Dynamics 365

Is Microsoft Business Central an ERP system?

8th Jan 2024 | 8 min read

Is Microsoft Business Central an ERP system?

The significance of Enterprise Resource Planning (ERP) systems has increased over recent years. Rapid technological trends are causing a shift in the way in which companies are operating, with emphasis on leaner processes and enhanced efficiency. ERP systems need to meet these trends to offer value.

Microsoft Dynamics Business Central is a unique ERP solution that organisations can implement for performance optimisation.

Business Central consists of integrated solutions for streamlining core functionalities across areas such as finance, manufacturing and supply chain management. It offers various benefits which small and medium scale enterprises can make use of to scale up operations. In this blog, we will be assessing Business Central as an ERP system and the many advantages it offers.

What is Dynamics 365 Business Central?

Dynamics 365 Business Central is a comprehensive end-to-end software that provides businesses with agile solutions for the management of complex activities. It has cloud-based functionalities for supporting organisations in operating remote or hybrid work setups.

Business Central equips users with modern ERP tools that can be fully customised to suit their unique preferences. It helps businesses in phasing out legacy ERP systems that they might still be operating.

Before we can address whether Dynamics Business Central is an ERP system, we’ll first explain what they are.

Understanding ERP systems_

ERP systems are software with enterprise performance management capabilities. They support organisations in managing everyday business activities across the board. ERPs collect organisational data from various sources to aid in the elimination of data duplication.

By simplifying aspects of a business – including financials, logistics, manufacturing and supply chain – ERP systems serve as an integrated hub for businesses and industries of all sizes. They are key tools that can be tailored and configured to meet the needs of businesses to enhance efficiency. They also help in unifying employees, processes and technology across board.

ERP solutions automate business processes and provide insights to simplify work activities for every user. Some ERP systems also enable organisations phase out disconnected systems which employees may be struggling to use, thereby maximising efficiency.

Dynamics Business Central as an ERP system_

Dynamics Business Central has functionalities and features that align with the core principles of ERP systems. It assists users in the automation and management of business processes across functions including finance, human resources, operations, supply chain and manufacturing. Formerly known as Dynamics NAV, Business Central supports business leaders in optimising business operations across the board.

Evolving technological trends have created an increase in the popularity of ERP systems, as businesses seek smart solutions to streamline operations. Business Central possesses a wide range of functionalities for the effective management of business activities.

It offers real-time visibility to provide you with detailed insights for business growth and development. The ERP system collates information from various data sources using AI tools to streamline common areas of business. ERPs provide real-time data and insights for informed decision making.

Business Central provides multiple benefits compared to traditional ERP systems. As a cloud-based application, it eliminates the need to invest in costly on-premises IT infrastructure and systems. This makes it more accessible and cost efficient.

Functionalities of Dynamics Business Central_

Dynamics 365 Business Central is an integrated platform which facilitates efficient working for the fulfilment of internal and external objectives. It has diverse functionalities and modules which every organisation can gain value from.

Financial Management_

Business Central supports businesses in adequate financial planning and management. It has features which automate processes such as auditing, budgeting and forecasting. Through the provision of real-time data and financial management tools, Business Central centralises financial data to assist in enhanced productivity for financial teams.

The software also eases workflows for maximum output and results and enables businesses manage accounts receivable, account payables and cashflows.

Sales Management_

Business Central has a group of applications that provide basic functionalities to support businesses in tasks such as lead tracking, quote processing, pricing and rebates. Additionally, it helps businesses in reporting, order entering and customer relationship management.

Purchasing Management_

Business Central gives organisations an insight into their purchase and buying routines, for the creation of a more optimised process. It enables users to adopt efficient procurement strategies for business growth. It also helps in the recording and rendering of data for activities such as product catalogues, vendor contracts, repeat procurement and price lists.

Inventory Management_

Business Central comprises of modules which make it easy for users to efficiently manage inventory. The application aids businesses in checking best-selling items, aged inventory and vendor lead times. By so doing, the cumbersome tasks of managing inventory are made seamless.

Warehouse Management_

Business Central provides you with the tools needed to manage your warehouse more productively. As an integrated solution, it supports you in optimising storage space. With advanced functionalities, the application provides alerts in real-time for immediate feedback on the status of queries. It also contains submodules for stock-unit management, courier systems integration and item shipping.

