What is Microsoft Dynamics 365?

This article explains what Microsoft Dynamics 365 (D365) is, what apps it includes, how much it costs, how it can help businesses by facilitating teams’ work, enhancing their collaboration tools and increasing reporting (financial, inventory, job/project, etc.) precision and robustness, etc.

What is D365?
D365 is an umbrella name for a line of Microsoft software products. It includes the following apps (as of the date on which this post was written):
      ▪ Business Central (former Microsoft Dynamics NAV) – AKA “D365BC”, “D365 Business Central”, “Business Central” or “BC”;
      ▪ Finance (former Microsoft Dynamics 365 for Finance and Operations; former Microsoft Dynamics AX);
      ▪ Supply Chain Management (former Microsoft Dynamics 365 for Finance and Operations; former Microsoft Dynamics AX);
      ▪ Artificial Intelligence;
      ▪ Commerce;
      ▪ Customer Service;
      ▪ Field Service;
      ▪ Marketing;
      ▪ Mixed Reality;
      ▪ Project Service Automation;
      ▪ Retail;
      ▪ Sales (former Microsoft Dynamics CRM);
      ▪ Talent.

In the heart of D365 can be said to lie two types of software: ERP (enterprise resource planning) and CRM (client relationship management). These two software types help companies maintain their financial (including financial reporting and issuance of externally facing documents such as sales invoices, purchase order, cheques, etc.), inventory, manufacturing, fixed (capital) assets, client (e.g. names, email addresses, sales campaigns, etc.), job/project, etc. business information.

Both ERP and CRM systems can be combined with Microsoft Power Platform (Power BI, Power Apps, Power Automate, Power Virtual Agents), AI (artificial intelligence), Common Data Service (CDS) and other software and services to help meet business needs.

Licensing & Pricing
Microsoft has different license types across different apps and the price varies. Prices are reviewed and updated by Microsoft. Microsoft Dynamics 365 license pricing can be quite complex – you can contact us to confirm the exact license prices, what those license entitle users to do and how you can save on the licenses for your company.

D365 license prices vary per hosting type (e.g. on premises vs on Azure vs on Cloud/SaaS). At the time this article was posted, the prices below were available for the following products hosted on the Cloud:
      ▪ Business Central:
           ✓ Team Member = $10.20 CAD per User / month – roughly, this license allows reading all things (and create some), but to post nothing – it is often used by field workers to initiate a PO process and by managers who only need to run financial reports (e.g. BS, IS, Trial Balance, etc.). Team Member license can be combined with either Essentials or Premium licenses.
           ✓ Essentials = $89.60 CAD per User / month- this license is, perhaps, most frequently used and allows using all Modules except Manufacturing and Service Management.
           ✓ Premium = $128.00 CAD per User / month – this license allows using all Modules, including Manufacturing and Service Management. Currently, it is impossible to mix Essentials and Premium licenses – all Users must be either on Essentials or on Premium licenses.

      ▪ Finance:
           ✓ Team Member – $10.20 CAD per User / month.
           ✓ Full – $230.40 CAD per 1st (base) license per User / month – the subsequent licenses for qualified Users (typically, the 1st license should be of the equal or higher value) cost several times less – contact us to confirm.

      ▪ Supply Chain Management:
           ✓ Team Member – $10.20 CAD per User / month.
           ✓ Full – $230.40 CAD per 1st (base) license per User / month – the subsequent licenses for qualified Users (typically, the 1st license should be of the equal or higher value) cost several times less – contact us to confirm.

Importantly, a license can be per Named User (i.e. a User must sign in with her/his credentials – usually Office 365 email and the password) or per Device (i.e. multiple Users can use the same device – e.g. a computer in a warehouse to clock in/out).

Students, faculty members and nonprofit organisation may be eligible for a discount on each license type – contact us to confirm.

Edocation team understands that D365 licensing can be complex. Therefore, we have created D365BC calculator and D365 calculator to help companies estimate their monthly license costs and how they can save. If you have questions about D365 license types, their prices and how you can save, ask us.

How Can an ERP System Help Your Team and Your Company?
One of the biggest advantages of an ERP system is the ability to make business decisions efficiently and effectively. For example, by having timely financial reports, managers (and sales people) can help increase revenue and decrease unnecessary costs. Purchasers, in turn, can always order what is needed to fulfill orders timely (which may result in higher customer satisfaction and, therefore, more orders) and avoid over-ordering which helps save money and prevents waste of goods and services.

Besides helping with financial and inventory reports, an efficient ERP system can streamline business processes. For example, it is possible to send a Sales Invoice to a Customer or a PO to a Vendor immediately.

Additionally, when it comes to Microsoft ERP systems (such as D365BC), they can integrate with a variety of product by Microsoft (e.g. Office 365, Outlook, Excel, etc.) and beyond (e.g. payroll systems, websites, etc.) through open API and/or with the help of Power Automate even without open API.

Conclusions
D365 is an umbrella term for different Microsoft products. These products are licensed and priced based on a number of factors such as license type, app and hosting environment. D365, including its ERP apps, is used by companies to help increase efficiency and effectiveness of business via technology.

Edocation team has tremendous positive experience in ERP analysis (including, license advice and fit-gap analysis), implementation, security, upgrade, migration and support. If you would like to discuss the ERP needs of your team and your company, contact us.