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Dynamics Business Central vs. GP – A Guide for Australians?

Posted by Nipun Thakur / calender-icon Feb 22, 2023

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Key Differences Between Business Central and GP - Why Should You Migrate

In today’s fast-paced business world, companies need reliable and efficient software systems to handle their financial operations. Microsoft Dynamics GP and Dynamics Business Central are popular solutions in the Australian market. While both products are developed by Microsoft and provide financial management capabilities, they differ in functionality, deployment options, and pricing. In this blog post, we will explore the differences between Dynamics GP and Dynamics Business Central to help you make an informed decision.

What is Dynamics GP?

Dynamics GP (formerly Great Plains) is an on-premises ERP software designed for small and mid-sized businesses. It has been a popular choice for businesses for over 25 years, with many features and functionalities, including financial management, project management, supply chain management, and human resources management.

One of the key features of Dynamics GP is its flexibility. It can be customized to meet the specific needs of different industries and business types, and it integrates with other Microsoft applications such as Excel and Word. Dynamics GP can also be integrated with third-party applications, making it an ideal solution for businesses with complex financial needs.

What is Dynamics Business Central?

Dynamics Business Central (formerly Navision) is a cloud-based ERP solution for small and mid-sized businesses. It provides a range of functionalities such as financial management, supply chain management, project management, and customer relationship management. Dynamics Business Central is also highly customizable and can be integrated with other Microsoft applications.

One of the main advantages of Dynamics Business Central is that it is cloud-based, meaning businesses do not need to invest in expensive IT infrastructure or maintain their own servers. It also provides real-time visibility into financial operations, allowing businesses to make informed decisions quickly.

What are the Differences Between Dynamics GP and Dynamics Business Central

Deployment Options

Even though both Dynamics GP and Business Central provide a range of deployment options, Dynamics 365 Business Central was designed primarily for cloud deployment. In contrast, Dynamics GP is an on-premises software, meaning businesses need to install the software on their own servers or purchase it from a hosting provider. This can be a more expensive option regarding setup and ongoing maintenance costs.

But if you utilize Dynamics 365 Business Central, you won’t have to pay for hardware or to upgrade or set up your servers. There are no ongoing annual costs. Microsoft effortlessly handles it without requiring end-user downloads or installations, so you won’t need specialized IT expertise to upgrade your system. However, Dynamics GP requires hardware investment because it is an on-premises solution. Even if you want to install in the cloud, upgrades are not automated and must be scheduled with your Microsoft Partner or handled by your IT staff. As a last resort, if you wish to link your ERP system to other Microsoft programs, such as Dynamics 365 Sales or CRM. In this case, Business Central makes it simpler than Dynamics GP.


Both Dynamics GP and Dynamics Business Central provide various functionalities for financial, supply chain, project, and customer relationship management. However, Dynamics GP has been around for longer and has a more extensive feature set, especially for manufacturing and distribution industries. It also has a more robust report writer and integrations with other Microsoft products such as Excel and Word.

On the other hand, Dynamics Business Central provides a more modern user interface and has built-in integrations with other Microsoft products such as Power BI and PowerApps. It also provides advanced functionalities such as artificial intelligence and machine learning for predictive analytics and automated financial processes.


The pricing for Dynamics GP and Dynamics Business Central differs significantly. Dynamics GP requires an upfront license purchase and ongoing maintenance fees. The pricing varies depending on the number of users and the modules needed, but it can be a significant investment for small and mid-sized businesses.

Dynamics Business Central can give you an edge as it has a subscription-based pricing model. The cost is based on the number of users and the modules needed, including ongoing updates and support. This makes it a more affordable option for small and mid-sized businesses that want to avoid large upfront costs.


Both Dynamics GP and Dynamics Business Central can be customized to meet the specific needs of different industries and business types. However, Dynamics GP requires more technical expertise to customize, while Dynamics Business Central has a more user-friendly customization interface that makes it easier for users to modify the software to meet their needs.

The Bottom Line

Dynamics GP has been one of the most admired ERP solutions with integrated HR and payroll features and a sizable user, partner, and consultant community. The software typically operates at its peak when installed locally. Although Microsoft supports it and has a roadmap for the next ten years, Dynamics GP is no longer its top product.

Currently, the main attraction is Microsoft’s latest cloud-based ERP solution, Dynamics 365 Business Central, which provides complete ERP features at a reasonable cost. Business Central is the cornerstone of Microsoft’s future strategy and is committed to the cloud.

If you’re having trouble choosing which of these solutions is the greatest fit for your company, our team at DynamicsSmartz, a Microsoft Gold Partner in Australia, will be happy to assist. Let’s connect to discuss your requirements and the features you desire in a software solution.