Manufacturing Management_

For streamlining, integration and management of all aspects of the manufacturing process, Microsoft Dynamics 365 Business Central is the go-to-software you need. With its ERP functionalities, it ensures that businesses are kept up to date with changing customer demands. Its submodules assist organisations in production order planning, product data management and subcontract manufacturing.

Human Resource Management_

Effective human resource management is key to the success of every business. With Business Central, users gain access to multiple functions that support in personnel management, payroll integrations, workforce management and training. Its robust functionalities helps corporate managers in handling several employee related tasks.

Resource and Planning Management_

Business Central also provides organisations with comprehensive tools for efficient project management. Aimed at driving project success, the application allows project managers to handle tasks such as budgeting, progress monitoring, resource allocation and timesheet management. Additional modules include capacity management, invoice jobs, progress monitoring and job lifecycle management.

Service Management_

Business Central provides companies with advanced features to manage end-to-end service requests, work orders, spare parts, and service contracts. It helps service teams deliver on targets and service-level agreements (SLAs) to drive customer satisfaction and loyalty.

Relationship Management (CRM)_

With Business Central, organisations have access to essential tools and information needed to oversee interactions with customers and contact segments. Additionally, it offers end-to-end capabilities for managing contracts, customer interactions, segmentation, sales opportunities and marketing campaigns.

Benefits of Dynamics 365 Business Central_

Robust security and compliance_

Business Central consists of comprehensive enterprise-grade security to ensure the maximum protection. It has in-built features to safeguard your data and sensitive information.

It allows users to configure security settings to suit their preferences. The modern security features within the ERP system protects businesses from unwanted security breaches.

Scalability and adaptability_

Business Central can promote business growth. With its powerful features, it drives a new level of productivity for every organisation. It offers intuitive tools to assist with the scaling of business growth. Business Central can also be customised to meet an organisation’s specific needs and requirements.

It provides adaptability and flexibility, allowing companies to gain a competitive edge.


One of the unique benefits of Business Central is its ability to integrate with other products in the Microsoft suite of applications. You can easily integrate it with familiar Microsoft 365 software such as Teams, Outlook and SharePoint for enriched collaboration and connectivity among staff.

It also provides innovative tools for a combined digital experience for flexible and modern workforces. By integrating with Microsoft 365 collection of applications, Business Central empowers employees to easily deliver on work processes.

Improved customer service management_

Business Central improves customer service management by utilising innovative tools to track and manage customer requests. The system also assists you in tracking client conversations and sales orders for enhanced customer satisfaction.

Optimising your customer service experience is crucial in maintaining value for your clients. With Business Central, you will be able to maximise high levels of customer satisfaction.

Charting business growth with Business Central_

With its versatile features and functionalities, it is evident that Microsoft Business Central qualifies as an ERP system. Tailored to meet the needs of customers, the application provides a robust set of features that promote productivity and business growth. Consisting of user-friendly interfaces, it’s a powerful tool for users to execute set tasks.

Due to the advancements in emerging technologies, Business Central is regularly updated with new features from Microsoft. Investing in this ERP solution will streamline your operations while empowering you to gain insights for fact-based decision making.

For more advice on how to implement Business Central to leverage business growth, contact our team of experienced consultants for comprehensive guidance.

Related Content

What is Dynamics 365 Business Central?
Dynamics 365

What is Dynamics 365 Business Central?

In the wake of emerging technology trends, organisations are adopting modern and faster methods of i...

Copilot for Dynamics 365, what does the future look like?
Dynamics 365

Copilot for Dynamics 365, what does the future look like?

Since 2023, there have been plenty of discussions about artificial intelligence. Regardless of your ...

10 steps for successful ERP implementation
Dynamics 365

10 steps for successful ERP implementation

Enterprise Resource Planning (ERP) systems are rapidly changing the face of business operations. By ...

We would love
to hear from you_

Our specialist team of consultants look forward to discussing your requirements in more detail and we have three easy ways to get in touch.

Call us: 03454504600
Complete our contact form
Live chat now: Via the pop up

Feefo logo