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Microsoft Dynamics 365 Business Central: Modules & Licensing Guide

This blog is your definitive roadmap to ERP licensing success. Read to learn more.
#DrivingExpertLedTransformation
Microsoft Dynamics 365
Neha Bhagat
Senior Director – Microsoft Dynamics (Practice Head)
August 14, 2025

Table of Content

Introduction

Meandering the realm of ERP licensing is like mastering a Rubik’s Cube—intimidating, time-consuming, and filled with pitfalls. But it doesn’t have to be. Within this blog, we peel away the technical jargon and provide a clear, actionable, and results-driven Microsoft Dynamics 365 Business Central licensing guide.
Whether you’re comparing the modules, comparing Business Central license types, or considering Business Central on-premise licensing, this guide equips you with what you need to choose, and succeed.

Overview of Dynamics 365 Business Central Modules

Microsoft Dynamics 365 Business Central modules provide the backbone for this robust ERP solution, each designed specifically to automate vital business processes. Smoothly integrated, these modules break down data silos and provide end-to-end visibility of operations within the organization.

Financial Management

At the center of the modules of Business Central, the Financial Management module provides broad capabilities for general ledger, accounts payables and receivables, budgeting, and financial reporting. It has multi-currency capability, consolidations, and business analytics to enable informed decision-making. Automated payment processing, bank reconciliation, fixed asset management, and AI-based forecasting to enable precise cash flow projections and profitability analysis are among its key capabilities.

Sales & Marketing Management

The Sales and Service Management module streamlines the complete customer experience, from lead capture to payment. It has powerful features like contact and opportunity management, sales order processing, price control, and automated invoicing. Customer interactions are tracked in real-time, with smart upsell and cross-sell recommendations and effortless Microsoft Outlook integration, driving sales productivity and enhancing customer interactions.

Supply Chain Management

D365 Business Central modules offer comprehensive supply chain optimization through real-time inventory management, efficient purchasing, and seamless order fulfillment. The supply chain management module provides demand forecasting, automated purchase and sales orders, multi-location inventory tracking, and barcode scanner integration. Accurate warehouse management and automated data capture provide end-to-end visibility and agility across the entire supply chain.

Project Management

This module facilitates end-to-end project management, from planning and resource allocation to execution and reporting. Its core functions consist of project setup, job costing, timesheet tracking, and budget monitoring. It provides real-time visibility into project health, profitability, and resource usage, as well as boosts team collaboration through Microsoft Teams integration.

Service Management (Premium Only)

Accessible only with Premium licensing, this module handles service orders, contracts, scheduling, dispatching, and billing. It facilitates field service and repair shop operations using capabilities such as scheduling service calls, assigning technicians, tracking repair parts, and automated service estimates—promoting efficient and responsive delivery of customer services.

Manufacturing (Premium Only)

In Premium licensing, this module integrates fundamental manufacturing operations, including planning, scheduling, production, and distribution. Core features include production order control, BOM management, routing and capacity planning, and machine center optimization. Forward and backward flushing, scrap tracking, subcontractor functionality, and agile manufacturing practices are also supported, enabling greater efficiency and agility.

Detailed Guide to Business Central License Types

Knowing Business Central license types is crucial in making the right decisions that align with your organization’s needs and budget. Microsoft Dynamics 365 Business Central licensing guide identifies three primary user license types, each designed to meet different roles and functional requirements.

Essentials License

The Business Central Essentials license is priced at $80 per user per month (starting from October 2025). It covers Financial Management, Supply Chain, HR, Project Management, CRM, AI forecasting, and basic warehouse management. Manufacturing and advanced service capabilities are not included.

Premium License

Microsoft Dynamics 365 Business Central Premium license costs $110/user/month and includes Manufacturing and Service Management to all Essentials features—perfect for production and field service companies.

Team Member License

The Microsoft Dynamics 365 Business Central Team Member license, priced at $8/user/month, enables limited access—reading data, editing records, approving tasks, and controlling timesheets—with no posting rights to transactions or access to core modules.

