Business Central plans & pricing

Dynamics 365 Business Central pricing plans comparison showing cost-effective licensing options & increase in pricing effective 1st October 2025 for businesses of all sizes.
Plan Monthly Price (Per User) Best For
Essentials $70 (soon $80) Core business functions like finance, inventory, sales, and project management
Premium $100 (soon $110) Businesses needing service management or manufacturing features
Team Members $8 (no change) Users who need read-only access or perform limited tasks

Note - Pricing shown is forannual commitments. Monthly contracts cost about 20% more. An additional 5% increase applies from April 1, 2025 for customers choosing monthly-paid annual commitment.

Upcoming Price Changes

Starting October 1, 2025, Microsoft will update pricing

  • Essentials Increases from $70 to $80 per user/month
  • Premium Increases from $100 to $110 per user/month
  • Team Members Remains $8 per user/month
  • Device License Increases from $40 to $45
  • Microsoft is also increasing storage capacity per license to balance the pricing update

Which Business Central plan should you choose?

If you need Choose
Standard tools for finance, inventory, sales, and projects Essentials
Features for manufacturing and service order management Premium
Read-only access, workflow approvals, or basic updates Team Members

Contract Type Affects Pricing

Starting October 1, 2025, Microsoft will update pricing

  • Annual contracts offer the best value (monthly or yearly payment options)
  • Monthly-only contracts come with a 20% premium
  • Starting April 1, 2025, monthly-paid annual contracts will also increase by 5%

Business Central essentials capabilities

Microsoft Dynamics 365 Business Central Essentials is a comprehensive ERP solution designed for small and medium-sized businesses (SMBs) to manage their core operations. It aims to streamline processes, improve efficiency, and provide better insights.

Financial Management

This is the backbone of any ERP system, and Business Central Essentials provides robust capabilities to manage your company's financial health.

  • General Ledger Record and track all financial transactions.
  • Accounts Payable Manage vendor invoices, payments, and track liabilities.
  • Accounts Receivable Handle customer invoicing and cash receipts.
  • Bank Reconciliation Match bank statements with ledger entries.
  • Budgeting Set budgets and compare them with actual performance.
  • Fixed Assets Track asset acquisition, depreciation, and disposal.
  • Cash Flow Forecasting Predict future cash flow and manage liquidity.
  • Financial Reporting Generate standard and custom financial reports.
  • Cost Accounting Monitor and allocate operational costs.
  • Tax Management Set up and manage VAT or sales taxes.

Human Resources Management (Basic)

While Business Central Essentials doesn't have the full depth of a dedicated Human Resources Information System (HRIS) like Dynamics 365 Human Resources, it provides basic capabilities for managing employee data.

  • Employee Records Store employee details like contact info and work history.
  • Absence Tracking Track leave, vacation, and sick days.
  • Payroll Integration Connect with third-party payroll systems.
  • Basic Reports Generate simple employee-related reports.

AI-Supported Forecasting

Business Central leverages Microsoft's AI capabilities to provide intelligent insights, particularly in forecasting.

  • Sales Forecasting Predict future sales based on trends.
  • Inventory Forecasting Know when to reorder and how much.
  • Cash Flow Forecasting Forecast inflows and outflows more accurately.
  • Image Recognition Extract data from scanned documents.
  • Automation AI helps with repetitive tasks and data insights.
  • Copilot Integration Use natural language to get help from Microsoft's AI assistant.

Customer Relationship Management (CRM)

Business Central Essentials includes foundational CRM functionalities to manage customer interactions and sales processes. It's designed to give you a 360-degree view of your customers.

  • Contact Management Track customers, leads, and interactions.
  • Sales Opportunities Manage deals from lead to close.
  • Campaign Management Run basic marketing campaigns.
  • Sales Orders Create quotes, orders, and returns.
  • Customer History Keep full records of customer activity.
  • Reports & Dashboards View sales pipeline and performance.
  • Outlook Integration Log emails and tasks from Outlook.

Project Management

Essentials provides tools to manage projects from planning to completion, helping track progress, resources, and profitability.

  • Project Setup Define tasks, timelines, and budgets.
  • Resource Allocation Assign people and equipment to projects.
  • Time Tracking Log hours worked through timesheets.
  • Cost Tracking Compare actual costs to budgeted amounts.
  • Invoicing Bill customers by milestones or time.
  • WIP Management Track ongoing project value.
  • Project Reports Monitor progress and profitability.

Supply Chain Management

This module helps businesses optimize their flow of goods, from procurement to delivery.

