Dynamics GP vs Dynamics 365 Business Central

Both Dynamics GP and Dynamics 365 Business Central are powerful ERP solutions tailored for small and medium-sized businesses, designed to efficiently manage core financial operations. However, they differ significantly in areas such as licensing models, hosting options, upgrade processes, functionality, and AI integration—key considerations for business leaders evaluating their ERP strategy.

With over 25 years of experience supporting Dynamics GP clients, I’ve been closely engaged in discussions with GP users about exploring Dynamics 365 Business Central as a modern alternative. These conversations focus on comparing the two systems and assisting clients in planning a seamless transition when they decide to migrate.

This article provides a detailed overview of both solutions, a side-by-side comparison , and key insights into why many Dynamics GP users are choosing to upgrade to Business Central.

GP vs Business Central Comparison

• 🌍 Deployment: With Dynamics GP, you’re tied to on-premises infrastructure. Switch to Business Central and embrace a 100% cloud-based solution that’s accessible anywhere.

• ⚡ Updates: Tired of manual updates with GP? Business Central offers automatic updates, ensuring you’re always up to date without the hassle.

• 💡 AI & Analytics: GP offers basic features, but Business Central integrates advanced AI tools for faster, smarter decisions.

• 🔗 Integration: GP covers the basics. Business Central connects seamlessly with the entire Microsoft 365 ecosystem and the Power Platform for smooth collaboration.

• 💰 Cost: Avoid hefty upfront investments with GP. With Business Central, enjoy flexible, predictable subscription pricing.

• 🚀 Scalability: Future-proof your business with Business Central, built to grow with you without limits.

While both Dynamics GP and Business Central share a range of core functionalities, including:

• Bill of Materials

• eBanking

• Fixed Assets

• Intercompany Processing

• Inventory Tracking

• Sales Order Processing

• Project Accounting (now referred to as Jobs)

• Manufacturing

• Multiple Currencies

• Multiple Entities

• SQL Server Reporting Services

Business Central stands out with its dimensional accounting capabilities. This feature allows businesses to define specific analysis categories and tag data accordingly, making it easier to generate detailed reports. For example, you can track travel expenses across various departments with just a few clicks, providing enhanced visibility and more actionable insights.

Is Microsoft Dynamics GP Support Ending?

Microsoft has announced that September 30, 2029, will be the retirement date for all versions of Dynamics GP. After this date, there will be no product support or updates available for Dynamics GP, except for security patches, which will be provided until April 30, 2031. For further details about this announcement, Dynamics GP transitioned to the Modern Lifecycle Policy, which differs from the Fixed Lifecycle Policy. Under this policy, Microsoft will continue to provide support and servicing, including bug fixes, new features, and tax updates, throughout the year. While using GP, it’s crucial to stay up-to-date to ensure Microsoft support, compatibility with other business technologies, regulatory compliance, and access to the latest features and improvements.

To remain eligible for future updates, you must be on the current release version in order to upgrade to subsequent yearly releases.

Microsoft Dynamics 365 Business Central Overview

Dynamics 365 Business Central is a comprehensive financial management solution from Microsoft, designed for the same target audience as Dynamics GP.

The key distinction is that Business Central is built for the cloud. It typically follows a Software-as-a-Service (SaaS) model, meaning you pay a monthly subscription and your ERP is hosted securely in Azure Cloud. The major advantage here is that Microsoft handles all updates, bug fixes, and feature enhancements automatically—no more manual upgrades! Additionally, there are no upfront costs for hardware, servers, or other infrastructure components, making it an excellent choice for companies with limited IT resources.

To learn more about how cloud upgrades in Dynamics 365 differ from on-premise server upgrades, be sure to check out our blog article on "Why Cloud Upgrades in Dynamics 365 Are a Game Changer".

Dynamics GP or D365 Business Central: Which ERP Solution Is Best for You?

If you are considering implementing an ERP solution today, Encore strongly recommends selecting Dynamics 365 Business Central. While Dynamics GP remains a trusted ERP, Microsoft’s announcement of its upcoming retirement makes it less suitable for new implementations. Datawise is here to guide you through this important decision, offering personalized advice tailored to your unique business needs.

For existing Dynamics GP users, it’s crucial to evaluate your options for both the short and long term. Our team, with extensive expertise in both Dynamics GP and Dynamics 365 Business Central, is equipped to provide you with the insights you need. We have dedicated teams for each solution, with a wealth of experience to ensure your business thrives during this transition.

For more information or to discuss which ERP solution best fits your business, don’t hesitate to reach out to us. We’re here to help you succeed.