Business Central Licensing Models: Cloud vs. On-Premise

Choosing between cloud and on-premise deployment has a significant impact on licensing costs, maintenance responsibilities, and the features available.
Aspect Cloud (SaaS) On-Premise
Licensing Model
Subscription-based monthly/annual payments
Perpetual licensing (discontinued April 2025) + Subscription only
Initial Investment
Lower upfront costs, predictable monthly expenses
Higher initial setup costs and hardware investment required
Maintenance
Automatic updates managed by Microsoft
Manual updates require IT resources
Feature Access
Full feature set, latest AI capabilities
Limited features, delayed updates
Integration
Seamless Microsoft 365, Teams, Power Platform integration
Limited integration capabilities
Scalability
Instantly scalable, global accessibility
Requires hardware upgrades for scaling
Security
Enterprise-grade security, automatic backups
Self-managed security, backup responsibility

Capabilities of the Team Member License

The Team Member license offers limited access for $ 8 per user per month, ideal for administrative or part-time roles.

Key capabilities

  • Read all data
  • Update customer/vendor/item records
  • Approve/reject workflows
  • Create/edit/delete quotes
  • Manage personal info and timesheets
  • Use Power Apps for data access

Limitations

  • Cannot post financial transactions
  • No access to management functions
  • Restricted to 15 custom entities

Essentials vs. Premium: Choosing the Right License

Selecting between Essentials and Premium licenses requires careful evaluation of business requirements, particularly regarding manufacturing and service management needs.
Feature Category Business Central Essentials License Microsoft Dynamics 365 Business Central Premium License
Monthly Cost
$80 per user (from Oct 2025)
$110 per user (from Oct 2025)
Storage Included
3GB per user
5GB per user
Financial Management
✅ Complete suite
✅ Complete suite
Supply Chain Management
✅ Full capabilities
✅ Full capabilities
Project Management
✅ Comprehensive features
✅ Comprehensive features
Human Resources
✅ Basic HR functions
✅ Basic HR functions
Manufacturing
❌ Not included
✅ Full manufacturing suite
Service Management
❌ Basic service only
✅ Advanced service management
Production Orders
❌ Not available
✅ Complete production management
Capacity Planning
❌ Not included
✅ Advanced capacity optimization
Service Contracts
❌ Limited functionality
✅ Full contract management
The D365 Business Central licensing guide suggests Essentials for finance, sales, purchasing, and project management-centered businesses and Premium as a must-have for manufacturing businesses and service-based companies that need advanced operational features.

Comprehensive Business Central Licensing Guide

The Microsoft Business Central licensing guide documents several license options, pricing plans, and purchase channels that suit different business requirements.

Current Pricing (2025): Effective Oct. 1, 2025, Microsoft is implementing new pricing—its first in five years—providing a mirror of enhancements such as Copilot AI, real-time financial analysis, integration of Power Platform, and extended sustainability features.

Buying Channels: Both Business Central on-premises and cloud deployments can be purchased through Cloud Solution Providers (CSP), Microsoft direct, or certified partners. The CSP network, comprising more than 90,000 sellers worldwide, offers competitive pricing and regional support.

Korcomptenz: Driving Real Results with Deep ERP Expertise

With more than two decades of experience in delivering end-to-end technology transformations, Korcomptenz is the one who can assist with your Microsoft Dynamics 365 Business Central implementation. Our experts closely collaborate with you to evaluate your operations, match them with the appropriate business central modules, and provide a seamless, streamlined deployment from planning to post-go-live support.

We do more than implement—our specialists also guide you through the complexities of the Microsoft Business Central licensing guide, ensuring you make informed choices that deliver value and performance.

Final Thoughts

Cut through the complexity of licensing with this Microsoft business central licensing guide—make informed, cost-effective decisions, whether in the cloud or on-premise. Make your choices align with modules that drive your business, optimize your spending, and scale with confidence.

Ready to transform your ERP landscape? Get in touch with our experts today to customize the ideal Dynamics 365 Business Central licensing strategy for your business.

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