which unlocks mobile access, automatic updates, and more. Read more.
- Your core financials carry over, enhanced by Dimensions, Power BI, and real-time visibility. Read more.
- Business Central replaces SmartLists with a broader reporting ecosystem. Read more.
- Manufacturing capabilities match GP and integrate directly into the core app. Read more.
- Warehouse management is more advanced out of the box, from directed put-away to multi-warehouse setups. Read more.
- Planning and MRP tools are more flexible than GP's PO Generator. Read more.
- Customizations become extensions, so upgrades won't break your system. Read more.
- Upgrades are automatic, like updating an app instead of replacing the phone. Read more.
- Security is easier to manage with Microsoft Entra ID and multifactor authentication built in. Read more.
- Native Microsoft 365 integration comes built in. Read more.
- Still weighing it? See the pros and cons. Read more.
Dynamics GP vs Dynamics 365 Business Central: What are the main product differences?
In short, the biggest product difference is the shift from on-premises to cloud.
The cloud shift also leads to the rapid growth and use of AI tools. Microsoft is fully utilizing this opportunity to integrate AI features such as Copilot, to further enhance the modernization of Business Central. Mobile access is an additional advantage the cloud shift provides as many businesses are working outside of their designated computer at the office. Below is a high-level comparative overview of areas and functionality between Dynamics GP and Dynamics 365 Business Central:
| Topic | Dynamics GP | Dynamics 365 Business Central |
| Deployment | On-premises | Cloud-first (SaaS) with on-premises option |
| User Experience | Traditional Windows client | Modern web-based interface |
| Mobile Access | Limited | Native browser/mobile access |
| Updates | Manual upgrades/projects | Automatic Microsoft updates |
| Integrations | Typically custom integrations | Native Microsoft ecosystem integration |
| Future Investment | Sustaining support | Microsoft's strategic ERP platform |
| Licensing | Perpetual and subscription | Subscription-based |
| AI Features | Minimal | Built-in AI and Copilot capabilities |
| Multi-Company | Separate company databases | Multiple companies in one environment |
| Extensibility | Dexterity, .NET, SQL customizations | Extensions and AL development |
How does financial management compare in Dynamics GP vs. Dynamics 365 Business Central?
Both D365 Business Central and Dynamics GP provide standard financial management modules such as General Ledger, AP, AR, Fixed Assets, and Bank Reconciliations.
Where D365 Business Central enhances those standard modules is through:
- Dimensions
- Financial Reports
- Analysis Views
- Power BI integration
- Real-time financial visibility
To Dynamics GP users, Dimensions are a new concept. In short, Dimensions are used to categorize, analyze, and track financial data. They can be used across the entire Dynamics 365 Business Central platform, including but not limited to financial data related to warehousing and inventory.
At first, it can be challenging to fully grasp the power and potential of Dimensions when commonly compared to GP Segments. However, many Dynamics GP customers end up surprised by how powerful Dimensions are compared to GP's segment-based account structures.
Will I lose my SmartLists? Reporting in Dynamics GP vs. Dynamics 365 Business Central
Almost every GP customer cherishes SmartLists and may be concerned about losing their SmartLists when moving to a new ERP system. Dynamics 365 Business Central provides enhanced reporting options comparable to SmartLists and more because the reporting ecosystem is much broader in Business Central.
Dynamics 365 Business Central contains:
- PowerBI
- Excel Add-in
- Power Automate
- Power Query
- Embedded analytics
In comparison to Dynamics GP SmartLists, Dynamics 365 Business Central contains filtering options where a user can apply any filter to the page and save that filter. Each time the user revisits the page, they can click on their saved filter to view the data as needed. Users can also personalize their pages to rearrange columns and fields or hide fields they don’t use.
The Excel add-in is a Dynamics 365 Business Central feature most Dynamics GP customers value. This functionality can export a page in Excel where data can be added, removed, or edited then pushed right back into Dynamics 365 Business Central. For example, when working in the General Journal, the journal can be exported to Excel. Users can copy and paste directly into the Excel journal, which is tremendously helpful when working with many lines of data. Once ready, it can be pushed directly into Dynamics 365 Business Central where the journal can then be posted.
Does Dynamics 365 Business Central have the same manufacturing capabilities as Dynamics GP?
Yes, Business Central closely matches GP's manufacturing capabilities and adds a few enhancements.
Dynamics 365 Business Central manufacturing includes:
- Production Orders
- Routings
- Work Centers
- Machine Centers
- Capacity Planning
- MRP/MPS
- Finite Loading
A key advantage with Dynamics 365 Business Central’s manufacturing is its full integration into the core application rather than feeling like a separate module. Dynamics 365 Business Central is built to be more of a “one-stop-shop” to streamline all processes.
