November 17, 2025
Article
The basics
Introduction
Dynamics 365 ERP options
Microsoft Dynamics 365 offers two robust ERP solutions tailored to different business needs: Business Central and Finance & Supply Chain Management (F&SCM). These solutions cater to different scales and complexities, making it essential for businesses to assess their current and future needs before choosing the right ERP system.
Business Central
Business Central offers a user-friendly ERP solution ideal for small to mid-sized businesses focused on financial and supply chain management.
Finance & Supply Chain Management
F&SCM caters to large enterprises with advanced features like financial consolidation, AI analytics, and global supply chain automation.
Features
Supply chain and manufacturing features
Business Central includes basic supply chain functionalities such as inventory management, warehouse documents, and simple forecasting. It supports discrete manufacturing with features like bills of materials and production scheduling. However, advanced capabilities like mobile scanning, cross-docking, and container packaging require third-party add-ons. F&SCM, on the other hand, offers comprehensive supply chain management with built-in support for mobile devices, AI-driven demand planning, advanced warehouse management systems (WMS), and full-scale manufacturing including process and batch production. It is designed for enterprises with complex logistics and high-volume production needs, providing tools for automation and real-time insights across global operations.
Basic supply chain features
Business Central provides essential inventory management, warehouse documentation, and simple demand forecasting functionalities.
Discrete manufacturing support
It supports discrete manufacturing with bills of materials and production scheduling capabilities for streamlined operations.
Advanced SCM capabilities
F&SCM includes built-in mobile device support, AI-driven demand planning, advanced WMS, and full manufacturing processes.
Enterprise-scale solutions
Designed for complex logistics and large-scale production, offering automation and real-time global supply chain insights.
Pricing overview
Implementation models and pricing
Business Central supports cloud, on-premises, and hybrid deployments, offering a lower cost per user and faster implementation timelines. It is ideal for SMBs looking for a quick and affordable ERP solution. F&SCM also supports multiple deployment models but comes with higher implementation costs and longer timelines due to its complexity and depth of features. It requires a minimum of 20 users and is suited for organizations with extensive operational needs. The total cost of ownership for F&SCM includes licensing, customization, integration, and support, making it a significant investment for enterprises seeking scalability and advanced functionality.
Business Central deployment
Supports cloud, on-premises, and hybrid deployments with lower cost per user and faster implementation timelines.
F&SCM deployment complexity
F&SCM supports multiple deployment models but has higher costs and longer implementation due to feature complexity.
Cost and user requirements
F&SCM requires minimum 20 users and includes licensing, customization, integration, and support costs as a significant investment.
Brief functional comparison
D365
Business Central
D365
F&SCM
General overview
Target business size
Small to mid-sized
Large enterprises
Deployment options
Cloud, on-premises, hybrid
Cloud, on-premises
Cost
Lower per-user cost
Higher due to enterprise features
Implementation time
1–6 months
6–12+ months
Financial management capabilities
General ledger
Yes
Yes
Multi-entity accounting
Yes
Yes
Intercompany transactions
Manual
Automated
Global compliance (IFRS/SOX)
Limited
Full Support
AI forecasting
No
Yes
Supply chain and warehouse management
Inventory management
Basic
Advanced with AI
Warehouse management (WMS)
Requires add-ons
Built-in advanced WMS
Mobile scanning
Requires add-ons
Native support
Cross-docking
No
Yes
Container packaging
No
Yes
Manufacturing capabilities
Discrete manufacturing
Yes
Yes
Process manufacturing
No
Yes
Finite capacity planning
Requires add-ons
Yes
Engineering change management
Requires add-ons
Yes
Project tracking and business intelligence
Project tracking
Basic
Advanced
Resource management
Basic
Advanced
Budgeting
Basic
Advanced
Analytics and BI
Limited
Power BI integration
Summary
Pros and cons of each platform
Business Central is praised for its affordability, ease of use, and quick deployment. It is highly customizable and integrates well with Office 365, making it accessible for users with limited ERP experience. However, it has limitations in scalability and requires add-ons for advanced features. F&SCM offers robust capabilities including AI-driven analytics, global compliance, and comprehensive supply chain management. It is scalable and suitable for complex, multi-entity organizations. The drawbacks include higher costs, longer implementation times, and the need for specialized resources. Businesses must weigh these factors based on their size, operational complexity, and long-term growth objectives.
Business Central
Pros
Affordable, easy to use, and quick to deploy with strong Office 365 integration and customizability for small businesses.
Business Central
Cons
Limited scalability and requires add-ons for advanced features, which may restrict growth for complex needs.
F&SCM
Pros
Robust capabilities including AI analytics, global compliance, and comprehensive supply chain management for large organizations.
F&SCM
Cons
Higher costs, longer implementation times, and need for specialized resources limit accessibility for smaller businesses.
