Both. Dynamics 365 is not one product. It is Microsoft’s family of business apps, and the family includes CRM apps and ERP apps. Business Central is one member of the family: its ERP for small and mid-sized organisations. So asking “Business Central vs Dynamics 365” is a little like asking “Excel vs Microsoft 365”. One is part of the other.
Two terms explain the rest. CRM, or customer relationship management, is software for winning and keeping customers: leads, sales opportunities, contacts, marketing and customer service. ERP, or enterprise resource planning, is software for running the business behind the sale: accounts, purchasing, stock, orders, projects and manufacturing.
Why the name causes confusion
Microsoft used to sell these products under separate names, such as Dynamics CRM, Dynamics NAV and Dynamics AX. In 2016, Dynamics 365 brought them under one brand. Business Central is the successor to Dynamics NAV, which began life as Navision. Dynamics AX became Dynamics 365 for Finance and Operations, since split into Finance and Supply Chain Management. Dynamics CRM’s successors are the customer apps, such as Dynamics 365 Sales.
So a CRM shortlist that says Dynamics 365 usually means Dynamics 365 Sales. An ERP shortlist that says Dynamics 365 usually means Business Central or, for larger firms, Finance and Supply Chain Management. Both are right, because both are Dynamics 365.
The CRM side of Dynamics 365
The customer apps include Dynamics 365 Sales, for leads, opportunities and forecasts. Customer Service handles cases and support, Field Service schedules engineers and technicians on site, Customer Insights covers marketing and customer data, and Contact Center runs a contact centre. Sales comes in three tiers: Sales Professional, Sales Enterprise and Sales Premium.
These apps run on Dataverse, Microsoft’s cloud database that Power Apps also uses. That is why they can be extended with the Power Platform, Microsoft’s tools for building apps and automated flows with little code.
The ERP side of Dynamics 365
Microsoft describes Business Central as “a business management solution for small and mid-sized organizations”. It covers finance, sales and purchasing, stock, projects and fixed assets, and with a Premium licence, manufacturing and service management. It works closely with Outlook, Excel and Teams.
Dynamics 365 Finance and Dynamics 365 Supply Chain Management are Microsoft’s ERP apps for larger and more complex organisations, such as groups with many companies across several countries, or firms with advanced manufacturing and distribution. The wider family also includes Project Operations, Commerce and Human Resources.
Does Business Central do CRM?
Up to a point. Business Central includes relationship management features. You can keep contacts, both people and companies, and log interactions such as emails, calls and meetings. You can group contacts into segments, track sales opportunities and run campaigns. For many small firms that is enough to start with.
If your sales team needs more, such as pipeline management, forecasting and sales tools inside Outlook and Teams, Microsoft’s answer is Dynamics 365 Sales. It has a standard integration with Business Central through Dataverse. Customers, contacts, items and prices can be kept in step, and so can opportunities, sales orders and posted invoices. Sellers can see stock availability from Business Central while they prepare a quote. The two products are licensed separately.
Business Central or Finance and Supply Chain Management?
The choice turns on complexity more than on a set number of users. Business Central suits most small and mid-sized firms, including those with several companies and some manufacturing. Finance and Supply Chain Management are built for scale: large groups with many companies in several countries, and complex supply chains. The projects to implement them are usually larger, and the licences are priced higher. At the time of writing, Microsoft’s Business Central pricing page lists Essentials at £61.50 per user per month, paid yearly and excluding VAT. For Finance and Supply Chain Management, see Microsoft’s pricing page for each app.
A simple way to decide
Start from the problem, not the product name. If the pain is winning and keeping customers, you are looking for CRM, and in Microsoft’s family that means Dynamics 365 Sales or another customer app. If the pain is invoicing, stock, purchasing or the month end, you are looking for ERP, and for most small and mid-sized UK firms that means Business Central. If it is both, Business Central’s own contact management may cover the CRM side at first, with Dynamics 365 Sales added later through the standard integration.
Talking it through
Spark 365 works with UK firms on Business Central and the Power Platform. If you are unsure which part of the Dynamics 365 family fits your problem, we are happy to help you work it out before you commit.