  • Purchasing Manage purchase orders, vendors, and receipts.
  • Sales Processing Handle quotes, orders, and returns.
  • Inventory Planning Get reorder suggestions using AI.
  • Vendor Data Track vendor details and performance.
  • Item Data Manage product details and pricing.
  • Demand Forecasting Predict future demand using trends.
  • Basic Quality Tracking Monitor product quality at a simple level.

E-Services

This refers to capabilities that facilitate electronic interactions and integrations.

  • Document Management Attach files and scan invoices with OCR.
  • Online Payments Accept payments via PayPal and others.
  • Validation Tools Check VAT numbers and exchange rates.
  • Microsoft Integration Work smoothly with Outlook, Excel, Word.
  • APIs Connect with third-party apps and systems.

Warehouse Management and Inventory

These capabilities are crucial for businesses that deal with physical goods.

  • Real-Time Stock Monitor inventory across locations.
  • Item Tracking Track by serial or lot numbers.
  • Inventory Valuation Use FIFO, LIFO, or average cost.
  • Transfers & Adjustments Move or adjust stock easily.
  • Warehouse Layout Use bins and zones to organize storage.
  • Picking & Put-Away Guide staff on what to pick or store.
  • Shipping & Receiving Manage goods in and out.
  • Cycle Counting Regularly check inventory accuracy.

Business Central premium capabilities

Business Central Premium includes everything in the Essentials plan, plus two powerful modules. Service Order Management and Manufacturing. These features are ideal for companies that offer field services or manage production processes.

Service Order Management

For businesses offering maintenance, installation, or repairs.

Key Features

  • Service Orders Create and manage service requests like repairs, maintenance, or warranty claims.
  • Service Items Keep full records of items you service, including serial numbers and service history.
  • Service Contracts Set up ongoing agreements with pricing, schedules, and SLAs.
  • Loaner Equipment Track equipment loaned to customers during repairs.
  • RMA Handling Process returns and link them to service orders.

Service Planning

  • Technician Scheduling Assign tasks based on skill, location, and availability.
  • Dispatch Overview Visual board for tracking open jobs and technician workload.
  • Visit Planning Plan field visits and ensure parts are ready.

Pricing and Invoicing

  • Flexible Rates Set labor, parts, and service rates with customer-specific pricing.
  • Discounts Apply special pricing or job-specific fees.
  • Integrated Billing Link service jobs to invoicing for accurate billing.

Reporting

  • Service KPIs Track response time, costs, and completion rates.
  • Insights Identify areas to improve service and increase efficiency.

Manufacturing

Designed for businesses that build or assemble products.

Key Features

  • Production Orders Plan and track manufacturing from start to finish.
  • Material Tracking Monitor raw materials used and finished goods produced.
  • Subcontracting Manage outsourced steps in your production process.

BOMs & Routings

  • Bill of Materials (BOM) List all parts and quantities needed for each product.
  • Routings Define each production step, including machine setup and run times.
  • Version Control Keep records of design and process changes.

Capacity Planning

  • Work & Machine Centers Track available production capacity by team or machine.
  • Finite Scheduling Avoid overloading resources with realistic planning.
  • Production Calendar Build detailed schedules based on workload and demand.

Supply Planning

  • Master Production Schedule (MPS) Plan finished goods based on orders and forecasts.
  • Material Requirements Planning (MRP) Automatically calculate material needs and generate orders.
  • Action Messages Get alerts on what to order, produce, or adjust.

Costing & Reporting

  • Standard Costing Track costs for materials, labor, and overhead.
  • Variance Analysis Compare actual costs with planned to spot problems or gains.
  • Production Reports View performance, resource use, and production status.

Business Central team members license – What you need to know

The Team Members license in Microsoft Dynamics 365 Business Central is designed for users who only need limited access. It’s ideal for employees who mainly need to view data, approve workflows, or perform light tasks—not full business processes.

At just $8 per user/month, it's a cost-effective way to include more users in your system without needing full licenses.

What you can do with a Team Members License

  • View all data across modules

    You can look at information in Financials, Sales, Inventory, Projects, and more.

  • Update certain existing records

    Like changing a customer’s phone number or correcting an item description.

  • Modify accounting entries (within limits)

    For example, adjust a due date on a customer invoice.

  • Enter time sheets

    Users can log their project hours for approval.

  • Approve tasks in workflow

    Such as document approvals assigned to them.

  • Create and manage sales or purchase quotes

    But cannot turn those quotes into orders.

  • Use Power Apps and Power Automate

    If allowed, Team Members can use apps or flows that connect to Business Central.

  • View Business Central data in Microsoft Teams

    As long as they also have a Microsoft 365 license.

