Dynamics Business Central, designed and developed by Microsoft, is a cloud-based ERP solution.
It is a part of the suite of modern business management applications – Microsoft Dynamics 365, centered toward the needs of small to medium-sized businesses (SMBs).
Dynamics 365 Business Central offers a wide range of business management features to manage your core business tasks that include financial management, inventory management, project management, and warehouse management using third-party integrations like Mobile WMS by Tasklet Factory.
Business Central also offers integration with other Microsoft products, such as Office 365, which makes it easy for businesses to use this software in conjunction with other existing tools from third-party software providers.
Whereas SAP Business One is an on-premises ERP solution developed by SAP (Systems, Applications, and Products in Data Processing).
SAP designed SAP B1 for small and medium-sized businesses and offers similar functionalities to BC, including monetary management, inventory management, and project management.
However, it is a more complex yet powerful solution than Microsoft’s Business Central and is typically used by organizations with many employees or those with more specific business needs like managing your globally expanded units manufacturing units.
Let’s discover more and see how these two business applications are different from each other.
Key differences between features of Dynamics 365 Business Central and SAP Business One
Both enterprise resource planning (ERP) systems are designed and developed to help businesses of mid-sized markets manage their financials, and supply chain, and automate operations like accounting, invoicing, and other repetitive tasks.
However, there are some key differences between the features of these two systems:
Financial Management
Dynamics 365 Business Central has a powerful economic management module, including advanced financial reporting and budgeting capabilities. While SAP Business One has more limited financial management capabilities and better suits small businesses.
Inventory Management
Both systems have similar inventory management capabilities, but Dynamics 365 Business Central has more advanced functionality for tracking inventory across multiple locations and managing stock levels.
Sales Management
Dynamics 365 Business Central has more advanced sales management capabilities, including built-in customer relationship management (CRM) functionality and integration with apps like Sales Hub for better sales management.
On the other hand, SAP Business One has more limited sales management capabilities and favors small businesses.
Manufacturing
Dynamics 365 Business Central is the best choice for manufacturing since it includes advanced production planning and scheduling capabilities. SAP Business One, on the other hand, has more limited manufacturing capabilities and is geared toward powering up SMBs.
Customization
Dynamics 365 Business Central has more advanced and easy customization capabilities, with a wide range of built-in tools and add-ons plus services for customizing and extending the system.
Whereas, SAP Business One has more limited customization capabilities and is better suited for companies that have a small user base.
Deployment
Microsoft’s Business Central is a full cloud ERP system, while SAP B1 can be deployed on-premises or in the cloud. However, you can also choose whether you want the on-premises or Hybrid Implementation of Dynamics 365 Business Central.
Scalability
Cloud solutions are scalable. D365 Business Central is a cloud ERP built while keeping Microsoft Azure as its base, so it is more scalable. This means it can handle a large volume of data chunks and transactions.
While SAP Business One is more suited for businesses that are small-sized and can only generate a limited amount of data. It’s crucial to remember that Dynamics 365 BC can handle complex business scenarios, while SAP Business One is more suited for moderately complex business operations for small-sized businesses.
User Interface of Dynamics 365 Business Central
Business Central has an easy and convenient UI (User Interface) with drag-and-drop components to customize your user role page.
User Interface of SAP Business One
Though SAP B1 has a configurable UI, it is not at the level of Dynamics 365 Business Central. SAP Business One’s UI is more conventional and not modern. While, with Business Central, you can tailor the UI the way you want.
Pricing Comparison: Dynamics 365 Business Central vs SAP B1
The Pricing for Dynamics 365 Business Central and SAP Business One can vary depending on the specific edition and the number of users you want a license for.
Here are the price comparison models for these two systems:
Dynamics 365 Business Central: Pricing & Licensing
There are two editions of Business Central: Essentials and Premium.
The Essentials edition is designed for small businesses. The costs of this license for Business Central range from $70 to $100 Per User/Month.
And the Premium license is designed for large international groups or businesses that run internationally. The Premium license’s cost ranges from $100 to $190 Per User/Month.
There’s also a Team Member license, which is priced at $8 Per User/Month and allows users to access limited functionalities of the system.
Note: Dynamics 365 Business Central also requires separate licensing for PowerApps, Power Automate, and Microsoft Power BI – the popular data visualization tool.
SAP Business One: Pricing & Licensing
SAP B1 is part of SAP Integration Suite, which is available in three editions: Starter, Professional, and Premium.
SAP Business One:
SAP Business One is available in three editions: Starter, Professional, and Premium.
The Starter edition focuses on small businesses and costs $56 Per User/Month.
The Professional license, on the other hand, is designed for mid-sized businesses and costs $108 Per User/Month.
The Premium edition of SAP B1 is for large international businesses and groups, and its cost can range from $150 to $200 Per User/Month.
Moreover, if you want to add more functionalities to your ERP system, you will have to pay an added $20 Per User/Month.
Remember, the Pricing for Dynamics 365 Business Central and SAP Business One can vary depending on the specific edition, the number of users, and the type of customization required. So, always contact a cloud solution partner (CSP) or Microsoft Gold Partner like Dynamics Square for the right information.
Integration and Customization: SAP B1 vs Dynamics 365 Business Central
Both Enterprise Resource Planning (ERP) systems, SAP Business One (SAP B1), and Microsoft Business Central are SMB-centric and can be integrated with other respective software. You can configure them to fit your unique business needs of a business.
However, there are some key differences in terms of integration and customization capabilities between these two systems:
SAP Business One
SAP B1 is built on the software architecture of SAP HANA – a platform known for its robust flexibility and scalability. SAP B1 offers a wide range of integration options. You can integrate it with various third-party software, such as Dynamics CRM, eCommerce, and accounting systems.
SAP Business One also has a flexible architecture that allows for custom development and business-centric customization, anytime.
Microsoft Dynamics 365 Business Central
Dynamics 365 Business Central, on the other hand, is built on Dynamics NAV’s architecture with the modern capabilities of the popular Microsoft Dynamics 365 platform. Dynamics 365 is known for its smooth integration capabilities with other Microsoft products, such as Office 365 and Power BI.
Also, it offers a range of third-party software integration options. Though the third-party integrations may not be as extensive as SAP B1, they work quite seamlessly with Business Central.
Dynamics 365 Business Central is a fully cloud-based ERP solution with easy customization abilities to use the Power Platform to create customizations, automate business processes and create business operation-centric applications.
Overall, both ERP systems have their strengths and weaknesses when deciding on integration and customization.
SAP B1 is commonly considered more flexible and can be integrated with a wider range of third-party software. Whereas Dynamics 365 Business Central is flexible in getting tightly integrated with other Microsoft products and third-party platforms.
Also Read: Dynamics 365 Business Central vs. Odoo ERP: Which is Better?
So, the best choice between the two will depend on your business’s specific needs and factors that influence your decision.
