The Real Difference in Dynamics GP and Dynamics 365 Finance Business

The Real Difference in Dynamics GP and Dynamics 365 Finance Business

Business enterprises often wonder which Microsoft Dynamic ERP solution is the right fit for them. With the new release of Dynamics 365 Finance Business, companies and partners are curious as to whether this new solution is suitable for their requirements. Dynamics GP and Dynamics 365 implementations are quite similar, but they do have some notable differences.

These Microsoft solutions are aimed towards small to mid-size business, and are best suited for managing an organization’s core finances. However, there are certain key differences in the functionality, hosting, upgrades and licensing that every business owner/director should be aware of.

Microsoft Dynamics 365 for finance and operations

Dynamics 365 is the latest financial management software, but it is not replacing Dynamics GP. It is built for the same target audience as Dynamics GP.

The key point of Dynamics 365 is that it is licensed on a full “SaaS” model. Meaning, you pay a monthly subscription licensing and are hosted in the Azure Cloud. The benefit to the SaaS model is that Microsoft automatically pushes out enhancements, bug fixes, and updates solutions. Furthermore, there is no up-front cost for hardware, servers, or other components, making it great for companies with little or no dedicated IT resources.

Overall, Dynamics 365 is the “future” and soon will be receiving the lion’s share of Microsoft’s future development efforts and attention. Dynamics GP will not be fully replaced, but for more innovative new features, Dynamics 365 is the right choice.

Functionality of Dynamics GP and Dynamics 365

Both GP and Dynamics 365 offer segments, like budgeting, e-banking, general ledger account structure, and support for Fixed Asset Management. However, below listed are some key points differentiating Dynamics GP and Microsoft Dynamics 365.

Feature/Product Dynamics GP Dynamics 365
Hosting On-premise or IaaS
(not included; $400 – $1200/month)
Cloud Only
Pricing $65/user/month $50/user/month
Upgrades Incurs Cost Every 2-4 Years Free and Automated
Customization Options Many Limited
Add-ons Many Limited
Allocation Accounts Yes No
BI – Integration Yes (some effort) Yes (little effort)
Bill of Materials Yes Yes limited
Budgeting Setup and Import Excel-Based Budgets. Advanced capabilities through ISVs Create multiple budgets for financials, revisions, analysis, and dimensional reporting
CRM integration Yes (significant effort) Yes (Little effort)
E-banking Yes Yes
Financial Reporting Management Reporter and Jet Reports Leverage Account Schedules and Analysis view
Fixed Assets Yes Yes
GL Account Structure Multiple Segments Multi Dimensions for substructure
Inventory Tracking Yes Yes
Multiple Currencies Yes Yes
Multiple Entities Yes Yes
Multiple Language Yes Yes
SQL server Reporting Yes Yes
Manufacturing Management Yes (little effort) Yes (Robust)

When should an organization shift from Dynamics GP to Dynamics 365?

Many organizations are eager to switch from Dynamics GP to Dynamics 365 because of automatic upgrades and lower cost, which are making it very attractive. Additional benefits include:

  • New features and benefits.
  • Eliminates hosting, server hardware and maintenance costs, which can reach into the 10s of thousands.
  • Enhanced reporting.
  • Greatly reduced license costs.
  • Easily integrated with the suite of Microsoft products.

When you are ready to learn more from an expert about how Microsoft Dynamics 365 would fit your needs, we have a pool of talent individuals ready to help.


The Real Difference in Dynamics GP and Dynamics 365 Finance Business
John Ogden
Published on
March 9, 2018

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