Best For

  • Users who need read-only access

    View reports, customer details, inventory levels, or sales figures—without making changes.

  • People who perform simple tasks

    Entering time sheets, updating their own contact info, or modifying a few fields on existing records.

  • Managers who approve workflows

    Approve/reject documents like purchase orders, sales quotes, or expense requests.

  • Organizations looking to reduce licensing costs

    Assign Team Member licenses to users who don’t need full functionality.

Key Limitations

  • Cannot create sales or purchase orders

    Only quotes are allowed—not the actual orders that impact inventory or finance.

  • Cannot create core business records

    Like new customers, vendors, items, or invoices.

  • Customization is limited

    You can only use up to 15 custom tables (per session) in apps or extensions built for Team Members.

  • No execution rights in Manufacturing or Service Management

    Reading data is allowed, but they can’t run processes or transactions in these modules.

  • Not a replacement for Essentials or Premium users

    Users who are deeply involved in business operations (like finance, warehouse, or production staff) need a full license.

Additional licenses and capacities

Beyond the core user licenses (Essentials, Premium, Team Members), Business Central offers specific licenses and capacity add-ons for unique scenarios.

  • Dynamics 365 Business Central Device
  • Dynamics 365 Business Central Database Capacity
  • Dynamics 365 Business Central External Accountant

Dynamics 365 Business Central Device

Dynamics 365 Business Central Device

  • Pricing
    • Current Price (until October 1, 2025) $40 (per device/month)
    • Effective October 1, 2025 $45 (per device/month)
  • Best For
    • Environments where multiple users share a single physical device to perform specific operational tasks. This is common in retail, warehousing, and manufacturing.
    • Examples
      • Retail Point-of-Sale (POS) systems Several cashiers using the same terminal throughout the day.
      • Warehouse handheld scanners/tablets Multiple warehouse staff using a shared device for inventory picks, put-aways, receiving, or shipping.
      • Shop floor terminals Various production line workers using a shared computer to report production progress, consume materials, or view job instructions.
  • Capabilities
    • Allows any number of users to access Business Central from the licensed device.
    • Capabilities are tailored to the device's function
      • POS Processing sales transactions, payments, returns, inventory lookups.
      • Warehouse Inventory movements, receiving, shipping, physical counts.
      • Manufacturing Reporting production output, material consumption, viewing work orders.
    • Generally provides read access to all data and the ability to perform transactional activities specific to its shared role.
  • Key Limitations
    • Device-bound The license is tied to a single device, not a user.
    • Limited functionality It does not provide the full breadth of Business Central capabilities available to Essentials or Premium users. It's for very specific, operational tasks.
    • Not for general-purpose use Cannot be used by individual users on their personal computers for general tasks.
    • Concurrent usage Each active device session consumes a license.

Dynamics 365 Business Central Database Capacity

Dynamics 365 Business Central Database Capacity

  • Pricing
    • Default Included Capacity
      • 80 GB of base capacity per tenant.
      • Plus 2 GB per Essentials user.
      • Plus 3 GB per Premium user.
      • Plus 1 GB per Device license.
      • This total capacity is shared across all environments (production and sandboxes) within a single tenant.
    • Additional Capacity (if needed)
      • 1 GB Add-on Approximately $10 per month.
      • 100 GB Add-on Approximately $500 per month.
      • "Overage" pricing (often cheaper per GB for exceeding a large block) may also be available.
  • Best For
    • Businesses with a large volume of historical data, extensive transaction history, or numerous attachments (e.g., PDFs, images) stored directly within Business Central.
    • Organizations that anticipate significant data growth over time.
  • Capabilities
    • Simply increases the total storage limit for your Business Central tenant.
    • Allows you to continue operating without issues if your data grows beyond the included capacity.

Dynamics 365 Business Central External Accountant

Dynamics 365 Business Central External Accountant

  • Pricing Complimentary / $0 (Cannot be purchased separately)
  • Quantity Up to 3 External Accountant licenses are included with any Business Central Essentials or Premium subscription.
  • Best For
    • Organizations that work with an external accounting firm, bookkeeper, or tax advisor who is not an employee of the company.
    • Allowing external financial professionals to access your Business Central data for reporting, reconciliation, tax preparation, or audit purposes.
  • Capabilities
    • These licenses provide full access to financial management capabilities, like an Essentials user, but they are limited to the specific tasks an external accountant would perform.
    • They can read and modify all financial data, generate financial reports, and perform typical accounting functions.
    • The primary restriction is that these licenses are specifically for external users and cannot be used by internal employees.
  • Note - This is a fantastic value-add from Microsoft, as it allows seamless collaboration with external accountants without incurring additional per-user license costs.