How does warehouse management differ between Dynamics GP & Dynamics 365 Business Central?
Business Central generally provides more advanced warehouse management capabilities out of the box.
Below is a comparison of some core warehouse functionality in Dynamics GP and Dynamics 365 Business Central:
| Function | Dynamics GP | Dynamics 365 Business Central |
| Directed Put-Away | Limited | Yes |
| Bin Management | Basic | Advanced |
| Warehouse Picks | Limited | Yes |
| Warehouse Shipments | Limited | Yes |
| Mobile Scanning | Typically third-party | Strong ecosystem |
| Multiple Warehouse Setups | More difficult | Native |
What planning & MRP tools does Dynamics 365 Business Central offer vs. Dynamics GP?
While GP users are familiar with the PO Generator tool, Business Central offers several tools to assist with Planning & MRP. The planning engine in Business Central is generally more flexible than GP's traditional purchasing and inventory replenishment tools.
Below are the tools Dynamics 365 Business Central offers:
- Planning Worksheet
- Requisition Worksheet
- Demand forecasting
- Safety stock planning
- Order modifiers
- Lot-for-Lot
- Fixed Reorder Quantity
- Maximum Quantity planning
How do customizations work in Dynamics 365 Business Central vs. Dynamics GP?
The GP approach to customization is by modifying the application. With Business Central, the approach is to extend the application, which dramatically reduces upgrade pain.
In simple terms, GP modifies the application by changing Microsoft’s code. Business Central extends the application, which leaves Microsoft’s code alone and adds code alongside it. Therefore, when Microsoft changes their code during upgrades, the customization/extension is much less likely to break.
How do upgrades work in Dynamics 365 Business Central compared to Dynamics GP?
The Business Central upgrade model is a huge reason why Business Central can deliver automatic cloud updates twice a year – even if you have a highly customized environment. One of the biggest advantages of Business Central is that upgrades are no longer major IT projects. Microsoft manages the platform and delivers updates regularly, which reduces cost, downtime, and risk.
Basically, it is like receiving a software update on a cell phone instead of replacing a cell phone every few years. Both result in new functionality, but one is much less disruptive. It is much easier for Business Central users to stay current in the ERP rather than delaying upgrades due to avoid disruption to the ERP.
Is Dynamics 365 Business Central more secure than Dynamics GP?
In Business Central, it is easier to manage user access. It is also easier to onboard and offboard employees.
The biggest difference is Dynamics 365 Business Central contains a Microsoft Entra ID integration and Multifactor Authentication. Dynamics GP security is largely managed within the ERP and supporting infrastructure, while Business Central leverages Microsoft's broader security ecosystem.
This gives organizations stronger identity management, easier user administration, enhanced security capabilities such as multifactor authentication, and reduced responsibility for maintaining the underlying infrastructure. Additionally, Business Central security is generally easier to manage and audit.
How does Dynamics 365 Business Central integrate with the Microsoft ecosystem?
Dynamics GP can integrate with many of the Microsoft Ecosystem tools, but usually requires more setup and third-party solutions.
Dynamics 365 Business Central natively integrates with:
- Microsoft Excel
- Microsoft Outlook
- Microsoft Teams
- Microsoft Power BI
- Microsoft Power Automate
- Microsoft Copilot
These tools are embedded in the ERP, making it easier to integrate and utilize these tools.
Frequently Asked Questions about Dynamics GP vs. Dynamics 365 Business Central
What are the pros and cons of Dynamics GP vs. Business Central?
Both are strong ERPs. Dynamics GP's advantages are that it's mature and deeply familiar to long-time users. Its drawbacks are that it's on-premises, manually upgraded, and now nearing end-of-life. Business Central's advantages are cloud access, automatic updates, built-in AI, native Microsoft 365 integration, and continued Microsoft investment. The trade-off is a learning curve as your team adapts to a new interface and concepts like Dimensions. In practice, GP wins on familiarity and sunk cost, while Business Central wins on longevity, connectivity, and future capability.
Is Business Central cheaper than Dynamics GP in the long run?
It depends. GP's perpetual license may feel cheaper, but you still carry the additional cost of server infrastructure, maintenance, and periodic upgrades. Business Central shifts to a predictable subscription that includes hosting and automatic updates. The right comparison isn't license-to-license; it's your all-in cost of running each platform.
How hard is Business Central to learn if my team has used GP for years?
There's a real but manageable adjustment period. The core accounting logic like chart of accounts, AP/AR, bank reconciliation, posting will feel familiar to GP users. The bigger shifts are the browser-based interface and a few new concepts like Dimensions replacing account segments and Power BI replacing SmartLists. Most teams get comfortable with training.
